HF 848

CCR--HF0848 - 89th Legislature (2015 - 2016)

Posted on 05/22/2016 11:13 a.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 848 1.2A bill for an act 1.3relating to financing and operation of state and local government; making 1.4changes to individual income, corporate franchise, property, sales and use, 1.5excise, estate, mineral, tobacco, gambling, special, local, and other taxes and 1.6tax-related provisions; providing for long-term care savings plans; modifying 1.7business income tax credits; modifying income tax subtractions and additions; 1.8modifying the definition of resident for income tax purposes; modifying 1.9the dependent care credit, education credit, and research credit; providing 1.10credits for MNsure premium payments, attaining a master's degree, student 1.11loan payments, college savings plans, and job training centers; modifying 1.12reciprocity provisions; providing an additional personal and dependent 1.13exemption; allowing a reverse referendum for property tax levies under certain 1.14circumstances; modifying dates for local referenda related to spending; changing 1.15proposed levy certification dates for special taxing districts; modifying general 1.16property tax provisions; providing for joint county and township assessment 1.17agreements; modifying the definition of agricultural homestead; modifying 1.18property classification definitions; permanently extending the market value 1.19exclusion for surviving spouses of deceased service members and permanently 1.20disabled veterans; modifying provisions for appeals and equalizations courses; 1.21providing a tax credit for overvalued property; modifying and phasing out the 1.22state general levy; modifying proposed levy provisions; modifying due dates 1.23for property taxes; changing withdrawal procedures for the Sustainable Forest 1.24Incentive Program; authorizing valuation exclusion for certain improvements 1.25to homestead and commercial-industrial property; providing an increased estate 1.26tax exemption amount and other estate tax provisions; providing for certain 1.27economic development projects; providing for the Minnesota New Markets Jobs 1.28Act; restricting expenditures and other powers related to certain rail projects; 1.29providing for additional border city zone allocations; modifying general tax 1.30increment financing provisions; modifying provisions for the Destination Medical 1.31Center; modifying general and local sales and use tax provisions; modifying sales 1.32tax definitions and refunds related to petroleum and special fuel, durable medical 1.33equipment, instructional materials, propane tanks, bullion, capital equipment, 1.34and nonprofit groups; providing for a vendor allowance; providing exemptions 1.35for animal shelters, city celebrations, BMX tracks, and certain building and 1.36construction materials; repealing the tax on digital products; providing a separate 1.37rate for certain modular housing; modifying gambling taxes; providing a 1.38definition and rate of tax for vapor products under the tobacco tax; modifying 1.39cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; 1.40modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, 1.41and provisions for transportation purposes; modifying local government aids 1.42and credits; providing for a school building bond agricultural credit; modifying 1.43assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; 2.1creating a county program aid working group; establishing trust fund accounts; 2.2providing trust fund payments to counties; modifying provisions related to 2.3payments in lieu of taxes for natural resources land; repealing the political 2.4contribution refund; making various conforming and technical changes; requiring 2.5reports; appropriating money;amending Minnesota Statutes 2014, sections 2.616A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision 2.72; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, 2.812; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; 2.9126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; 2.10237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision 2.111; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; 2.12273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision 2.132; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, 2.14subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions 2.151, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; 2.16289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by 2.17adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, 2.18subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, 2.19by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; 2.20290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; 2.21290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; 2.22290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision 2.2315, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, 2.24subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, 2.25subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, 2.26subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; 2.27297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions 2.285, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by 2.29adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 2.303; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by 2.31adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; 2.32297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by 2.33adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; 2.34297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision 2.351; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a 2.36subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, 2.37subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 2.38469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding 2.39a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, 2.40subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2.412, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, 2.42as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, 2.43subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; 2.44471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a 2.45subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; 2.46477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, 2.47by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by 2.48adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; 2.49Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; 2.50Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as 2.51amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter 2.52243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366, 2.53article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; 2.54Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 2.556; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law 2.56in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; 2.57275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as 2.58Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections 3.110A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, 3.2subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, 3.352, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, 3.4subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4. 3.5May 22, 2016 3.6The Honorable Kurt L. Daudt 3.7Speaker of the House of Representatives 3.8The Honorable Sandra L. Pappas 3.9President of the Senate 3.10We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the 3.11items in dispute and recommend as follows: 3.12That the Senate recede from its amendments and that H. F. No. 848 be further 3.13amended as follows: 3.14Delete everything after the enacting clause and insert: 3.15"ARTICLE 1 3.16PROPERTY TAX 3.17    Section 1. new text begin [103C.333] COUNTY LEVY AUTHORITY. new text end 3.18 new text begin Notwithstanding any other law to the contrary, a county levying a tax under section new text end 3.19 new text begin 103C.331 shall not include any taxes levied under those authorities in the levy certified new text end 3.20 new text begin under section 275.07, subdivision 1, paragraph (a). A county levying under section new text end 3.21 new text begin 103C.331 shall separately certify that amount, and the auditor shall extend that levy as a new text end 3.22 new text begin special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b). new text end 3.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications made in 2016 and new text end 3.24 new text begin thereafter. new text end 3.25    Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read: 3.26138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 3.27TOWNS. 3.28    The governing body of any home rule charter or statutory city or town may annually 3.29appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 3.30market value, derived from ad valorem taxes on property or other revenues, to be paid to 3.31the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of 3.32historical work and to aid in defraying the expenses of carrying on the historical work in the 3.33county. No city or town may appropriate any funds for the benefit of any historical society 3.34unless the society is affiliated with and approved by the Minnesota Historical Society. 3.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.1    Sec. 3. new text begin [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE new text end 4.2 new text begin ASSOCIATION. new text end 4.3 new text begin A cooperative electric association that has elected to be subject to rate regulation new text end 4.4 new text begin under section 216B.026 is eligible to file with the commission for approval of an new text end 4.5 new text begin adjustment for real and personal property taxes, fees, and permits. new text end 4.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.7    Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision 4.8to read: 4.9     new text begin Subd. 100. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 4.10 new text begin subdivision 9, clause (a), attached machinery, transformers, and other personal property new text end 4.11 new text begin that (1) is part of a natural gas-fired combined heat and power facility, (2) generates new text end 4.12 new text begin electricity and steam for at least partial consumption as part of an industrial use, including new text end 4.13 new text begin corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the new text end 4.14 new text begin requirements of this subdivision, are exempt. new text end 4.15 new text begin (b) At the time of construction, the facility must: new text end 4.16 new text begin (1) be designed to utilize natural gas as a primary fuel; new text end 4.17 new text begin (2) not be owned by a public utility as defined in section 216B.02, subdivision 4; new text end 4.18 new text begin (3) be located within 15 miles of an existing natural gas pipeline and within one mile new text end 4.19 new text begin of an existing electrical transmission substation; and new text end 4.20 new text begin (4) be located outside the metropolitan area as defined in section 473.121, new text end 4.21 new text begin subdivision 2. new text end 4.22 new text begin (c) Construction of the facility must commence after January 1, 2015, and new text end 4.23 new text begin before January 1, 2019. Property eligible for this exemption does not include electric new text end 4.24 new text begin transmission lines and interconnections, or gas pipelines and interconnections, appurtenant new text end 4.25 new text begin to the property or the facility. new text end 4.26 new text begin (d) In lieu of personal property taxes each year, the owner of the combined heat and new text end 4.27 new text begin power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity new text end 4.28 new text begin produced by the facility during the previous calendar year. In addition to the base payment new text end 4.29 new text begin and in lieu of personal property taxes each year, the owner of the combined heat and power new text end 4.30 new text begin facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity new text end 4.31 new text begin produced by the facility during the previous calendar year if, during the previous calendar new text end 4.32 new text begin year, the host township or city had an agreement with a municipal utilities commission new text end 4.33 new text begin to share the cost of acquiring, developing, and marketing land for industrial purposes, new text end 4.34 new text begin and under such agreement both the host township or city and the municipal utilities new text end 4.35 new text begin commission provided funds during the previous calendar year as part of a cost-sharing new text end 5.1 new text begin agreement. The additional payment to be paid by the owner of the combined heat and new text end 5.2 new text begin power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced new text end 5.3 new text begin by the facility or 57 percent of the amount funded by the host township or city during new text end 5.4 new text begin the previous calendar year pursuant to the aforementioned cost-sharing agreement. The new text end 5.5 new text begin payments imposed under this section shall be paid to the county treasurer for the benefit of new text end 5.6 new text begin the host township or city, at the time and in the manner provided for payment of property new text end 5.7 new text begin taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same new text end 5.8 new text begin enforcement, collection, and interest and penalties as delinquent personal property taxes. new text end 5.9 new text begin Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01 new text end 5.10 new text begin to 278.13 apply to the payments imposed under this section, and for purposes of those new text end 5.11 new text begin sections the payments imposed under this section are considered personal property taxes. new text end 5.12 new text begin (e) The owner of the combined heat and power facility shall file a report with the new text end 5.13 new text begin commissioner of revenue annually on or before February 1, detailing the amount of new text end 5.14 new text begin electricity in kilowatt-hours that was produced by the facility and the amount funded by new text end 5.15 new text begin the host township or city in accordance with the cost-sharing agreement described in new text end 5.16 new text begin paragraph (d) during the previous calendar year. The commissioner shall prescribe the new text end 5.17 new text begin form of the report. The report must contain the information required by the commissioner new text end 5.18 new text begin to determine the payments due under this section payable in the current year. If an owner new text end 5.19 new text begin of the facility subject to taxation under this section fails to file the report by the due date, new text end 5.20 new text begin the commissioner of revenue shall determine the payments based upon the nameplate new text end 5.21 new text begin capacity of the system multiplied by a capacity factor of 85 percent. new text end 5.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable beginning in 2017 new text end 5.23 new text begin and thereafter. new text end 5.24    Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision 5.25to read: 5.26     new text begin Subd. 101. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 5.27 new text begin subdivision 9, clause (a), attached machinery and other personal property that is part of an new text end 5.28 new text begin electric generation facility with more than 35 megawatts and less than 40 megawatts of new text end 5.29 new text begin installed capacity and that meets the requirements of this subdivision is exempt from taxes new text end 5.30 new text begin and payments in lieu of taxes. The facility must: new text end 5.31 new text begin (1) be designed to utilize natural gas as a primary fuel; new text end 5.32 new text begin (2) be owned and operated by a municipal power agency as defined in section new text end 5.33 new text begin 453.52, subdivision 8; new text end 5.34 new text begin (3) be located within 800 feet of an existing natural gas pipeline; new text end 6.1 new text begin (4) satisfy a resource deficiency identified in an approved integrated resource plan new text end 6.2 new text begin filed under section 216B.2422; new text end 6.3 new text begin (5) be located outside the metropolitan area as defined under section 473.121, new text end 6.4 new text begin subdivision 2; and new text end 6.5 new text begin (6) have received, by resolution, the approval of the governing bodies of the city new text end 6.6 new text begin and county in which it is located for the exemption of personal property provided by new text end 6.7 new text begin this subdivision. new text end 6.8 new text begin (b) Construction of the facility must have been commenced after January 1, 2015, new text end 6.9 new text begin and before January 1, 2016. Property eligible for this exemption does not include electric new text end 6.10 new text begin transmission lines and interconnections or gas pipelines and interconnections appurtenant new text end 6.11 new text begin to the property or the facility. new text end 6.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2017 and new text end 6.13 new text begin thereafter. new text end 6.14    Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read: 6.15272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS. 6.16    Subdivision 1. Conditions restricting transfer. When a deed or other instrument 6.17conveying a parcel of land is presented to the county auditor for transfer or division under 6.18sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 6.19net tax capacity in the official records and shall not certify the instrument as provided in 6.20section 272.12, if: 6.21(a) The land conveyed is less than a whole parcel of land as charged in the tax lists; 6.22(b) The part conveyed appears within the area of application of municipal new text begin or new text end 6.23 new text begin county new text end subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36, 6.24subdivision 1 ; and 6.25(c) The part conveyed is part of or constitutes a subdivision as defined in section 6.26462.352, subdivision 12 . 6.27    Subd. 2. Conditions allowing transfer. new text begin (a) new text end Notwithstanding the provisions of 6.28subdivision 1, the county auditor may transfer or divide the land and its net tax capacity 6.29and may certify the instrument if the instrument contains a certification by the clerk of 6.30the municipality new text begin or designated county planning official new text end : 6.31(a) new text begin (1) new text end that the municipality's new text begin or county's new text end subdivision regulations do not apply; 6.32(b) new text begin (2) new text end that the subdivision has been approved by the governing body of the 6.33municipality new text begin or county new text end ; or 7.1(c) new text begin (3) new text end that the restrictions on the division of taxes and filing and recording have 7.2been waived by resolution of the governing body of the municipality new text begin or county new text end in the 7.3particular case because compliance would create an unnecessary hardship and failure to 7.4comply would not interfere with the purpose of the regulations. 7.5 new text begin (b) new text end If any of the conditions for certification by the municipality new text begin or county new text end as provided 7.6in this subdivision exist and the municipality new text begin or county new text end does not certify that they exist 7.7within 24 hours after the instrument of conveyance has been presented to the clerk of 7.8the municipality new text begin or designated county planning official new text end , the provisions of subdivision 1 7.9do not apply. 7.10 new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and 7.11any of the conditions for certification by the municipality new text begin or county new text end as provided in 7.12this subdivision exist, the unexecuted instrument must be certified by the clerk of the 7.13municipality new text begin or the designated county planning official new text end . 7.14    Subd. 3. Applicability of restrictions. new text begin (a) new text end This section does not apply to the 7.15exceptions set forth in section 272.12. 7.16 new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose 7.17to be governed by its provisions. A municipality new text begin or county new text end may choose to have this 7.18section apply to the property within its boundaries by filing a certified copy of a resolution 7.19of its governing body making that choice with the auditor and recorder of the county in 7.20which it is located. 7.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.22    Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read: 7.23    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a 7.24portion of the market value of property owned by a veteran and serving as the veteran's 7.25homestead under this section is excluded in determining the property's taxable market 7.26value if the veteran has a service-connected disability of 70 percent or more as certified 7.27by the United States Department of Veterans Affairs. To qualify for exclusion under this 7.28subdivision, the veteran must have been honorably discharged from the United States 7.29armed forces, as indicated by United States Government Form DD214 or other official 7.30military discharge papers. 7.31    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is 7.32excluded, except as provided in clause (2); and 7.33    (2) for a total (100 percent) and permanent disability, $300,000 of market value is 7.34excluded. 8.1    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), 8.2clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 8.3spouse holds the legal or beneficial title to the homestead and permanently resides there, 8.4the exclusion shall carry over to the benefit of the veteran's spouse for the current taxes 8.5payable year and for eight additional taxes payable years or until such time as the spouse 8.6remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first. 8.7Qualification under this paragraph requires an annual application under paragraph (h). 8.8(d) If the spouse of a member of any branch or unit of the United States armed 8.9forces who dies due to a service-connected cause while serving honorably in active 8.10service, as indicated on United States Government Form DD1300 or DD2064, holds 8.11the legal or beneficial title to a homestead and permanently resides there, the spouse is 8.12entitled to the benefit described in paragraph (b), clause (2), for eight taxes payable years, 8.13or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the 8.14property, whichever comes first. 8.15(e) If a veteran meets the disability criteria of paragraph (a) but does not own 8.16property classified as homestead in the state of Minnesota, then the homestead of the 8.17veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran 8.18would otherwise qualify for under paragraph (b). 8.19    (f) In the case of an agricultural homestead, only the portion of the property 8.20consisting of the house and garage and immediately surrounding one acre of land qualifies 8.21for the valuation exclusion under this subdivision. 8.22    (g) A property qualifying for a valuation exclusion under this subdivision is not 8.23eligible for the market value exclusion under subdivision 35, or classification under 8.24subdivision 22, paragraph (b). 8.25    (h) To qualify for a valuation exclusion under this subdivision a property owner 8.26must apply to the assessor by July 1 of each assessment year, except that an annual 8.27reapplication is not required once a property has been accepted for a valuation exclusion 8.28under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and 8.29the property continues to qualify until there is a change in ownership. For an application 8.30received after July 1 of any calendar year, the exclusion shall become effective for the 8.31following assessment year. 8.32(i) A first-time application by a qualifying spouse for the market value exclusion under 8.33paragraph (d) must be made any time within two years of the death of the service member. 8.34(j) For purposes of this subdivision: 8.35(1) "active service" has the meaning given in section 190.05; 8.36(2) "own" means that the person's name is present as an owner on the property deed; 9.1(3) "primary family caregiver" means a person who is approved by the secretary of 9.2the United States Department of Veterans Affairs for assistance as the primary provider 9.3of personal care services for an eligible veteran under the Program of Comprehensive 9.4Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; 9.5and 9.6(4) "veteran" has the meaning given the term in section 197.447. 9.7(k) The purpose of this provision of law providing a level of homestead property tax 9.8relief for gravely disabled veterans, their primary family caregivers, and their surviving 9.9spouses is to help ease the burdens of war for those among our state's citizens who bear 9.10those burdens most heavily. 9.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 9.12    Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read: 9.13    Subdivision 1. Levy amount. The state general levy is levied against 9.14commercial-industrial property and seasonal residential recreational property, as defined 9.15in this section. The state general levy base amount new text begin for commercial-industrial property new text end is 9.16$592,000,000 new text begin $762,664,000 new text end for taxes payable in 2002 new text begin 2017. The state general levy base new text end 9.17 new text begin amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017 new text end . For 9.18taxes payable in subsequent years, the new text begin each new text end levy base amount is increased each year by 9.19multiplying the levy base amount for the prior year by the sum of one plus the rate of 9.20increase, if any, in the implicit price deflator for government consumption expenditures 9.21and gross investment for state and local governments prepared by the Bureau of Economic 9.22Analysts of the United States Department of Commerce for the 12-month period ending 9.23March 31 of the year prior to the year the taxes are payable. The tax under this section is 9.24not treated as a local tax rate under section 469.177 and is not the levy of a governmental 9.25unit under chapters 276A and 473F. 9.26The commissioner shall increase or decrease the preliminary or final rate new text begin rates new text end for a 9.27year as necessary to account for errors and tax base changes that affected a preliminary or 9.28final rate for either of the two preceding years. Adjustments are allowed to the extent that 9.29the necessary information is available to the commissioner at the time the rates for a year 9.30must be certified, and for the following reasons: 9.31(1) an erroneous report of taxable value by a local official; 9.32(2) an erroneous calculation by the commissioner; and 9.33(3) an increase or decrease in taxable value for commercial-industrial or seasonal 9.34residential recreational property reported on the abstracts of tax lists submitted under 10.1section 275.29 that was not reported on the abstracts of assessment submitted under 10.2section 270C.89 for the same year. 10.3The commissioner may, but need not, make adjustments if the total difference in the tax 10.4levied for the year would be less than $100,000. 10.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 10.6    Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read: 10.7    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, 10.8"commercial-industrial tax capacity" means the tax capacity of all taxable property 10.9classified as class 3 or class 5(1) under section 273.13, except for new text begin excluding: (1) the first new text end 10.10 new text begin $100,000 of market value of each parcel of commercial-industrial net tax capacity as new text end 10.11 new text begin defined under section 273.13, subdivision 24, clauses (1) and (2); (2) new text end electric generation 10.12attached machinery under class 3 new text begin ; new text end and new text begin (3) new text end property described in section 473.625. County 10.13commercial-industrial tax capacity amounts are not adjusted for the captured net tax 10.14capacity of a tax increment financing district under section 469.177, subdivision 2, the 10.15net tax capacity of transmission lines deducted from a local government's total net tax 10.16capacity under section 273.425, or fiscal disparities contribution and distribution net tax 10.17capacities under chapter 276A or 473F. new text begin For purposes of this subdivision, the procedures new text end 10.18 new text begin for determining eligibility for tier 1 under section 273.13, subdivision 24, clause (1), new text end 10.19 new text begin shall apply in determining the portion of a property eligible to be considered within the new text end 10.20 new text begin first $100,000 of market value. new text end 10.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 10.22    Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read: 10.23    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The 10.24state general tax must be levied by applying a uniform rate to all commercial-industrial tax 10.25capacity and five percent of the state general tax must be levied by applying a uniform 10.26rate to all seasonal residential recreational tax capacity. On or before October 1 each year, 10.27the commissioner of revenue shall certify the preliminary state general levy rates to each 10.28county auditor that must be used to prepare the notices of proposed property taxes for taxes 10.29payable in the following year. By January 1 of each year, the commissioner shall certify the 10.30final state general levy rate new text begin rates new text end to each county auditor that shall be used in spreading taxes. 10.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 10.32    Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read: 11.1    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 11.2contrary, on or before September 30, each county and each new text begin , new text end home rule charter or statutory 11.3city new text begin , and special taxing district, excluding the Metropolitan Council and the Metropolitan new text end 11.4 new text begin Mosquito Control District, new text end shall certify to the county auditor the proposed property tax 11.5levy for taxes payable in the following year. new text begin The proposed levy certification date for new text end 11.6 new text begin the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The new text end 11.7 new text begin proposed levy certification date for the Metropolitan Mosquito Control District shall be new text end 11.8 new text begin as prescribed in section 473.711. new text end 11.9    (b) Notwithstanding any law or charter to the contrary, on or before September 15, 11.10each town and each special taxing district new text begin , the Metropolitan Council, and the Metropolitan new text end 11.11 new text begin Mosquito Control District new text end shall adopt and certify to the county auditor a proposed property 11.12tax levy for taxes payable in the following year. For towns, the final certified levy shall 11.13also be considered the proposed levy. 11.14    (c) On or before September 30, each school district that has not mutually agreed 11.15with its home county to extend this date shall certify to the county auditor the proposed 11.16property tax levy for taxes payable in the following year. Each school district that has 11.17agreed with its home county to delay the certification of its proposed property tax levy 11.18must certify its proposed property tax levy for the following year no later than October 11.197. The school district shall certify the proposed levy as: 11.20    (1) a specific dollar amount by school district fund, broken down between 11.21voter-approved and non-voter-approved levies and between referendum market value 11.22and tax capacity levies; or 11.23    (2) the maximum levy limitation certified by the commissioner of education 11.24according to section 126C.48, subdivision 1. 11.25    (d) If the board of estimate and taxation or any similar board that establishes 11.26maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 11.27property tax levies for funds under its jurisdiction by charter to the county auditor by the 11.28date specified in paragraph (a), the city shall be deemed to have certified its levies for 11.29those taxing jurisdictions. 11.30    (e) For purposes of this section, "special taxing district" means a special taxing 11.31district as defined in section 275.066. Intermediate school districts that levy a tax 11.32under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 11.33123A.446 , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 11.34also special taxing districts for purposes of this section. 11.35(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 11.36tax levy under this subdivision, the taxing authority shall announce the time and place 12.1of its subsequent regularly scheduled meetings at which the budget and levy will be 12.2discussed and at which the public will be allowed to speak. The time and place of those 12.3meetings must be included in the proceedings or summary of proceedings published in the 12.4official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191. 12.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with proposed levy new text end 12.6 new text begin certifications for taxes payable in 2017. new text end 12.7    Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read: 12.8275.066 SPECIAL TAXING DISTRICTS; DEFINITION. 12.9    For the purposes of property taxation and property tax state aids, the term "special 12.10taxing districts" includes the following entities: 12.11    (1) watershed districts under chapter 103D; 12.12    (2) sanitary districts under sections 442A.01 to 442A.29; 12.13    (3) regional sanitary sewer districts under sections 115.61 to 115.67; 12.14    (4) regional public library districts under section 134.201; 12.15    (5) park districts under chapter 398; 12.16    (6) regional railroad authorities under chapter 398A; 12.17    (7) hospital districts under sections 447.31 to 447.38; 12.18    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15; 12.19    (9) Duluth Transit Authority under sections 458A.21 to 458A.37; 12.20    (10) regional development commissions under sections 462.381 to 462.398; 12.21    (11) housing and redevelopment authorities under sections 469.001 to 469.047; 12.22    (12) port authorities under sections 469.048 to 469.068; 12.23    (13) economic development authorities under sections 469.090 to 469.1081; 12.24    (14) Metropolitan Council under sections 473.123 to 473.549; 12.25    (15) Metropolitan Airports Commission under sections 473.601 to 473.679; 12.26    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716; 12.27    (17) Morrison County Rural Development Financing Authority under Laws 1982, 12.28chapter 437, section 1; 12.29    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6; 12.30    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 12.31sections 1 to 6; 12.32    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 12.335, section 39; 13.1    (21) Middle Mississippi River Watershed Management Organization under sections 13.2103B.211 and 103B.241; 13.3    (22) emergency medical services special taxing districts under section 144F.01; 13.4    (23) a county levying under the authority of section 103B.241, 103B.245, or 13.5103B.251 new text begin , or 103C.331 new text end ; 13.6    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 13.7under Laws 2003, First Special Session chapter 21, article 4, section 12; 13.8    (25) an airport authority created under section 360.0426; and 13.9    (26) any other political subdivision of the state of Minnesota, excluding counties, 13.10school districts, cities, and towns, that has the power to adopt and certify a property tax 13.11levy to the county auditor, as determined by the commissioner of revenue. 13.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2017 and new text end 13.13 new text begin thereafter. new text end 13.14    Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read: 13.15    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), 13.16the taxes voted by cities, counties, school districts, and special districts shall be certified 13.17by the proper authorities to the county auditor on or before five working days after 13.18December 20 in each year. A town must certify the levy adopted by the town board to 13.19the county auditor by September 15 each year. If the town board modifies the levy at a 13.20special town meeting after September 15, the town board must recertify its levy to the 13.21county auditor on or before five working days after December 20. If a city, town, county, 13.22school district, or special district fails to certify its levy by that date, its levy shall be the 13.23amount levied by it for the preceding year. 13.24(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 13.25103B.251 new text begin , and 103C.331 new text end shall be separately certified by the county to the county auditor 13.26on or before five working days after December 20 in each year. The taxes certified 13.27shall not be reduced by the county auditor by the aid received under section 273.1398, 13.28subdivision 3 . If a county fails to certify its levy by that date, its levy shall be the amount 13.29levied by it for the preceding year. 13.30(ii) For purposes of the proposed property tax notice under section 275.065 and 13.31the property tax statement under section 276.04, for the first year in which the county 13.32implements the provisions of this paragraph, the county auditor shall reduce the county's 13.33levy for the preceding year to reflect any amount levied for water management purposes 13.34under clause (i) included in the county's levy. 14.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2017 and new text end 14.2 new text begin thereafter. new text end 14.3    Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read: 14.4    Subdivision 1. Generally. As soon as practical after the settlement day determined 14.5in section 276.09, the county treasurer shall pay to the treasurer of a town, city, school 14.6district, or special district, on the warrant of the county auditor, all receipts of taxes levied 14.7by the taxing district and deliver up all orders and other evidences of indebtedness of 14.8the taxing district, taking triplicate receipts for them. The treasurer shall file one of the 14.9receipts with the county auditor, and shall return one by mail on the day of its receipt to 14.10the clerk of the town, city, school district, or special district to which payment was made. 14.11The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing 14.12district, to the extent practicable, the county treasurer shall make partial payments of 14.13amounts collected periodically in advance of the next settlement and distribution. A 14.14statement prepared by the county treasurer must accompany each payment. It must state 14.15the years for which taxes included in the payment were collected and, for each year, the 14.16amount of the taxes and any penalties on the tax. Upon written request of a taxing district, 14.17except school districts, the county treasurer shall pay at least 70 percent of the estimated 14.18collection within 30 days after the settlement date determined in section 276.09. Within 14.19seven new text begin eight new text end business days after the due date, or 28 calendar days after the postmark date 14.20on the envelopes containing real or personal property tax statements, whichever is latest, 14.21the county treasurer shall pay to the treasurer of the school districts 50 percent of the 14.22estimated collections arising from taxes levied by and belonging to the school district, 14.23unless the school district elects to receive 50 percent of the estimated collections arising 14.24from taxes levied by and belonging to the school district after making a proportionate 14.25reduction to reflect any loss in collections as the result of any delay in mailing tax 14.26statements. In that case, 50 percent of those adjusted, estimated collections shall be paid 14.27by the county treasurer to the treasurer of the school district within seven business days of 14.28the due date. The remaining 50 percent of the estimated collections must be paid to the 14.29treasurer of the school district within the next seven business days of the later of the dates 14.30in the preceding sentence, unless the school district elects to receive the remainder of its 14.31estimated collections after a proportionate reduction has been made to reflect any loss in 14.32collections as the result of any delay in mailing tax statements. In that case, the remaining 14.3350 percent of those adjusted, estimated collections shall be paid by the county treasurer to 14.34the treasurer of the school district within 14 days of the due date. The treasurer shall pay 14.35the balance of the amounts collected to a municipal corporation or other body within 60 15.1days after the settlement date determined in section 276.09. After 45 days interest at an 15.2annual rate of eight percent accrues and must be paid to the taxing district. Interest must 15.3be paid upon appropriation from the general revenue fund of the county. If not paid, it 15.4may be recovered by the taxing district, in a civil action. 15.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2017 new text end 15.6 new text begin and thereafter. new text end 15.7    Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read: 15.8276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT. 15.9Within seven new text begin eight new text end business days after October 15, the county treasurer shall pay to 15.10the school districts 50 percent of the estimated collections arising from taxes levied by 15.11and belonging to the school district from the settlement day determined in section 276.09 15.12to October 20. The remaining 50 percent of the estimated tax collections must be paid 15.13to the school district within the next seven business days. Within ten new text begin 11 new text end business days 15.14after November 15, the county treasurer shall pay to the school district 100 percent of the 15.15estimated collections arising from taxes levied by and belonging to the school districts 15.16from October 20 to November 20. 15.17Within ten new text begin 11 new text end business days after November 15, the county treasurer shall pay to 15.18each taxing district, except any school district, 100 percent of the estimated collections 15.19arising from taxes levied by and belonging to each taxing district from the settlement day 15.20determined in section 276.09 to November 20. 15.21On or before January 5, the county treasurer shall make full settlement with the 15.22county auditor of all receipts collected from the settlement day determined in section 15.23276.09 to December 31. After subtracting any tax distributions that have been made to 15.24the taxing districts in October and November, the treasurer shall pay to each of the taxing 15.25districts on or before January 25, the balance of the tax amounts collected on behalf of 15.26each taxing district. Interest accrues at an annual rate of eight percent and must be paid to 15.27the taxing district if this final settlement amount is not paid by January 25. Interest must 15.28be paid upon appropriation from the general revenue fund of the county. If not paid, it 15.29may be recovered by the taxing district in a civil action. 15.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2017 new text end 15.31 new text begin and thereafter. new text end 15.32    Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read: 15.33278.12 REFUNDS OF OVERPAYMENT. 16.1If upon final determination the petitioner has paid more than the amount so 16.2determined to be due, judgment shall be entered in favor of the petitioner for such excess, 16.3and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a 16.4warrant upon the county treasurer for the payment thereof; provided that, with the consent 16.5of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the 16.6petitioner a certificate stating the amount of such judgment, which amount may be used 16.7to apply upon any taxes due or to become due new text begin over a prescribed period of years new text end for the 16.8taxing district or districts whose taxes or assessments are reduced, or their successors in 16.9the event of a reorganization or reincorporation of any such taxing district. In the event the 16.10auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged 16.11to the state and other taxing districts in proportion to the amount of their respective taxes 16.12included in the levy and deduct the same in the subsequent distribution of any tax proceeds 16.13to the state or such taxing districts, and upon receiving any such certificate in payment of 16.14other taxes, the amount thereof shall be distributed to the state and other taxing districts 16.15in proportion to the amount of their respective taxes included in the levy; provided that 16.16if in the judgment the levy of one or more of the districts be found to be illegal, to the 16.17extent that the tax so levied is reduced on account of the illegal levies, the amount to be 16.18charged back shall be charged to the districts and the amount thereof deducted from 16.19any distributions thereafter made to them. 16.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds for overpayment of taxes new text end 16.21 new text begin payable in 2016 and thereafter. new text end 16.22    Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read: 16.23    Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed 16.24tax as provided in this section. As used in this section, "mistakenly billed tax" means an 16.25amount of property tax that was billed, to the extent the amount billed exceeds the accurate 16.26tax amount due to a misclassification of the owner's property under section or a 16.27mathematical error in the calculation of the tax on the owner's property, together with 16.28any penalty or interest paid on that amount. This section applies only to taxes payable 16.29in the current year and the two prior years. As used in this section, "mathematical error" 16.30is limited to an error in: 16.31(1) converting the market value of a property to tax capacity or to a referendum 16.32market value; 16.33(2) application of the tax rate as computed by the auditor under sections 275.08, 16.34subdivisions 1b, 1c, and 1d ; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 16.35and 5, to the property's tax capacity or referendum market value; or 17.1(3) calculation of or eligibility for a credit. 17.2The remedy provided under this section does not apply to a misclassification under 17.3section that is due to the failure of the property owner to apply for the correct 17.4classification as required by law. 17.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective based on property taxes payable in new text end 17.6 new text begin 2017 and thereafter. new text end 17.7    Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read: 17.8    Subdivision 1. Due dates; penalties. Except as provided in subdivisions 3 to 5, 17.9on May 16 or 21 days after the postmark date on the envelope containing the property 17.10tax statement, whichever is later, a penalty accrues and thereafter is charged upon all 17.11unpaid taxes on real estate on the current lists in the hands of the county treasurer. The 17.12 new text begin (a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax new text end 17.13 new text begin due must be paid prior to May 16, and the remaining one-half must be paid prior to the new text end 17.14 new text begin following October 16. If either tax amount is unpaid as of its due date, a new text end penalty is 17.15 new text begin imposed new text end at a rate of two percent on homestead property until May 31 and four new text begin percent new text end 17.16 new text begin on nonhomestead property. If complete payment has not been made by the first day of new text end 17.17 new text begin the month following either due date, an additional penalty of two new text end percent on June 1. The 17.18penalty on nonhomestead property is at a rate of four percent until May 31 new text begin homestead new text end 17.19 new text begin property new text end and eight new text begin four new text end percent on June 1. This penalty does not accrue until June 1 of 17.20each year, or 21 days after the postmark date on the envelope containing the property 17.21tax statements, whichever is later, on commercial use real property used for seasonal 17.22residential recreational purposes and classified as class 1c or 4c, and on other commercial 17.23use real property classified as class 3a, provided that over 60 percent of the gross income 17.24earned by the enterprise on the class 3a property is earned during the months of May, 17.25June, July, and August. In order for the first half of the tax due on class 3a property to be 17.26paid after May 15 and before June 1, or 21 days after the postmark date on the envelope 17.27containing the property tax statement, whichever is later, without penalty, the owner of 17.28the property must attach an affidavit to the payment attesting to compliance with the 17.29income provision of this subdivision new text begin nonhomestead property is imposed new text end . Thereafter, 17.30for both homestead and nonhomestead property, on the first day of each new text begin subsequent new text end 17.31month beginning July 1, up to and including October 1 following new text begin through December new text end , an 17.32additional penalty of one percent for each month accrues and is charged on all such unpaid 17.33taxes provided that if the due date was extended beyond May 15 as the result of any delay 17.34in mailing property tax statements no additional penalty shall accrue if the tax is paid by 17.35the extended due date. If the tax is not paid by the extended due date, then all penalties 18.1that would have accrued if the due date had been May 15 shall be charged. When the taxes 18.2against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 18.321 days after the postmark date on the envelope containing the property tax statement, 18.4whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be 18.5paid at any time prior to October 16 following, without penalty; but, if not so paid, then 18.6a penalty of two percent accrues thereon for homestead property and a penalty of four 18.7percent on nonhomestead property. Thereafter, for homestead property, on the first day of 18.8November an additional penalty of four percent accrues and on the first day of December 18.9following, an additional penalty of two percent accrues and is charged on all such unpaid 18.10taxes. Thereafter, for nonhomestead property, on the first day of November and December 18.11following, an additional penalty of four percent for each month accrues and is charged on 18.12all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days 18.13after the postmark date on the envelope containing the property tax statement, whichever 18.14is later, the same may be paid at any time prior to October 16, with accrued penalties to the 18.15date of payment added, and thereupon no penalty attaches to the remaining one-half until 18.16October 16 following new text begin the penalty must not exceed eight percent in the case of homestead new text end 18.17 new text begin property, or 12 percent in the case of nonhomestead property new text end . 18.18 new text begin (b) If the property tax statement was not postmarked prior to April 25, the first new text end 18.19 new text begin half payment due date in paragraph (a) shall be 21 days from the postmark date of the new text end 18.20 new text begin property tax statement, and all penalties referenced in paragraph (a) shall be determined new text end 18.21 new text begin with regard to the later due date. new text end 18.22 new text begin (c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties new text end 18.23 new text begin as specified in paragraph (a) or (b) for the first half payment shall apply to the entire new text end 18.24 new text begin amount of the tax due. new text end 18.25 new text begin (d) For commercial use real property used for seasonal residential recreational new text end 18.26 new text begin purposes and classified as class 1c or 4c, and on other commercial use real property new text end 18.27 new text begin classified as class 3a, provided that over 60 percent of the gross income earned by the new text end 18.28 new text begin enterprise on the class 3a property is earned during the months of May, June, July, and new text end 18.29 new text begin August, penalty does not accrue until June 1 of each year. For a class 3a property to new text end 18.30 new text begin qualify for the later due date, the owner of the property must attach an affidavit to the new text end 18.31 new text begin payment attesting to compliance with the income requirements of this paragraph. new text end 18.32     new text begin (e) new text end This section applies to payment of personal property taxes assessed against 18.33improvements to leased property, except as provided by section 277.01, subdivision 3. 18.34     new text begin (f) new text end A county may provide by resolution that in the case of a property owner that has 18.35multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 18.36installments as provided in this subdivision. 19.1     new text begin (g) new text end The county treasurer may accept payments of more or less than the exact amount 19.2of a tax installment due. Payments must be applied first to the oldest installment that is due 19.3but which has not been fully paid. If the accepted payment is less than the amount due, 19.4payments must be applied first to the penalty accrued for the year or the installment being 19.5paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 19.6payment required as a condition for filing an appeal under section 278.03 or any other law, 19.7nor does it affect the order of payment of delinquent taxes under section 280.39. 19.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 19.9    Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read: 19.10    Subd. 2. Abatement of penalty. new text begin (a) new text end The county board may, with the concurrence 19.11of the county treasurer, delegate to the county treasurer the power to abate the penalty 19.12provided for late payment of taxes in the current year. Notwithstanding section 270C.86, 19.13if any county board so elects, the county treasurer may abate the penalty on finding that 19.14the imposition of the penalty would be unjust and unreasonable. 19.15 new text begin (b) The county treasurer shall abate the penalty provided for late payment of taxes in new text end 19.16 new text begin the current year if the property tax payment is delivered by mail to the county treasurer new text end 19.17 new text begin and the envelope containing the payment is postmarked by the United States Postal new text end 19.18 new text begin Service within one business day of the due date prescribed under this section, but only if new text end 19.19 new text begin the property owner requesting the abatement has not previously received an abatement new text end 19.20 new text begin of penalty for late payment of tax under this paragraph. new text end 19.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2017 new text end 19.22 new text begin and thereafter. new text end 19.23    Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read: 19.24    Subd. 3. Agricultural property. (a) In the case of class 1b agricultural homestead, 19.25class 2a agricultural homestead property, and class 2a agricultural nonhomestead property, 19.26no penalties shall attach to the second one-half property tax payment as provided in this 19.27section if paid by November 15. Thereafter for class 1b agricultural homestead and class 19.282a homestead property, on November 16 following, a penalty of six percent shall accrue 19.29and be charged on all such unpaid taxes and on December 1 following, an additional two 19.30percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural 19.31nonhomestead property, on November 16 following, a penalty of eight percent shall accrue 19.32and be charged on all such unpaid taxes and on December 1 following, an additional four 20.1percent shall be charged on all such unpaid taxes new text begin , penalties shall attach as provided in new text end 20.2 new text begin subdivision 1 new text end . 20.3If the owner of class 1b agricultural homestead or class 2a agricultural property 20.4receives a consolidated property tax statement that shows only an aggregate of the taxes 20.5and special assessments due on that property and on other property not classified as class 20.61b agricultural homestead or class 2a agricultural property, the aggregate tax and special 20.7assessments shown due on the property by the consolidated statement will be due on 20.8November 15. 20.9(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 20.102b property that was subject to a second-half due date of November 15 for taxes payable 20.11in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess 20.12of those that would apply as if the second-half due date were November 15. 20.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 20.14    Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read: 20.15    Subd. 2. new text begin Rate for new text end composite judgment new text begin ; rate for homestead composite judgment, new text end 20.16 new text begin repurchase of forfeited homestead property, and sale of forfeited property new text end . (a) Except 20.17as provided in paragraph (b), amounts included in composite judgments authorized 20.18by section 279.37, subdivision 1, are subject to interest at the rate calculated under 20.19subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance 20.20of the composite judgment from the time it is confessed until it is paid. The interest rate 20.21established at the time the judgment is confessed is fixed for the duration of that judgment. 20.22 new text begin (b) The following amounts are subject to interest as provided in paragraph (c): new text end 20.23 new text begin (1) amounts included in composite judgments on parcels classified as 1a or 1b new text end 20.24 new text begin and used as the homestead of the owner; new text end 20.25 new text begin (2) amounts in contracts for repurchase of property classified as 1a or 1b at the time new text end 20.26 new text begin of forfeiture or at the time that the repurchase application is approved; and new text end 20.27 new text begin (3) sales of forfeited property pursuant to section 282.01, subdivision 4. new text end 20.28(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, 20.29and used as the homestead of the owner, is subject to interest at the rate provided in 20.30section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative 20.31homestead under section 273.124, subdivision 1, paragraph (c). 20.32 new text begin (c) By October 15 each year the commissioner shall set the interest rate under this new text end 20.33 new text begin subdivision at the greater of five percent or two percent above the prime rate charged new text end 20.34 new text begin by banks during the six-month period ending on September 30 of that year, rounded to new text end 20.35 new text begin the nearest full percent, provided that the rate must not exceed the maximum annum new text end 21.1 new text begin rate specified under section 279.03, subdivision 1a. By November 1 of each year the new text end 21.2 new text begin commissioner must certify the rate to the county auditor. The rate of interest becomes new text end 21.3 new text begin effective on January 1 of the immediately succeeding year. The commissioner's new text end 21.4 new text begin determination under this subdivision is not a rule subject to the Administrative Procedure new text end 21.5 new text begin Act in chapter 14, including section 14.386. new text end 21.6 new text begin (d) For the purposes of this subdivision, "prime rate charged by banks" means the new text end 21.7 new text begin average predominant prime rate quoted by commercial banks to large businesses, as new text end 21.8 new text begin determined by the Board of Governors of the Federal Reserve System. new text end 21.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for composite judgments, repurchase new text end 21.10 new text begin contracts, and sales of forfeited property occurring after January 1, 2017. new text end 21.11    Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read: 21.12    Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to 21.13whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 21.14make and file with the county auditor of the county in which the parcel is located a written 21.15offer to pay the current taxes each year before they become delinquent, or to contest 21.16the taxes under chapter 278 and agree to confess judgment for the amount provided, as 21.17determined by the county auditor. By filing the offer, the owner waives all irregularities 21.18in connection with the tax proceedings affecting the parcel and any defense or objection 21.19which the owner may have to the proceedings, and also waives the requirements of any 21.20notice of default in the payment of any installment or interest to become due pursuant to 21.21the composite judgment to be so entered. Unless the property is subject to subdivision 1a, 21.22with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, 21.23costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the 21.24time the confession of judgment is entered. In the offer, the owner shall agree to pay the 21.25balance in nine equal installments, with interest as provided in section 279.03, payable 21.26annually on installments remaining unpaid from time to time, on or before December 31 21.27of each year following the year in which judgment was confessed. 21.28(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), 21.29each year the commissioner shall set the interest rate for offers made under paragraph (a) 21.30at the greater of five percent or two percent above the prime rate charged by banks during 21.31the six-month period ending on September 30 of that year, rounded to the nearest full 21.32percent, provided that the rate must not exceed the maximum annum rate specified under 21.33section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the 21.34immediately succeeding year. The commissioner's determination under this subdivision is 21.35not a rule subject to the Administrative Procedure Act in chapter 14, including section 22.1. If a default occurs in the payments under any confessed judgment entered under 22.2this paragraph, the taxes and penalties due are subject to the interest rate specified in section 22.3. new text begin Amounts entered in judgment bear interest at the rate provided in section 279.03, new text end 22.4 new text begin subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of new text end 22.5 new text begin the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply. new text end 22.6 new text begin A parcel that is classified as relative homestead under section 273.124, subdivision 1, new text end 22.7 new text begin paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a. new text end 22.8 new text begin (c) Interest shall commence with the date the judgment is entered. During each new text end 22.9 new text begin calendar year, interest shall accrue on the unpaid balance of the composite judgment new text end 22.10 new text begin from the time it is confessed until it is paid. The interest rate established at the time the new text end 22.11 new text begin judgment is confessed is fixed for the duration of that judgment. new text end 22.12 new text begin (d) If a default occurs in the payments under any confessed judgment, the taxes and new text end 22.13 new text begin penalties due are subject to the interest rate specified in section 279.03, subdivision 1a, new text end 22.14 new text begin regardless of the classification of the parcel. new text end For the purposes of this subdivision: 22.15(1) the term "prime rate charged by banks" means the average predominant prime 22.16rate quoted by commercial banks to large businesses, as determined by the Board of 22.17Governors of the Federal Reserve System; and 22.18(2) "default" means the cancellation of the confession of judgment due to 22.19nonpayment of the current year tax or failure to make any installment payment required by 22.20this confessed judgment within 60 days from the date on which payment was due. 22.21(c) The interest rate established at the time judgment is confessed is fixed for the 22.22duration of the judgment. By October 15 of each year, the commissioner of revenue must 22.23determine the rate of interest as provided under paragraph (b) and, by November 1 of each 22.24year, must certify the rate to the county auditor. 22.25(d) new text begin (e) new text end A qualified property owner eligible to enter into a second confession of 22.26judgment may do so at the interest rate provided in paragraph (b). 22.27(e) Repurchase agreements or contracts for repurchase for properties being 22.28repurchased under section are not eligible to receive the interest rate under 22.29paragraph (b). 22.30(f) The offer must be substantially as follows: 22.31"To the court administrator of the district court of ........... county, I, ....................., 22.32am the owner of the following described parcel of real estate located in .................... 22.33county, Minnesota: 22.34.............................. Upon that real estate there are delinquent taxes for the year ........., and 22.35prior years, as follows: (here insert year of delinquency and the total amount of delinquent 22.36taxes, costs, interest, and penalty). By signing this document I offer to confess judgment 23.1in the sum of $...... and waive all irregularities in the tax proceedings affecting these 23.2taxes and any defense or objection which I may have to them, and direct judgment to be 23.3entered for the amount stated above, minus the sum of $............, to be paid with this 23.4document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and 23.5interest stated above. I agree to pay the balance of the judgment in nine or four equal, 23.6annual installments, with interest as provided in section 279.03, payable annually, on the 23.7installments remaining unpaid. I agree to pay the installments and interest on or before 23.8December 31 of each year following the year in which this judgment is confessed and 23.9current taxes each year before they become delinquent, or within 30 days after the entry of 23.10final judgment in proceedings to contest the taxes under chapter 278. 23.11Dated .............., ......." 23.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and repurchases occurring new text end 23.13 new text begin after January 1, 2017. new text end 23.14    Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read: 23.15    Subd. 4. Sale: method, requirements, effects. The sale authorized under 23.16subdivision 3 must be conducted by the county auditor at the county seat of the county in 23.17which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may 23.18be conducted in any county facility within the county. The sale must not be for less than 23.19the appraised value except as provided in subdivision 7a. The parcels must be sold for 23.20cash only, unless the county board of the county has adopted a resolution providing for 23.21their sale on terms, in which event the resolution controls with respect to the sale. When 23.22the sale is made on terms other than for cash only (1) a payment of at least ten percent 23.23of the purchase price must be made at the time of purchase, and the balance must be 23.24paid in no more than ten equal annual installments, or (2) the payments must be made 23.25in accordance with county board policy, but in no event may the board require more 23.26than 12 installments annually, and the contract term must not be for more than ten years. 23.27Standing timber or timber products must not be removed from these lands until an amount 23.28equal to the appraised value of all standing timber or timber products on the lands at the 23.29time of purchase has been paid by the purchaser. If a parcel of land bearing standing 23.30timber or timber products is sold at public auction for more than the appraised value, the 23.31amount bid in excess of the appraised value must be allocated between the land and the 23.32timber in proportion to their respective appraised values. In that case, standing timber or 23.33timber products must not be removed from the land until the amount of the excess bid 23.34allocated to timber or timber products has been paid in addition to the appraised value of 24.1the land. The purchaser is entitled to immediate possession, subject to the provisions of 24.2any existing valid lease made in behalf of the state. 24.3For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 24.4is subject to interest at the rate determined pursuant to section . The unpaid balance 24.5of the purchase price for sales occurring after December 31, 1990, is subject to interest 24.6at the rate determined new text begin provided new text end in section 279.03, subdivision 1a new text begin 2, paragraph (c) new text end . The 24.7interest rate is subject to change each year on the unpaid balance in the manner provided 24.8for rate changes in section or 279.03, subdivision 1a, whichever, is applicable. 24.9Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable 24.10at the rate applicable to the sale at the time that the sale occurred. 24.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales occurring after January new text end 24.12 new text begin 1, 2017. new text end 24.13    Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read: 24.14    Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved 24.15by the county board new text begin for property classified as 1a or 1b and used as the homestead of the new text end 24.16 new text begin owner at the time of forfeiture or at the time that the repurchase application is approved new text end is 24.17subject to interest at the rate determined in section 279.03, subdivision 1a new text begin 2 new text end . The interest 24.18rate is subject to change each year on the unpaid balance in the manner provided for rate 24.19changes in section 279.03, subdivision 1a. new text begin The unpaid balance on any other repurchase new text end 24.20 new text begin contract approved by the county board is subject to interest at the rate determined in new text end 24.21 new text begin section 279.03, subdivision 1a, which is subject to change each year in the manner new text end 24.22 new text begin provided for in section 279.03, subdivision 1a. new text end 24.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for repurchases occurring after new text end 24.24 new text begin January 1, 2017. new text end 24.25    Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read: 24.26473H.09 EARLY TERMINATION. 24.27     new text begin Subdivision 1. new text end new text begin Public emergency. new text end Termination of an agricultural preserve earlier 24.28than a date derived through application of section 473H.08 may be permitted only in the 24.29event of a public emergency upon petition from the owner or authority to the governor. 24.30The determination of a public emergency shall be by the governor through executive order 24.31pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the 24.32preserve, the reasons requiring the action and the date of termination. 25.1     new text begin Subd. 2. new text end new text begin Death of owner. new text end new text begin (a) Within 180 days of the death of an owner, an owner's new text end 25.2 new text begin spouse, or other qualifying person, the surviving owner may elect to terminate the new text end 25.3 new text begin agricultural preserve and the covenant allowing the land to be enrolled as an agricultural new text end 25.4 new text begin preserve by notifying the authority on a form provided by the commissioner of agriculture. new text end 25.5 new text begin Termination of a covenant under this subdivision must be executed and acknowledged in new text end 25.6 new text begin the manner required by law to execute and acknowledge a deed. new text end 25.7 new text begin (b) For purposes of this subdivision, the following definitions apply: new text end 25.8 new text begin (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the new text end 25.9 new text begin decedent was the settlor or a beneficiary of, or member of an entity permitted to own new text end 25.10 new text begin agricultural land and engage in farming under section 500.24 that owned the agricultural new text end 25.11 new text begin preserve; and new text end 25.12 new text begin (2) "surviving owner" includes the executor of the estate of the decedent, the trustee new text end 25.13 new text begin for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to new text end 25.14 new text begin own farm land under section 500.24 of which the decedent was a partner, shareholder, or new text end 25.15 new text begin member. new text end 25.16 new text begin (c) When an agricultural preserve is terminated under this subdivision, the property new text end 25.17 new text begin is subject to additional taxes in an amount equal to 50 percent of the taxes actually new text end 25.18 new text begin levied against the property for the current taxes payable year. The additional taxes are new text end 25.19 new text begin extended against the property on the tax list for taxes payable in the current year. The new text end 25.20 new text begin additional taxes must be distributed among the jurisdictions levying taxes on the property new text end 25.21 new text begin in proportion to the current year's taxes. new text end 25.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 25.23    Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, 25.24article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, 25.25article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read: 25.26    Sec. 3. TAX; PAYMENT OF EXPENSES. 25.27    (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, 25.28must not be levied at a rate that exceeds the amount authorized to be levied under that 25.29section. The proceeds of the tax may be used for all purposes of the hospital district, 25.30except as provided in paragraph (b). 25.31    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by 25.32the Cook ambulance service and the Orr ambulance service for the purpose of: 25.33    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance 25.34service; 25.35    (2) attached and portable equipment for use in and for the ambulances; and 26.1    (3) parts and replacement parts for maintenance and repair of the ambulances new text begin , and new text end 26.2 new text begin administrative, operation, or salary expenses for the Cook ambulance service and the new text end 26.3 new text begin Orr ambulance service new text end . 26.4The money may not be used for administrative, operation, or salary expenses. 26.5    (c) The part of the levy referred to in paragraph (b) must be administered by the 26.6Cook Hospital and passed on in equal amounts directly to the Cook area ambulance 26.7service board and the city of Orr to be used for the purposes in paragraph (b). 26.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 26.9    Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read: 26.10    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY. 26.11    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the 26.12Carlton county board of commissioners may levy in and for the unorganized township of 26.13Sawyer an amount up to $1,500 new text begin $2,000 new text end annually for recreational purposes, beginning with 26.14taxes payable in 1997 and ending with taxes payable in 2006. 26.15    Subd. 2. Effective date. This section is effective June 1, 1996, without local 26.16approval. 26.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the Carlton County new text end 26.18 new text begin Board of Commissioners and its chief clerical officer comply with section 645.021, new text end 26.19 new text begin subdivisions 2 and 3, and applies to taxes payable in 2017. new text end 26.20    Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by 26.21Laws 2013, chapter 143, article 4, section 36, is amended to read: 26.22    Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by 26.23resolution of each of their governing bodies, may establish the Cloquet Area Fire and 26.24Ambulance new text begin Special new text end Taxing District for the purpose of providing fire or ambulance 26.25services, or both, throughout the district. In this section, "municipality" means home rule 26.26charter and statutory cities, towns, and Indian tribes. The district may exercise all the 26.27powers relating to fire and ambulance services of the municipalities that receive fire or 26.28ambulance services, or both, from the district. Upon application, any other municipality 26.29may join the district with the agreement of the municipalities that comprise the district at 26.30the time of its application to join. 26.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 26.32 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 26.33 new text begin governing body of each. new text end 27.1    Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read: 27.2    Subd. 2. Board. The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District 27.3Board is governed by a board made up initially of one or more elected officials of the 27.4governing body of each participating municipality in the proportions set out in the 27.5establishing resolution, subject to change as provided in the district's charter, if any, or 27.6in the district's bylaws. Each municipality's representatives serve at the pleasure of that 27.7municipality's governing body. 27.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 27.9 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 27.10 new text begin governing body of each. new text end 27.11    Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by 27.12Laws 2013, chapter 143, article 4, section 37, is amended to read: 27.13    Subd. 3. Tax. new text begin (a) new text end The district board may impose a property tax on taxable property 27.14as provided in this subdivision new text begin to pay the costs of providing fire or ambulance services, new text end 27.15 new text begin or both, throughout the district new text end . The board shall annually determine the total amount of 27.16the levy that is attributable to the cost of providing fire services and the cost of providing 27.17ambulance services within the primary service area. For those municipalities that only 27.18receive ambulance services, the costs for the provision of ambulance services shall 27.19be levied against taxable property within those municipalities at a rate necessary not to 27.20exceed 0.019 percent of the estimated market value. For those municipalities that receive 27.21both fire and ambulance services, the tax shall be imposed at a rate that does not exceed 27.220.2835 percent of estimated market value. 27.23 new text begin (b) new text end When a member municipality opts to receive fire service from the district or 27.24an additional municipality becomes a member of the district, the cost of providing fire 27.25services to that community shall be determined by the board and added to the maximum 27.26levy amount. 27.27 new text begin (c) new text end Each county auditor of a county that contains a municipality subject to the tax 27.28under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing 27.29District. The district may also impose other fees or charges as allowed by law for the 27.30provision of fire and ambulance services. 27.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 27.32 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 27.33 new text begin governing body of each. new text end 28.1    Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read: 28.2    Subd. 4. Public indebtedness. new text begin (a) new text end The district may incur debt in the manner 28.3provided for a municipality by Minnesota Statutes, chapter 475, new text begin and may issue certificates new text end 28.4 new text begin of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, new text end 28.5 new text begin section 412.301, new text end when necessary to accomplish its duties new text begin , except that the district may new text end 28.6 new text begin not incur debt or issue obligations until first obtaining the approval of a majority of the new text end 28.7 new text begin electors voting on the question of issuing the obligation. The debt service for debt used to new text end 28.8 new text begin finance capital costs for ambulance service shall be levied against taxable property within new text end 28.9 new text begin the municipalities in the primary service area. The debt service for debt used to finance new text end 28.10 new text begin capital costs for fire service shall be levied against taxable property within municipalities new text end 28.11 new text begin receiving fire services. The district board shall pledge its full faith and credit and taxing new text end 28.12 new text begin power without limitation as to rate or amount for the payment of the district's debt new text end . 28.13 new text begin (b) For purposes of this subdivision, "municipality" has the definition given in new text end 28.14 new text begin Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph new text end 28.15 new text begin (c). new text end 28.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 28.17 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 28.18 new text begin governing body of each. new text end 28.19    Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read: 28.20    Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district 28.21may be given only in the month of January, with a minimum of twelve months notice of 28.22intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision new text end 28.23 new text begin 3 new text end in the year when the notice is given. new text begin A property tax on taxable property located in a new text end 28.24 new text begin withdrawing municipality that has been levied by the district pursuant to subdivision 4 new text end 28.25 new text begin remains in effect until the obligations outstanding on the date of withdrawal are satisfied, new text end 28.26 new text begin including any property tax levied in connection with refunding such obligations. new text end The 28.27district and its members may new text begin also new text end develop and agree upon new text begin other new text end continuing obligations 28.28after withdrawal of a municipality. 28.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 28.30 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 28.31 new text begin governing body of each. new text end 28.32    Sec. 33. new text begin 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE new text end 28.33 new text begin WAIVER. new text end 29.1 new text begin If a city or town that conducts local board of appeal and equalization meetings new text end 29.2 new text begin certified by February 1, 2016, that it was in compliance with the requirements of new text end 29.3 new text begin Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board new text end 29.4 new text begin who has attended an appeal and equalization course training within the preceding four new text end 29.5 new text begin years attended the local board's meeting for 2016, that local board shall have its powers new text end 29.6 new text begin reinstated for the 2017 assessment by resolution of the governing body of the city or new text end 29.7 new text begin town, and by certifying it is in compliance with the requirements of Minnesota Statutes, new text end 29.8 new text begin section 274.014, subdivision 2. The resolution and certification must be provided to new text end 29.9 new text begin the county assessor by February 1, 2017. new text end 29.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.11    Sec. 34. new text begin TOWN OF TOFTE; MUNICIPAL HOUSING. new text end 29.12 new text begin (a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, new text end 29.13 new text begin chapter 719, article 19, section 27, the town of Tofte may own and operate within its new text end 29.14 new text begin boundary up to 12 units of housing for individuals over 55 years of age or families with new text end 29.15 new text begin one member of the household that is over 55 years of age, or projects that provide housing new text end 29.16 new text begin for individuals or families with incomes not greater than 120 percent of the median new text end 29.17 new text begin family income, as estimated by the United States Department of Housing and Urban new text end 29.18 new text begin Development for the nonmetropolitan county in which the town of Tofte is located. new text end 29.19 new text begin (b) The town of Tofte shall have the powers of a city under Minnesota Statutes, new text end 29.20 new text begin chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001 new text end 29.21 new text begin to 469.047, with respect to this section. Upon the approval of the town board, the town of new text end 29.22 new text begin Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6. new text end 29.23 new text begin (c) Nothing in this section shall limit the power of the Cook County/Grand Marais new text end 29.24 new text begin Joint Economic Development Authority to exercise jurisdiction within the town of Tofte. new text end 29.25 new text begin The authority to undertake new projects under this section shall expire on June 30, 2017. new text end 29.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by new text end 29.27 new text begin the governing body of the town of Tofte with Minnesota Statutes, section 645.021, new text end 29.28 new text begin subdivisions 2 and 3. new text end 29.29    Sec. 35. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL new text end 29.30 new text begin ASSESSMENT. new text end 29.31 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 29.32 new text begin by the city of St. Paul for the primary purpose of providing a stadium for a Major League new text end 29.33 new text begin Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for new text end 30.1 new text begin public, governmental, and municipal purposes, and is exempt from ad valorem taxation by new text end 30.2 new text begin the state or any political subdivision of the state, provided that the properties are subject to new text end 30.3 new text begin special assessments levied by a political subdivision for a local improvement in amounts new text end 30.4 new text begin proportionate to and not exceeding the special benefit received by the properties from the new text end 30.5 new text begin improvement. In determining the special benefit received by the properties, no possible new text end 30.6 new text begin use of any of the properties in any manner different from their intended use for providing a new text end 30.7 new text begin Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota new text end 30.8 new text begin Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a new text end 30.9 new text begin lease or use agreement between the city and another person for uses related to the purposes new text end 30.10 new text begin of the operation of the stadium and related parking facilities is exempt from taxation new text end 30.11 new text begin regardless of the length of the lease or use agreement. This section, insofar as it provides new text end 30.12 new text begin an exemption or special treatment, does not apply to any real property that is leased for new text end 30.13 new text begin residential, business, or commercial development or other purposes different from those new text end 30.14 new text begin necessary to the provision and operation of the stadium. new text end 30.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the St. Paul City new text end 30.16 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 30.17    Sec. 36. new text begin OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN new text end 30.18 new text begin BUILDINGS; ST. LOUIS COUNTY. new text end 30.19     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 30.20 new text begin have the meanings given. new text end 30.21 new text begin (b) "Building PIN" means a parcel identification number that is assigned to a new text end 30.22 new text begin building and does not include the land upon which the building is located; and new text end 30.23 new text begin (c) "Land PIN" means a parcel identification number that is assigned to land upon new text end 30.24 new text begin which a building associated with a building PIN is located. new text end 30.25     new text begin Subd. 2. new text end new text begin Optional cancellation of tax forfeiture for buildings with building PINs. new text end 30.26 new text begin Notwithstanding any law to the contrary, if any building associated with a building PIN new text end 30.27 new text begin and located in St. Louis County forfeits or has forfeited to the state of Minnesota before, new text end 30.28 new text begin on, or after the date of enactment of this section because of nonpayment of delinquent new text end 30.29 new text begin property taxes, special assessments, penalties, interest, or costs, the county auditor of St. new text end 30.30 new text begin Louis County may, with approval from the county board and the commissioner of revenue: new text end 30.31 new text begin (1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating new text end 30.32 new text begin the unpaid property taxes, special assessments, penalties, interest, or costs; and new text end 31.1 new text begin (2) combine the building PIN with its associated land PIN. When this occurs, the new text end 31.2 new text begin land PIN is the only surviving parcel identification number, and includes both the building new text end 31.3 new text begin and the land upon which the building is located. new text end 31.4     new text begin Subd. 3. new text end new text begin Cancellation of tax forfeiture; taxation through date of cancellation. new text end 31.5 new text begin Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels new text end 31.6 new text begin a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, new text end 31.7 new text begin the affected building is not subject to taxation from the date of forfeiture through the new text end 31.8 new text begin date of cancellation. new text end 31.9     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin $1,000,000 in fiscal year 2017 only is appropriated from new text end 31.10 new text begin the general fund to the commissioner of revenue for a grant to St. Louis County that shall new text end 31.11 new text begin be paid on July 1, 2016. The county may only use the grant to remove any building, new text end 31.12 new text begin upon the request of the landowner, after the county has complied with the provisions of new text end 31.13 new text begin subdivision 2. new text end 31.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 31.15    Sec. 37. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT. new text end 31.16     new text begin Subdivision 1. new text end new text begin Abatements authorized. new text end new text begin (a) Notwithstanding Minnesota Statutes, new text end 31.17 new text begin section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may new text end 31.18 new text begin grant an abatement of local property taxes for taxes payable in 2016 provided that: new text end 31.19 new text begin (1) the property is classified as 1c, 3a (excluding utility real and personal property), new text end 31.20 new text begin 4c(1), 4c(10), or 4c(11); new text end 31.21 new text begin (2) on or before February 1, 2017, the taxpayer submits a written application to the new text end 31.22 new text begin county assessor in the county in which abatement is sought; and new text end 31.23 new text begin (3) the taxpayer meets qualification requirements established in subdivision 3. new text end 31.24     new text begin Subd. 2. new text end new text begin Appeals. new text end new text begin An appeal may not be taken to the Tax Court from any order new text end 31.25 new text begin of the county board made pursuant to the exercise of the discretionary authority granted new text end 31.26 new text begin in this section. new text end 31.27     new text begin Subd. 3. new text end new text begin Qualification requirements. new text end new text begin To qualify for abatements under this section, new text end 31.28 new text begin a taxpayer must: new text end 31.29 new text begin (1) be located within one of the following municipalities surrounding Lake Mille new text end 31.30 new text begin Lacs: new text end 31.31 new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township new text end 31.32 new text begin of Roosevelt; new text end 32.1 new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township new text end 32.2 new text begin of Malmo, or township of Lakeside; or new text end 32.3 new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township new text end 32.4 new text begin of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio; new text end 32.5 new text begin (2) document a reduction in gross receipts of five percent or greater between two new text end 32.6 new text begin successive calendar years beginning in 2010 or later; and new text end 32.7 new text begin (3) be a business in one of the following industries, as defined within the North new text end 32.8 new text begin American Industry Classification System: accommodation, restaurants, bars, amusement new text end 32.9 new text begin and recreation, food and beverages retail, sporting goods, miscellaneous retail, general new text end 32.10 new text begin retail, museums, historical sites, health and personal care, gas station, general merchandise, new text end 32.11 new text begin business and professional membership, movies, or nonstore retailer, as determined by the new text end 32.12 new text begin county in consultation with the commissioner of employment and economic development. new text end 32.13     new text begin Subd. 4. new text end new text begin State general levy in relief area. new text end new text begin The counties of Aitkin, Crow Wing, and new text end 32.14 new text begin Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a new text end 32.15 new text begin (excluding utility real and personal property), or 4c(1) that is located in the area described new text end 32.16 new text begin by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a new text end 32.17 new text begin taxpayer whose property taxes are delinquent. new text end 32.18     new text begin Subd. 5. new text end new text begin Certification and transfer of funds. new text end new text begin (a) By April 1, 2017, a county new text end 32.19 new text begin granting a refund as required under subdivision 4 must certify the total amount of state new text end 32.20 new text begin general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1, new text end 32.21 new text begin 2017, Mille Lacs County must transfer an amount equal to the amount certified under this new text end 32.22 new text begin paragraph to the county making the certification. new text end 32.23 new text begin (b) By April 1, 2017, a county that has received an application for an abatement new text end 32.24 new text begin authorized under subdivision 1 must certify to Mille Lacs County the total amount of new text end 32.25 new text begin abatements for which applications have been received and approved. By May 1, 2017, new text end 32.26 new text begin Mille Lacs County must transfer an amount equal to the amount certified under this new text end 32.27 new text begin paragraph to the county making the certification. If the amount appropriated under new text end 32.28 new text begin subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make new text end 32.29 new text begin the transfer required under this paragraph, Mille Lacs County must reduce the amount new text end 32.30 new text begin transferred to each county by a uniform percentage. By June 30, 2017, the county must new text end 32.31 new text begin issue refunds of local property tax amounts to qualified properties, in proportion to the new text end 32.32 new text begin amount received from Mille Lacs County. No refund may be issued to a taxpayer whose new text end 32.33 new text begin property taxes are delinquent. new text end 32.34 new text begin (c) By August 1, 2017, Mille Lacs County must calculate the amount transferred new text end 32.35 new text begin under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the new text end 33.1 new text begin ongoing economic relief distribution amount, if any. This amount must be transferred to new text end 33.2 new text begin the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified new text end 33.3 new text begin by each county under paragraphs (a) and (b). A county receiving a transfer under this new text end 33.4 new text begin paragraph must use the funds received to provide abatements to business properties under new text end 33.5 new text begin economic hardship for taxes payable in 2017, and each year thereafter until a county's new text end 33.6 new text begin share of the ongoing economic relief distribution amount is exhausted. new text end 33.7     new text begin Subd. 6. new text end new text begin Commissioner of revenue; appropriation. new text end new text begin $1,400,000 in fiscal year 2017 new text end 33.8 new text begin is appropriated from the general fund to the commissioner of revenue for transfer to new text end 33.9 new text begin Mille Lacs County to make the transfers required under subdivision 5. This is a onetime new text end 33.10 new text begin appropriation. new text end 33.11     new text begin Subd. 7. new text end new text begin Report to legislature. new text end new text begin The commissioner of revenue must make a new text end 33.12 new text begin written report to the chairs and ranking minority members of the legislative committees new text end 33.13 new text begin with jurisdiction over taxes stating the amount of abatements and refunds given under new text end 33.14 new text begin this section by taxing jurisdictions by February 1, 2018. The counties must provide the new text end 33.15 new text begin commissioner with the information necessary to make the report. new text end 33.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.17    Sec. 38. new text begin REPEALER. new text end 33.18 new text begin Minnesota Statutes 2014, section 272.02, subdivision 23, new text end new text begin is repealed. new text end 33.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2017 and new text end 33.20 new text begin thereafter. new text end 33.21ARTICLE 2 33.22AIDS AND CREDITS 33.23    Section 1. new text begin [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT. new text end 33.24     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin All class 2a, 2b, and 2c property under section 273.13, new text end 33.25 new text begin subdivision 23, other than property consisting of the house, garage, and immediately new text end 33.26 new text begin surrounding one acre of land of an agricultural homestead, is eligible to receive the credit new text end 33.27 new text begin under this section. new text end 33.28     new text begin Subd. 2. new text end new text begin Credit amount. new text end new text begin For each qualifying property, the school building bond new text end 33.29 new text begin agricultural credit is equal to 40 percent of the property's eligible net tax capacity new text end 33.30 new text begin multiplied by the school debt tax rate determined under section 275.08, subdivision 1b. new text end 33.31     new text begin Subd. 3. new text end new text begin Credit reimbursements. new text end new text begin The county auditor shall determine the tax new text end 33.32 new text begin reductions allowed under this section within the county for each taxes payable year and new text end 34.1 new text begin shall certify that amount to the commissioner of revenue as a part of the abstracts of tax new text end 34.2 new text begin lists submitted under section 275.29. Any prior year adjustments shall also be certified on new text end 34.3 new text begin the abstracts of tax lists. The commissioner shall review the certifications for accuracy, new text end 34.4 new text begin and may make such changes as are deemed necessary, or return the certification to the new text end 34.5 new text begin county auditor for correction. The credit under this section must be used to reduce the new text end 34.6 new text begin school district net tax capacity-based property tax as provided in section new text end new text begin . new text end 34.7     new text begin Subd. 4. new text end new text begin Payment. new text end new text begin The commissioner of revenue shall certify the total of the tax new text end 34.8 new text begin reductions granted under this section for each taxes payable year within each school new text end 34.9 new text begin district to the commissioner of education, who shall pay the reimbursement amounts to new text end 34.10 new text begin each school district as provided in section new text end new text begin . new text end 34.11     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to make the payments required by this new text end 34.12 new text begin section is annually appropriated from the general fund to the commissioner of education. new text end 34.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 34.14    Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read: 34.15273.1392 PAYMENT; SCHOOL DISTRICTS. 34.16The amounts of bovine tuberculosis credit reimbursements under section 273.113; 34.17conservation tax credits under section 273.119; disaster or emergency reimbursement 34.18under sections 273.1231 to 273.1235; homestead and agricultural credits under section 34.19 new text begin sections new text end 273.1384 new text begin and 273.1387 new text end ; aids and credits under section 273.1398; enterprise zone 34.20property credit payments under section 469.171; and metropolitan agricultural preserve 34.21reduction under section 473H.10 for school districts, shall be certified to the Department 34.22of Education by the Department of Revenue. The amounts so certified shall be paid 34.23according to section 127A.45, subdivisions 9 and 13. 34.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 34.25    Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read: 34.26273.1393 COMPUTATION OF NET PROPERTY TAXES. 34.27    Notwithstanding any other provisions to the contrary, "net" property taxes are 34.28determined by subtracting the credits in the order listed from the gross tax: 34.29    (1) disaster credit as provided in sections 273.1231 to 273.1235; 34.30    (2) powerline credit as provided in section 273.42; 34.31    (3) agricultural preserves credit as provided in section 473H.10; 34.32    (4) enterprise zone credit as provided in section 469.171; 34.33    (5) disparity reduction credit; 35.1    (6) conservation tax credit as provided in section 273.119; 35.2    (7) new text begin the school bond credit, as provided in section 273.1387; new text end 35.3     new text begin (8) new text end agricultural credit as provided in section 273.1384; 35.4    (8) new text begin (9) new text end taconite homestead credit as provided in section 273.135; 35.5    (9) new text begin (10) new text end supplemental homestead credit as provided in section 273.1391; and 35.6    (10) new text begin (11) new text end the bovine tuberculosis zone credit, as provided in section 273.113. 35.7    The combination of all property tax credits must not exceed the gross tax amount. 35.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 35.9    Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read: 35.10    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 35.11and the county treasurer shall deliver after November 10 and on or before November 24 35.12each year, by first class mail to each taxpayer at the address listed on the county's current 35.13year's assessment roll, a notice of proposed property taxes. Upon written request by 35.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 35.15instead of on paper or by ordinary mail. 35.16    (b) The commissioner of revenue shall prescribe the form of the notice. 35.17    (c) The notice must inform taxpayers that it contains the amount of property taxes 35.18each taxing authority proposes to collect for taxes payable the following year. In the case of 35.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax. 35.20The notice must clearly state for each city that has a population over 500, county, school 35.21district, regional library authority established under section 134.201, and metropolitan 35.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing 35.23authority in which the budget and levy will be discussed and public input allowed, prior to 35.24the final budget and levy determination. The taxing authorities must provide the county 35.25auditor with the information to be included in the notice on or before the time it certifies 35.26its proposed levy under subdivision 1. The public must be allowed to speak at that 35.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It 35.28must provide a telephone number for the taxing authority that taxpayers may call if they 35.29have questions related to the notice and an address where comments will be received by 35.30mail, except that no notice required under this section shall be interpreted as requiring the 35.31printing of a personal telephone number or address as the contact information for a taxing 35.32authority. If a taxing authority does not maintain public offices where telephone calls can 35.33be received by the authority, the authority may inform the county of the lack of a public 35.34telephone number and the county shall not list a telephone number for that taxing authority. 35.35    (d) The notice must state for each parcel: 36.1    (1) the market value of the property as determined under section 273.11, and used 36.2for computing property taxes payable in the following year and for taxes payable in the 36.3current year as each appears in the records of the county assessor on November 1 of the 36.4current year; and, in the case of residential property, whether the property is classified as 36.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 36.6which the market values apply and that the values are final values; 36.7    (2) the items listed below, shown separately by county, city or town, and state 36.8general tax, agricultural homestead credit under section 273.1384, new text begin school building bond new text end 36.9 new text begin agricultural credit under section 273.1387, new text end voter approved school levy, other local school 36.10levy, and the sum of the special taxing districts, and as a total of all taxing authorities: 36.11    (i) the actual tax for taxes payable in the current year; and 36.12    (ii) the proposed tax amount. 36.13    If the county levy under clause (2) includes an amount for a lake improvement 36.14district as defined under sections 103B.501 to 103B.581, the amount attributable for that 36.15purpose must be separately stated from the remaining county levy amount. 36.16    In the case of a town or the state general tax, the final tax shall also be its proposed 36.17tax unless the town changes its levy at a special town meeting under section 365.52. If a 36.18school district has certified under section 126C.17, subdivision 9, that a referendum will 36.19be held in the school district at the November general election, the county auditor must 36.20note next to the school district's proposed amount that a referendum is pending and that, if 36.21approved by the voters, the tax amount may be higher than shown on the notice. In the 36.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 36.23listed separately from the remaining amount of the city's levy. In the case of the city of 36.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 36.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied 36.26under section 134.07 may be listed separately from the remaining amount of the county's 36.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 36.28under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 36.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated 36.30separately and not included in the sum of the special taxing districts; and 36.31    (3) the increase or decrease between the total taxes payable in the current year and 36.32the total proposed taxes, expressed as a percentage. 36.33    For purposes of this section, the amount of the tax on homesteads qualifying under 36.34the senior citizens' property tax deferral program under chapter 290B is the total amount 36.35of property tax before subtraction of the deferred property tax amount. 37.1    (e) The notice must clearly state that the proposed or final taxes do not include 37.2the following: 37.3    (1) special assessments; 37.4    (2) levies approved by the voters after the date the proposed taxes are certified, 37.5including bond referenda and school district levy referenda; 37.6    (3) a levy limit increase approved by the voters by the first Tuesday after the first 37.7Monday in November of the levy year as provided under section 275.73; 37.8    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 37.9occurring after the date the proposed taxes are certified; 37.10    (5) amounts necessary to pay tort judgments against the taxing authority that become 37.11final after the date the proposed taxes are certified; and 37.12    (6) the contamination tax imposed on properties which received market value 37.13reductions for contamination. 37.14    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 37.15the county treasurer to deliver the notice as required in this section does not invalidate the 37.16proposed or final tax levy or the taxes payable pursuant to the tax levy. 37.17    (g) If the notice the taxpayer receives under this section lists the property as 37.18nonhomestead, and satisfactory documentation is provided to the county assessor by the 37.19applicable deadline, and the property qualifies for the homestead classification in that 37.20assessment year, the assessor shall reclassify the property to homestead for taxes payable 37.21in the following year. 37.22    (h) In the case of class 4 residential property used as a residence for lease or rental 37.23periods of 30 days or more, the taxpayer must either: 37.24    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 37.25renter, or lessee; or 37.26    (2) post a copy of the notice in a conspicuous place on the premises of the property. 37.27    The notice must be mailed or posted by the taxpayer by November 27 or within 37.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county 37.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 37.30which the notice must be mailed in order to fulfill the requirements of this paragraph. 37.31    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 37.32districts" means the following taxing districts in the seven-county metropolitan area that 37.33levy a property tax for any of the specified purposes listed below: 37.34    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 37.35473.446 , 473.521, 473.547, or 473.834; 38.1    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 38.2and 38.3    (3) Metropolitan Mosquito Control Commission under section 473.711. 38.4    For purposes of this section, any levies made by the regional rail authorities in the 38.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 38.6398A shall be included with the appropriate county's levy. 38.7    (j) The governing body of a county, city, or school district may, with the consent 38.8of the county board, include supplemental information with the statement of proposed 38.9property taxes about the impact of state aid increases or decreases on property tax 38.10increases or decreases and on the level of services provided in the affected jurisdiction. 38.11This supplemental information may include information for the following year, the current 38.12year, and for as many consecutive preceding years as deemed appropriate by the governing 38.13body of the county, city, or school district. It may include only information regarding: 38.14    (1) the impact of inflation as measured by the implicit price deflator for state and 38.15local government purchases; 38.16    (2) population growth and decline; 38.17    (3) state or federal government action; and 38.18    (4) other financial factors that affect the level of property taxation and local services 38.19that the governing body of the county, city, or school district may deem appropriate to 38.20include. 38.21    The information may be presented using tables, written narrative, and graphic 38.22representations and may contain instruction toward further sources of information or 38.23opportunity for comment. 38.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 38.25    Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read: 38.26    Subd. 2. School district in more than one county new text begin levies; special requirements new text end . new text begin (a) new text end 38.27In school districts lying in more than one county, the clerk shall certify the tax levied to the 38.28auditor of the county in which the administrative offices of the school district are located. 38.29 new text begin (b) The district must identify the portion of the school district levy that is levied for new text end 38.30 new text begin debt service at the time the levy is certified under this section. For the purposes of this new text end 38.31 new text begin paragraph, "levied for debt service" means levies authorized under sections 123B.53, new text end 38.32 new text begin 123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt new text end 38.33 new text begin excess levy reductions under section 475.61, subdivision 4, excluding debt service new text end 38.34 new text begin amounts necessary for repayment of other postemployment benefits under section 475.52, new text end 38.35 new text begin subdivision 6. new text end 39.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 39.2    Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read: 39.3    Subd. 1b. Computation of tax rates. new text begin (a) new text end The amounts certified to be levied against 39.4net tax capacity under section 275.07 by an individual local government unit shall be 39.5divided by the total net tax capacity of all taxable properties within the local government 39.6unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, 39.7multiplied by each property's net tax capacity shall be each property's net tax capacity tax 39.8for that local government unit before reduction by any credits. 39.9 new text begin (b) The auditor must also determine the school debt tax rate for each school district new text end 39.10 new text begin equal to (1) the school debt service levy certified under section 275.07, subdivision 2, new text end 39.11 new text begin divided by (2) the total net tax capacity of all taxable property within the district. new text end 39.12 new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall 39.13be divided by the total referendum market value of all taxable properties within the taxing 39.14district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by 39.15each property's referendum market value shall be each property's new referendum tax 39.16before reduction by any credits. For the purposes of this subdivision, "referendum market 39.17value" means the market value as defined in section 126C.01, subdivision 3. 39.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 39.19    Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read: 39.20    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing 39.21of the tax statements. The commissioner of revenue shall prescribe the form of the property 39.22tax statement and its contents. The tax statement must not state or imply that property tax 39.23credits are paid by the state of Minnesota. The statement must contain a tabulated statement 39.24of the dollar amount due to each taxing authority and the amount of the state tax from the 39.25parcel of real property for which a particular tax statement is prepared. The dollar amounts 39.26attributable to the county, the state tax, the voter approved school tax, the other local school 39.27tax, the township or municipality, and the total of the metropolitan special taxing districts 39.28as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. 39.29The amounts due all other special taxing districts, if any, may be aggregated except that 39.30any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, 39.31Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate 39.32line directly under the appropriate county's levy. If the county levy under this paragraph 39.33includes an amount for a lake improvement district as defined under sections 103B.501 39.34to 103B.581, the amount attributable for that purpose must be separately stated from the 40.1remaining county levy amount. In the case of Ramsey County, if the county levy under this 40.2paragraph includes an amount for public library service under section 134.07, the amount 40.3attributable for that purpose may be separated from the remaining county levy amount. 40.4The amount of the tax on homesteads qualifying under the senior citizens' property tax 40.5deferral program under chapter 290B is the total amount of property tax before subtraction 40.6of the deferred property tax amount. The amount of the tax on contamination value 40.7imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar 40.8amounts, including the dollar amount of any special assessments, may be rounded to the 40.9nearest even whole dollar. For purposes of this section whole odd-numbered dollars may 40.10be adjusted to the next higher even-numbered dollar. The amount of market value excluded 40.11under section 273.11, subdivision 16, if any, must also be listed on the tax statement. 40.12    (b) The property tax statements for manufactured homes and sectional structures 40.13taxed as personal property shall contain the same information that is required on the 40.14tax statements for real property. 40.15    (c) Real and personal property tax statements must contain the following information 40.16in the order given in this paragraph. The information must contain the current year tax 40.17information in the right column with the corresponding information for the previous year 40.18in a column on the left: 40.19    (1) the property's estimated market value under section 273.11, subdivision 1; 40.20    (2) the property's homestead market value exclusion under section 273.13, 40.21subdivision 35; 40.22    (3) the property's taxable market value under section 272.03, subdivision 15; 40.23    (4) the property's gross tax, before credits; 40.24    (5) for homestead agricultural properties, the credit new text begin credits new text end under section new text begin sections new text end 40.25273.1384 new text begin and 273.1387 new text end ; 40.26    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 40.27273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 40.28credit received under section 273.135 must be separately stated and identified as "taconite 40.29tax relief"; and 40.30    (7) the net tax payable in the manner required in paragraph (a). 40.31    (d) If the county uses envelopes for mailing property tax statements and if the county 40.32agrees, a taxing district may include a notice with the property tax statement notifying 40.33taxpayers when the taxing district will begin its budget deliberations for the current 40.34year, and encouraging taxpayers to attend the hearings. If the county allows notices to 40.35be included in the envelope containing the property tax statement, and if more than 40.36one taxing district relative to a given property decides to include a notice with the tax 41.1statement, the county treasurer or auditor must coordinate the process and may combine 41.2the information on a single announcement. 41.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 41.4    Sec. 8. new text begin [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR new text end 41.5 new text begin CERTAIN OUT-OF-HOME PLACEMENT. new text end 41.6     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin When used in this section, "out-of-home placement" new text end 41.7 new text begin means 24-hour substitute care for an Indian child as defined by section 260C.007, new text end 41.8 new text begin subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C, new text end 41.9 new text begin away from the child's parent or guardian and for whom the county social services agency new text end 41.10 new text begin or county correctional agency has been assigned responsibility for the child's placement new text end 41.11 new text begin and care, which includes placement in foster care under section 260C.007, subdivision new text end 41.12 new text begin 18, and a correctional facility pursuant to a court order. new text end 41.13     new text begin Subd. 2. new text end new text begin Determination of nonfederal share of costs. new text end new text begin (a) By January 1, 2017, each new text end 41.14 new text begin county shall report the following information to the commissioners of human services and new text end 41.15 new text begin corrections: (1) the separate amounts paid out of its social service agency and its corrections new text end 41.16 new text begin budget for out-of-home placement of children under the ICWA in calendar years 2013, new text end 41.17 new text begin 2014, and 2015; and (2) the number of case days associated with the expenditures from new text end 41.18 new text begin each budget. By March 15, 2017, the commissioner of human services, in consultation with new text end 41.19 new text begin the commissioner of corrections, shall certify to the commissioner of revenue and to the new text end 41.20 new text begin legislative committees responsible for local government aids and out-of-home placement new text end 41.21 new text begin funding, whether the data reported under this subdivision accurately reflects total new text end 41.22 new text begin expenditures by counties for out-of-home placement costs of children under the ICWA. new text end 41.23 new text begin (b) By January 1, 2019, and each January 1 thereafter, each county shall report to the new text end 41.24 new text begin commissioners of human services and corrections the separate amounts paid out of its new text end 41.25 new text begin social service agency and its corrections budget for out-of-home placement of children new text end 41.26 new text begin under the ICWA in the calendar years two years before the current calendar year along new text end 41.27 new text begin with the number of case days associated with the expenditures from each budget. new text end 41.28 new text begin (c) Until the commissioner of human services develops another mechanism for new text end 41.29 new text begin collecting and verifying data on out-of-home placements of children under the ICWA, and new text end 41.30 new text begin the legislature authorizes the use of that data, the data collected under this subdivision new text end 41.31 new text begin must be used to calculate payments under subdivision 3. The commissioner of human new text end 41.32 new text begin services shall certify the nonfederal out-of-home placement costs for the three prior new text end 41.33 new text begin calendar years for each county to the commissioner of revenue by June 1 of the year new text end 41.34 new text begin prior to the aid payment. new text end 42.1     new text begin Subd. 3. new text end new text begin Aid payments to counties. new text end new text begin For aids payable in calendar year 2018 and new text end 42.2 new text begin thereafter, the commissioner of revenue shall reimburse each county for 100 percent of new text end 42.3 new text begin the nonfederal share of the cost of out-of-home placement of children under the ICWA new text end 42.4 new text begin provided the commissioner of human services, in consultation with the commissioner new text end 42.5 new text begin of corrections, certifies to the commissioner of revenue that accurate data is available new text end 42.6 new text begin to make the aid determination under this section. The amount of reimbursement is the new text end 42.7 new text begin county's average nonfederal share of the cost for out-of-home placement of children new text end 42.8 new text begin under the ICWA for the most recent three calendar years for which data is available. new text end 42.9 new text begin The commissioner shall pay the aid under the schedule used for local government aid new text end 42.10 new text begin payments under section 477A.015. new text end 42.11     new text begin Subd. 4. new text end new text begin Aid payments to tribes. new text end new text begin (a) By January 1, 2017, and each year new text end 42.12 new text begin thereafter, each tribe must certify to the commissioner of revenue the amount of federal new text end 42.13 new text begin reimbursement received by the tribe for out-of-home placement of children under the new text end 42.14 new text begin ICWA for the immediately preceding three calendar years. The commissioner of revenue new text end 42.15 new text begin shall prescribe the format of the certification. For purposes of this section, "tribe" has the new text end 42.16 new text begin meaning provided in section 260.755, subdivision 12. new text end 42.17 new text begin (b) The amount of reimbursement to the tribe shall be the greater of: (1) five new text end 42.18 new text begin percent of the average reimbursement amount received from the federal government for new text end 42.19 new text begin out-of-home placement costs for the most recent three calendar years; or (2) $200,000. new text end 42.20 new text begin The commissioner shall pay the aid under this section under the schedule used for local new text end 42.21 new text begin government aid payments under section 477A.015. new text end 42.22     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay aid under this section is new text end 42.23 new text begin annually appropriated to the commissioner of revenue from the general fund. new text end 42.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2018. new text end 42.25    Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read: 42.26477A.015 PAYMENT DATES. 42.27 new text begin (a) new text end The commissioner of revenue shall make the payments of local government aid 42.28to affected taxing authorities in two installments on July 20 and December 26 annually. 42.29 new text begin (b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner new text end 42.30 new text begin of revenue shall make payments of the aid payable under section 477A.013, subdivision new text end 42.31 new text begin 9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15, new text end 42.32 new text begin 2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the new text end 42.33 new text begin aid shall be paid on December 26, 2017. new text end 43.1 new text begin (c) new text end When the commissioner of public safety determines that a local government has 43.2suffered financial hardship due to a natural disaster, the commissioner of public safety 43.3shall notify the commissioner of revenue, who shall make payments of aids under sections 43.4477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical 43.5after the determination is made but not before July 20. 43.6 new text begin (d) new text end The commissioner may pay all or part of the payments of aids under sections 43.7477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a local 43.8government requests such payment as being necessary for meeting its cash flow needs. 43.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2017. new text end 43.10    Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read: 43.11    Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial 43.12accounting and reporting standards in conformity with national standards to be applicable 43.13to cities and towns of more than 2,500 population and uniform reporting standards to be 43.14applicable to cities new text begin and towns new text end of less than 2,500 population. 43.15 new text begin EFFECTIVE DATE. new text end new text begin This section applies to reporting of financial information for new text end 43.16 new text begin calendar year 2016 and thereafter. new text end 43.17    Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read: 43.18    Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive 43.19distributions under sections 477A.011 to 477A.03, counties and new text begin , new text end cities new text begin , and towns new text end must 43.20conform to the standards set in subdivision 2 in making all financial reports required to be 43.21made to the state auditor after June 30, 1984. 43.22 new text begin EFFECTIVE DATE. new text end new text begin This section applies to reporting of financial information for new text end 43.23 new text begin aids payable in 2017 and thereafter. new text end 43.24    Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, 43.25is amended to read: 43.26    Subd. 2a. Cities. The total aid paid under section 477A.013, subdivision 9, is 43.27$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter, the total 43.28aid paid under section 477A.013, subdivision 9, is $519,398,012. new text begin For aids payable in 2017 new text end 43.29 new text begin and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012. new text end 43.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 43.31 new text begin 2017 and thereafter. new text end 44.1    Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read: 44.2    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter new text begin through 2016 new text end , the 44.3total aid payable under section 477A.0124, subdivision 3, is $100,795,000 new text begin . For aids new text end 44.4 new text begin payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision new text end 44.5 new text begin 3, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, new text end 44.6 new text begin chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid new text end 44.7 new text begin payable under section 477A.0124, subdivision 3, is $105,795,000 new text end . Each calendar year, 44.8$500,000 of this appropriation shall be retained by the commissioner of revenue to 44.9make reimbursements to the commissioner of management and budget for payments 44.10made under section 611.27. The reimbursements shall be to defray the additional costs 44.11associated with court-ordered counsel under section 611.27. Any retained amounts not 44.12used for reimbursement in a year shall be included in the next distribution of county 44.13need aid that is certified to the county auditors for the purpose of property tax reduction 44.14for the next taxes payable year. 44.15    (b) For aids payable in 2014 and thereafter new text begin 2016 new text end , the total aid under section 44.16477A.0124, subdivision 4 , is $104,909,575 new text begin . For aids payable in 2017 and thereafter, new text end 44.17 new text begin the total aid payable under section 477A.0124, subdivision 4, is $109,909,575 new text end . The 44.18commissioner of revenue shall transfer to the commissioner of management and budget 44.19$207,000 annually for the cost of preparation of local impact notes as required by section 44.203.987 , and other local government activities. The commissioner of revenue shall transfer 44.21to the commissioner of education $7,000 annually for the cost of preparation of local 44.22impact notes for school districts as required by section 3.987. The commissioner of 44.23revenue shall deduct the amounts transferred under this paragraph from the appropriation 44.24under this paragraph. The amounts transferred are appropriated to the commissioner of 44.25management and budget and the commissioner of education respectively. 44.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017 and thereafter. new text end 44.27    Sec. 14. new text begin [477A.09] MAXIMUM EFFORT LOAN AID. new text end 44.28 new text begin For fiscal years 2018 through 2022, each school district with a maximum effort loan new text end 44.29 new text begin under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid new text end 44.30 new text begin payment equal to one-fifth of the amount of interest that was paid on the loan between new text end 44.31 new text begin December 1, 1997, and June 30, 2016. Aid payments under this section must be used to new text end 44.32 new text begin reduce property taxes levied on net tax capacity within the district. Aid under this section new text end 44.33 new text begin must be paid in fiscal years 2018 through 2022, in the manner provided under section new text end 44.34 new text begin 127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this new text end 44.35 new text begin section is annually appropriated from the general fund to the commissioner of education. new text end 45.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal years 2018 and thereafter. new text end 45.2    Sec. 15. new text begin [477A.21] RIPARIAN PROTECTION AID. new text end 45.3     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) When used in this section, the following terms have new text end 45.4 new text begin the meanings given them in this subdivision. new text end 45.5 new text begin (b) "Public water basins" has the meaning provided in section 103G.005, subdivision new text end 45.6 new text begin 15, clauses (1) to (8) and (11). new text end 45.7 new text begin (c) "Public watercourses" has the meaning provided in section 103G.005, new text end 45.8 new text begin subdivision 15, clauses (9) and (10). new text end 45.9     new text begin Subd. 2. new text end new text begin Certification. new text end new text begin The Board of Water and Soil Resources must certify to the new text end 45.10 new text begin commissioner of revenue by July 1 of each year which counties and watershed districts new text end 45.11 new text begin have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and new text end 45.12 new text begin the proportion of each county's land area that is contained in each watershed district new text end 45.13 new text begin within the county. On or before July 1 of each year, the commissioner of natural resources new text end 45.14 new text begin shall certify to the commissioner of revenue the statewide and countywide total of miles of new text end 45.15 new text begin shoreline of public waters basins, the number of centerline miles of public watercourses, new text end 45.16 new text begin and the miles of public drainage system ditches. new text end 45.17     new text begin Subd. 3. new text end new text begin Distribution. new text end new text begin (a) A county that is certified under subdivision 2 or that new text end 45.18 new text begin portion of a county containing a watershed district certified under subdivision 2 is eligible new text end 45.19 new text begin to receive aid under this section to enforce and implement the riparian protection and water new text end 45.20 new text begin quality practices under section 103F.48. The commissioner shall calculate a preliminary new text end 45.21 new text begin aid for all counties that shall equal: (1) each county's share of the total number of acres new text end 45.22 new text begin in the state classified as class 2a under section 273.13, subdivision 23, divided by two; new text end 45.23 new text begin plus (2) each county's share of the number of miles of shoreline of public water basins, new text end 45.24 new text begin each county's share of the number of centerline miles of public watercourses, and each new text end 45.25 new text begin county's share of the number of miles of public drainage system ditches established under new text end 45.26 new text begin chapter 103E, divided by two; multiplied by (3) $10,000,000. new text end 45.27 new text begin (b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the new text end 45.28 new text begin sum of the preliminary aids payable to counties under paragraph (a) is greater or less than new text end 45.29 new text begin the appropriation under subdivision 5, the commissioner of revenue shall calculate the new text end 45.30 new text begin percentage adjustment necessary so that the total of the aid under paragraph (a) equals the new text end 45.31 new text begin total amount available for aid under subdivision 5. new text end 45.32 new text begin (c) If only a portion of a county is certified as eligible to receive aid under subdivision new text end 45.33 new text begin 2, the aid otherwise payable to that county under this section shall be multiplied by a new text end 45.34 new text begin fraction, the numerator of which is the area of the certified watershed district contained new text end 45.35 new text begin within the county and the denominator of which is the total area of the county. new text end 46.1 new text begin (d) Any aid that would otherwise be paid to a county or portion of a county that is new text end 46.2 new text begin not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources new text end 46.3 new text begin for the purpose of enforcing and implementing the riparian protection and water quality new text end 46.4 new text begin practices under section 103F.48. new text end 46.5     new text begin Subd. 4. new text end new text begin Payments. new text end new text begin The commissioner of revenue must compute the amount of new text end 46.6 new text begin riparian protection aid payable to each eligible county and to the Board of Water and Soil new text end 46.7 new text begin Resources under this section. On or before August 1 of each year, the commissioner shall new text end 46.8 new text begin certify the amount to be paid to each county in the following year. The commissioner shall new text end 46.9 new text begin pay riparian protection aid to counties and the Board of Water and Soil Resources in the new text end 46.10 new text begin same manner and at the same time as aid payments under section 477A.015. new text end 46.11     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin $10,000,000 for aids payable in 2017 and each year new text end 46.12 new text begin thereafter is appropriated from the general fund to the commissioner of revenue to make new text end 46.13 new text begin the payments required under this section. new text end 46.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2017 new text end 46.15 new text begin and thereafter. new text end 46.16    Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended 46.17to read: 46.18    Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT 46.19IN LIEU OF TAXES. 46.20    (a) The Red River watershed management board may spend money from its general 46.21fund to compensate counties and townships for lost tax revenue from land that becomes 46.22tax exempt after it is acquired by the board or a member watershed district for flood 46.23damage reduction project. The amount that may be paid under this section to a county 46.24or township must not exceed the tax that was payable to that taxing jurisdiction on the 46.25land in the last taxes payable year before the land became exempt due to the acquisition, 46.26not to exceed $4 new text begin $5.133 new text end per acre, multiplied by 20. This total amount may be paid in one 46.27payment, or in equal annual installments over a period that does not exceed 20 years. A 46.28member watershed district of the Red River management board may spend money from its 46.29construction fund for the purposes described in this section. 46.30    (b) For the purposes of this section, "Red River watershed management board" 46.31refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 46.321982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special 46.33Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 46.341998, chapter 389, article 3, section 29. 47.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 47.2 new text begin 2016 and thereafter. new text end 47.3    Sec. 17. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO. new text end 47.4 new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of new text end 47.5 new text begin Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota new text end 47.6 new text begin Statutes, section 477A.013, that was withheld under Minnesota Statutes, section new text end 47.7 new text begin 477A.017, subdivision 3, provided that the state auditor certifies to the commissioner new text end 47.8 new text begin of revenue that it received audited financial statements from the city for calendar year new text end 47.9 new text begin 2012 by December 31, 2013. The commissioner of revenue shall make a payment of new text end 47.10 new text begin $37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015. new text end 47.11 new text begin $37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal new text end 47.12 new text begin year 2017 to make this payment. new text end 47.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 47.14    Sec. 18. new text begin 2014 AID PENALTY FORGIVENESS. new text end 47.15 new text begin (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities new text end 47.16 new text begin of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment new text end 47.17 new text begin that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided new text end 47.18 new text begin that the state auditor certifies to the commissioner of revenue that the city complied with new text end 47.19 new text begin all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for new text end 47.20 new text begin calendar years 2013 and 2014 by June 1, 2015. new text end 47.21 new text begin (b) The commissioner of revenue shall make payment to each city no later than June new text end 47.22 new text begin 30, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of new text end 47.23 new text begin revenue in fiscal year 2017 to make the payments under this section. new text end 47.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 47.25    Sec. 19. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY. new text end 47.26 new text begin In the first aid payable year in which a city that incorporated on October 13, 2015, new text end 47.27 new text begin qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's new text end 47.28 new text begin formula aid in the previous year shall be deemed to equal $115 multiplied by its population. new text end 47.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017 and thereafter. new text end 47.30    Sec. 20. new text begin REPEALER. new text end 47.31 new text begin Minnesota Statutes 2014, section 477A.20, new text end new text begin is repealed. new text end 48.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.2ARTICLE 3 48.3INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES 48.4    Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to 48.5read: 48.6    Subd. 3. Program components. (a) An intern must be an eligible student who has 48.7been admitted to a major program that is related to the intern experience as determined 48.8by the eligible institution. 48.9(b) To participate in the program, an eligible institution must: 48.10(1) enter into written agreements with eligible employers to provide internships that 48.11are at least eight weeks long and located in greater Minnesota; and 48.12(2) provide academic credit for the successful completion of the internship or ensure 48.13that it fulfills requirements necessary to complete a vocational technical education program. 48.14(c) To participate in the program, an eligible employer must enter into a written 48.15agreement with an eligible institution specifying that the intern: 48.16(1) would not have been hired without the tax credit described in subdivision 4; 48.17(2) did not work for the employer in the same or a similar job prior to entering 48.18the agreement; 48.19(3) new text begin (2) new text end does not replace an existing employee; 48.20(4) new text begin (3) new text end has not previously participated in the program; 48.21(5) new text begin (4) new text end will be employed at a location in greater Minnesota; 48.22(6) new text begin (5) new text end will be paid at least minimum wage for a minimum of 16 hours per week 48.23for a period of at least eight weeks; and 48.24(7) new text begin (6) new text end will be supervised and evaluated by the employer. 48.25(d) The written agreement between the eligible institution and the eligible employer 48.26must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 48.27dollar amount of credits that an eligible institution certifies to eligible employers in a 48.28calendar year may not exceed the amount of its allocation under subdivision 4. 48.29(e) Participating eligible institutions and eligible employers must report annually to 48.30the office. The report must include at least the following: 48.31(1) the number of interns hired; 48.32(2) the number of hours and weeks worked by interns; and 48.33(3) the compensation paid to interns. 48.34(f) An internship required to complete an academic program does not qualify for the 48.35greater Minnesota internship program under this section. 49.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 49.2 new text begin December 31, 2015. new text end 49.3    Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is 49.4amended to read: 49.5    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal 49.6Revenue Code" means the Internal Revenue Code of 1986, as amended through December 49.731, 2014 new text begin 2015 new text end . 49.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 49.9    Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read: 49.10    Subd. 7. Resident. (a) The term "resident" means any individual domiciled 49.11in Minnesota, except that an individual is not a "resident" for the period of time that 49.12the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal 49.13Revenue Code, if the qualified individual notifies the county within three months of 49.14moving out of the country that homestead status be revoked for the Minnesota residence 49.15of the qualified individual, and the property is not classified as a homestead while the 49.16individual remains a qualified individual. 49.17(b) "Resident" also means any individual domiciled outside the state who maintains 49.18a place of abode in the state and spends in the aggregate more than one-half of the tax 49.19year in Minnesota, unless: 49.20(1) the individual or the spouse of the individual is in the armed forces of the United 49.21States; or 49.22(2) the individual is covered under the reciprocity provisions in section 290.081. 49.23For purposes of this subdivision, presence within the state for any part of a calendar 49.24day constitutes a day spent in the state. new text begin A day does not qualify as a Minnesota day if new text end 49.25 new text begin the taxpayer traveled from a place outside of Minnesota primarily for and essential to new text end 49.26 new text begin obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in new text end 49.27 new text begin Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense new text end 49.28 new text begin is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the new text end 49.29 new text begin taxpayer as a deductible expense. new text end Individuals shall keep adequate records to substantiate 49.30the days spent outside the state. 49.31The term "abode" means a dwelling maintained by an individual, whether or not 49.32owned by the individual and whether or not occupied by the individual, and includes a 49.33dwelling place owned or leased by the individual's spouse. 50.1(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor 50.2any court shall consider new text begin : new text end 50.3 new text begin (1) new text end charitable contributions made by an new text begin the new text end individual within or without the state in 50.4determining if the individual is domiciled in Minnesota. new text begin ; new text end 50.5 new text begin (2) the location of the individual's attorney, certified public accountant, or financial new text end 50.6 new text begin adviser; or new text end 50.7 new text begin (3) the place of business of a financial institution at which the individual applies for new text end 50.8 new text begin any new type of credit or at which the individual opens or maintains any type of account. new text end 50.9 new text begin (d) For purposes of this subdivision, the following terms have the meanings given new text end 50.10 new text begin them: new text end 50.11 new text begin (1) "financial adviser" means: new text end 50.12 new text begin (i) an individual or business entity engaged in business as a certified financial new text end 50.13 new text begin planner, registered investment adviser, licensed insurance producer or agent, or a new text end 50.14 new text begin registered securities broker-dealer representative; or new text end 50.15 new text begin (ii) a financial institution providing services related to trust or estate administration, new text end 50.16 new text begin investment management, or financial planning; and new text end 50.17 new text begin (2) "financial institution" means a financial institution as defined in section 47.015, new text end 50.18 new text begin subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer new text end 50.19 new text begin under the Securities and Exchange Act of 1934. new text end 50.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 50.21 new text begin December 31, 2015, except the amendment to paragraph (b) is effective for taxable years new text end 50.22 new text begin beginning after December 31, 2016. new text end 50.23    Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is 50.24amended to read: 50.25    Subd. 19. Net income. The term "net income" means the federal taxable income, 50.26as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 50.27date named in this subdivision, incorporating the federal effective dates of changes to the 50.28Internal Revenue Code and any elections made by the taxpayer in accordance with the 50.29Internal Revenue Code in determining federal taxable income for federal income tax 50.30purposes, and with the modifications provided in subdivisions 19a to 19f. 50.31    In the case of a regulated investment company or a fund thereof, as defined in section 50.32851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 50.33company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 50.34except that: 51.1    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 51.2Revenue Code does not apply; 51.3    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 51.4Revenue Code must be applied by allowing a deduction for capital gain dividends and 51.5exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 51.6Revenue Code; and 51.7    (3) the deduction for dividends paid must also be applied in the amount of any 51.8undistributed capital gains which the regulated investment company elects to have treated 51.9as provided in section 852(b)(3)(D) of the Internal Revenue Code. 51.10    The net income of a real estate investment trust as defined and limited by section 51.11856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 51.12taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 51.13    The net income of a designated settlement fund as defined in section 468B(d) of 51.14the Internal Revenue Code means the gross income as defined in section 468B(b) of the 51.15Internal Revenue Code. 51.16    The Internal Revenue Code of 1986, as amended through December 31, 2014 new text begin 2015 new text end , 51.17shall be in effect for taxable years beginning after December 31, 1996. 51.18    Except as otherwise provided, references to the Internal Revenue Code in 51.19subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 51.20the applicable year. 51.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 51.22 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 51.23 new text begin time as the changes were effective for federal purposes. new text end 51.24    Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read: 51.25    Subd. 19a. Additions to federal taxable income. For individuals, estates, and 51.26trusts, there shall be added to federal taxable income: 51.27    (1)(i) interest income on obligations of any state other than Minnesota or a political 51.28or governmental subdivision, municipality, or governmental agency or instrumentality 51.29of any state other than Minnesota exempt from federal income taxes under the Internal 51.30Revenue Code or any other federal statute; and 51.31    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 51.32Code, except: 51.33(A) the portion of the exempt-interest dividends exempt from state taxation under 51.34the laws of the United States; and 52.1(B) the portion of the exempt-interest dividends derived from interest income 52.2on obligations of the state of Minnesota or its political or governmental subdivisions, 52.3municipalities, governmental agencies or instrumentalities, but only if the portion of the 52.4exempt-interest dividends from such Minnesota sources paid to all shareholders represents 52.595 percent or more of the exempt-interest dividends, including any dividends exempt 52.6under subitem (A), that are paid by the regulated investment company as defined in section 52.7851(a) of the Internal Revenue Code, or the fund of the regulated investment company as 52.8defined in section 851(g) of the Internal Revenue Code, making the payment; and 52.9    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 52.10government described in section 7871(c) of the Internal Revenue Code shall be treated as 52.11interest income on obligations of the state in which the tribe is located; 52.12    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or 52.13accrued within the taxable year under this chapter and the amount of taxes based on net 52.14income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or 52.15to any province or territory of Canada, to the extent allowed as a deduction under section 52.1663(d) of the Internal Revenue Code, but the addition may not be more than the amount 52.17by which the state itemized deduction exceeds the amount of the standard deduction as 52.18defined in section 63(c) of the Internal Revenue Code, minus any addition that would have 52.19been required under clause (17) if the taxpayer had claimed the standard deduction. For 52.20the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are 52.21the last itemized deductions disallowed under clause (15); 52.22    (3) the capital gain amount of a lump-sum distribution to which the special tax under 52.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; 52.24    (4) the amount of income taxes paid or accrued within the taxable year under this 52.25chapter and taxes based on net income paid to any other state or any province or territory 52.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross 52.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed 52.28by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 52.29    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 52.30other than expenses or interest used in computing net interest income for the subtraction 52.31allowed under subdivision 19b, clause (1); 52.32    (6) the amount of a partner's pro rata share of net income which does not flow 52.33through to the partner because the partnership elected to pay the tax on the income under 52.34section 6242(a)(2) of the Internal Revenue Code; 52.35    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the 52.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 53.1in the taxable year generates a deduction for depreciation under section 168(k) and the 53.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 53.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 53.4limited to excess of the depreciation claimed by the activity under section 168(k) over the 53.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding 53.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation 53.7under section 168(k) is allowed; 53.8    (8) 80 percent of the amount by which the deduction allowed by section 179 of the 53.9Internal Revenue Code exceeds the deduction allowable by new text begin under the dollar limits of new text end 53.10section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; 53.11    (9) to the extent deducted in computing federal taxable income, the amount of the 53.12deduction allowable under section 199 of the Internal Revenue Code; 53.13    (10) the amount of expenses disallowed under section 290.10, subdivision 2; 53.14    (11) for taxable years beginning before January 1, 2010, the amount deducted for 53.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to 53.16the extent deducted from gross income; 53.17    (12) for taxable years beginning before January 1, 2010, the amount deducted for 53.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) 53.19of the Internal Revenue Code, to the extent deducted from gross income; 53.20(13) discharge of indebtedness income resulting from reacquisition of business 53.21indebtedness and deferred under section 108(i) of the Internal Revenue Code; 53.22(14) changes to federal taxable income attributable to a net operating loss that the 53.23taxpayer elected to carry back for more than two years for federal purposes but for which 53.24the losses can be carried back for only two years under section 290.095, subdivision 53.2511 , paragraph (c); 53.26(15) the amount of disallowed itemized deductions, but the amount of disallowed 53.27itemized deductions plus the addition required under clause (2) may not be more than the 53.28amount by which the itemized deductions as allowed under section 63(d) of the Internal 53.29Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of 53.30the Internal Revenue Code, and reduced by any addition that would have been required 53.31under clause (17) if the taxpayer had claimed the standard deduction: 53.32(i) the amount of disallowed itemized deductions is equal to the lesser of: 53.33(A) three percent of the excess of the taxpayer's federal adjusted gross income 53.34over the applicable amount; or 53.35(B) 80 percent of the amount of the itemized deductions otherwise allowable to the 53.36taxpayer under the Internal Revenue Code for the taxable year; 54.1(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a 54.2married individual filing a separate return. Each dollar amount shall be increased by 54.3an amount equal to: 54.4(A) such dollar amount, multiplied by 54.5(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 54.6Revenue Code for the calendar year in which the taxable year begins, by substituting 54.7"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; 54.8(iii) the term "itemized deductions" does not include: 54.9(A) the deduction for medical expenses under section 213 of the Internal Revenue 54.10Code; 54.11(B) any deduction for investment interest as defined in section 163(d) of the Internal 54.12Revenue Code; and 54.13(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or 54.14theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue 54.15Code or for losses described in section 165(d) of the Internal Revenue Code; 54.16(16) the amount of disallowed personal exemptions for taxpayers with federal 54.17adjusted gross income over the threshold amount: 54.18(i) the disallowed personal exemption amount is equal to the number of personal 54.19exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied 54.20by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the 54.21Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal 54.22Revenue Code, and by the applicable percentage; 54.23(ii) "applicable percentage" means two percentage points for each $2,500 (or 54.24fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable 54.25year exceeds the threshold amount. In the case of a married individual filing a separate 54.26return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In 54.27no event shall the applicable percentage exceed 100 percent; 54.28(iii) the term "threshold amount" means: 54.29(A) $150,000 in the case of a joint return or a surviving spouse; 54.30(B) $125,000 in the case of a head of a household; 54.31(C) $100,000 in the case of an individual who is not married and who is not a 54.32surviving spouse or head of a household; and 54.33(D) $75,000 in the case of a married individual filing a separate return; and 54.34(iv) the thresholds shall be increased by an amount equal to: 54.35(A) such dollar amount, multiplied by 55.1(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 55.2Revenue Code for the calendar year in which the taxable year begins, by substituting 55.3"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and 55.4(17) to the extent deducted in the computation of federal taxable income, for taxable 55.5years beginning after December 31, 2010, and before January 1, 2014, the difference 55.6between the standard deduction allowed under section 63(c) of the Internal Revenue Code 55.7and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue 55.8Code as amended through December 1, 2010. 55.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 55.10 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 55.11 new text begin time as the changes were effective for federal purposes. new text end 55.12    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read: 55.13    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 55.14and trusts, there shall be subtracted from federal taxable income: 55.15    (1) net interest income on obligations of any authority, commission, or 55.16instrumentality of the United States to the extent includable in taxable income for federal 55.17income tax purposes but exempt from state income tax under the laws of the United States; 55.18    (2) if included in federal taxable income, the amount of any overpayment of income 55.19tax to Minnesota or to any other state, for any previous taxable year, whether the amount 55.20is received as a refund or as a credit to another taxable year's income tax liability; 55.21    (3) the amount paid to others, less the amount used to claim the credit allowed under 55.22section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 55.23to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 55.24transportation of each qualifying child in attending an elementary or secondary school 55.25situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 55.26resident of this state may legally fulfill the state's compulsory attendance laws, which 55.27is not operated for profit, and which adheres to the provisions of the Civil Rights Act 55.28of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 55.29tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 55.30"textbooks" includes books and other instructional materials and equipment purchased 55.31or leased for use in elementary and secondary schools in teaching only those subjects 55.32legally and commonly taught in public elementary and secondary schools in this state. 55.33Equipment expenses qualifying for deduction includes expenses as defined and limited in 55.34section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 55.35books and materials used in the teaching of religious tenets, doctrines, or worship, the 56.1purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 56.2or materials for, or transportation to, extracurricular activities including sporting events, 56.3musical or dramatic events, speech activities, driver's education, or similar programs. No 56.4deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 56.5the qualifying child's vehicle to provide such transportation for a qualifying child. For 56.6purposes of the subtraction provided by this clause, "qualifying child" has the meaning 56.7given in section 32(c)(3) of the Internal Revenue Code; 56.8    (4) income as provided under section 290.0802; 56.9    (5) to the extent included in federal adjusted gross income, income realized on 56.10disposition of property exempt from tax under section 290.491; 56.11    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 56.12of the Internal Revenue Code in determining federal taxable income by an individual 56.13who does not itemize deductions for federal income tax purposes for the taxable year, an 56.14amount equal to 50 percent of the excess of charitable contributions over $500 allowable 56.15as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 56.16under the provisions of Public Law 109-1 and Public Law 111-126; 56.17    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 56.18qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 56.19of subnational foreign taxes for the taxable year, but not to exceed the total subnational 56.20foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 56.21"federal foreign tax credit" means the credit allowed under section 27 of the Internal 56.22Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 56.23under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 56.24the extent they exceed the federal foreign tax credit; 56.25    (8) in each of the five tax years immediately following the tax year in which an 56.26addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 56.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 56.28delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 56.29of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 56.30clause (12), in the case of a shareholder of an S corporation, minus the positive value of 56.31any net operating loss under section 172 of the Internal Revenue Code generated for the 56.32tax year of the addition. The resulting delayed depreciation cannot be less than zero; 56.33    (9) job opportunity building zone income as provided under section 469.316; 56.34    (10) to the extent included in federal taxable income, the amount of compensation 56.35paid to members of the Minnesota National Guard or other reserve components of the 56.36United States military for active service, including compensation for services performed 57.1under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 57.2service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 57.3(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 57.45b , and "active service" includes service performed in accordance with section 190.08, 57.5subdivision 3 ; 57.6    (11) to the extent included in federal taxable income, the amount of compensation 57.7paid to Minnesota residents who are members of the armed forces of the United States 57.8or United Nations for active duty performed under United States Code, title 10; or the 57.9authority of the United Nations; 57.10    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 57.11qualified donor's donation, while living, of one or more of the qualified donor's organs 57.12to another person for human organ transplantation. For purposes of this clause, "organ" 57.13means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 57.14"human organ transplantation" means the medical procedure by which transfer of a human 57.15organ is made from the body of one person to the body of another person; "qualified 57.16expenses" means unreimbursed expenses for both the individual and the qualified donor 57.17for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 57.18may be subtracted under this clause only once; and "qualified donor" means the individual 57.19or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 57.20individual may claim the subtraction in this clause for each instance of organ donation for 57.21transplantation during the taxable year in which the qualified expenses occur; 57.22    (13) in each of the five tax years immediately following the tax year in which an 57.23addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 57.24shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 57.25addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 57.26case of a shareholder of a corporation that is an S corporation, minus the positive value of 57.27any net operating loss under section 172 of the Internal Revenue Code generated for the 57.28tax year of the addition. If the net operating loss exceeds the addition for the tax year, 57.29a subtraction is not allowed under this clause new text begin the section 179 expensing subtraction as new text end 57.30 new text begin provided under section 290.0803, subdivision 3 new text end ; 57.31    (14) to the extent included in the federal taxable income of a nonresident of 57.32Minnesota, compensation paid to a service member as defined in United States Code, title 57.3310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 57.34Act, Public Law 108-189, section 101(2); 57.35    (15) to the extent included in federal taxable income, the amount of national service 57.36educational awards received from the National Service Trust under United States Code, 58.1title 42, sections 12601 to 12604, for service in an approved Americorps National Service 58.2program; 58.3(16) to the extent included in federal taxable income, discharge of indebtedness 58.4income resulting from reacquisition of business indebtedness included in federal taxable 58.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only 58.6to the extent that the income was included in net income in a prior year as a result of the 58.7addition under subdivision 19a, clause (13); 58.8(17) the amount of the net operating loss allowed under section 290.095, subdivision 58.911 , paragraph (c); 58.10(18) the amount of expenses not allowed for federal income tax purposes due 58.11to claiming the railroad track maintenance credit under section 45G(a) of the Internal 58.12Revenue Code; 58.13(19) the amount of the limitation on itemized deductions under section 68(b) of the 58.14Internal Revenue Code; 58.15(20) the amount of the phaseout of personal exemptions under section 151(d) of 58.16the Internal Revenue Code; and 58.17(21) to the extent included in federal taxable income, the amount of qualified 58.18transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 58.19Revenue Code. The subtraction is limited to the lesser of the amount of qualified 58.20transportation fringe benefits received in excess of the limitations under section 58.21132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 58.22maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal 58.23Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) 58.24of the Internal Revenue Code. 58.25 new text begin (21) the amount equal to the contributions made during the taxable year to an new text end 58.26 new text begin account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by new text end 58.27 new text begin any withdrawals from the account during the taxable year, not including amounts rolled new text end 58.28 new text begin over from other accounts in plans qualifying under section 529 of the Internal Revenue new text end 58.29 new text begin Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for new text end 58.30 new text begin all other filers. The subtraction must not include any amount used to claim the credit new text end 58.31 new text begin allowed under section 290.0684; and new text end 58.32 new text begin (22) to the extent included in federal taxable income, the discharge of indebtedness new text end 58.33 new text begin of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in new text end 58.34 new text begin section 221 of the Internal Revenue Code, and the indebtedness was discharged following new text end 58.35 new text begin the taxpayer's completion of an income-driven repayment plan. For purposes of this new text end 58.36 new text begin clause, "income-driven repayment plan" means a payment plan established by the United new text end 59.1 new text begin States Department of Education that sets monthly student loan payments based on income new text end 59.2 new text begin and family size under United States Code, title 20, section 1087e, or similar authority and new text end 59.3 new text begin specifically includes, but is not limited to: new text end 59.4 new text begin (1) the income-based repayment plan under United State Code, title 20, section 1098e; new text end 59.5 new text begin (2) the income contingent repayment plan established under United State Code, new text end 59.6 new text begin title 20, section 1087e, subsection (e); and new text end 59.7 new text begin (3) the PAYE program or REPAYE program established by the Department of new text end 59.8 new text begin Education under administrative regulations. new text end 59.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 59.10 new text begin December 31, 2015. new text end 59.11    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read: 59.12    Subd. 19c. Corporations; additions to federal taxable income. For corporations, 59.13there shall be added to federal taxable income: 59.14    (1) the amount of any deduction taken for federal income tax purposes for income, 59.15excise, or franchise taxes based on net income or related minimum taxes, including but not 59.16limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 59.17another state, a political subdivision of another state, the District of Columbia, or any 59.18foreign country or possession of the United States; 59.19    (2) interest not subject to federal tax upon obligations of: the United States, its 59.20possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 59.21state, any of its political or governmental subdivisions, any of its municipalities, or any 59.22of its governmental agencies or instrumentalities; the District of Columbia; or Indian 59.23tribal governments; 59.24    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 59.25Revenue Code; 59.26    (4) the amount of any net operating loss deduction taken for federal income tax 59.27purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 59.28deduction under section 810 of the Internal Revenue Code; 59.29    (5) the amount of any special deductions taken for federal income tax purposes 59.30under sections 241 to 247 and 965 of the Internal Revenue Code; 59.31    (6) losses from the business of mining, as defined in section 290.05, subdivision 1, 59.32clause (a), that are not subject to Minnesota income tax; 59.33    (7) the amount of any capital losses deducted for federal income tax purposes under 59.34sections 1211 and 1212 of the Internal Revenue Code; 60.1    (8) the amount of percentage depletion deducted under sections 611 through 614 and 60.2291 of the Internal Revenue Code; 60.3    (9) for certified pollution control facilities placed in service in a taxable year 60.4beginning before December 31, 1986, and for which amortization deductions were elected 60.5under section 169 of the Internal Revenue Code of 1954, as amended through December 60.631, 1985, the amount of the amortization deduction allowed in computing federal taxable 60.7income for those facilities; 60.8    (10) the amount of a partner's pro rata share of net income which does not flow 60.9through to the partner because the partnership elected to pay the tax on the income under 60.10section 6242(a)(2) of the Internal Revenue Code; 60.11    (11) any increase in subpart F income, as defined in section 952(a) of the Internal 60.12Revenue Code, for the taxable year when subpart F income is calculated without regard to 60.13the provisions of Division C, title III, section 303(b) of Public Law 110-343; 60.14    (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) 60.15and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer 60.16has an activity that in the taxable year generates a deduction for depreciation under 60.17section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year 60.18that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed 60.19under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the 60.20depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the 60.21amount of the loss from the activity that is not allowed in the taxable year. In succeeding 60.22taxable years when the losses not allowed in the taxable year are allowed, the depreciation 60.23under section 168(k)(1)(A) and (k)(4)(A) is allowed; 60.24    (13) 80 percent of the amount by which the deduction allowed by section 179 of 60.25the Internal Revenue Code exceeds the deduction allowable by new text begin under the dollar limits of new text end 60.26section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; 60.27    (14) to the extent deducted in computing federal taxable income, the amount of the 60.28deduction allowable under section 199 of the Internal Revenue Code; 60.29    (15) the amount of expenses disallowed under section 290.10, subdivision 2; and 60.30(16) discharge of indebtedness income resulting from reacquisition of business 60.31indebtedness and deferred under section 108(i) of the Internal Revenue Code. 60.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 60.33 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 60.34 new text begin time as the changes were effective for federal purposes. new text end 60.35    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read: 61.1    Subd. 19d. Corporations; modifications decreasing federal taxable income. For 61.2corporations, there shall be subtracted from federal taxable income after the increases 61.3provided in subdivision 19c: 61.4    (1) the amount of foreign dividend gross-up added to gross income for federal 61.5income tax purposes under section 78 of the Internal Revenue Code; 61.6    (2) the amount of salary expense not allowed for federal income tax purposes due to 61.7claiming the work opportunity credit under section 51 of the Internal Revenue Code; 61.8    (3) any dividend (not including any distribution in liquidation) paid within the 61.9taxable year by a national or state bank to the United States, or to any instrumentality of 61.10the United States exempt from federal income taxes, on the preferred stock of the bank 61.11owned by the United States or the instrumentality; 61.12    (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 61.13Internal Revenue Code, except that: 61.14    (i) for capital losses incurred in taxable years beginning after December 31, 1986, 61.15capital loss carrybacks shall not be allowed; 61.16    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, 61.17a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 61.18allowed; 61.19    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 61.20capital loss carryback to each of the three taxable years preceding the loss year, subject to 61.21the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 61.22    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, 61.23a capital loss carryover to each of the five taxable years succeeding the loss year to the 61.24extent such loss was not used in a prior taxable year and subject to the provisions of 61.25Minnesota Statutes 1986, section 290.16, shall be allowed; 61.26    (5) an amount for interest and expenses relating to income not taxable for federal 61.27income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 61.28expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 61.29291 of the Internal Revenue Code in computing federal taxable income; 61.30    (6) in the case of mines, oil and gas wells, other natural deposits, and timber for 61.31which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 61.32reasonable allowance for depletion based on actual cost. In the case of leases the deduction 61.33must be apportioned between the lessor and lessee in accordance with rules prescribed 61.34by the commissioner. In the case of property held in trust, the allowable deduction must 61.35be apportioned between the income beneficiaries and the trustee in accordance with the 62.1pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 62.2of the trust's income allocable to each; 62.3    (7) for certified pollution control facilities placed in service in a taxable year 62.4beginning before December 31, 1986, and for which amortization deductions were elected 62.5under section 169 of the Internal Revenue Code of 1954, as amended through December 62.631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 62.71986, section 290.09, subdivision 7; 62.8    (8) amounts included in federal taxable income that are due to refunds of income, 62.9excise, or franchise taxes based on net income or related minimum taxes paid by the 62.10corporation to Minnesota, another state, a political subdivision of another state, the 62.11District of Columbia, or a foreign country or possession of the United States to the extent 62.12that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a 62.13prior taxable year; 62.14    (9) income or gains from the business of mining as defined in section 290.05, 62.15subdivision 1 , clause (a), that are not subject to Minnesota franchise tax; 62.16    (10) the amount of disability access expenditures in the taxable year which are not 62.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; 62.18    (11) the amount of qualified research expenses not allowed for federal income tax 62.19purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that 62.20the amount exceeds the amount of the credit allowed under section 290.068; 62.21    (12) the amount of salary expenses not allowed for federal income tax purposes due to 62.22claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code; 62.23    (13) any decrease in subpart F income, as defined in section 952(a) of the Internal 62.24Revenue Code, for the taxable year when subpart F income is calculated without regard to 62.25the provisions of Division C, title III, section 303(b) of Public Law 110-343; 62.26    (14) in each of the five tax years immediately following the tax year in which an 62.27addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of 62.28the delayed depreciation. For purposes of this clause, "delayed depreciation" means the 62.29amount of the addition made by the taxpayer under subdivision 19c, clause (12). The 62.30resulting delayed depreciation cannot be less than zero; 62.31    (15) in each of the five tax years immediately following the tax year in which an 62.32addition is required under subdivision 19c, clause (13), an amount equal to one-fifth 62.33of the amount of the addition new text begin the section 179 expensing subtraction as provided under new text end 62.34 new text begin section 290.0803, subdivision 3 new text end ; 62.35(16) to the extent included in federal taxable income, discharge of indebtedness 62.36income resulting from reacquisition of business indebtedness included in federal taxable 63.1income under section 108(i) of the Internal Revenue Code. This subtraction applies only 63.2to the extent that the income was included in net income in a prior year as a result of the 63.3addition under subdivision 19c, clause (16); and 63.4(17) the amount of expenses not allowed for federal income tax purposes due 63.5to claiming the railroad track maintenance credit under section 45G(a) of the Internal 63.6Revenue Code. 63.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 63.8 new text begin December 31, 2015. new text end 63.9    Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is 63.10amended to read: 63.11    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal 63.12Revenue Code" means the Internal Revenue Code of 1986, as amended through December 63.1331, 2014 new text begin 2015 new text end . Internal Revenue Code also includes any uncodified provision in federal 63.14law that relates to provisions of the Internal Revenue Code that are incorporated into 63.15Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 63.16subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 63.17amended through March 18, 2010. 63.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 63.19 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 63.20 new text begin time as the changes were effective for federal purposes. new text end 63.21    Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read: 63.22    Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for 63.23taxes based on net income to another state, as provided in paragraphs (b) through (f), upon 63.24income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to 63.25another state if the tax is actually paid in the taxable year or a subsequent taxable year. A 63.26taxpayer who is a resident of this state pursuant to section 290.01, subdivision 7, paragraph 63.27(b), and who is subject to income tax as a resident in the state of the individual's domicile 63.28is not allowed this credit unless the state of domicile does not allow a similar credit. 63.29(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 63.30payable under this chapter by the ratio derived by dividing the income subject to tax in the 63.31other state that is also subject to tax in Minnesota while a resident of Minnesota by the 63.32taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 63.33Code, modified by the addition required by section 290.01, subdivision 19a, clause (1), 64.1and the subtraction allowed by section 290.01, subdivision 19b, clause (1), to the extent 64.2the income is allocated or assigned to Minnesota under sections 290.081 and 290.17. 64.3(c) If the taxpayer is an athletic team that apportions all of its income under section 64.4290.17, subdivision 5 , the credit is determined by multiplying the tax payable under this 64.5chapter by the ratio derived from dividing the total net income subject to tax in the other 64.6state by the taxpayer's Minnesota taxable income. 64.7(d) new text begin (1) new text end The credit determined under paragraph (b) or (c) shall not exceed the amount 64.8of tax so paid to the other state on the gross income earned within the other state subject 64.9to tax under this chapter, new text begin . new text end 64.10nor shall new text begin (2) new text end The allowance of the credit new text begin does not new text end reduce the taxes paid under this 64.11chapter to an amount less than what would be assessed if such income amount was new text begin the new text end 64.12 new text begin gross income earned within the other state were new text end excluded from taxable net income. 64.13(e) In the case of the tax assessed on a lump-sum distribution under section 64.14290.032 , the credit allowed under paragraph (a) is the tax assessed by the other state on 64.15the lump-sum distribution that is also subject to tax under section 290.032, and shall 64.16not exceed the tax assessed under section 290.032. To the extent the total lump-sum 64.17distribution defined in section 290.032, subdivision 1, includes lump-sum distributions 64.18received in prior years or is all or in part an annuity contract, the reduction to the tax on 64.19the lump-sum distribution allowed under section 290.032, subdivision 2, includes tax paid 64.20to another state that is properly apportioned to that distribution. 64.21(f) If a Minnesota resident reported an item of income to Minnesota and is assessed 64.22tax in such other state on that same income after the Minnesota statute of limitations 64.23has expired, the taxpayer shall receive a credit for that year under paragraph (a), 64.24notwithstanding any statute of limitations to the contrary. The claim for the credit must 64.25be submitted within one year from the date the taxes were paid to the other state. The 64.26taxpayer must submit sufficient proof to show entitlement to a credit. 64.27(g) For the purposes of this subdivision, a resident shareholder of a corporation 64.28treated as an "S" corporation under section 290.9725, must be considered to have paid 64.29a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share 64.30of any net income tax paid by the S corporation to another state. For the purposes of the 64.31preceding sentence, the term "net income tax" means any tax imposed on or measured by 64.32a corporation's net income. 64.33(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 64.34partnership under the Internal Revenue Code must be considered to have paid a tax imposed 64.35on the partner in an amount equal to the partner's pro rata share of any net income tax paid 65.1by the partnership to another state. For purposes of the preceding sentence, the term "net 65.2income" tax means any tax imposed on or measured by a partnership's net income. 65.3(i) For the purposes of this subdivision, "another state": 65.4(1) includes: 65.5(i) the District of Columbia; and 65.6(ii) a province or territory of Canada; but 65.7(2) excludes Puerto Rico and the several territories organized by Congress. 65.8(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a 65.9state by state basis. 65.10(k) For a tax imposed by a province or territory of Canada, the tax for purposes of 65.11this subdivision is the excess of the tax over the amount of the foreign tax credit allowed 65.12under section 27 of the Internal Revenue Code. In determining the amount of the foreign 65.13tax credit allowed, the net income taxes imposed by Canada on the income are deducted 65.14first. Any remaining amount of the allowable foreign tax credit reduces the provincial or 65.15territorial tax that qualifies for the credit under this subdivision. 65.16 new text begin (l) If the amount of the credit which a qualifying individual is eligible to receive new text end 65.17 new text begin under this section for tax paid to a qualifying state, disregarding the limitation in paragraph new text end 65.18 new text begin (d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the new text end 65.19 new text begin excess to the individual. An amount sufficient to pay the refunds required by this section new text end 65.20 new text begin is appropriated to the commissioner from the general fund. new text end 65.21 new text begin For purposes of this paragraph, "qualifying individual" means a Minnesota resident under new text end 65.22 new text begin section 290.01, subdivision 7, paragraph (a), who received compensation during the new text end 65.23 new text begin taxable year for the performance of personal or professional services within a qualifying new text end 65.24 new text begin state, and "qualifying state" means a state with which an agreement under section 290.081 new text end 65.25 new text begin is not in effect for the taxable year but was in effect for a taxable year beginning before new text end 65.26 new text begin January 1, 2010. new text end 65.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 65.28 new text begin December 31, 2015. new text end 65.29    Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read: 65.30    Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the 65.31tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 65.32dependent care credit for which the taxpayer is eligible pursuant to the provisions of 65.33section 21 of the Internal Revenue Code subject to the limitations provided in subdivision 65.342 except that in determining whether the child qualified as a dependent, income received 65.35as a Minnesota family investment program grant or allowance to or on behalf of the child 66.1must not be taken into account in determining whether the child received more than half 66.2of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of 66.3the Internal Revenue Code do not apply. 66.4(b) If a child who has not attained the age of six years at the close of the taxable year 66.5is cared for at a licensed family day care home operated by the child's parent, the taxpayer 66.6is deemed to have paid employment-related expenses. If the child is 16 months old or 66.7younger at the close of the taxable year, the amount of expenses deemed to have been paid 66.8equals the maximum limit for one qualified individual under section 21(c) and (d) of the 66.9Internal Revenue Code. If the child is older than 16 months of age but has not attained the 66.10age of six years at the close of the taxable year, the amount of expenses deemed to have 66.11been paid equals the amount the licensee would charge for the care of a child of the same 66.12age for the same number of hours of care. 66.13(c) If a married couple: 66.14(1) has a child who has not attained the age of one year at the close of the taxable year; 66.15(2) files a joint tax return for the taxable year; and 66.16(3) does not participate in a dependent care assistance program as defined in section 66.17129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid 66.18for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of 66.19(i) the combined earned income of the couple or (ii) the amount of the maximum limit for 66.20one qualified individual under section 21(c) and (d) of the Internal Revenue Code will 66.21be deemed to be the employment related expense paid for that child. The earned income 66.22limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed 66.23amount. These deemed amounts apply regardless of whether any employment-related 66.24expenses have been paid. 66.25(d) If the taxpayer is not required and does not file a federal individual income tax 66.26return for the tax year, no credit is allowed for any amount paid to any person unless: 66.27(1) the name, address, and taxpayer identification number of the person are included 66.28on the return claiming the credit; or 66.29(2) if the person is an organization described in section 501(c)(3) of the Internal 66.30Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, 66.31the name and address of the person are included on the return claiming the credit. 66.32In the case of a failure to provide the information required under the preceding sentence, 66.33the preceding sentence does not apply if it is shown that the taxpayer exercised due 66.34diligence in attempting to provide the information required. 66.35(e) In the case of a nonresident, part-year resident, or a person who has earned 66.36income not subject to tax under this chapter including earned income excluded pursuant to 67.1section 290.01, subdivision 19b, clause (9), the credit determined under section 21 of the 67.2Internal Revenue Code must be allocated based on the ratio by which the earned income 67.3of the claimant and the claimant's spouse from Minnesota sources bears to the total earned 67.4income of the claimant and the claimant's spouse. 67.5(f) For residents of Minnesota, the subtractions for military pay under section 67.6290.01, subdivision 19b , clauses (10) and (11), are not considered "earned income not 67.7subject to tax under this chapter." 67.8(g) For residents of Minnesota, the exclusion of combat pay under section 112 of 67.9the Internal Revenue Code is not considered "earned income not subject to tax under 67.10this chapter." 67.11 new text begin (h) For taxpayers with federal adjusted gross income in excess of $38,000, the new text end 67.12 new text begin credit is equal to the lesser of the credit otherwise calculated under this subdivision or the new text end 67.13 new text begin amount equal to the credit otherwise calculated under this subdivision minus ten percent new text end 67.14 new text begin of federal adjusted gross income in excess of $38,000, but in no case is the credit less than new text end 67.15 new text begin zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning new text end 67.16 new text begin given in section 62 of the Internal Revenue Code. new text end 67.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 67.18 new text begin December 31, 2015. new text end 67.19    Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read: 67.20    Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount 67.21of the income threshold at which the maximum credit begins to be reduced under 67.22subdivision 2 new text begin 1 new text end by the percentage determined pursuant to the provisions of section 1(f) of 67.23the Internal Revenue Code, except that in section 1(f)(3)(B) the word "1999" new text begin "2015" new text end shall 67.24be substituted for the word "1992." For 2001 new text begin 2017 new text end , the commissioner shall then determine 67.25the percent change from the 12 months ending on August 31, 1999 new text begin 2015 new text end , to the 12 months 67.26ending on August 31, 2000 new text begin 2016 new text end , and in each subsequent year, from the 12 months ending 67.27on August 31, 1999 new text begin 2015 new text end , to the 12 months ending on August 31 of the year preceding the 67.28taxable year. The determination of the commissioner pursuant to this subdivision must not 67.29be considered a "rule" and is not subject to the Administrative Procedure Act contained in 67.30chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. 67.31If the amount ends in $5, the amount is rounded up to the nearest $10 amount. 67.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 67.33 new text begin December 31, 2016. new text end 68.1    Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, 68.2is amended to read: 68.3    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 68.4allowed a credit against the tax imposed by this chapter equal to a percentage of earned 68.5income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of 68.6the Internal Revenue Code. new text begin , except that: new text end 68.7 new text begin (i) the earned income and adjusted gross income limitations of section 32 of the new text end 68.8 new text begin Internal Revenue Code do not apply; and new text end 68.9 new text begin (ii) a taxpayer with no qualifying children who has attained the age of 21 but not new text end 68.10 new text begin attained age 65 before the close of the taxable year and is otherwise eligible for a credit new text end 68.11 new text begin under section 32 of the Internal Revenue Code may also receive a credit. new text end 68.12(b) For individuals with no qualifying children, the credit equals 2.10 new text begin three new text end percent 68.13of the first $6,180 new text begin $6,500 new text end of earned income. The credit is reduced by 2.01 new text begin three new text end percent 68.14of earned income or adjusted gross income, whichever is greater, in excess of $8,130 new text begin new text end 68.15 new text begin $12,000 new text end , but in no case is the credit less than zero. 68.16(c) For individuals with one qualifying child, the credit equals 9.35 new text begin 12.71 new text end percent 68.17of the first $11,120 new text begin $8,350 new text end of earned income. The credit is reduced by 6.02 new text begin 5.2 new text end percent 68.18of earned income or adjusted gross income, whichever is greater, in excess of $21,190 new text begin new text end 68.19 new text begin $21,620 new text end , but in no case is the credit less than zero. 68.20(d) For individuals with two or more qualifying children, the credit equals 11 new text begin 14.94 new text end 68.21percent of the first $18,240 new text begin $13,700 new text end of earned income. The credit is reduced by 10.82 new text begin new text end 68.22 new text begin 9.2 new text end percent of earned income or adjusted gross income, whichever is greater, in excess of 68.23$25,130 new text begin $25,640 new text end , but in no case is the credit less than zero. 68.24(e) For a part-year resident, the credit must be allocated based on the percentage 68.25calculated under section 290.06, subdivision 2c, paragraph (e). 68.26(f) For a person who was a resident for the entire tax year and has earned income 68.27not subject to tax under this chapter, including income excluded under section 290.01, 68.28subdivision 19b , clause (9), the credit must be allocated based on the ratio of federal 68.29adjusted gross income reduced by the earned income not subject to tax under this chapter 68.30over federal adjusted gross income. For purposes of this paragraph, the subtractions 68.31for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not 68.32considered "earned income not subject to tax under this chapter." 68.33For the purposes of this paragraph, the exclusion of combat pay under section 112 68.34of the Internal Revenue Code is not considered "earned income not subject to tax under 68.35this chapter." 69.1(g) For tax years beginning after December 31, 2007, and before December 31, 2010, 69.2and for tax years beginning after December 31, 2017, the $8,130 new text begin $12,000 new text end in paragraph 69.3(b), the $21,190 new text begin $21,620 new text end in paragraph (c), and the $25,130 new text begin $25,640 new text end in paragraph (d), 69.4after being adjusted for inflation under subdivision 7, are each increased by $3,000 for 69.5married taxpayers filing joint returns. For tax years beginning after December 31, 2008 new text begin new text end 69.6 new text begin 2017 new text end , the commissioner shall annually adjust the $3,000 by the percentage determined 69.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in 69.8section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009 new text begin new text end 69.9 new text begin 2018 new text end , the commissioner shall then determine the percent change from the 12 months 69.10ending on August 31, 2007, to the 12 months ending on August 31, 2008 new text begin 2017 new text end , and in 69.11each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months 69.12ending on August 31 of the year preceding the taxable year. The earned income thresholds 69.13as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the 69.14amount is rounded up to the nearest $10. The determination of the commissioner under 69.15this subdivision is not a rule under the Administrative Procedure Act. 69.16(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, 69.17the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph 69.18(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for 69.19married taxpayers filing joint returns; and (2) For tax years beginning after December 31, 69.202013 new text begin 2015 new text end , and before January 1, 2018, the $8,130 new text begin $12,000 new text end in paragraph (b), the $21,190 new text begin new text end 69.21 new text begin $21,620 new text end in paragraph (c), and the $25,130 new text begin $25,640 new text end in paragraph (d), after being adjusted 69.22for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing 69.23joint returns. For tax years beginning after December 31, 2010, and before January 1, 69.242012, and for tax years beginning after December 31, 2013 new text begin 2015 new text end , and before January 1, 69.252018, the commissioner shall annually adjust the $5,000 by the percentage determined 69.26pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in 69.27section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For 2011 new text begin new text end 69.28 new text begin 2016 new text end , the commissioner shall then determine the percent change from the 12 months 69.29ending on August 31, 2008, to the 12 months ending on August 31, 2010 new text begin 2015 new text end , and in 69.30each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months 69.31ending on August 31 of the year preceding the taxable year. The earned income thresholds 69.32as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the 69.33amount is rounded up to the nearest $10. The determination of the commissioner under 69.34this subdivision is not a rule under the Administrative Procedure Act. 69.35(i) The commissioner shall construct tables showing the amount of the credit at 69.36various income levels and make them available to taxpayers. The tables shall follow 70.1the schedule contained in this subdivision, except that the commissioner may graduate 70.2the transition between income brackets. 70.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 70.4 new text begin December 31, 2015. new text end 70.5    Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read: 70.6    Subd. 7. Inflation adjustment. The earned income amounts used to calculate 70.7the credit and the income thresholds at which the maximum credit begins to be reduced 70.8in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the 70.9percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 70.10Code, except that in section 1(f)(3)(B) the word "2013" new text begin "2015" new text end shall be substituted for 70.11the word "1992." For 2015 new text begin 2017 new text end , the commissioner shall then determine the percent 70.12change from the 12 months ending on August 31, 2013 new text begin 2015 new text end , to the 12 months ending 70.13on August 31, 2014 new text begin 2016 new text end , and in each subsequent year, from the 12 months ending on 70.14August 31, 2013 new text begin 2015 new text end , to the 12 months ending on August 31 of the year preceding the 70.15taxable year. The earned income thresholds as adjusted for inflation must be rounded to 70.16the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest 70.17$10 amount. The determination of the commissioner under this subdivision is not a rule 70.18under the Administrative Procedure Act. 70.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 70.20 new text begin December 31, 2016. new text end 70.21    Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read: 70.22    Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the 70.23maximum credit allowed for a family is $1,000 multiplied by the number of qualifying 70.24children in kindergarten through grade 12 in the family. The maximum credit for families 70.25with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of 70.26household income over $33,500, and the maximum credit for families with two or more 70.27qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of 70.28household income over $33,500, but in no case is the credit less than zero. 70.29For purposes of this section "income" has the meaning given in section 290.067, 70.30subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint 70.31income tax return is filed. 71.1(b) For a nonresident or part-year resident, the credit determined under subdivision 1 71.2and the maximum credit amount in paragraph (a) must be allocated using the percentage 71.3calculated in section 290.06, subdivision 2c, paragraph (e). 71.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 71.5 new text begin December 31, 2015. new text end 71.6    Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a 71.7subdivision to read: 71.8     new text begin Subd. 2a. new text end new text begin Income. new text end new text begin (a) For purposes of this section, "income" means the sum of new text end 71.9 new text begin the following: new text end 71.10 new text begin (1) federal adjusted gross income as defined in section 62 of the Internal Revenue new text end 71.11 new text begin Code; and new text end 71.12 new text begin (2) the sum of the following amounts to the extent not included in clause (1): new text end 71.13 new text begin (i) all nontaxable income; new text end 71.14 new text begin (ii) the amount of a passive activity loss that is not disallowed as a result of section new text end 71.15 new text begin 469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity new text end 71.16 new text begin loss carryover allowed under section 469(b) of the Internal Revenue Code; new text end 71.17 new text begin (iii) an amount equal to the total of any discharge of qualified farm indebtedness new text end 71.18 new text begin of a solvent individual excluded from gross income under section 108(g) of the Internal new text end 71.19 new text begin Revenue Code; new text end 71.20 new text begin (iv) cash public assistance and relief; new text end 71.21 new text begin (v) any pension or annuity (including railroad retirement benefits, all payments new text end 71.22 new text begin received under the federal Social Security Act, Supplemental Security Income, and new text end 71.23 new text begin veterans benefits), which was not exclusively funded by the claimant or spouse, or which new text end 71.24 new text begin was funded exclusively by the claimant or spouse and which funding payments were new text end 71.25 new text begin excluded from federal adjusted gross income in the years when the payments were made; new text end 71.26 new text begin (vi) interest received from the federal or a state government or any instrumentality new text end 71.27 new text begin or political subdivision thereof; new text end 71.28 new text begin (vii) workers' compensation; new text end 71.29 new text begin (viii) nontaxable strike benefits; new text end 71.30 new text begin (ix) the gross amounts of payments received in the nature of disability income or new text end 71.31 new text begin sick pay as a result of accident, sickness, or other disability, whether funded through new text end 71.32 new text begin insurance or otherwise; new text end 71.33 new text begin (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of new text end 71.34 new text begin 1986, as amended through December 31, 1995; new text end 72.1 new text begin (xi) contributions made by the claimant to an individual retirement account, new text end 72.2 new text begin including a qualified voluntary employee contribution; simplified employee pension plan; new text end 72.3 new text begin self-employed retirement plan; cash or deferred arrangement plan under section 401(k) new text end 72.4 new text begin of the Internal Revenue Code; or deferred compensation plan under section 457 of the new text end 72.5 new text begin Internal Revenue Code; new text end 72.6 new text begin (xii) nontaxable scholarship or fellowship grants; new text end 72.7 new text begin (xiii) the amount of deduction allowed under section 199 of the Internal Revenue new text end 72.8 new text begin Code; new text end 72.9 new text begin (xiv) the amount of deduction allowed under section 220 or 223 of the Internal new text end 72.10 new text begin Revenue Code; new text end 72.11 new text begin (xv) the amount deducted for tuition expenses under section 222 of the Internal new text end 72.12 new text begin Revenue Code; and new text end 72.13 new text begin (xvi) the amount deducted for certain expenses of elementary and secondary school new text end 72.14 new text begin teachers under section 62(a)(2)(D) of the Internal Revenue Code. new text end 72.15 new text begin In the case of an individual who files an income tax return on a fiscal year basis, the new text end 72.16 new text begin term "federal adjusted gross income" means federal adjusted gross income reflected in the new text end 72.17 new text begin fiscal year ending in the next calendar year. Federal adjusted gross income may not be new text end 72.18 new text begin reduced by the amount of a net operating loss carryback or carryforward or a capital loss new text end 72.19 new text begin carryback or carryforward allowed for the year. new text end 72.20 new text begin (b) "Income" does not include: new text end 72.21 new text begin (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102; new text end 72.22 new text begin (2) amounts of any pension or annuity that were exclusively funded by the claimant new text end 72.23 new text begin or spouse if the funding payments were not excluded from federal adjusted gross income new text end 72.24 new text begin in the years when the payments were made; new text end 72.25 new text begin (3) surplus food or other relief in kind supplied by a governmental agency; new text end 72.26 new text begin (4) relief granted under chapter 290A; new text end 72.27 new text begin (5) child support payments received under a temporary or final decree of dissolution new text end 72.28 new text begin or legal separation; and new text end 72.29 new text begin (6) restitution payments received by eligible individuals and excludable interest as new text end 72.30 new text begin defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of new text end 72.31 new text begin 2001, Public Law 107-16. new text end 72.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 72.33 new text begin December 31, 2015. new text end 72.34    Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read: 73.1    Subd. 1a. Credit allowed; past military service. (a) A qualified individual is 73.2allowed a credit against the tax imposed under this chapter for past military service. 73.3The credit equals $750 new text begin $1,000 new text end . The credit allowed under this subdivision is reduced by 73.4ten percent of adjusted gross income in excess of $30,000 new text begin $50,000 new text end , but in no case is 73.5the credit less than zero. 73.6    (b) For a nonresident or a part-year resident, the credit under this subdivision 73.7must be allocated based on the percentage calculated under section 290.06, subdivision 73.82c , paragraph (e). 73.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 73.10 new text begin December 31, 2015. new text end 73.11    Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read: 73.12    Subd. 2. Definitions. For purposes of this section, the following terms have the 73.13meanings given. 73.14    (a) "Qualified research expenses" means (i) qualified research expenses and basic 73.15research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except 73.16it does not include expenses incurred for qualified research or basic research conducted 73.17outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue 73.18Code; and (ii) contributions to a nonprofit corporation established and operated pursuant 73.19to the provisions of chapter 317A for the purpose of promoting the establishment and 73.20expansion of business in this state, provided the contributions are invested by the nonprofit 73.21corporation for the purpose of providing funds for small, technologically innovative 73.22enterprises in Minnesota during the early stages of their development. 73.23    (b) "Qualified research" means qualified research as defined in section 41(d) of the 73.24Internal Revenue Code, except that the term does not include qualified research conducted 73.25outside the state of Minnesota. 73.26    (c) "Base amount" means base amount as defined in section 41(c) of the Internal 73.27Revenue Code, except that the average annual gross receipts must be calculated using 73.28Minnesota sales or receipts under section 290.191 and the definitions contained in clauses 73.29(a) and (b) shall apply. new text begin If there are inadequate records or the records are unavailable to new text end 73.30 new text begin compute or verify the base percentage, a fixed base percentage of 16 percent must be used. new text end 73.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 73.32 new text begin December 31, 2015. new text end 74.1    Sec. 19. new text begin [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN new text end 74.2 new text begin TEACHER'S LICENSURE FIELD. new text end 74.3     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 74.4 new text begin have the meanings given them. new text end 74.5 new text begin (b) "Master's degree program" means a graduate-level program at an accredited new text end 74.6 new text begin university leading to a master of arts or science degree in a core content area directly new text end 74.7 new text begin related to a qualified teacher's licensure field. The master's degree program may not new text end 74.8 new text begin include pedagogy or a pedagogy component. To be eligible under this credit, a licensed new text end 74.9 new text begin elementary school teacher must pursue and complete a master's degree program in a core new text end 74.10 new text begin content area in which the teacher provides direct classroom instruction. new text end 74.11 new text begin (c) "Qualified teacher" means a K-12 teacher who: new text end 74.12 new text begin (1) holds a continuing license granted by the Minnesota Board of Teaching both new text end 74.13 new text begin when the teacher begins the master's degree program and when the teacher completes the new text end 74.14 new text begin master's degree program; new text end 74.15 new text begin (2) began a master's degree program after June 30, 2016; and new text end 74.16 new text begin (3) completes the master's degree program during the taxable year. new text end 74.17 new text begin (d) "Core content area" means the academic subject of reading, English or language new text end 74.18 new text begin arts, mathematics, science, foreign languages, civics and government, economics, arts, new text end 74.19 new text begin history, or geography. new text end 74.20     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An individual who is a qualified teacher is allowed a new text end 74.21 new text begin credit against the tax imposed under this chapter. The credit equals $2,500. new text end 74.22 new text begin (b) For a nonresident or a part-year resident, the credit under this subdivision new text end 74.23 new text begin must be allocated based on the percentage calculated under section 290.06, subdivision new text end 74.24 new text begin 2c, paragraph (e). new text end 74.25 new text begin (c) A qualified teacher may claim the credit in this section only one time for each new text end 74.26 new text begin master's degree program completed in a core content area. new text end 74.27     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin (a) If the amount of the credit for which an individual new text end 74.28 new text begin is eligible exceeds the individual's liability for tax under this chapter, the commissioner new text end 74.29 new text begin shall refund the excess to the individual. new text end 74.30 new text begin (b) The amount necessary to pay the refunds required by this section is appropriated new text end 74.31 new text begin to the commissioner from the general fund. new text end 74.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 74.33 new text begin December 31, 2015. new text end 74.34    Sec. 20. new text begin [290.0683] STUDENT LOAN CREDIT. new text end 75.1     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 75.2 new text begin have the meanings given. new text end 75.3 new text begin (b) "Adjusted gross income" means federal adjusted gross income as defined in new text end 75.4 new text begin section 62 of the Internal Revenue Code. In the case of a married couple filing jointly, new text end 75.5 new text begin "adjusted gross income" means the adjusted gross income of the taxpayer and spouse. new text end 75.6 new text begin (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue new text end 75.7 new text begin Code, except that "earned income" includes combat pay excluded from federal taxable new text end 75.8 new text begin income under section 112 of the Internal Revenue Code. new text end 75.9 new text begin (d) "Education profession" means: new text end 75.10 new text begin (1) a full-time job in public education; early childhood education, including licensed new text end 75.11 new text begin or regulated child care, Head Start, and state-funded prekindergarten; school-based library new text end 75.12 new text begin sciences; and other school-based services; or new text end 75.13 new text begin (2) a full-time job as a faculty member at a tribal college or university as defined in new text end 75.14 new text begin section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs new text end 75.15 new text begin subject areas or areas of shortage, including nurse faculty, foreign language faculty, and new text end 75.16 new text begin part-time faculty at community colleges, as determined by the United States Secretary new text end 75.17 new text begin of Education. new text end 75.18 new text begin (e) "Eligible individual" means an individual who has one or more qualified new text end 75.19 new text begin education loans related to an undergraduate or graduate degree program of the individual new text end 75.20 new text begin at a postsecondary educational institution. new text end 75.21 new text begin (f) "Eligible loan payments" means the amount the eligible individual paid during new text end 75.22 new text begin the taxable year to pay principal and interest on qualified education loans. new text end 75.23 new text begin (g) "Postsecondary educational institution" means a postsecondary institution new text end 75.24 new text begin eligible for state student aid under section 136A.103 or, if the institution is not located in new text end 75.25 new text begin this state, a postsecondary institution participating in the federal Pell Grant program under new text end 75.26 new text begin Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended. new text end 75.27 new text begin (h) "Public service job" means a full-time job in emergency management; new text end 75.28 new text begin government, excluding time served as a member of Congress; military service; public new text end 75.29 new text begin safety; law enforcement; public health, including nurses, nurse practitioners, nurses new text end 75.30 new text begin in a clinical setting, and full-time professionals engaged in health care practitioner new text end 75.31 new text begin occupations and health care support occupations, as such terms are defined by the Bureau new text end 75.32 new text begin of Labor Statistics; social work in a public child or family service agency; public interest new text end 75.33 new text begin law services including prosecution or public defense or legal advocacy on behalf of new text end 75.34 new text begin low-income communities at a nonprofit organization; public service for individuals with new text end 75.35 new text begin disabilities or public service for the elderly; public library sciences; or at an organization new text end 76.1 new text begin that is described in section 501(c)(3) of the Internal Revenue Code and exempt from new text end 76.2 new text begin taxation under section 501(a) of the Internal Revenue Code. new text end 76.3 new text begin (i) "Qualified education loan" has the meaning given in section 221 of the Internal new text end 76.4 new text begin Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual. new text end 76.5     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An eligible individual is allowed a credit against the new text end 76.6 new text begin tax due under this chapter. The credit equals a percentage of eligible loan payments in new text end 76.7 new text begin excess of ten percent of adjusted gross income, up to $1,000, as follows: new text end 76.8 new text begin (1) for eligible individuals, 50 percent; new text end 76.9 new text begin (2) for eligible individuals in a public service job, 65 percent; and new text end 76.10 new text begin (3) for eligible individuals in an education profession, 75 percent. new text end 76.11 new text begin (b) The credit must not exceed the eligible individual's earned income for the taxable new text end 76.12 new text begin year. new text end 76.13 new text begin (c) In the case of a married couple filing a joint return, each spouse is eligible for new text end 76.14 new text begin the credit in this section. new text end 76.15 new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the new text end 76.16 new text begin percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end 76.17 new text begin (e) An eligible individual may receive the credit under this section without regard to new text end 76.18 new text begin the individual's eligibility for the public service loan forgiveness program under United new text end 76.19 new text begin States Code, title 20, section 1087e(m). new text end 76.20     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin If the amount of credit that an individual who is a new text end 76.21 new text begin resident or part-year resident of Minnesota is eligible to receive under this section exceeds new text end 76.22 new text begin the individual's tax liability under this chapter, the commissioner shall refund the excess new text end 76.23 new text begin to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's new text end 76.24 new text begin liability for tax under this chapter. new text end 76.25     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 76.26 new text begin section is appropriated to the commissioner from the general fund. new text end 76.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 76.28 new text begin December 31, 2015. new text end 76.29    Sec. 21. new text begin [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT. new text end 76.30     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this section, the term "federal adjusted new text end 76.31 new text begin gross income" has the meaning given under section 62(a) of the Internal Revenue Code, new text end 76.32 new text begin and "nonqualified distribution" means any distribution that is includible in gross income new text end 76.33 new text begin under section 529 of the Internal Revenue Code. new text end 76.34     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) A credit of up to $500 is allowed to a resident new text end 76.35 new text begin individual against the tax imposed by this chapter, subject to the limitations in paragraph new text end 77.1 new text begin (b). The credit is not allowed to an individual who is eligible to be claimed as a dependent, new text end 77.2 new text begin as defined in sections 151 and 152 of the Internal Revenue Code. new text end 77.3 new text begin (b) The credit allowed must be calculated by applying the following rates to the new text end 77.4 new text begin amount contributed to an account in a plan qualifying under section 529 of the Internal new text end 77.5 new text begin Revenue Code, in a taxable year, reduced by any withdrawals from the account made new text end 77.6 new text begin during the taxable year, and not including any amounts rolled over from other accounts in new text end 77.7 new text begin plans qualifying under section 529 of the Internal Revenue Code: new text end 77.8 new text begin (1) 50 percent for individual filers and married couples filing a joint return who have new text end 77.9 new text begin federal adjusted gross income of not more than $80,000; new text end 77.10 new text begin (2) 25 percent for married couples filing a joint return who have federal adjusted new text end 77.11 new text begin gross income over $80,000, but not more than $100,000; new text end 77.12 new text begin (3) ten percent for married couples filing a joint return who have federal adjusted new text end 77.13 new text begin gross income over $100,000, but not more than $120,000; and new text end 77.14 new text begin (4) five percent for married couples filing a joint return who have federal adjusted new text end 77.15 new text begin gross income over $120,000, but not more than $160,000. new text end 77.16 new text begin (c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the new text end 77.17 new text begin credit, must be adjusted for inflation. The commissioner shall adjust by the percentage new text end 77.18 new text begin determined under the provisions of section 1(f) of the Internal Revenue Code, except that new text end 77.19 new text begin in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the new text end 77.20 new text begin commissioner shall then determine the percent change from the 12 months ending on new text end 77.21 new text begin August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent new text end 77.22 new text begin year, from the 12 months ending on August 31, 2015, to the 12 months ending on August new text end 77.23 new text begin 31 of the year preceding the taxable year. The income thresholds as adjusted for inflation new text end 77.24 new text begin must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is new text end 77.25 new text begin rounded up to the nearest $10 amount. The determination of the commissioner under this new text end 77.26 new text begin subdivision is not a rule under the Administrative Procedure Act including section 14.386. new text end 77.27     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin If the amount of credit that an individual is eligible new text end 77.28 new text begin to receive under this section exceeds the individual's tax liability under this chapter, the new text end 77.29 new text begin commissioner shall refund the excess to the individual. new text end 77.30     new text begin Subd. 4. new text end new text begin Allocation. new text end new text begin For a part-year resident, the credit must be allocated based on new text end 77.31 new text begin the percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end 77.32     new text begin Subd. 5. new text end new text begin Recapture of credit. new text end new text begin In the case of a nonqualified distribution, the new text end 77.33 new text begin taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the new text end 77.34 new text begin nonqualified distribution, or the sum of credits received under this section for all years. new text end 77.35     new text begin Subd. 6. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 77.36 new text begin section is appropriated to the commissioner from the general fund. new text end 78.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 78.2 new text begin December 31, 2015. new text end 78.3    Sec. 22. new text begin [290.0803] SECTION 179 EXPENSING SUBTRACTION. new text end 78.4     new text begin Subdivision 1. new text end new text begin Current year allowance. new text end new text begin (a) In each of the five tax years new text end 78.5 new text begin immediately following the tax year in which an addition is required under section 290.01, new text end 78.6 new text begin subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth new text end 78.7 new text begin of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8), new text end 78.8 new text begin or 19c, clause (13). new text end 78.9 new text begin (b) In the case of a shareholder of a corporation that is an S corporation, the current new text end 78.10 new text begin year allowance is reduced by the positive value of any net operating loss under section new text end 78.11 new text begin 172 of the Internal Revenue Code generated for the tax year of the addition and, if the net new text end 78.12 new text begin operating loss exceeds the addition for the tax year, the current year allowance is zero. new text end 78.13     new text begin Subd. 2. new text end new text begin Section 179 expensing carryover. new text end new text begin For purposes of this section, the current new text end 78.14 new text begin year allowance determined under subdivision 1 is considered to be the last modification new text end 78.15 new text begin allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the new text end 78.16 new text begin amount allowed under subdivision 1 exceeds net income computed without regard to the new text end 78.17 new text begin current year allowance, then the excess is a section 179 expensing carryover to each of the new text end 78.18 new text begin ten succeeding taxable years. The entire amount of the section 179 expensing carryover new text end 78.19 new text begin is carried first to the earliest taxable year to which the section 179 expensing carryover new text end 78.20 new text begin may be carried and then to each successive year to which the section 179 expensing new text end 78.21 new text begin carryover may be carried. new text end 78.22     new text begin Subd. 3. new text end new text begin Section 179 expensing subtraction. new text end new text begin A taxpayer is allowed a section 179 new text end 78.23 new text begin expensing subtraction from federal taxable income under section 290.01, subdivision 19b new text end 78.24 new text begin or 19d. The subtraction equals the sum of: new text end 78.25 new text begin (1) the current year allowance determined under subdivision 1; and new text end 78.26 new text begin (2) any section 179 expensing carryover from prior taxable years determined under new text end 78.27 new text begin subdivision 2. new text end 78.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 78.29 new text begin December 31, 2015. new text end 78.30    Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read: 78.31    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 78.32terms have the meanings given: 78.33    (a) "Alternative minimum taxable income" means the sum of the following for 78.34the taxable year: 79.1    (1) the taxpayer's federal alternative minimum taxable income as defined in section 79.255(b)(2) of the Internal Revenue Code; 79.3    (2) the taxpayer's itemized deductions allowed in computing federal alternative 79.4minimum taxable income, but excluding: 79.5    (i) the charitable contribution deduction under section 170 of the Internal Revenue 79.6Code; 79.7    (ii) the medical expense deduction; 79.8    (iii) the casualty, theft, and disaster loss deduction; and 79.9    (iv) the impairment-related work expenses of a disabled person; 79.10    (3) for depletion allowances computed under section 613A(c) of the Internal 79.11Revenue Code, with respect to each property (as defined in section 614 of the Internal 79.12Revenue Code), to the extent not included in federal alternative minimum taxable income, 79.13the excess of the deduction for depletion allowable under section 611 of the Internal 79.14Revenue Code for the taxable year over the adjusted basis of the property at the end of the 79.15taxable year (determined without regard to the depletion deduction for the taxable year); 79.16    (4) to the extent not included in federal alternative minimum taxable income, the 79.17amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 79.18Internal Revenue Code determined without regard to subparagraph (E); 79.19    (5) to the extent not included in federal alternative minimum taxable income, the 79.20amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 79.21    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 79.22to (9), and (11) to (14); 79.23    less the sum of the amounts determined under the following: 79.24    (1) interest income as defined in section 290.01, subdivision 19b, clause (1); 79.25    (2) an overpayment of state income tax as provided by section 290.01, subdivision 79.2619b , clause (2), to the extent included in federal alternative minimum taxable income; 79.27    (3) the amount of investment interest paid or accrued within the taxable year on 79.28indebtedness to the extent that the amount does not exceed net investment income, as 79.29defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 79.30amounts deducted in computing federal adjusted gross income; 79.31    (4) amounts subtracted from federal taxable income as provided by section 290.01, 79.32subdivision 19b , clauses (6), (8) to (14), (16), and (21) new text begin (22) new text end ; and 79.33(5) the amount of the net operating loss allowed under section 290.095, subdivision 79.3411 , paragraph (c). 79.35    In the case of an estate or trust, alternative minimum taxable income must be 79.36computed as provided in section 59(c) of the Internal Revenue Code. 80.1    (b) "Investment interest" means investment interest as defined in section 163(d)(3) 80.2of the Internal Revenue Code. 80.3    (c) "Net minimum tax" means the minimum tax imposed by this section. 80.4    (d) "Regular tax" means the tax that would be imposed under this chapter (without 80.5regard to this section and section 290.032), reduced by the sum of the nonrefundable 80.6credits allowed under this chapter. 80.7    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable 80.8income after subtracting the exemption amount determined under subdivision 3. 80.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 80.10 new text begin December 31, 2015. new text end 80.11    Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, 80.12is amended to read: 80.13    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal 80.14Revenue Code of 1986, as amended through December 31, 2014 new text begin 2015 new text end . 80.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for property tax refunds new text end 80.16 new text begin based on property taxes payable after December 31, 2015, and rent paid after December new text end 80.17 new text begin 31, 2014. new text end 80.18    Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is 80.19amended to read: 80.20    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 80.21terms used in this chapter shall have the following meanings: 80.22    (1) "Commissioner" means the commissioner of revenue or any person to whom the 80.23commissioner has delegated functions under this chapter. 80.24    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 80.25and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 80.26increased by the value of any property in which the decedent had a qualifying income 80.27interest for life and for which an election was made under section 291.03, subdivision 1d, 80.28for Minnesota estate tax purposes, but was not made for federal estate tax purposes. 80.29    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 80.301986, as amended through December 31, 2014 new text begin 2015 new text end . 80.31    (4) "Minnesota gross estate" means the federal gross estate of a decedent after 80.32(a) excluding therefrom any property included in the estate which has its situs outside 80.33Minnesota, and (b) including any property omitted from the federal gross estate which 81.1is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 81.2taxing authorities. 81.3    (5) "Nonresident decedent" means an individual whose domicile at the time of 81.4death was not in Minnesota. 81.5    (6) "Personal representative" means the executor, administrator or other person 81.6appointed by the court to administer and dispose of the property of the decedent. If there 81.7is no executor, administrator or other person appointed, qualified, and acting within this 81.8state, then any person in actual or constructive possession of any property having a situs in 81.9this state which is included in the federal gross estate of the decedent shall be deemed 81.10to be a personal representative to the extent of the property and the Minnesota estate tax 81.11due with respect to the property. 81.12    (7) "Resident decedent" means an individual whose domicile at the time of death 81.13was in Minnesota. new text begin The provisions of section 290.01, subdivision 7, paragraphs (c) and new text end 81.14 new text begin (d), apply to determinations of domicile under this chapter. new text end 81.15    (8) "Situs of property" means, with respect to: 81.16    (i) real property, the state or country in which it is located; 81.17    (ii) tangible personal property, the state or country in which it was normally kept 81.18or located at the time of the decedent's death or for a gift of tangible personal property 81.19within three years of death, the state or country in which it was normally kept or located 81.20when the gift was executed; 81.21    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 81.22Code, owned by a nonresident decedent and that is normally kept or located in this state 81.23because it is on loan to an organization, qualifying as exempt from taxation under section 81.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 81.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and 81.26    (iv) intangible personal property, the state or country in which the decedent was 81.27domiciled at death or for a gift of intangible personal property within three years of death, 81.28the state or country in which the decedent was domiciled when the gift was executed. 81.29    For a nonresident decedent with an ownership interest in a pass-through entity with 81.30assets that include real or tangible personal property, situs of the real or tangible personal 81.31property, including qualified works of art, is determined as if the pass-through entity does 81.32not exist and the real or tangible personal property is personally owned by the decedent. 81.33If the pass-through entity is owned by a person or persons in addition to the decedent, 81.34ownership of the property is attributed to the decedent in proportion to the decedent's 81.35capital ownership share of the pass-through entity. 81.36(9) "Pass-through entity" includes the following: 82.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue 82.2Code; 82.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; 82.4(iii) a single-member limited liability company or similar entity, regardless of 82.5whether it is taxed as an association or is disregarded for federal income tax purposes 82.6under Code of Federal Regulations, title 26, section 301.7701-3; or 82.7(iv) a trust to the extent the property is includible in the decedent's federal gross 82.8estate; but excludes 82.9    (v) an entity whose ownership interest securities are traded on an exchange regulated 82.10by the Securities and Exchange Commission as a national securities exchange under 82.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f. 82.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 82.13 new text begin dying after December 31, 2015. new text end 82.14    Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision 82.15to read: 82.16     new text begin Subd. 12. new text end new text begin Certain dispositions to government entities. new text end new text begin Notwithstanding any new text end 82.17 new text begin provision of this section, no taxpayer is disqualified for the subtraction provided under new text end 82.18 new text begin section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in new text end 82.19 new text begin subdivision 11, solely because the state, any local government unit, or any other entity new text end 82.20 new text begin that has the power of eminent domain acquires title or possession of the land for a public new text end 82.21 new text begin purpose within the three-year holding period. new text end 82.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 82.23 new text begin dying after June 30, 2011. new text end 82.24    Sec. 27. new text begin AMENDED RETURNS. new text end 82.25     new text begin Subdivision 1. new text end new text begin Certain IRA rollovers. new text end new text begin An individual who excludes an amount new text end 82.26 new text begin from net income in a prior taxable year through rollover of an airline payment amount to new text end 82.27 new text begin a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section new text end 82.28 new text begin 307, may file an amended individual income tax return and claim for refund of state taxes new text end 82.29 new text begin as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by new text end 82.30 new text begin September 1, 2016. new text end 82.31     new text begin Subd. 2. new text end new text begin Exclusion for certain incarcerated individuals. new text end new text begin An individual who new text end 82.32 new text begin excludes from net income in a prior taxable year civil damages, restitution, or other new text end 83.1 new text begin monetary award received as compensation for a wrongful incarceration, as authorized new text end 83.2 new text begin under Public Law 114-113, division Q, title III, section 304, may file an amended new text end 83.3 new text begin individual income tax return and claim for refund of state taxes as provided under new text end 83.4 new text begin Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016. new text end 83.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 83.6    Sec. 28. new text begin ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS. new text end 83.7 new text begin (a) The commissioner of revenue shall: new text end 83.8 new text begin (1) review the estate tax's definition of qualified farm property and its linkage to the new text end 83.9 new text begin property tax classification of the property during the three-year period following the new text end 83.10 new text begin death of the decedent; and new text end 83.11 new text begin (2) by February 1, 2017, report to the committees of the house of representatives new text end 83.12 new text begin and the senate with jurisdiction over taxes on alternative methods of ensuring that the new text end 83.13 new text begin use of the property by qualified heirs during the three-year period after the decedent's new text end 83.14 new text begin death is consistent with the purpose of limiting the subtraction to properties where its use new text end 83.15 new text begin continues that of the decedent without any material change in its use by the qualified heirs new text end 83.16 new text begin and its ownership is consistent with maintaining family ownership of the farm. new text end 83.17 new text begin (b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax new text end 83.18 new text begin under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax new text end 83.19 new text begin classification of agricultural homestead property if the following conditions are satisfied: new text end 83.20 new text begin (1) the property is held in a trust of which the surviving spouse is a beneficiary; and new text end 83.21 new text begin (2) the property receives partial homestead classification because a beneficiary of new text end 83.22 new text begin the trust is the owner of another agricultural homestead. new text end 83.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 83.24    Sec. 29. new text begin INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED. new text end 83.25 new text begin Notwithstanding any law to the contrary, the commissioner of revenue shall not new text end 83.26 new text begin increase the amount due or decrease the refund for an individual income tax return for new text end 83.27 new text begin the taxable year beginning after December 31, 2014, and before January 1, 2016, to the new text end 83.28 new text begin extent the amount due was understated or the refund was overstated because the taxpayer new text end 83.29 new text begin calculated the tax or refund based on the Internal Revenue Code, as amended through new text end 83.30 new text begin December 31, 2014, rather than based on the Internal Revenue Code, as amended through new text end 83.31 new text begin December 31, 2015, as provided in this act. new text end 83.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 84.1    Sec. 30. new text begin REPEALER. new text end 84.2 new text begin Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a, new text end new text begin are repealed. new text end 84.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 84.4 new text begin December 31, 2015. new text end 84.5ARTICLE 4 84.6SALES AND USE TAXES 84.7    Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read: 84.8    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 84.9to, each of the transactions listed in this subdivision. In applying the provisions of this 84.10chapter, the terms "tangible personal property" and "retail sale" include the taxable 84.11services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision 84.12of these taxable services, unless specifically provided otherwise. Services performed by 84.13an employee for an employer are not taxable. Services performed by a partnership or 84.14association for another partnership or association are not taxable if one of the entities owns 84.15or controls more than 80 percent of the voting power of the equity interest in the other 84.16entity. Services performed between members of an affiliated group of corporations are not 84.17taxable. For purposes of the preceding sentence, "affiliated group of corporations" means 84.18those entities that would be classified as members of an affiliated group as defined under 84.19United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b). 84.20    (b) Sale and purchase include: 84.21    (1) any transfer of title or possession, or both, of tangible personal property, whether 84.22absolutely or conditionally, for a consideration in money or by exchange or barter; and 84.23    (2) the leasing of or the granting of a license to use or consume, for a consideration 84.24in money or by exchange or barter, tangible personal property, other than a manufactured 84.25home used for residential purposes for a continuous period of 30 days or more. 84.26    (c) Sale and purchase include the production, fabrication, printing, or processing of 84.27tangible personal property for a consideration for consumers who furnish either directly or 84.28indirectly the materials used in the production, fabrication, printing, or processing. 84.29    (d) Sale and purchase include the preparing for a consideration of food. 84.30Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 84.31to, the following: 84.32    (1) prepared food sold by the retailer; 84.33    (2) soft drinks; 84.34    (3) candy; 84.35    (4) dietary supplements; and 85.1    (5) all food sold through vending machines. 85.2    (e) A sale and a purchase includes the furnishing for a consideration of electricity, 85.3gas, water, or steam for use or consumption within this state. 85.4    (f) A sale and a purchase includes the transfer for a consideration of prewritten 85.5computer software whether delivered electronically, by load and leave, or otherwise. 85.6    (g) A sale and a purchase includes the furnishing for a consideration of the following 85.7services: 85.8    (1) the privilege of admission to places of amusement, recreational areas, or athletic 85.9events, and the making available of amusement devices, tanning facilities, reducing 85.10salons, steam baths, health clubs, and spas or athletic facilities; 85.11    (2) lodging and related services by a hotel, rooming house, resort, campground, 85.12motel, or trailer camp, including furnishing the guest of the facility with access to 85.13telecommunication services, and the granting of any similar license to use real property in 85.14a specific facility, other than the renting or leasing of it for a continuous period of 30 days 85.15or more under an enforceable written agreement that may not be terminated without prior 85.16notice and including accommodations intermediary services provided in connection with 85.17other services provided under this clause; 85.18    (3) nonresidential parking services, whether on a contractual, hourly, or other 85.19periodic basis, except for parking at a meter; 85.20    (4) the granting of membership in a club, association, or other organization if: 85.21    (i) the club, association, or other organization makes available for the use of its 85.22members sports and athletic facilities, without regard to whether a separate charge is 85.23assessed for use of the facilities; and 85.24    (ii) use of the sports and athletic facility is not made available to the general public 85.25on the same basis as it is made available to members. 85.26Granting of membership means both onetime initiation fees and periodic membership 85.27dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 85.28squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 85.29swimming pools; and other similar athletic or sports facilities; 85.30    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate 85.31material used in road construction; and delivery of concrete block by a third party if the 85.32delivery would be subject to the sales tax if provided by the seller of the concrete block. 85.33For purposes of this clause, "road construction" means construction of: 85.34    (i) public roads; 85.35    (ii) cartways; and 86.1    (iii) private roads in townships located outside of the seven-county metropolitan area 86.2up to the point of the emergency response location sign; and 86.3    (6) services as provided in this clause: 86.4    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 86.5and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 86.6drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 86.7include services provided by coin operated facilities operated by the customer; 86.8    (ii) motor vehicle washing, waxing, and cleaning services, including services 86.9provided by coin operated facilities operated by the customer, and rustproofing, 86.10undercoating, and towing of motor vehicles; 86.11    (iii) building and residential cleaning, maintenance, and disinfecting services and 86.12pest control and exterminating services; 86.13    (iv) detective, security, burglar, fire alarm, and armored car services; but not 86.14including services performed within the jurisdiction they serve by off-duty licensed peace 86.15officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 86.16organization or any organization at the direction of a county for monitoring and electronic 86.17surveillance of persons placed on in-home detention pursuant to court order or under the 86.18direction of the Minnesota Department of Corrections; 86.19    (v) pet grooming services; 86.20    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 86.21and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 86.22plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 86.23clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 86.24public utility lines. Services performed under a construction contract for the installation of 86.25shrubbery, plants, sod, trees, bushes, and similar items are not taxable; 86.26    (vii) massages, except when provided by a licensed health care facility or 86.27professional or upon written referral from a licensed health care facility or professional for 86.28treatment of illness, injury, or disease; and 86.29    (viii) the furnishing of lodging, board, and care services for animals in kennels and 86.30other similar arrangements, but excluding veterinary and horse boarding services. 86.31    (h) A sale and a purchase includes the furnishing for a consideration of tangible 86.32personal property or taxable services by the United States or any of its agencies or 86.33instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 86.34subdivisions. 86.35    (i) A sale and a purchase includes the furnishing for a consideration of 86.36telecommunications services, ancillary services associated with telecommunication 87.1services, and pay television services. Telecommunication services include, but are 87.2not limited to, the following services, as defined in section 297A.669: air-to-ground 87.3radiotelephone service, mobile telecommunication service, postpaid calling service, 87.4prepaid calling service, prepaid wireless calling service, and private communication 87.5services. The services in this paragraph are taxed to the extent allowed under federal law. 87.6    (j) A sale and a purchase includes the furnishing for a consideration of installation if 87.7the installation charges would be subject to the sales tax if the installation were provided 87.8by the seller of the item being installed. 87.9    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 87.10to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 87.11the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 87.1259B.02, subdivision 11. 87.13    (l) A sale and a purchase includes furnishing for a consideration of specified digital 87.14products or other digital products or granting the right for a consideration to use specified 87.15digital products or other digital products on a temporary or permanent basis and regardless 87.16of whether the purchaser is required to make continued payments for such right. Wherever 87.17the term "tangible personal property" is used in this chapter, other than in subdivisions 10 87.18and 38, the provisions also apply to specified digital products, or other digital products, 87.19unless specifically provided otherwise or the context indicates otherwise. 87.20 new text begin (m) The sale of the privilege of admission under section 297A.61, subdivision 3, new text end 87.21 new text begin paragraph (g), clause (1), to a place of amusement or athletic event includes all charges new text end 87.22 new text begin included in the privilege of admission's sales price, without deduction for amenities that new text end 87.23 new text begin may be provided, unless the amenities are separately stated and the purchaser of the new text end 87.24 new text begin privilege of admission is entitled to add or decline the amenities, and the amenities are not new text end 87.25 new text begin otherwise taxable. new text end 87.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.27    Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read: 87.28    Subdivision 1. Definitions. (a) To the extent allowed by the United States 87.29Constitution and the laws of the United States, "retailer maintaining a place of business in 87.30this state," or a similar term, means a retailer: 87.31(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, 87.32an office, place of distribution, sales new text begin , storage, new text end or sample room or place, warehouse, or 87.33other place of business new text begin , including the employment of a resident of this state who works new text end 87.34 new text begin from a home office in this state new text end ; or 88.1(2) having a representative, including, but not limited to, an affiliate, agent, 88.2salesperson, canvasser, or new text begin marketplace provider, new text end solicitor new text begin , or other third party new text end operating in 88.3this state under the authority of the retailer or its subsidiary, for any purpose, including the 88.4repairing, selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting of 88.5orders for the retailer's goods or services, or the leasing of tangible personal property located 88.6in this state, whether the place of business or agent, representative, affiliate, salesperson, 88.7canvasser, or solicitor is located in the state permanently or temporarily, or whether or not 88.8the retailer, subsidiary, or affiliate is authorized to do business in this state. new text begin A retailer is new text end 88.9 new text begin represented by a marketplace provider in this state if the retailer makes sales in this state new text end 88.10 new text begin facilitated by a marketplace provider that maintains a place of business in this state. new text end 88.11(b) "Destination of a sale" means the location to which the retailer makes delivery of 88.12the property sold, or causes the property to be delivered, to the purchaser of the property, 88.13or to the agent or designee of the purchaser. The delivery may be made by any means, 88.14including the United States Postal Service or a for-hire carrier. 88.15 new text begin (c) "Marketplace provider" means any person who facilitates a retail sale by a new text end 88.16 new text begin retailer by: new text end 88.17 new text begin (1) listing or advertising for sale by the retailer in any forum, tangible personal new text end 88.18 new text begin property, services, or digital goods that are subject to tax under this chapter; and new text end 88.19 new text begin (2) either directly or indirectly through agreements or arrangements with third new text end 88.20 new text begin parties collecting payment from the customer and transmitting that payment to the new text end 88.21 new text begin retailer regardless of whether the marketplace provider receives compensation or other new text end 88.22 new text begin consideration in exchange for its services. new text end 88.23 new text begin (d) "Total taxable retail sales" means the gross receipts from the sale of all tangible new text end 88.24 new text begin goods, services, and digital goods subject to sales and use tax under this chapter. new text end 88.25    Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read: 88.26    Subd. 2. Retailer maintaining place of business in this state. new text begin (a) Except as new text end 88.27 new text begin provided in paragraph (b), new text end a retailer maintaining a place of business in this state who 88.28makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use 88.29taxes and remit them to the commissioner under section 297A.77. 88.30 new text begin (b) A retailer with total taxable retail sales to customers in this state of less than new text end 88.31 new text begin $10,000 in the 12-month period ending on the last day of the most recently completed new text end 88.32 new text begin calendar quarter is not required to collect and remit sales tax if it is determined to be a new text end 88.33 new text begin retailer maintaining a place of business in the state solely because it made sales through new text end 88.34 new text begin one or more marketplace providers. The provisions of this paragraph do not apply to a new text end 88.35 new text begin retailer that is or was registered to collect sales and use tax in this state. new text end 89.1    Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read: 89.2    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes 89.3of subdivision 1, paragraph (a), if new text begin the entity new text end : 89.4(1) the entity uses its facilities or employees in this state to advertise, promote, or 89.5facilitate the establishment or maintenance of a market for sales of items by the retailer 89.6to purchasers in this state or for the provision of services to the retailer's purchasers in 89.7this state, such as accepting returns of purchases for the retailer, providing assistance in 89.8resolving customer complaints of the retailer, or providing other services; and 89.9(2) the retailer and the entity are related parties. new text begin has the same or a similar business new text end 89.10 new text begin name to the retailer and sells, from a location or locations in this state, tangible personal new text end 89.11 new text begin property, digital goods, or services, taxable under this chapter, that are similar to that new text end 89.12 new text begin sold by the retailer; new text end 89.13 new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or new text end 89.14 new text begin other similar place of business in this state to facilitate the delivery of tangible personal new text end 89.15 new text begin property, digital goods, or services sold by the retailer to its customers in this state; new text end 89.16 new text begin (4) maintains a place of business in this state and uses trademarks, service marks, new text end 89.17 new text begin or trade names in this state that are the same or substantially similar to those used by new text end 89.18 new text begin the retailer, and that use is done with the express or implied consent of the holder of new text end 89.19 new text begin the marks or names; new text end 89.20 new text begin (5) delivers, installs, or assembles tangible personal property in this state, or new text end 89.21 new text begin performs maintenance or repair services on tangible personal property in this state, for new text end 89.22 new text begin tangible personal property sold by the retailer; new text end 89.23 new text begin (6) facilitates the delivery of tangible personal property to customers of the retailer new text end 89.24 new text begin by allowing the customers to pick up tangible personal property sold by the retailer at a new text end 89.25 new text begin place of business the entity maintains in this state; or new text end 89.26 new text begin (7) shares management, business systems, business practices, or employees with the new text end 89.27 new text begin retailer, or engages in intercompany transactions with the retailer related to the activities new text end 89.28 new text begin that establish or maintain the market in this state of the retailer. new text end 89.29(b) Two entities are related parties under this section if one of the entities meets at 89.30least one of the following tests with respect to the other entity: 89.31(1) one or both entities is a corporation, and one entity and any party related to that 89.32entity in a manner that would require an attribution of stock from the corporation to the 89.33party or from the party to the corporation under the attribution rules of section 318 of the 89.34Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 89.35percent of the value of the corporation's outstanding stock; 90.1(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 90.2and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 90.3beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 90.4stock, or value of the other entity or both entities; or 90.5(3) an individual stockholder and the members of the stockholder's family (as 90.6defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, 90.7or constructively, in the aggregate, at least 50 percent of the value of both entities' 90.8outstanding stock. new text begin ; new text end 90.9 new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section new text end 90.10 new text begin 267 or 707(b)(1) of the Internal Revenue Code; or new text end 90.11 new text begin (5) the entities have one or more ownership relationships and the relationships were new text end 90.12 new text begin designed with a principal purpose of avoiding the application of this section. new text end 90.13(c) An entity is an affiliate under the provisions of this subdivision if the requirements 90.14of paragraphs (a) and (b) are met during any part of the 12-month period ending on the 90.15first day of the month before the month in which the sale was made. 90.16    Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision 90.17to read: 90.18     new text begin Subd. 4b. new text end new text begin Collection and remittance requirements for marketplace providers new text end 90.19 new text begin and marketplace sellers. new text end new text begin (a) A marketplace provider shall collect sales and use taxes new text end 90.20 new text begin and remit them to the commissioner under section 297A.77 for all facilitated sales for a new text end 90.21 new text begin retailer, and is subject to audit on the retail sales it facilitates unless the retailer either: new text end 90.22 new text begin (1) provides a copy of the seller's registration to collect sales and use tax in this state new text end 90.23 new text begin to the marketplace provider before the marketplace provider facilitates a sale; or new text end 90.24 new text begin (2) upon inquiry by the marketplace provider or its agent, the commissioner new text end 90.25 new text begin discloses that the retailer is registered to collect sales and use taxes in this state. new text end 90.26 new text begin (b) Nothing in this subdivision shall be construed to interfere with the ability of a new text end 90.27 new text begin marketplace provider and a retailer to enter into an agreement regarding fulfillment of new text end 90.28 new text begin the requirements of this chapter. new text end 90.29 new text begin (c) A marketplace provider is not liable under this subdivision for failure to file and new text end 90.30 new text begin collect and remit sales and use taxes if the marketplace provider demonstrates that the new text end 90.31 new text begin error was due to incorrect or insufficient information given to the marketplace provider by new text end 90.32 new text begin the retailer. This paragraph does not apply if the marketplace provider and the marketplace new text end 90.33 new text begin seller are related as defined in subdivision 4, paragraph (b). new text end 90.34    Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read: 91.1    Subd. 7a. Accessories and supplies. Accessories and supplies required for the 91.2effective use of durable medical equipment for home use only or purchased in a transaction 91.3covered by Medicare or new text begin , new text end Medicaid, new text begin or other health insurance plan, new text end that are not already 91.4exempt under subdivision 7, are exempt. Accessories and supplies for the effective use 91.5of a prosthetic device, that are not already exempt under subdivision 7, are exempt. 91.6For purposes of this subdivision "durable medical equipment," "prosthetic device," 91.7"Medicare," and "Medicaid" have the definitions given in subdivision 7. new text begin , and "other health new text end 91.8 new text begin insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02, new text end 91.9 new text begin subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7. new text end 91.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 91.11 new text begin June 30, 2016. new text end 91.12    Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 91.13to read: 91.14     new text begin Subd. 34. new text end new text begin Suite licenses. new text end new text begin The sale of the privilege of admission under section new text end 91.15 new text begin 297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic new text end 91.16 new text begin event does not include consideration paid for a license to use a private suite, private new text end 91.17 new text begin skybox, or private box seat provided that: (1) the lessee may use the private suite, private new text end 91.18 new text begin skybox, or private box seat by mutual arrangement with the lessor on days when there is new text end 91.19 new text begin no amusement or athletic event; and (2) the sales price for the privilege of admission is new text end 91.20 new text begin separately stated and is equal to or greater than the highest priced general admission ticket new text end 91.21 new text begin for the closest seat not in the private suite, private skybox, or private box seat. new text end 91.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 91.23 new text begin June 30, 2016. new text end 91.24    Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 91.25to read: 91.26     new text begin Subd. 35. new text end new text begin Stadium builder's licenses. new text end new text begin The sale of the privilege of admission under new text end 91.27 new text begin section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration new text end 91.28 new text begin paid for a stadium builder's license authorized under section 473J.15, subdivision 14. new text end 91.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 91.30    Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read: 91.31    Subd. 9. Super Bowl admissions new text begin and related events new text end . new text begin (a) new text end The granting of the 91.32privilege of admission to a world championship football game sponsored by the National 92.1Football League is new text begin and to related events sponsored by the National Football League or its new text end 92.2 new text begin affiliates, or the Minnesota Super Bowl Host Committee, are new text end exempt. 92.3 new text begin (b) The sale of nonresidential parking by the National Football League for new text end 92.4 new text begin attendance at a world championship football game sponsored by the National Football new text end 92.5 new text begin League and for related events sponsored by the National Football League or its affiliates, new text end 92.6 new text begin or the Minnesota Super Bowl Host Committee, is exempt. new text end 92.7 new text begin (c) For the purposes of this subdivision: new text end 92.8 new text begin (1) "related events sponsored by the National Football League or its affiliates" new text end 92.9 new text begin includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, new text end 92.10 new text begin NFL On Location, and NFL House; and new text end 92.11 new text begin (2) "affiliates" does not include National Football League teams. new text end 92.12 new text begin EFFECTIVE DATE. new text end new text begin The amendments to this section are effective for sales and new text end 92.13 new text begin purchases made after June 30, 2016, and before March 1, 2018. new text end 92.14    Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read: 92.15    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of 92.16tangible personal property or services at, and admission charges for fund-raising events 92.17sponsored by, a nonprofit organization are exempt if: 92.18(1) all gross receipts are recorded as such, in accordance with generally accepted 92.19accounting practices, on the books of the nonprofit organization; and 92.20(2) the entire proceeds, less the necessary expenses for the event, will be used solely 92.21and exclusively for charitable, religious, or educational purposes. Exempt sales include 92.22the sale of prepared food, candy, and soft drinks at the fund-raising event. 92.23(b) This exemption is limited in the following manner: 92.24(1) it does not apply to admission charges for events involving bingo or other 92.25gambling activities or to charges for use of amusement devices involving bingo or other 92.26gambling activities; 92.27(2) all gross receipts are taxable if the profits are not used solely and exclusively for 92.28charitable, religious, or educational purposes; 92.29(3) it does not apply unless the organization keeps a separate accounting record, 92.30including receipts and disbursements from each fund-raising event that documents all 92.31deductions from gross receipts with receipts and other records; 92.32(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 92.33the active or passive agent of a person that is not a nonprofit corporation; 92.34(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; 93.1(6) it does not apply to fund-raising events conducted on premises leased for more 93.2than five new text begin ten new text end days but less than 30 days; and 93.3(7) it does not apply if the risk of the event is not borne by the nonprofit organization 93.4and the benefit to the nonprofit organization is less than the total amount of the state and 93.5local tax revenues forgone by this exemption. 93.6(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 93.7government, corporation, society, association, foundation, or institution organized and 93.8operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 93.9veterans' purposes, no part of the net earnings of which inures to the benefit of a private 93.10individual. 93.11(d) For purposes of this subdivision, "fund-raising events" means activities of 93.12limited duration, not regularly carried out in the normal course of business, that attract 93.13patrons for community, social, and entertainment purposes, such as auctions, bake sales, 93.14ice cream socials, block parties, carnivals, competitions, concerts, concession stands, 93.15craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion 93.16shows, festivals, galas, special event workshops, sporting activities such as marathons and 93.17tournaments, and similar events. Fund-raising events do not include the operation of a 93.18regular place of business in which services are provided or sales are made during regular 93.19hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, 93.20regularly scheduled classes, or other activities carried out in the normal course of business. 93.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 93.22 new text begin June 30, 2016. new text end 93.23    Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a 93.24subdivision to read: 93.25     new text begin Subd. 49. new text end new text begin Siding production facility materials. new text end new text begin Building materials and supplies new text end 93.26 new text begin for constructing a siding production facility that can produce at least 400,000,000 square new text end 93.27 new text begin feet of siding per year are exempt. The tax must be imposed and collected as if the rate new text end 93.28 new text begin under section 297A.62, subdivision 1, applied, and then refunded in the manner provided new text end 93.29 new text begin in section 297A.75. new text end 93.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 93.31 new text begin June 30, 2016. new text end 93.32    Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a 93.33subdivision to read: 94.1     new text begin Subd. 50. new text end new text begin Properties destroyed by fire. new text end new text begin Building materials and supplies used in, new text end 94.2 new text begin and equipment incorporated into, the construction or replacement of real property that is new text end 94.3 new text begin located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be new text end 94.4 new text begin imposed and collected as if the rate under section 297A.62, subdivision 1, applied and new text end 94.5 new text begin then refunded in the manner provided in section 297A.75. new text end 94.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 94.7 new text begin June 30, 2016, and before July 1, 2018. new text end 94.8    Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a 94.9subdivision to read: 94.10     new text begin Subd. 51. new text end new text begin Former Duluth Central High School. new text end new text begin Materials and supplies used new text end 94.11 new text begin in and equipment incorporated into a private redevelopment project on the site of the new text end 94.12 new text begin former Duluth Central High School are exempt, provided the resulting development is new text end 94.13 new text begin subject to property taxes. The tax must be imposed and collected as if the rate under new text end 94.14 new text begin section 297A.62, subdivision 1, applied and then refunded in the manner provided in new text end 94.15 new text begin section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for new text end 94.16 new text begin purchases exempt under this section. Refunds must be processed and issued in the order new text end 94.17 new text begin that complete and accurate applications are received by the commissioner. new text end 94.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 94.19 new text begin June 30, 2016, and before January 1, 2018. new text end 94.20    Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read: 94.21    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 94.22following exempt items must be imposed and collected as if the sale were taxable and the 94.23rate under section 297A.62, subdivision 1, applied. The exempt items include: 94.24    (1) building materials for an agricultural processing facility exempt under section 94.25297A.71, subdivision 13 ; 94.26    (2) building materials for mineral production facilities exempt under section 94.27297A.71, subdivision 14 ; 94.28    (3) building materials for correctional facilities under section 297A.71, subdivision 3; 94.29    (4) building materials used in a residence for disabled veterans exempt under section 94.30297A.71, subdivision 11 ; 94.31    (5) elevators and building materials exempt under section 297A.71, subdivision 12; 94.32    (6) materials and supplies for qualified low-income housing under section 297A.71, 94.33subdivision 23 ; 95.1    (7) materials, supplies, and equipment for municipal electric utility facilities under 95.2section 297A.71, subdivision 35; 95.3    (8) equipment and materials used for the generation, transmission, and distribution 95.4of electrical energy and an aerial camera package exempt under section 297A.68, 95.5subdivision 37; 95.6    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, 95.7paragraph (a), clause (10); 95.8    (10) materials, supplies, and equipment for construction or improvement of projects 95.9and facilities under section 297A.71, subdivision 40; 95.10(11) materials, supplies, and equipment for construction, improvement, or expansion 95.11of: 95.12(i) an aerospace defense manufacturing facility exempt under section 297A.71, 95.13subdivision 42 ; 95.14(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 95.15subdivision 45 ; 95.16(iii) a research and development facility exempt under section 297A.71, subdivision 95.1746 ; and 95.18(iv) an industrial measurement manufacturing and controls facility exempt under 95.19section 297A.71, subdivision 47; 95.20(12) enterprise information technology equipment and computer software for use in 95.21a qualified data center exempt under section 297A.68, subdivision 42; 95.22(13) materials, supplies, and equipment for qualifying capital projects under section 95.23297A.71, subdivision 44 ; 95.24(14) items purchased for use in providing critical access dental services exempt 95.25under section 297A.70, subdivision 7, paragraph (c); and 95.26(15) items and services purchased under a business subsidy agreement for use or 95.27consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44 new text begin ; new text end 95.28 new text begin (16) building materials and supplies for constructing a siding facility exempt under new text end 95.29 new text begin section 297A.71, subdivision 49; new text end 95.30 new text begin (17) building materials, equipment, and supplies for constructing or replacing real new text end 95.31 new text begin property exempt under section 297A.71, subdivision 50; and new text end 95.32 new text begin (18) materials and supplies used in and equipment incorporated into a private new text end 95.33 new text begin redevelopment project exempt under section 297A.71, subdivision 51 new text end . 95.34 new text begin EFFECTIVE DATE. new text end new text begin Clause (16) is effective for sales and purchases made after new text end 95.35 new text begin June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016, new text end 96.1 new text begin and before July 1, 2018. Clause (18) is effective for sales and purchases made after June new text end 96.2 new text begin 30, 2016, and before January 1, 2018. new text end 96.3    Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read: 96.4    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 96.5commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 96.6must be paid to the applicant. Only the following persons may apply for the refund: 96.7    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser; 96.8    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; 96.9    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 96.10provided in United States Code, title 38, chapter 21; 96.11    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 96.12property; 96.13    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing 96.14project; 96.15    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or 96.16a joint venture of municipal electric utilities; 96.17    (7) for subdivision 1, clauses (8), (11), (12), and (15), new text begin and (16), new text end the owner of the 96.18qualifying business; and 96.19    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the 96.20governmental entity that owns or contracts for the project or facility new text begin ; and new text end 96.21     new text begin (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or new text end 96.22 new text begin developer of the building or project new text end . 96.23 new text begin EFFECTIVE DATE. new text end new text begin The change to clause (7) is effective for sales and purchases new text end 96.24 new text begin made after June 30, 2016. Clause (9) is effective for sales and purchases made after June new text end 96.25 new text begin 30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, new text end 96.26 new text begin subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and new text end 96.27 new text begin before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision new text end 96.28 new text begin 1, clause (18). new text end 96.29    Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read: 96.30    Subd. 3. Application. (a) The application must include sufficient information 96.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 96.32subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), new text begin to (18), new text end the 96.33contractor, subcontractor, or builder must furnish to the refund applicant a statement 96.34including the cost of the exempt items and the taxes paid on the items unless otherwise 97.1specifically provided by this subdivision. The provisions of sections 289A.40 and 97.2289A.50 apply to refunds under this section. 97.3    (b) An applicant may not file more than two applications per calendar year for 97.4refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 97.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 97.6 new text begin June 30, 2016. new text end 97.7    Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read: 97.8    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, 97.9"net revenue" means an amount equal to the revenues, including interest and penalties, 97.10collected under this section, during the fiscal year; less $32,000,000 in each fiscal year. 97.11    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall 97.12estimate the amount of the net revenue for the current fiscal year. 97.13    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management 97.14and budget shall transfer the net revenue as estimated in paragraph (b) from the general 97.15fund, as follows: 97.16    (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to 97.17the county state-aid highway fund. Notwithstanding any other law to the contrary, the 97.18commissioner of transportation shall allocate the funds transferred under this clause to the 97.19counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding 97.20the counties of Hennepin and Ramsey, so that each county shall receive of such amount 97.21the percentage that its population, as defined in section 477A.011, subdivision 3, estimated 97.22or established by July 15 of the year prior to the current calendar year, bears to the total 97.23population of the counties receiving funds under this clause; and 97.24    (2) the remainder to the greater Minnesota transit account. 97.25 new text begin (d) The revenues deposited under this subdivision do not include the revenues, new text end 97.26 new text begin including interest and penalties, generated by the sales tax imposed under section new text end 97.27 new text begin 297A.62, subdivision 1a, which must be deposited as provided under the Minnesota new text end 97.28 new text begin Constitution, article XI, section 15. new text end 97.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with the estimate that must new text end 97.30 new text begin be completed on or before June 30, 2017, for a transfer that occurs on or after July 1, 2017, new text end 97.31 new text begin except paragraph (c) is effective the day following final enactment. new text end 97.32    Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 97.33chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 98.12003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, 98.2article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read: 98.3    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other 98.4law, ordinance, or city charter provision to the contrary, the city of Duluth may, by 98.5ordinance, impose an additional sales tax of up to one and three-quarter percent on sales 98.6transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision 98.73, clause (c). The imposition of this tax shall not be subject to voter referendum under 98.8either state law or city charter provisions. When the city council determines that the taxes 98.9imposed under this paragraph at a rate of three-quarters of one percent and other sources 98.10of revenue produce revenue sufficient to pay debt service on bonds in the principal amount 98.11of $40,285,000 plus issuance and discount costs, issued for capital improvements at the 98.12Duluth Entertainment and Convention Center, which include a new arena, the rate of tax 98.13under this subdivision must be reduced by three-quarters of one percent. 98.14(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 98.15section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 98.16the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of 98.17one percent on sales transactions which are described in Minnesota Statutes 2000, section 98.18297A.01, subdivision 3 , clause (c). This tax expires when the city council determines 98.19that the tax imposed under this paragraph, along with the tax imposed under section 98.2022, paragraph (b), has produced revenues sufficient to pay the debt service on bonds 98.21in a principal amount of no more than $18,000,000, plus issuance and discount costs, 98.22to finance capital improvements to public facilities to support tourism and recreational 98.23activities in that portion of the city west of 34th new text begin 14th new text end Avenue West new text begin and the area south of new text end 98.24 new text begin and including Skyline Parkway new text end . 98.25(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation 98.26bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the 98.27costs of issuance and any premiums. The proceeds may be used to finance capital 98.28improvements to public facilities that support tourism and recreational activities in the 98.29portion of the city west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including new text end 98.30 new text begin Skyline Parkway new text end , as described in paragraph (b). The issuance of the bonds is subject to the 98.31provisions of Minnesota Statutes, chapter 475, except no election shall be required unless 98.32required by the city charter. The bonds shall not be included in computing net debt. The 98.33revenues from the taxes that the city of Duluth may impose under paragraph (b) and under 98.34section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds. 99.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 99.2 new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end 99.3 new text begin 645.021, subdivisions 2 and 3. new text end 99.4    Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, 99.5article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and 99.6Laws 2014, chapter 308, article 3, section 22, is amended to read: 99.7    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND 99.8MOTELS. 99.9    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or 99.10ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 99.11impose an additional tax of one percent upon the gross receipts from the sale of lodging 99.12for periods of less than 30 days in hotels and motels located in the city. The tax shall be 99.13collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), 99.14paragraph one. The imposition of this tax shall not be subject to voter referendum under 99.15either state law or city charter provisions. 99.16(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 99.17section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 99.18the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half 99.19of one percent on the gross receipts from the sale of lodging for periods of less than 99.2030 days in hotels and motels located in the city. This tax expires when the city council 99.21first determines that the tax imposed under this paragraph, along with the tax imposed 99.22under section 21, paragraph (b), has produced revenues sufficient to pay the debt 99.23service on bonds in a principal amount of no more than $18,000,000, plus issuance and 99.24discount costs, to finance capital improvements to public facilities to support tourism and 99.25recreational activities in that portion of the city west of 34th new text begin 14th new text end Avenue West new text begin and the new text end 99.26 new text begin area south of and including Skyline Parkway new text end . 99.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 99.28 new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end 99.29 new text begin 645.021, subdivisions 2 and 3. new text end 99.30    Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by 99.31Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, 99.32and Laws 2009, chapter 88, article 4, section 14, is amended to read: 99.33    Subd. 3. Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by 99.34subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to 100.1pay all or a portion of the expenses of constructing and improving facilities as part of an 100.2urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized 100.3expenses include, but are not limited to, acquiring property and paying relocation expenses 100.4related to the development of Riverfront 2000 and related facilities, and securing or paying 100.5debt service on bonds or other obligations issued to finance the construction of Riverfront 100.62000 and related facilities. For purposes of this section, "Riverfront 2000 and related 100.7facilities" means a civic-convention center, an arena, a riverfront park, a technology center 100.8and related educational facilities, and all publicly owned real or personal property that 100.9the governing body of the city determines will be necessary to facilitate the use of these 100.10facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and 100.11landscaping. It also includes the performing arts theatre and the Southern Minnesota 100.12Women's Hockey Exposition Center, for use by Minnesota State University, Mankato. 100.13     new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject new text end 100.14 new text begin to voter approval at a general election held before December 31, 2018; provided that the new text end 100.15 new text begin sales tax in the city of North Mankato is also extended at the same general election, the new text end 100.16 new text begin city may by ordinance also use revenues from taxes authorized under subdivisions 1 and new text end 100.17 new text begin 2, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of new text end 100.18 new text begin the expenses of the following capital projects: new text end 100.19     new text begin (1) construction and improvements to regional recreational facilities including new text end 100.20 new text begin existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the new text end 100.21 new text begin municipal swimming pool including improvements to make the pool compliant with the new text end 100.22 new text begin Americans with Disabilities Act, and indoor regional athletic facilities; new text end 100.23     new text begin (2) improvements to flood control and the levee system; new text end 100.24 new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties; new text end 100.25 new text begin (4) expansion of the regional transit building and related multimodal transit new text end 100.26 new text begin improvements; new text end 100.27 new text begin (5) regional public safety and emergency communications improvements and new text end 100.28 new text begin equipment; and new text end 100.29 new text begin (6) matching funds for improvements to publicly owned regional facilities including new text end 100.30 new text begin a historic museum, supportive housing, and a senior center. new text end 100.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 100.32 new text begin the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 100.33 new text begin 645.021, subdivisions 2 and 3. new text end 101.1    Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by 101.2Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 101.3366, article 7, section 10, is amended to read: 101.4    Subd. 4. Expiration of taxing authority and expenditure limitation. The 101.5authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax 101.6shall expire on new text begin at the earlier of when revenues are sufficient to pay off the bonds, including new text end 101.7 new text begin interest and all other associated bond costs authorized under subdivision 5, or new text end December 31, 101.82022 new text begin , unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized. new text end 101.9 new text begin If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire new text end 101.10 new text begin at the earlier of when revenues are sufficient to pay off the bonds, including interest and new text end 101.11 new text begin all other associated bond costs authorized under subdivision 5, or December 31, 2038 new text end . 101.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 101.13 new text begin without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 101.14    Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read: 101.15    Subd. 5. Bonds. new text begin (a) new text end The city of Mankato may issue general obligation bonds of the 101.16city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, 101.17without election under Minnesota Statutes, chapter 475, on the question of issuance of the 101.18bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 101.19and related facilities shall not be included in computing any debt limitations applicable 101.20to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal 101.21of and interest on the bonds shall not be subject to any levy limitation or be included in 101.22computing or applying any levy limitation applicable to the city. 101.23     new text begin (b) The city of Mankato, subject to voter approval at the election required under new text end 101.24 new text begin subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount new text end 101.25 new text begin not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), new text end 101.26 new text begin without election under Minnesota Statutes, chapter 475, on the question of issuance of the new text end 101.27 new text begin bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be new text end 101.28 new text begin included in computing any debt limitations applicable to the city of Mankato, and the levy new text end 101.29 new text begin of taxes required by Minnesota Statutes, section new text end new text begin 475.61, new text end new text begin to pay principal of and interest on new text end 101.30 new text begin the bonds, and shall not be subject to any levy limitation or be included in computing or new text end 101.31 new text begin applying any levy limitation applicable to the city. The city may use tax revenue in excess new text end 101.32 new text begin of one year's principal interest reserve for intended annual bond payments to pay all or a new text end 101.33 new text begin portion of the cost of capital improvements authorized in subdivision 3. new text end 102.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 102.2 new text begin without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 102.3    Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read: 102.4    Subd. 6. Reverse referendum new text begin ; authorization of extension new text end . new text begin (a) new text end If the Mankato city 102.5council intends to exercise the authority provided by this section, it shall pass a resolution 102.6stating the fact before July 1, 1991. The resolution must be published for two successive 102.7weeks in the official newspaper of the city or, if there is no official newspaper, in a 102.8newspaper of general circulation in the city, together with a notice fixing a date for a public 102.9hearing on the matter. The hearing must be held at least two weeks but not more than four 102.10weeks after the first publication of the resolution. Following the public hearing, the city 102.11may determine to take no further action or adopt a resolution confirming its intention to 102.12exercise the authority. That resolution must also be published in the official newspaper of 102.13the city or, if there is no official newspaper, in a newspaper of general circulation in the 102.14city. If within 30 days after publication of the resolution a petition signed by voters equal 102.15in number to ten percent of the votes cast in the city in the last general election requesting 102.16a vote on the proposed resolution is filed with the county auditor, the resolution is not 102.17effective until it has been submitted to the voters at a general or special election and a 102.18majority of votes cast on the question of approving the resolution are in the affirmative. The 102.19commissioner of revenue shall prepare a suggested form of question to be presented at the 102.20election. The referendum must be held at a special or general election before December 1, 102.211991. This subdivision applies notwithstanding any city charter provision to the contrary. 102.22     new text begin (b) If the Mankato city council wishes to extend the taxes authorized under new text end 102.23 new text begin subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the new text end 102.24 new text begin city must pass a resolution extending the taxes before July 1, 2016. The tax may not be new text end 102.25 new text begin imposed unless approved by the voters. new text end 102.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 102.27 new text begin without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 102.28    Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by 102.29Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 102.307, article 4, section 4, is amended to read: 102.31    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, 102.32section 477A.016, or any other contrary provision of law, ordinance, or city charter, the 102.33city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent 102.34on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur 103.1within the city. The proceeds of the tax imposed under this section must be used to new text begin pay new text end 103.2 new text begin the cost of collection of the tax and to new text end meet the costs new text begin , including principal, interest, and new text end 103.3 new text begin premiums of bonds used in the finance new text end of: 103.4    (1) extending a sewer interceptor line; 103.5    (2) construction of a booster pump station, reservoirs, and related improvements 103.6to the water system; and 103.7    (3) construction of a building containing a police and fire station and an 103.8administrative services facility new text begin ; and new text end 103.9     new text begin (4) construction and equipping of a regional, multiuse wellness center new text end . 103.10(b) If the city imposed a sales tax of only one-half of one percent under paragraph 103.11(a), it may increase the tax to one percent to fund the purposes under paragraph (a) 103.12provided it is approved by the voters at a general election held before December 31, 2012. 103.13 new text begin (c) The tax imposed in paragraph (a) may only be used to fund projects listed in new text end 103.14 new text begin paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general new text end 103.15 new text begin election. Revenue raised from the tax imposed under this subdivision in every year must new text end 103.16 new text begin first be used to meet obligations in that year related to the projects in paragraph (a), clauses new text end 103.17 new text begin (1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4). new text end 103.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 103.19 new text begin the city of Hermantown and its chief clerical officer comply with Minnesota Statutes, new text end 103.20 new text begin section 645.021, subdivisions 2 and 3. new text end 103.21    Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by 103.22Laws 2006, chapter 259, article 3, section 4, is amended to read: 103.23    Subd. 4. Termination. The tax authorized under this section terminates on March 103.2431, 2026 new text begin , unless the additional use under subdivision 1, paragraph (a), is approved new text end 103.25 new text begin as required under subdivision 1, paragraph (c). If the additional project is approved new text end 103.26 new text begin as required under subdivision 1, paragraph (c), the tax authorized under this section new text end 103.27 new text begin terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City new text end 103.28 new text begin Council first determines that sufficient funds have been received from the tax to fund the new text end 103.29 new text begin costs, including bonds and associated bond costs for the uses specified in subdivision 1, new text end 103.30 new text begin paragraph (a) new text end . Any funds remaining after completion of the improvements and retirement 103.31or redemption of the bonds may be placed in the general fund of the city. 103.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 103.33 new text begin without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 104.1    Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by 104.2Laws 2008, chapter 366, article 7, section 12, is amended to read: 104.3    Subdivision 1. Sales and use tax. new text begin (a) new text end Notwithstanding Minnesota Statutes, section 104.4477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city 104.5voters at the first municipal general election held after the date of final enactment of this act 104.6or at a special election held November 2, 1999, the city of Proctor may impose by ordinance 104.7a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 104.83. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 104.9administration, collection, and enforcement of the tax authorized under this subdivision. 104.10 new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of new text end 104.11 new text begin law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional new text end 104.12 new text begin sales and use tax of up to one-half of one percent as approved by the voters at the new text end 104.13 new text begin November 4, 2014, general election. The revenues received from the additional tax must new text end 104.14 new text begin be used for the purposes specified in subdivision 3, paragraph (b). new text end 104.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 104.16 new text begin the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section new text end 104.17 new text begin 645.021, subdivisions 2 and 3, but only if the local approval requirement under section new text end 104.18 new text begin 10 is also met. new text end 104.19    Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read: 104.20    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED. 104.21    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 104.22section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to 104.23the approval of the voters on November 7, 2006, the city of North Mankato may impose 104.24by ordinance a sales and use tax of one-half of one percent for the purposes specified 104.25in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the 104.26imposition, administration, collection, and enforcement of the taxes authorized under 104.27this subdivision. 104.28    Subd. 2. Use of revenues. new text begin (a) new text end Revenues received from the tax authorized by 104.29subdivision 1 must be used to pay all or part of the capital costs of the following projects: 104.30    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 104.31interchange project; 104.32    (2) development of regional parks and hiking and biking trails new text begin , including new text end 104.33 new text begin construction of indoor regional athletic facilities new text end ; 104.34    (3) expansion of the North Mankato Taylor Library; 104.35    (4) riverfront redevelopment; and 105.1    (5) lake improvement projects. 105.2    The total amount of revenues from the tax in subdivision 1 that may be used to fund 105.3these projects is $6,000,000 plus any associated bond costs. 105.4     new text begin (b) If the city extends the tax as authorized under subdivision 2a, the total amount that new text end 105.5 new text begin may be used to fund these projects is increased by $9,000,000, plus associated bond costs. new text end 105.6     new text begin Subd. 2a. new text end new text begin Authorization to extend the tax. new text end new text begin Notwithstanding Minnesota Statutes, new text end 105.7 new text begin section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend new text end 105.8 new text begin the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus new text end 105.9 new text begin associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by new text end 105.10 new text begin the voters at a general election held before December 31, 2018; provided that the sales tax new text end 105.11 new text begin in the city of Mankato is also extended at the same general election. new text end 105.12    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the 105.13voters at the November 7, 2006 referendum authorizing the imposition of the taxes in 105.14this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and 105.15administrative expenses for the projects described in subdivision 2, new text begin paragraph (a), new text end in an 105.16amount that does not exceed $6,000,000. A separate election to approve the bonds under 105.17Minnesota Statutes, section 475.58, is not required. 105.18 new text begin (b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing new text end 105.19 new text begin for additional revenue to be spent for the projects in subdivision 2, may issue additional new text end 105.20 new text begin bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses new text end 105.21 new text begin for those projects in an amount that does not exceed $9,000,000. A separate election to new text end 105.22 new text begin approve the bonds under Minnesota Statutes, section new text end new text begin , is not required. new text end 105.23    (b) new text begin (c) new text end The debt represented by the bonds is not included in computing any debt 105.24limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 105.25475.61 , to pay principal and interest on the bonds is not subject to any levy limitation. 105.26    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when 105.27the city council determines that the amount of revenues received from the taxes to pay for 105.28the projects under subdivision 2 new text begin , paragraph (a), new text end first equals or exceeds $6,000,000 plus the 105.29additional amount needed to pay the costs related to issuance of bonds under subdivision 105.303, including interest on the bonds new text begin , unless the tax is extended as allowed in this section. If new text end 105.31 new text begin the tax is extended as allowed under the referendum under subdivision 2a, the tax expires new text end 105.32 new text begin at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed new text end 105.33 new text begin $15,000,000 plus the additional amount needed to pay costs related to issuance of bonds new text end 105.34 new text begin under subdivision 3, including interest new text end . Any funds remaining after completion of the 105.35projects and retirement or redemption of the bonds shall be placed in a capital facilities 106.1and equipment replacement fund of the city. The tax imposed under subdivision 1 may 106.2expire at an earlier time if the city so determines by ordinance. 106.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 106.4 new text begin the city of North Mankato and its chief clerical officer comply with Minnesota Statutes, new text end 106.5 new text begin section 645.021, subdivisions 2 and 3. new text end 106.6    Sec. 28. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED. new text end 106.7     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota new text end 106.8 new text begin Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, new text end 106.9 new text begin or city charter, and as approved by the voters at a special election on March 7, 2016, the new text end 106.10 new text begin city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one new text end 106.11 new text begin percent for the purposes specified in subdivision 2. Except as otherwise provided in this new text end 106.12 new text begin section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, new text end 106.13 new text begin administration, collection, and enforcement of the tax authorized under this subdivision. new text end 106.14     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax new text end 106.15 new text begin authorized under subdivision 1 must be used by the city of East Grand Forks to pay the new text end 106.16 new text begin costs of collecting and administering the tax and to finance the capital and administrative new text end 106.17 new text begin costs of improvement to the city public swimming pool. Authorized expenses include, new text end 106.18 new text begin but are not limited to, paying construction expenses related to the renovation and the new text end 106.19 new text begin development of these facilities and improvements, and securing and paying debt service new text end 106.20 new text begin on bonds issued under subdivision 3 or other obligations issued to finance improvement of new text end 106.21 new text begin the public swimming pool in the city of East Grand Forks new text end 106.22     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of East Grand Forks may issue bonds new text end 106.23 new text begin under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the new text end 106.24 new text begin facilities authorized in subdivision 2. The aggregate principal amount of bonds issued new text end 106.25 new text begin under this subdivision may not exceed $2,820,000, plus an amount to be applied to the new text end 106.26 new text begin payment of the costs of issuing the bonds. The bonds may be paid from or secured by new text end 106.27 new text begin any funds available to the city of East Grand Forks, including the tax authorized under new text end 106.28 new text begin subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota new text end 106.29 new text begin Statutes, sections 275.60 and 275.61. new text end 106.30 new text begin (b) The bonds are not included in computing any debt limitation applicable to the new text end 106.31 new text begin city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, new text end 106.32 new text begin to pay principal and interest on the bonds is not subject to any levy limitation. A separate new text end 106.33 new text begin election to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 107.1     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at new text end 107.2 new text begin the later of: (1) five years after the tax is first imposed; or (2) when the city council new text end 107.3 new text begin determines that $2,820,000 has been received from the tax to pay for the cost of the new text end 107.4 new text begin projects authorized under subdivision 2, plus an amount sufficient to pay the costs related new text end 107.5 new text begin to issuance of the bonds authorized under subdivision 3, including interest on the bonds. new text end 107.6 new text begin Any funds remaining after payment of all such costs and retirement or redemption of the new text end 107.7 new text begin bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1 new text end 107.8 new text begin may expire at an earlier time if the city so determines by ordinance. new text end 107.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 107.10 new text begin governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021, new text end 107.11 new text begin subdivisions 2 and 3. new text end 107.12    Sec. 29. new text begin CITY OF MARSHALL; VALIDATION OF PRIOR ACT. new text end 107.13 new text begin (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city new text end 107.14 new text begin of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section new text end 107.15 new text begin 14, and file its approval with the secretary of state by June 15, 2013. If approved as new text end 107.16 new text begin authorized under this paragraph, actions undertaken by the city as approved by the voters new text end 107.17 new text begin on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session new text end 107.18 new text begin chapter 7, article 4, section 14, are validated. new text end 107.19 new text begin (b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First new text end 107.20 new text begin Special Session chapter 7, article 4, section 14, and subject to local approval under new text end 107.21 new text begin paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013. new text end 107.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 107.23    Sec. 30. new text begin CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED new text end 107.24 new text begin OPERATING OR CAPITAL EXPENSES. new text end 107.25     new text begin Subdivision 1. new text end new text begin Reimbursement authorized. new text end new text begin (a) An amount equivalent to the taxes new text end 107.26 new text begin paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the new text end 107.27 new text begin Department of Revenue, on purchases of tangible personal property, nonresidential new text end 107.28 new text begin parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter new text end 107.29 new text begin 297A, used and consumed in connection with Super Bowl LII or related events sponsored new text end 107.30 new text begin by the National Football League or its affiliates, will be reimbursed by the Minnesota new text end 107.31 new text begin Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before new text end 107.32 new text begin March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the new text end 108.1 new text begin National Football League or its affiliates, or their employees or independent contractors, new text end 108.2 new text begin qualify to be reimbursed under this section. new text end 108.3 new text begin (b) For purposes of this subdivision: new text end 108.4 new text begin (1) "employee or independent contractor" means only those employees or new text end 108.5 new text begin independent contractors that make qualifying purchases that are reimbursed by the new text end 108.6 new text begin Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and new text end 108.7 new text begin (2) "related events sponsored by the National Football League or its affiliates" new text end 108.8 new text begin includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, new text end 108.9 new text begin NFL Honors, and NFL House. new text end 108.10     new text begin Subd. 2. new text end new text begin Operating reserve and capital reserve fund. new text end new text begin Notwithstanding the new text end 108.11 new text begin requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to new text end 108.12 new text begin $1,600,000 of the balance in the operating reserve or capital reserve fund may be used for new text end 108.13 new text begin the purposes of paying reimbursements authorized under subdivision 1. new text end 108.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 108.15 new text begin June 30, 2016, and before March 1, 2018. new text end 108.16    Sec. 31. new text begin SEVERABILITY. new text end 108.17 new text begin If any provision of sections 2 to 5 or the application thereof is held invalid, such new text end 108.18 new text begin invalidity shall not affect the provisions or applications of the sections that can be given new text end 108.19 new text begin effect without the invalid provisions or applications. new text end 108.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 108.21    Sec. 32. new text begin EFFECTIVE DATE. new text end 108.22 new text begin (a) The provisions of sections 2 to 5 are effective at the earlier of: new text end 108.23 new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill new text end 108.24 new text begin Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a new text end 108.25 new text begin physical presence in the state to collect and remit sales tax; or new text end 108.26 new text begin (2) July 1, 2019. new text end 108.27 new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 1 to 4, if a federal new text end 108.28 new text begin law is enacted authorizing a state to impose a requirement to collect and remit sales tax new text end 108.29 new text begin on retailers without a physical presence in the state, the commissioner must enforce the new text end 108.30 new text begin provisions of this section and sections 1 to 4 to the extent allowed under federal law. new text end 108.31 new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of new text end 108.32 new text begin the provisions in paragraph (a) or (b) apply. new text end 109.1ARTICLE 5 109.2SPECIAL TAXES 109.3    Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to 109.4read: 109.5    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 109.6means natural gas, primarily methane, condensed under high pressure and stored in 109.7specially designed storage tanks at between 2,000 and 3,600 pounds per square inch. 109.8For purposes of this chapter, the energy content of CNG is considered to be 1,000 new text begin 900 new text end 109.9BTUs per cubic foot. 109.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 109.11 new text begin June 30, 2016. new text end 109.12    Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 109.13to read: 109.14     new text begin Subd. 13a. new text end new text begin Dealer of gasoline used as a substitute for aviation gasoline. new text end new text begin "Dealer new text end 109.15 new text begin of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline new text end 109.16 new text begin on the premises of an airport as defined under section 360.013, subdivision 39, to be new text end 109.17 new text begin dispensed directly into the fuel tank of an aircraft. new text end 109.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 109.19 new text begin June 30, 2016. new text end 109.20    Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read: 109.21    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or 109.22denatured ethanol purchased by: 109.23    (1) a transit system or transit provider receiving financial assistance or 109.24reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384; 109.25    (2) providers of transportation to recipients of medical assistance home and 109.26community-based services waivers enrolled in day programs, including adult day care, 109.27family adult day care, day treatment and habilitation, prevocational services, and 109.28structured day services; 109.29(3) an ambulance service licensed under chapter 144E; 109.30(4) providers of medical or dental services by a federally qualified health center, 109.31as defined under title 19 of the Social Security Act, as amended by Section 4161 of the 109.32Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a 109.33mobile medical unit; or 110.1    (5) a licensed distributor to be delivered to a terminal for use in blending new text begin ; or new text end 110.2     new text begin (6) a dealer of gasoline used as a substitute for aviation gasoline new text end . 110.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 110.4 new text begin June 30, 2016. new text end 110.5    Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read: 110.6    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates: 110.7    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon. 110.8    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon. 110.9    (c) Compressed natural gas is taxed at the rate of $2.174 new text begin $1.974 new text end per thousand cubic 110.10feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline 110.11equivalent," as defined by the National Conference on Weights and Measures, is 5.66 110.12pounds of natural gas new text begin or 126.67 cubic feet new text end . 110.13    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as 110.14specified in section 296A.07, subdivision 2. The tax is payable in the form and manner 110.15prescribed by the commissioner. 110.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 110.17 new text begin June 30, 2016. new text end 110.18    Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read: 110.19    Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is 110.20imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, 110.21sold, stored, or withdrawn from storage in this state new text begin and on all gasoline used as a substitute new text end 110.22 new text begin for aviation gasoline new text end . Aviation gasoline is defined in section 296A.01, subdivision 7. 110.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 110.24 new text begin June 30, 2016. new text end 110.25    Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read: 110.26    Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 110.27do not apply to new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end or 110.28special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even 110.29though the gasoline may be consumed within this state. 110.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 110.31 new text begin June 30, 2016. new text end 111.1    Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read: 111.2    Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are 111.3expressly declared not to be a tax upon consumption of new text begin gasoline used as a substitute for new text end 111.4 new text begin aviation gasoline, new text end aviation gasoline new text begin , new text end or special fuel by an aircraft. 111.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 111.6 new text begin June 30, 2016. new text end 111.7    Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read: 111.8    Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to 111.9 new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end or jet fuel purchased 111.10by an ambulance service licensed under chapter 144E. 111.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 111.12 new text begin June 30, 2016. new text end 111.13    Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read: 111.14    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except 111.15as provided in paragraph (e), on or before the 23rd day of each month, every person 111.16who is required to pay a gasoline tax shall file with the commissioner a report, in the 111.17form and manner prescribed by the commissioner, showing the number of gallons of 111.18petroleum products received by the reporter during the preceding calendar month, and 111.19other information the commissioner may require. A written report is deemed to have 111.20been filed as required in this subdivision if postmarked on or before the 23rd day of the 111.21month in which the tax is payable. 111.22(b) The number of gallons of gasoline must be reported in United States standard 111.23liquid gallons, 231 cubic inches, except that the commissioner may upon written 111.24application and for cause shown permit the distributor to report the number of gallons of 111.25gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is 111.26granted, all gasoline covered in the application and allowed by the commissioner must 111.27continue to be reported by the distributor on the adjusted basis for a period of one year 111.28from the date of the granting of the application. The number of gallons of petroleum 111.29products other than gasoline must be reported as originally invoiced. Each report must 111.30show separately the number of gallons of aviation gasoline received by the reporter during 111.31each calendar month new text begin and the number of gallons of gasoline sold to a dealer of gasoline new text end 111.32 new text begin used as a substitute for aviation fuel during each calendar month new text end . 112.1(c) Each report must also include the amount of gasoline tax on gasoline received by 112.2the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 112.3of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 112.4At the time of reporting, the reporter shall submit satisfactory evidence that one-third of 112.5the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them. 112.6(d) Each report shall contain a confession of judgment for the amount of the tax 112.7shown due to the extent not timely paid. 112.8(e) Under certain circumstances and with the approval of the commissioner, 112.9taxpayers may be allowed to file reports annually. 112.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 112.11 new text begin June 30, 2016. new text end 112.12    Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read: 112.13    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any 112.14person who buys new text begin gasoline from a dealer of gasoline used as a substitute for aviation new text end 112.15 new text begin gasoline, or buys new text end aviation gasoline or special fuel for aircraft use and who has paid the 112.16excise taxes due directly or indirectly through the amount of the tax being included in the 112.17price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly 112.18sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month 112.19following that in which such gasoline or special fuel was so used or sold, report the fact of 112.20the use or sale to the commissioner in the form and manner prescribed by the commissioner. 112.21(b) Any person who buys gasoline other than aviation gasoline and who has paid the 112.22motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 112.23included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any 112.24person to be used for the purpose of producing or generating power for propelling aircraft, 112.25or who receives, stores, or withdraws from storage gasoline to be used for that purpose, 112.26shall, on or before the 23rd day of the month following that in which such gasoline was so 112.27sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal 112.28from storage to the commissioner in the form and manner prescribed by the commissioner. 112.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 112.30 new text begin June 30, 2016. new text end 112.31    Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read: 112.32    Subdivision 1. Aviation refund requirements. Any person claiming to be entitled 112.33to any refund or credit provided for in subdivision 3 shall receive the refund or credit 113.1upon filing with the commissioner a claim in such form and manner prescribed by the 113.2commissioner. The claim shall set forth, among other things, the total number of gallons 113.3of new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end or special fuel 113.4for aircraft use upon which the claimant has directly or indirectly paid the excise tax 113.5provided for in this chapter, during the calendar year, which has been received, stored, or 113.6withdrawn from storage by the claimant in this state and not sold or otherwise disposed of 113.7to others. All claims for refunds under this subdivision shall be made on or before April 113.830 following the end of the calendar year for which the refund is claimed. 113.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 113.10 new text begin June 30, 2016. new text end 113.11    Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read: 113.12    Subd. 2. Claim for refund; aviation tax. (a) Any person who buys new text begin gasoline used new text end 113.13 new text begin as a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end or special fuel for aircraft use and 113.14who has paid the excise taxes directly or indirectly through the amount of the tax being 113.15included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, 113.16store, or withdraw it from storage for the purpose of producing or generating power for 113.17propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing 113.18with the commissioner a claim in the form and manner prescribed by the commissioner. 113.19The claim shall state the total amount of the new text begin gasoline used as a substitute for aviation new text end 113.20 new text begin gasoline, new text end aviation gasoline new text begin , new text end or special fuel for aircraft use purchased and used by the 113.21applicant, and shall state when and for what purpose it was used. On being satisfied that 113.22the claimant is entitled to payment, the commissioner shall approve the claim and transmit 113.23it to the commissioner of management and budget. The postmark on the envelope in 113.24which a written claim is mailed determines the date of filing. 113.25(b) If a claim contains an error in preparation in computation or preparation, the 113.26commissioner is authorized to adjust the claim in accordance with the evidence shown on 113.27the claim or other information available to the commissioner. 113.28(c) An applicant who files a claim that is false or fraudulent, is subject to the 113.29penalties provided in section 296A.23 for knowingly and willfully making a false claim. 113.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 113.31 new text begin June 30, 2016. new text end 113.32    Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read: 114.1    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly 114.2paid the excise tax on new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end 114.3or special fuel for aircraft use provided for by this chapter and new text begin either paid new text end the airflight 114.4property tax under section 270.072 new text begin or is an aerial applicator with a category B, general new text end 114.5 new text begin aerial license, under section 18B.33, new text end shall, as to all such new text begin gasoline used as a substitute for new text end 114.6 new text begin aviation gasoline, new text end aviation gasoline new text begin , new text end and special fuel received, stored, or withdrawn from 114.7storage by the person in this state in any calendar year and not sold or otherwise disposed 114.8of to others, or intended for sale or other disposition to others, on which such tax has been 114.9so paid, be entitled to the following graduated reductions in such tax for that calendar 114.10year, to be obtained by means of the following refunds: 114.11(1) on each gallon of such new text begin gasoline used as a substitute for aviation gasoline, new text end aviation 114.12gasoline new text begin , new text end or special fuel up to 50,000 gallons, all but five cents per gallon; 114.13(2) on each gallon of such new text begin gasoline used as a substitute for aviation gasoline, new text end aviation 114.14gasoline new text begin , new text end or special fuel above 50,000 gallons and not more than 150,000 gallons, all 114.15but two cents per gallon; 114.16(3) on each gallon of such new text begin gasoline used as a substitute for aviation gasoline, new text end aviation 114.17gasoline new text begin , new text end or special fuel above 150,000 gallons and not more than 200,000 gallons, all 114.18but one cent per gallon; 114.19(4) on each gallon of such new text begin gasoline used as a substitute for aviation gasoline, new text end aviation 114.20gasoline new text begin , new text end or special fuel above 200,000, all but one-half cent per gallon. 114.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 114.22 new text begin June 30, 2016. new text end 114.23    Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read: 114.24    Subdivision 1. Intent; gasoline use. All gasoline received in this state and all 114.25gasoline produced in or brought into this state except aviation gasoline new text begin , gasoline sold to a new text end 114.26 new text begin dealer of gasoline used as a substitute for aviation gasoline, new text end and marine gasoline shall be 114.27determined to be intended for use in motor vehicles in this state. 114.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 114.29 new text begin June 30, 2016. new text end 114.30    Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read: 114.31    Subd. 8. Airports. The revenues derived from the excise taxes on new text begin gasoline used as new text end 114.32 new text begin a substitute for aviation gasoline, new text end aviation gasoline new text begin , new text end and on special fuel received, sold, 114.33stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into 115.1the state treasury and credited to the state airports fund. There is hereby appropriated such 115.2sums as are needed to carry out the provisions of this subdivision. 115.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 115.4 new text begin June 30, 2016. new text end 115.5    Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read: 115.6    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk 115.7purchasers new text begin , dealers of gasoline used as a substitute for aviation gasoline new text end , and all users of 115.8special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use 115.9of petroleum products and special fuel, including copies of all sales tickets issued, in a form 115.10and manner approved by the commissioner, and shall retain all such records for 3-1/2 years. 115.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 115.12 new text begin June 30, 2016. new text end 115.13    Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read: 115.14    Subdivision 1. Imposition. new text begin (a) new text end A tax is imposed on all lawful gambling other than 115.15(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic 115.16linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at 115.17the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, 115.18less prizes actually paid. 115.19 new text begin (b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of new text end 115.20 new text begin the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under new text end 115.21 new text begin this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section new text end 115.22 new text begin 349.12, subdivision 4a. new text end 115.23 new text begin (c) new text end The tax imposed by this subdivision is in lieu of the tax imposed by section 115.24297A.62 and all local taxes and license fees except a fee authorized under section 349.16, 115.25subdivision 8 , or a tax authorized under subdivision 5. 115.26 new text begin (d) new text end The tax imposed under this subdivision is payable by the organization or party 115.27conducting, directly or indirectly, the gambling. 115.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for gross receipts received on or new text end 115.29 new text begin after July 1, 2016. new text end 115.30    Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is 115.31amended to read: 116.1    Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under 116.2subdivision 1, a tax is imposed on the combined net receipts of the organization. As used 116.3in this section, "combined net receipts" is the sum of the organization's gross receipts 116.4from lawful gambling less gross receipts directly derived from the conduct of paper 116.5bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less 116.6the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and 116.7paddlewheels, for the fiscal year. The combined net receipts of an organization are subject 116.8to a tax computed according to the following schedule: 116.9 116.10 116.11 If the combined net receipts for the fiscal year are: The tax is: 116.12 Not over $87,500 nine percent 116.13 116.14 Over $87,500, but not over $122,500 $7,875 plus 18 percent of the amount over $87,500, but not over $122,500 116.15 116.16 Over $122,500, but not over $157,500 $14,175 plus 27 percent of the amount over $122,500, but not over $157,500 116.17 116.18 Over $157,500 $23,625 plus 36 percent of the amount over $157,500 116.19(b) On or before April 1, 2016, the commissioner shall estimate the total amount of 116.20revenue, including interest and penalties, that will be collected for fiscal year 2016 from 116.21taxes imposed under this chapter. If the amount estimated by the commissioner equals 116.22or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the 116.23rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a 116.24notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the 116.25rates under this section apply, the combined net receipts of an organization are subject to a 116.26tax computed according to the following schedule: 116.27 116.28 116.29 If the combined net receipts for the fiscal year are: The tax is: 116.30 Not over $87,500 8.5 percent 116.31 116.32 Over $87,500, but not over $122,500 $7,438 plus 17 percent of the amount over $87,500, but not over $122,500 116.33 116.34 116.35 Over $122,500, but not over $157,500 $13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500 116.36 116.37 Over $157,500 $22,313 plus 34 percent of the amount over $157,500 116.38(c) Gross receipts derived from sports-themed tipboards are exempt from taxation 116.39under this section. For purposes of this paragraph, a sports-themed tipboard means a 116.40sports-themed tipboard as defined in section 349.12, subdivision 34, under which the 116.41winning numbers are determined by the numerical outcome of a professional sporting event. 117.1 new text begin (d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a, new text end 117.2 new text begin are exempt from taxation under this subdivision. new text end 117.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 117.4    Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision 117.5to read: 117.6     new text begin Subd. 6a. new text end new text begin Bulk nicotine. new text end new text begin "Bulk nicotine" means any vapor product that contains a new text end 117.7 new text begin solution having a concentration of 50 milligrams of nicotine per milliliter or greater. new text end 117.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 117.9    Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision 117.10to read: 117.11     new text begin Subd. 6b. new text end new text begin Consumable material. new text end new text begin "Consumable material" means any vapor product new text end 117.12 new text begin that contains nicotine in a solution having a concentration of less than 50 milligrams new text end 117.13 new text begin of nicotine per milliliter. new text end 117.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 117.15    Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read: 117.16    Subd. 19. Tobacco products. (a) "Tobacco products" means any product 117.17containing, made, or derived from tobacco that is intended for human consumption, 117.18whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by 117.19any other means, or any component, part, or accessory of a tobacco product, including, 117.20but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, 117.21ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist 117.22tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and 117.23sweepings of tobacco, new text begin vapor products, new text end and other kinds and forms of tobacco; but does 117.24not include cigarettes as defined in this section. Tobacco products excludes any tobacco 117.25product that has been approved by the United States Food and Drug Administration for 117.26sale as a tobacco cessation product, as a tobacco dependence product, or for other medical 117.27purposes, and is being marketed and sold solely for such an approved purpose. 117.28(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, 117.29tobacco products includes a premium cigar, as defined in subdivision 13a. 117.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 118.1    Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision 118.2to read: 118.3     new text begin Subd. 24. new text end new text begin Vapor products. new text end new text begin "Vapor products" means any noncombustible product new text end 118.4 new text begin that employs a heating element, power source, electronic circuit, or other electronic, new text end 118.5 new text begin chemical, or mechanical means, regardless of shape or size, that can be used to produce new text end 118.6 new text begin vapor from nicotine in a solution or other form. Vapor products includes any electronic new text end 118.7 new text begin cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device new text end 118.8 new text begin and any vapor cartridge or other container of bulk nicotine or consumable material in new text end 118.9 new text begin a solution or other form that is intended to be used with or in an electronic cigarette, new text end 118.10 new text begin electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. new text end 118.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 118.12    Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read: 118.13    Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this 118.14state, upon having cigarettes in possession in this state with intent to sell, upon any person 118.15engaged in business as a distributor, and upon the use or storage by consumers, at the rate 118.16of 141.5 new text begin 150 new text end mills, or new text begin 15 new text end cents, on each cigarette. 118.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 118.18    Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read: 118.19    Subd. 3. Rates; tobacco products. (a) Except as provided in subdivision 118.20 new text begin subdivisions new text end 3a new text begin and 3b new text end , a tax is imposed upon all tobacco products in this state and upon 118.21any person engaged in business as a distributor, at the rate of 95 percent of the wholesale 118.22sales price of the tobacco products. The tax is imposed at the time the distributor: 118.23(1) brings, or causes to be brought, into this state from outside the state tobacco 118.24products for sale; 118.25(2) makes, manufactures, or fabricates tobacco products in this state for sale in 118.26this state; or 118.27(3) ships or transports tobacco products to retailers in this state, to be sold by those 118.28retailers. 118.29(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a 118.30pack of 20 cigarettes weighing not more than three pounds per thousand, as established 118.31under subdivision 1, is imposed on each container of moist snuff. 118.32For purposes of this subdivision, a "container" means the smallest consumer-size can, 118.33package, or other container that is marketed or packaged by the manufacturer, distributor, 119.1or retailer for separate sale to a retail purchaser. When more than one container is 119.2packaged together, each container is subject to tax. 119.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 119.4    Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision 119.5to read: 119.6     new text begin Subd. 3b. new text end new text begin Rates; vapor products. new text end new text begin (a) A tax is imposed upon all vapor products in new text end 119.7 new text begin this state and upon any person engaged in business as a tobacco product distributor. The new text end 119.8 new text begin tax imposed under this subdivision is imposed at the time the tobacco products distributor: new text end 119.9 new text begin (1) brings, or causes to be brought, into this state vapor products for sale; new text end 119.10 new text begin (2) makes, manufactures, or fabricates vapor products in this state, not otherwise new text end 119.11 new text begin taxed under this subdivision, for sale in this state; or new text end 119.12 new text begin (3) ships or transports vapor products to retailers in this state to be sold by those new text end 119.13 new text begin retailers. new text end 119.14 new text begin (b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the new text end 119.15 new text begin wholesale sales price of the vapor product. new text end 119.16 new text begin (c) For vapor products that contain consumable material, the rate of tax is 45 percent new text end 119.17 new text begin of the wholesale sales price of the vapor product. new text end 119.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 119.19    Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision 119.20to read: 119.21     new text begin Subd. 4b. new text end new text begin Use tax; vapor products. new text end new text begin A tax is imposed upon the use or storage by new text end 119.22 new text begin consumers of all vapor products in this state, and upon such consumers, at the rate of 300 new text end 119.23 new text begin percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45 new text end 119.24 new text begin percent of the wholesale sales price of a vapor product containing consumable material. new text end 119.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2017. new text end 119.26    Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read: 119.27    Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal 119.28solid waste shall pay a solid waste management tax of 60 cents per noncompacted 119.29cubic yard of periodic waste collection capacity purchased by the generator, based on 119.30the size of the container for the nonmixed municipal solid waste, the actual volume, 119.31or the weight-to-volume conversion schedule in paragraph (c). However, the tax must 119.32be calculated by the waste management service provider using the same method for 120.1calculating the waste management service fee so that both are calculated according to 120.2container capacity, actual volume, or weight. 120.3(b) Notwithstanding section 297H.02, a residential generator that generates 120.4nonmixed municipal solid waste shall pay a solid waste management tax in the same 120.5manner as provided in paragraph (a). 120.6(c) The weight-to-volume conversion schedule for: 120.7(1) construction debris as defined in section 115A.03, subdivision 7, is one ton 120.8equals cubic yards, or $2 per ton new text begin equal to 60 cents per cubic yard. The commissioner new text end 120.9 new text begin of revenue, after consultation with the commissioner of the Pollution Control Agency, new text end 120.10 new text begin shall determine and may publish by notice a conversion schedule for construction debris new text end ; 120.11(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 120.1260 cents per cubic yard. The commissioner of revenue after consultation with the 120.13commissioner of the Pollution Control Agency, shall determine, and may publish by 120.14notice, a conversion schedule for various industrial wastes; and 120.15(3) infectious waste as defined in section 116.76, subdivision 12, and pathological 120.16waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 120.1760 cents per 150 pounds. 120.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 120.19 new text begin June 30, 2016. new text end 120.20    Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision 120.21to read: 120.22     new text begin Subd. 4a. new text end new text begin Bingo hall. new text end new text begin (a) "Bingo hall" means the premises on which an organization new text end 120.23 new text begin licensed under this chapter regularly conducts bingo if: new text end 120.24 new text begin (1) more than 50 percent of the organization's gross receipts from lawful gambling new text end 120.25 new text begin in the prior calendar year were attributable to the conduct of bingo or the organization had new text end 120.26 new text begin no receipts from lawful gambling in that year; or new text end 120.27 new text begin (2) no other organization conducts lawful gambling on the premises. new text end 120.28 new text begin (b) For purposes of this subdivision, "bingo" does not include a linked bingo game new text end 120.29 new text begin as defined in this section. new text end 120.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 120.31    Sec. 29. new text begin REPEALER. new text end 120.32 new text begin (a) new text end new text begin Minnesota Statutes 2014, section 297F.05, subdivision 1a, new text end new text begin is repealed. new text end 120.33 new text begin (b) new text end new text begin Minnesota Rules, part 8125.1300, subpart 3, new text end new text begin is repealed. new text end 121.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 121.2ARTICLE 6 121.3MINERALS 121.4    Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a 121.5subdivision to read: 121.6     new text begin Subd. 5. new text end new text begin TEDF; deposits redirected. new text end new text begin (a) For concentrates produced by a plant new text end 121.7 new text begin subject to a reimbursement agreement dated September 9, 2008, by and among Itasca new text end 121.8 new text begin County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of new text end 121.9 new text begin sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production. new text end 121.10 new text begin (b) All amounts not deposited in the taconite economic development fund as a new text end 121.11 new text begin result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection new text end 121.12 new text begin trust fund created under section 298.292. new text end 121.13 new text begin (c) The provisions of this subdivision expire upon certification by the commissioner new text end 121.14 new text begin of employment and economic development that all requirements of the reimbursement new text end 121.15 new text begin agreement, as specified in paragraph (a), are satisfied. new text end 121.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 121.17    Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read: 121.18    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed 121.19under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid 121.20account to be distributed as provided in section 298.282. 121.21    (b) An amount must be allocated to towns or cities that is annually certified by 121.22the county auditor of a county containing a taconite tax relief area as defined in section 121.23273.134, paragraph (b) , within which there is (1) an organized township if, as of January 121.242, 1982, more than 75 percent of the assessed valuation of the township consists of iron 121.25ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation 121.26of the city consists of iron ore. 121.27    (c) The amount allocated under paragraph (b) will be the portion of a township's or 121.28city's certified levy equal to the proportion of (1) the difference between 50 percent of 121.29January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, 121.301980, assessed value in the case of a city and its current assessed value to (2) the sum of 121.31its current assessed value plus the difference determined in (1), provided that the amount 121.32distributed shall not exceed $55 per capita in the case of a township or $75 per capita in 121.33the case of a city. For purposes of this limitation, population will be determined according 121.34to the 1980 decennial census conducted by the United States Bureau of the Census. If the 122.1current assessed value of the township exceeds 50 percent of the township's January 2, 122.21982, assessed value, or if the current assessed value of the city exceeds 50 percent of the 122.3city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this 122.4paragraph, "assessed value," when used in reference to years other than 1980 or 1982, 122.5means the appropriate net tax capacities multiplied by 10.2. 122.6    (d) In addition to other distributions under this subdivision, three new text begin 3.25 new text end cents per 122.7taxable ton for distributions in 2009 new text begin 2017 and subsequent years new text end must be allocated for 122.8distribution to new text begin (1) new text end towns that are entirely located within the taconite tax relief area defined 122.9in section 273.134, paragraph (b) new text begin ; and (2) the following unorganized territories in St. new text end 122.10 new text begin Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19 new text end . For 122.11distribution in 2010 through 2014 and for distribution new text begin distributions new text end in 2018 and subsequent 122.12years, the three-cent new text begin 3.25-cent new text end amount must be annually increased in the same proportion 122.13as the increase in the implicit price deflator as provided in section 298.24, subdivision 1. 122.14The amount available under this paragraph will new text begin must new text end be distributed to eligible towns new text begin and new text end 122.15 new text begin eligible unorganized territories new text end on a per capita basis, provided that no town new text begin or unorganized new text end 122.16 new text begin territory new text end may receive more than $50,000 in any year under this paragraph. Any amount of 122.17the distribution that exceeds the $50,000 limitation for a town new text begin or unorganized territory new text end 122.18under this paragraph must be redistributed on a per capita basis among the other eligible 122.19towns new text begin and eligible unorganized territories new text end , to whose distributions do not exceed $50,000. 122.20 new text begin The amount available to unorganized territories in St. Louis County and Itasca County new text end 122.21 new text begin may be held by the county and combined for public infrastructure projects for the specified new text end 122.22 new text begin unorganized territories. new text end 122.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for distributions beginning in 2017 new text end 122.24 new text begin and thereafter. new text end 122.25    Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read: 122.26    Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 122.272023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated 122.28to counties to be distributed, based upon certification by the commissioner of revenue, 122.29under paragraphs (b) to (d). 122.30    (b) 10.525 cents per taxable ton shall be distributed to the county in which the 122.31taconite is mined or quarried or in which the concentrate is produced, less any amount 122.32which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed 122.33in subdivision 2 is the basis for the distribution. 122.34    (c) If new text begin 1.0 cent per taxable ton of the tax distributed to the counties pursuant to new text end 122.35 new text begin paragraph (b) shall be paid to a county that received a distribution under this section new text end 123.1 new text begin in 2000 because there was located in the county new text end an electric power plant owned by and 123.2providing the primary source of power for a taxpayer mining and concentrating taconite 123.3is located in a new text begin different new text end county other than the county in which the mining and the 123.4concentrating processes are conducted, one cent per taxable ton of the tax distributed to 123.5the counties pursuant to paragraph (b) and imposed on and collected from such taxpayer 123.6shall be paid to the county in which the power plant is located. 123.7    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 123.8cents per taxable ton for distributions beginning in 2024, shall be paid to the county from 123.9which the taconite was mined, quarried or concentrated to be deposited in the county road 123.10and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of 123.11those processes are carried on in more than one county, the commissioner shall follow the 123.12apportionment formula prescribed in subdivision 2. 123.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 123.14    Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read: 123.15    Subd. 7a. Iron Range school consolidation and cooperatively operated school 123.16account. The following amounts must be allocated to the Iron Range Resources and 123.17Rehabilitation Board to be deposited in the Iron Range school consolidation and 123.18cooperatively operated school account that is hereby created: 123.19(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax 123.20imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per 123.21taxable ton of the tax imposed under section 298.24; 123.22(2) the amount as determined under section 298.17, paragraph (b), clause (3); 123.23(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 123.24proceeds attributable to the increase in the implicit price deflator as provided in section 123.25298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J. 123.26Johnson economic protection trust fund; 123.27(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 123.28increased tax proceeds attributable to the increase in the implicit price deflator as provided 123.29in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 123.30one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and 123.31(iii) for distributions in 2017 new text begin and thereafter new text end , an amount equal to two-thirds of the 123.32sum of the increased tax proceeds attributable to the increase in the implicit price deflator 123.33as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 123.342017, with the remaining one-third to be distributed to the Douglas J. Johnson economic 123.35protection trust fund; and 124.1(4) any other amount as provided by law. 124.2Expenditures from this account shall be made only to provide disbursements to 124.3assist school districts with the payment of bonds that were issued for qualified school 124.4projects, or for any other school disbursement as approved by the Iron Range Resources 124.5and Rehabilitation Board. For purposes of this section, "qualified school projects" means 124.6school projects within the taconite assistance area as defined in section 273.1341, that were 124.7(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner 124.8of education pursuant to section 123B.71. 124.9Beginning in fiscal year 2019, the disbursement to school districts for payments for 124.10bonds issued under section 123A.482, subdivision 9, must be increased each year to 124.11offset any reduction in debt service equalization aid that the school district qualifies for in 124.12that year, under section 123B.53, subdivision 6, compared with the amount the school 124.13district qualified for in fiscal year 2018. 124.14No expenditure under this section shall be made unless approved by seven members 124.15of the Iron Range Resources and Rehabilitation Board. 124.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for distributions beginning in 2017 new text end 124.17 new text begin and thereafter. new text end 124.18ARTICLE 7 124.19LOCAL DEVELOPMENT 124.20    Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read: 124.21    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 124.22have the meanings given. 124.23(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 124.24correction, removal of hazardous waste or pollution, installation of utilities, construction 124.25of public or private improvements, and other similar activities, but only to the extent that 124.26tax increment revenues may be spent for such purposes under other law. 124.27(c) "Third party" means an entity other than (1) the person receiving the benefit 124.28of assistance financed with tax increments, or (2) the municipality or the development 124.29authority or other person substantially under the control of the municipality. 124.30(d) "Revenues derived from tax increments paid by properties in the district" means 124.31only tax increment as defined in section 469.174, subdivision 25, clause (1), and does 124.32not include tax increment as defined in section 469.174, subdivision 25, clauses (2), 124.33(3), and (4) new text begin to (5) new text end . 124.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 125.1    Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read: 125.2    Subd. 2. Expenditures outside district. (a) For each tax increment financing 125.3district, an amount equal to at least 75 percent of the total revenue derived from tax 125.4increments paid by properties in the district must be expended on activities in the district 125.5or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 125.6in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 125.7For districts, other than redevelopment districts for which the request for certification 125.8was made after June 30, 1995, the in-district percentage for purposes of the preceding 125.9sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 125.10increments paid by properties in the district may be expended, through a development fund 125.11or otherwise, on activities outside of the district but within the defined geographic area of 125.12the project except to pay, or secure payment of, debt service on credit enhanced bonds. 125.13For districts, other than redevelopment districts for which the request for certification was 125.14made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 125.1520 percent. The revenue new text begin revenues new text end derived from tax increments for new text begin paid by properties in new text end 125.16the district that are expended on costs under section 469.176, subdivision 4h, paragraph 125.17(b), may be deducted first before calculating the percentages that must be expended within 125.18and without the district. 125.19    (b) In the case of a housing district, a housing project, as defined in section 469.174, 125.20subdivision 11 , is an activity in the district. 125.21    (c) All administrative expenses are for activities outside of the district, except that 125.22if the only expenses for activities outside of the district under this subdivision are for 125.23the purposes described in paragraph (d), administrative expenses will be considered as 125.24expenditures for activities in the district. 125.25    (d) The authority may elect, in the tax increment financing plan for the district, 125.26to increase by up to ten percentage points the permitted amount of expenditures for 125.27activities located outside the geographic area of the district under paragraph (a). As 125.28permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 125.29expenditures under paragraph (a), need not be made within the geographic area of the 125.30project. Expenditures that meet the requirements of this paragraph are legally permitted 125.31expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 125.32To qualify for the increase under this paragraph, the expenditures must: 125.33    (1) be used exclusively to assist housing that meets the requirement for a qualified 125.34low-income building, as that term is used in section 42 of the Internal Revenue Code; and 126.1    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of 126.2the Internal Revenue Code, less the amount of any credit allowed under section 42 of 126.3the Internal Revenue Code; and 126.4    (3) be used to: 126.5    (i) acquire and prepare the site of the housing; 126.6    (ii) acquire, construct, or rehabilitate the housing; or 126.7    (iii) make public improvements directly related to the housing; or 126.8(4) be used to develop housing: 126.9(i) if the market value of the housing does not exceed the lesser of: 126.10(A) 150 percent of the average market value of single-family homes in that 126.11municipality; or 126.12(B) $200,000 for municipalities located in the metropolitan area, as defined in 126.13section 473.121, or $125,000 for all other municipalities; and 126.14(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 126.15demolition of existing structures, site preparation, and pollution abatement on one or 126.16more parcels, if the parcel contains a residence containing one to four family dwelling 126.17units that has been vacant for six or more months and is in foreclosure as defined in 126.18section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 126.19principal residence, and only after the redemption period has expired. 126.20    (e) For a district created within a biotechnology and health sciences industry zone 126.21as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing 126.22district located within such a zone, tax increment derived from such a district may be 126.23expended outside of the district but within the zone only for expenditures required for the 126.24construction of public infrastructure necessary to support the activities of the zone, land 126.25acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. 126.26These expenditures are considered as expenditures for activities within the district. The 126.27authority provided by this paragraph expires for expenditures made after the later of (1) 126.28December 31, 2015, or (2) the end of the five-year period beginning on the date the district 126.29was certified, provided that date was before January 1, 2016. 126.30(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 126.31Increments may continue to be expended under this authority after that date, if they are 126.32used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 126.33(a), if December 31, 2016, is considered to be the last date of the five-year period after 126.34certification under that provision. 126.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 127.1    Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read: 127.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments new text begin paid by new text end 127.3 new text begin properties in the district new text end are considered to have been expended on an activity within the 127.4district under subdivision 2 only if one of the following occurs: 127.5(1) before or within five years after certification of the district, the revenues are 127.6actually paid to a third party with respect to the activity; 127.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and 127.8sold to a third party before or within five years after certification, the revenues are spent 127.9to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 127.10reasonably expected to be spent before the end of the later of (i) the five-year period, or 127.11(ii) a reasonable temporary period within the meaning of the use of that term under section 127.12148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 127.13or replacement fund; 127.14(3) binding contracts with a third party are entered into for performance of the 127.15activity before or within five years after certification of the district and the revenues are 127.16spent under the contractual obligation; 127.17(4) costs with respect to the activity are paid before or within five years after 127.18certification of the district and the revenues are spent to reimburse a party for payment 127.19of the costs, including interest on unreimbursed costs; or 127.20(5) expenditures are made for housing purposes as permitted by subdivision 2, 127.21paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 127.22by subdivision 2, paragraph (e). 127.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 127.24the original refunded bonds meet the requirements of paragraph (a), clause (2). 127.25(c) For a redevelopment district or a renewal and renovation district certified after 127.26June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) 127.27are extended to ten years after certification of the district. For a redevelopment district 127.28certified after April 20, 2009, and before June 30, 2012, the five-year periods described in 127.29paragraph (a) are extended to eight years after certification of the district. This extension is 127.30provided primarily to accommodate delays in development activities due to unanticipated 127.31economic circumstances. 127.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 127.33    Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read: 128.1    Subd. 7. Interfund loans. new text begin (a) new text end The authority or municipality may advance or loan 128.2money to finance expenditures under section 469.176, subdivision 4, from its general fund 128.3or any other fund under which it has legal authority to do so. 128.4     new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever new text end 128.5 new text begin is earliest, new text end the loan or advance must be authorized, by resolution of the governing body or 128.6of the authority, whichever has jurisdiction over the fund from which the advance or loan 128.7is authorized, before money is transferred, advanced, or spent, whichever is earliest. 128.8     new text begin (c) new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power 128.9to make interfund loans under one or more tax increment financing plans or for one or 128.10more districts. new text begin The resolution may be adopted before or after the adoption of the tax new text end 128.11 new text begin increment financing plan or the creation of the tax increment financing district from which new text end 128.12 new text begin the advance or loan is to be repaid. new text end 128.13     new text begin (d) new text end The terms and conditions for repayment of the loan must be provided in 128.14writing and new text begin . The written terms and conditions may be in any form, but must new text end include, at 128.15a minimum, the principal amount, the interest rate, and maximum term. new text begin Written terms new text end 128.16 new text begin may be modified or amended in writing by the municipality or the authority before the new text end 128.17 new text begin latest decertification of any tax increment financing district from which the interfund loan new text end 128.18 new text begin is to be repaid. new text end The maximum rate of interest permitted to be charged is limited to the 128.19greater of the rates specified under section 270C.40 or 549.09 as of the date the loan or 128.20advance is authorized, unless the written agreement states that the maximum interest rate 128.21will fluctuate as the interest rates specified under section 270C.40 or 549.09 are from time 128.22to time adjusted. new text begin Loans or advances may be structured as draw-down or line-of-credit new text end 128.23 new text begin obligations of the lending fund. new text end 128.24     new text begin (e) The authority shall report in the annual report submitted pursuant to section new text end 128.25 new text begin 469.175, subdivision 6: new text end 128.26     new text begin (1) the amount of any interfund loan or advance made in a calendar year; and new text end 128.27     new text begin (2) any amendment of an interfund loan or advance made in a calendar year. new text end 128.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 128.29 new text begin and applies to all districts, regardless of when the request for certification was made. new text end 128.30    Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read: 128.31    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 128.32financing plan for a district, the rules under this section apply to a redevelopment district, 128.33renewal and renovation district, new text begin economic development district, new text end soil condition district, 128.34or a soil deficiency district established by the city or a development authority of the city 128.35in the project area. 129.1    (b) Prior to or upon the adoption of the first tax increment plan subject to the special 129.2rules under this subdivision, the city must find by resolution that parcels consisting of at 129.3least 80 percent of the acreage of the project area (excluding street and railroad right of 129.4way) are characterized by one or more of the following conditions: 129.5    (1) peat or other soils with geotechnical deficiencies that impair development of 129.6residential or commercial buildings or infrastructure; 129.7    (2) soils or terrain that requires substantial filling in order to permit the development 129.8of commercial or residential buildings or infrastructure; 129.9    (3) landfills, dumps, or similar deposits of municipal or private waste; 129.10    (4) quarries or similar resource extraction sites; 129.11    (5) floodway; and 129.12    (6) substandard buildings within the meaning of Minnesota Statutes, section 129.13469.174, subdivision 10 . 129.14    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to 129.15be characterized by the relevant condition if at least 70 percent of the area of the parcel 129.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is 129.17deemed to be characterized by substandard buildings if the buildings occupy at least 30 129.18percent of the area of the parcel. 129.19    (d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, new text end 129.20 new text begin is extended to nine years for any district. new text end The five-year rule under Minnesota Statutes, 129.21section 469.1763, subdivision 3, is extended to ten years for any district, and section 129.22469.1763, subdivision 4 , does not apply to any district. 129.23    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, 129.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments 129.25paid by properties in any district (measured over the life of the district) may be expended 129.26on activities outside the district but within the project area. 129.27    (f) For a soil deficiency district: 129.28    (1) increments may be collected through 20 years after the receipt by the authority of 129.29the first increment from the district; and 129.30    (2) except as otherwise provided in this subdivision, increments may be used only to: 129.31    (i) acquire parcels on which the improvements described in item (ii) will occur; 129.32    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 129.33additional cost of installing public improvements directly caused by the deficiencies; and 129.34    (iii) pay for the administrative expenses of the authority allocable to the district. 130.1    (g) Increments spent for any infrastructure costs, whether inside a district or outside 130.2a district but within the project area, are deemed to satisfy the requirements of paragraph 130.3(f) and Minnesota Statutes, section 469.176, subdivisions 4b new text begin , 4c, new text end and 4j. 130.4    (h) Increments from any district may not be used to pay the costs of landfill closure or 130.5public infrastructure located on the following parcels within the plat known as Burnsville 130.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. 130.7    (i) The authority to approve tax increment financing plans to establish tax increment 130.8financing districts under this section expires on December 31, 2018 new text begin 2020 new text end . 130.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 130.10 new text begin of the city of Burnsville and compliance with the requirements of Minnesota Statutes, new text end 130.11 new text begin section 645.021. new text end 130.12    Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 130.13382, section 84, is amended to read: 130.14    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 130.15FINANCING DISTRICT; SPECIAL RULES. 130.16(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 130.17the governing body of the city of Duluth approves the plan for the tax increment financing 130.18district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 130.19010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 130.20010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140; new text end 130.21010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; new text begin 010-02730-00320; new text end 130.22010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 130.23010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 130.24010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 130.25010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 130.26010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year 130.27rule under Minnesota Statutes, section 469.1763, subdivision 3, that activities must be 130.28undertaken within a five-year period from the date of certification of the tax increment 130.29financing district, must be considered to be met if the activities are undertaken within five 130.30years after the date all qualifying parcels are delisted from the Federal Superfund list. 130.31(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, 130.32beginning in the sixth year following certification of the district requirement, will begin 130.33in the sixth year following the date all qualifying parcels are delisted from the Federal 130.34Superfund list. 131.1(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, 131.2are satisfied if the action is commenced within four years after the date all qualifying 131.3parcels are delisted from the Federal Superfund list and evidence of the action required is 131.4submitted to the county auditor by February 1 of the fifth year following the year in which 131.5all qualifying parcels are delisted from the Federal Superfund list. 131.6(d) For purposes of this section, "qualifying parcels" means United States Steel 131.7parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part 131.8of the USS Site (USEPA OU 02) that are included in the tax increment financing district. 131.9(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 131.10subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels 131.11listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report 131.12must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date. 131.13 new text begin (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other new text end 131.14 new text begin law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan new text end 131.15 new text begin program before approval of the tax increment financing plan for or the establishment of new text end 131.16 new text begin the district authorized by this section. The authority may make loans under this program new text end 131.17 new text begin and the proceeds of the loans may be used for any permitted use of increments under new text end 131.18 new text begin this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with new text end 131.19 new text begin increments from the district established under this section. This subdivision applies to any new text end 131.20 new text begin action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010. new text end 131.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 131.22 new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end 131.23 new text begin 645.021, subdivision 3. new text end 131.24    Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read: 131.25    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING 131.26DISTRICT. 131.27    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 131.28have the meanings given them. 131.29(b) "City" means the city of Maple Grove. 131.30(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point 131.31130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of 131.32Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly 131.33right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line 131.34of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of 131.35section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the 132.1east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 132.274 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees 132.3West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line 132.4of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of 132.5the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 132.6feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of 132.7Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the 132.8Northwest Quarter of Section 24; thence West along said south line to the east right-of-way 132.9line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to 132.10the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence 132.11East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan 132.12Industrial Park 5th Addition; thence South along the east line of said Outlot A and its 132.13southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) 132.14109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the 132.15Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east 132.16line to the north line of the South Half of the Northeast Quarter of Section 24; thence East 132.17along said north line to the westerly right-of-way line of Jefferson Highway North; thence 132.18southerly along the westerly right-of-way line of Jefferson Highway to the centerline of 132.19CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane 132.20North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; 132.21thence easterly along the north line of Outlot A, Park North Fourth Addition to the 132.22northeast corner of said Outlot A; thence southerly along the east line of said Outlot A 132.23to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, 132.24Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway 132.25169; thence southerly, southwesterly, westerly, and northwesterly along the westerly 132.26right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate 132.27694 to its intersection with the southerly extension of the easterly right-of-way line of 132.28Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 132.29Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 132.30westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 132.31and there terminating, provided that the project area includes the rights-of-way for all 132.32present and future highway interchanges abutting the area described in this paragraph new text begin , and new text end 132.33 new text begin may include any additional property necessary to cause the property included in the tax new text end 132.34 new text begin increment financing district to consist of complete parcels new text end . 133.1(d) "Soil deficiency district" means a type of tax increment financing district 133.2consisting of a portion of the project area in which the city finds by resolution that the 133.3following conditions exist: 133.4(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 133.5the district require substantial filling, grading, or other physical preparation for use; and 133.6(2) the estimated cost of the physical preparation under clause (1), but excluding 133.7costs directly related to roads as defined in Minnesota Statutes, section 160.01, and 133.8local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, 133.9clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land 133.10before completion of the preparation. 133.11    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 133.12financing plan for a district, the rules under this section apply to a redevelopment 133.13district, renewal and renovation district, soil condition district, or soil deficiency district 133.14established by the city or a development authority of the city in the project area. 133.15(b) Prior to or upon the adoption of the first tax increment plan subject to the special 133.16rules under this subdivision, the city must find by resolution that parcels consisting 133.17of at least 80 percent of the acreage of the project area, excluding street and railroad 133.18rights-of-way, are characterized by one or more of the following conditions: 133.19(1) peat or other soils with geotechnical deficiencies that impair development of 133.20commercial buildings or infrastructure; 133.21(2) soils or terrain that require substantial filling in order to permit the development 133.22of commercial buildings or infrastructure; 133.23(3) landfills, dumps, or similar deposits of municipal or private waste; 133.24(4) quarries or similar resource extraction sites; 133.25(5) floodway; and 133.26(6) substandard buildings, within the meaning of Minnesota Statutes, section 133.27469.174, subdivision 10 . 133.28(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by 133.29the relevant condition if at least 70 percent of the area of the parcel contains the relevant 133.30condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 133.31substandard buildings if substandard buildings occupy at least 30 percent of the area 133.32of the parcel. 133.33(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, 133.34is extended to eight years for any district, and Minnesota Statutes, section 469.1763, 133.35subdivision 4 , does not apply to any district. 134.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 134.2469.1763, subdivision 2 , paragraph (a), not more than 40 percent of the total revenue 134.3derived from tax increments paid by properties in any district, measured over the life of 134.4the district, may be expended on activities outside the district but within the project area. 134.5(f) For a soil deficiency district: 134.6(1) increments may be collected through 20 years after the receipt by the authority of 134.7the first increment from the district; 134.8(2) increments may be used only to: 134.9(i) acquire parcels on which the improvements described in item (ii) will occur; 134.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 134.11additional cost of installing public improvements directly caused by the deficiencies; and 134.12(iii) pay for the administrative expenses of the authority allocable to the district; and 134.13(3) any parcel acquired with increments from the district must be sold at no less 134.14than their fair market value. 134.15(g) Increments spent for any infrastructure costs, whether inside a district or outside 134.16a district but within the project area, are deemed to satisfy the requirements of Minnesota 134.17Statutes, section 469.176, subdivision 4j. 134.18(h) The authority to approve tax increment financing plans to establish tax increment 134.19financing districts under this section expires June 30, 2020. 134.20 new text begin (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use new text end 134.21 new text begin increments from a soil deficiency district to acquire parcels and for other infrastructure new text end 134.22 new text begin costs either inside or outside of the district, but within the project area, if the acquisition or new text end 134.23 new text begin infrastructure is for a qualified development. For purposes of this paragraph, a development new text end 134.24 new text begin is a qualified development only if all of the following requirements are satisfied: new text end 134.25 new text begin (1) the city finds, by resolution, that the land acquisition and infrastructure are new text end 134.26 new text begin undertaken primarily to serve the development; new text end 134.27 new text begin (2) the city has a binding, written commitment and adequate financial assurances new text end 134.28 new text begin from the developer that the development will be constructed; and new text end 134.29 new text begin (3) the development does not consist of retail trade or housing improvements. new text end 134.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 134.31 new text begin body of the city of Maple Grove and its compliance with the requirements of Minnesota new text end 134.32 new text begin Statutes, section 645.021. new text end 134.33    Sec. 8. new text begin CITY OF ANOKA; TIF DISTRICT. new text end 134.34 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), new text end 134.35 new text begin the city of Anoka's Greens of Anoka redevelopment tax increment financing district is new text end 135.1 new text begin deemed to be certified on June 29, 2012, rather than its actual certification date of July 2, new text end 135.2 new text begin 2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, new text end 135.3 new text begin apply as if the district were certified on that date. new text end 135.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 135.5 new text begin of the city of Anoka and upon compliance by the city with Minnesota Statutes, section new text end 135.6 new text begin 645.021, subdivisions 2 and 3. new text end 135.7    Sec. 9. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW. new text end 135.8 new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision new text end 135.9 new text begin 3, the chief clerical officer of the city of Edina may file the city's certificate of its approval new text end 135.10 new text begin of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate new text end 135.11 new text begin is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, new text end 135.12 new text begin are otherwise complied with, the special law is deemed approved, and all actions taken new text end 135.13 new text begin by the city prior to the effective date of this section in reliance on Laws 2014, chapter new text end 135.14 new text begin 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article new text end 135.15 new text begin 6, section 8, and this act. new text end 135.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective June 30, 2016, without local approval new text end 135.17 new text begin as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8. new text end 135.18    Sec. 10. new text begin CITY OF COON RAPIDS; TAX INCREMENT FINANCING. new text end 135.19 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision new text end 135.20 new text begin 1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment new text end 135.21 new text begin from District 6-1 Port Riverwalk through December 31, 2038. new text end 135.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 135.23 new text begin bodies of the city of Coon Rapids, Anoka County, and Independent School District No. new text end 135.24 new text begin 11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and new text end 135.25 new text begin 645.021, subdivision 3. new text end 135.26    Sec. 11. new text begin CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING. new text end 135.27 new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that new text end 135.28 new text begin activities must be undertaken within a five-year period from the date of certification of new text end 135.29 new text begin a tax increment financing district, is considered to be met for Tax Increment Financing new text end 135.30 new text begin District No. 1-12 (Gateway North), administered by the Cottage Grove Economic new text end 135.31 new text begin Development Authority, if the activities are undertaken prior to January 1, 2017. new text end 136.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the chief clerical new text end 136.2 new text begin officer of the governing body of the city of Cottage Grove with the requirements of new text end 136.3 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 136.4    Sec. 12. new text begin CITY OF NORTHFIELD; TAX INCREMENT FINANCING. new text end 136.5 new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that new text end 136.6 new text begin activities must be undertaken within a five-year period from the date of certification of a new text end 136.7 new text begin tax increment financing district, is considered to be met for the Riverfront Tax Increment new text end 136.8 new text begin Financing District in the city of Northfield, if the activities are undertaken prior to July new text end 136.9 new text begin 12, 2017. new text end 136.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 136.11 new text begin the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section new text end 136.12 new text begin 645.021, subdivisions 2 and 3. new text end 136.13    Sec. 13. new text begin CITY OF RICHFIELD; EXTENSION OF DISTRICT. new text end 136.14 new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other new text end 136.15 new text begin law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in new text end 136.16 new text begin and for the city of Richfield may elect to extend the duration limit of the redevelopment new text end 136.17 new text begin tax increment financing district known as the Cedar Avenue Tax Increment Financing new text end 136.18 new text begin District established by Laws 2005, chapter 152, article 2, section 25, by ten years. new text end 136.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the city new text end 136.20 new text begin of Richfield, Hennepin County, and Independent School District No. 280 with the new text end 136.21 new text begin requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, new text end 136.22 new text begin subdivisions 2 and 3. new text end 136.23    Sec. 14. new text begin CITY OF ST. PAUL; TIF AUTHORITY. new text end 136.24 new text begin (a) For purposes of computing the duration limits under Minnesota Statutes, section new text end 136.25 new text begin 469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul new text end 136.26 new text begin may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing new text end 136.27 new text begin District. This authority is limited to the first four years of increment or increments derived new text end 136.28 new text begin from taxes payable in 2023, whichever occurs first. new text end 136.29 new text begin (b) If the city elects to waive receipt of increment under paragraph (a), for purposes new text end 136.30 new text begin of applying any limits based on when the district was certified under Minnesota Statutes, new text end 136.31 new text begin section 469.176, subdivision 6, or 469.1763, the date of certification for the district is new text end 137.1 new text begin deemed to be January 2 of the property tax assessment year for which increment is first new text end 137.2 new text begin received under the waiver. new text end 137.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016, without local approval new text end 137.4 new text begin under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 137.5ARTICLE 8 137.6PUBLIC FINANCE 137.7    Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read: 137.8    Subdivision 1. Certificates of indebtedness. The town board may issue certificates 137.9of indebtedness within the debt limits for a town purpose otherwise authorized by law. 137.10The certificates shall be payable in not more than ten years and be issued on the terms and 137.11in the manner as the board may determine new text begin , provided that notes issued for projects that new text end 137.12 new text begin eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), new text end 137.13 new text begin shall be payable in not more than 20 years new text end . If the amount of the certificates to be issued 137.14exceeds 0.25 percent of the estimated market value of the town, they shall not be issued 137.15for at least ten days after publication in a newspaper of general circulation in the town of 137.16the board's resolution determining to issue them. If within that time, a petition asking for 137.17an election on the proposition signed by voters equal to ten percent of the number of voters 137.18at the last regular town election is filed with the clerk, the certificates shall not be issued 137.19until their issuance has been approved by a majority of the votes cast on the question at 137.20a regular or special election. A tax levy shall be made to pay the principal and interest 137.21on the certificates as in the case of bonds. 137.22    Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read: 137.23    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 137.24without public referendum, issue capital notes within existing debt limits for the purpose 137.25of purchasing ambulance and other medical equipment, road construction or maintenance 137.26equipment, public safety equipment and other capital equipment having an expected 137.27useful life at least equal to the term of the notes issued. The notes shall be payable 137.28in not more than ten years and shall be issued on terms and in a manner as the board 137.29determines new text begin , provided that notes issued for projects that eliminate R-22, as such projects new text end 137.30 new text begin are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more new text end 137.31 new text begin than 20 years new text end . The total principal amount of the notes issued for any fiscal year shall not 137.32exceed one percent of the total annual budget for that year and shall be issued solely for 137.33the purchases authorized in this subdivision. A tax levy shall be made for the payment 137.34of the principal and interest on such notes as in the case of bonds. For purposes of this 138.1subdivision, "equipment" includes computer hardware and software, whether bundled with 138.2machinery or equipment or unbundled. For purposes of this subdivision, the term "medical 138.3equipment" includes computer hardware and software and other intellectual property for 138.4use in medical diagnosis, medical procedures, research, record keeping, billing, and other 138.5hospital applications, together with application development services and training related 138.6to the use of the computer hardware and software and other intellectual property, all 138.7without regard to their useful life. For purposes of determining the amount of capital notes 138.8which the county may issue in any year, the budget of the county and Hennepin Healthcare 138.9System, Inc. shall be combined and the notes issuable under this subdivision shall be in 138.10addition to obligations issuable under section 373.01, subdivision 3. 138.11    Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read: 138.12410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 138.13    (a) Notwithstanding any contrary provision of other law or charter, a home rule 138.14charter city may, by resolution and without public referendum, issue capital notes subject 138.15to the city debt limit to purchase capital equipment. 138.16    (b) For purposes of this section, "capital equipment" means: 138.17    (1) public safety equipment, ambulance and other medical equipment, road 138.18construction and maintenance equipment, and other capital equipment; and 138.19    (2) computer hardware and software, whether bundled with machinery or equipment 138.20or unbundled, together with application development services and training related to the 138.21use of the computer hardware and software. 138.22    (c) The equipment or software must have an expected useful life at least as long 138.23as the term of the notes. 138.24    (d) The notes shall be payable in not more than ten years and be issued on terms and 138.25in the manner the city determines new text begin , provided that notes issued for projects that eliminate new text end 138.26 new text begin R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be new text end 138.27 new text begin payable in not more than 20 years new text end . The total principal amount of the capital notes issued 138.28in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable 138.29property in the city for that year. 138.30    (e) A tax levy shall be made for the payment of the principal and interest on the 138.31notes, in accordance with section 475.61, as in the case of bonds. 138.32    (f) Notes issued under this section shall require an affirmative vote of two-thirds of 138.33the governing body of the city. 139.1    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 139.2city may also issue capital notes subject to its debt limit in the manner and subject to the 139.3limitations applicable to statutory cities pursuant to section 412.301. 139.4    Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read: 139.5412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 139.6    (a) The council may issue certificates of indebtedness or capital notes subject to the 139.7city debt limits to purchase capital equipment. 139.8    (b) For purposes of this section, "capital equipment" means: 139.9    (1) public safety equipment, ambulance and other medical equipment, road 139.10construction and maintenance equipment, and other capital equipment; and 139.11    (2) computer hardware and software, whether bundled with machinery or equipment 139.12or unbundled, together with application development services and training related to the 139.13use of the computer hardware or software. 139.14    (c) The equipment or software must have an expected useful life at least as long as 139.15the terms of the certificates or notes. 139.16    (d) Such certificates or notes shall be payable in not more than ten years and shall 139.17be issued on such terms and in such manner as the council may determine new text begin , provided, new text end 139.18 new text begin however, that notes issued for projects that eliminate R-22, as such projects are defined in new text end 139.19 new text begin section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years new text end . 139.20    (e) If the amount of the certificates or notes to be issued to finance any such purchase 139.21exceeds 0.25 percent of the estimated market value of taxable property in the city, they 139.22shall not be issued for at least ten days after publication in the official newspaper of 139.23a council resolution determining to issue them; and if before the end of that time, a 139.24petition asking for an election on the proposition signed by voters equal to ten percent 139.25of the number of voters at the last regular municipal election is filed with the clerk, such 139.26certificates or notes shall not be issued until the proposition of their issuance has been 139.27approved by a majority of the votes cast on the question at a regular or special election. 139.28    (f) A tax levy shall be made for the payment of the principal and interest on such 139.29certificates or notes, in accordance with section 475.61, as in the case of bonds. 139.30    Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read: 139.31    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the 139.32general obligation of the general jurisdiction governmental unit as additional security for 139.33bonds payable from income or revenues of the project or the authority. The authority 139.34must find that the pledged revenues will equal or exceed 110 percent of the principal and 140.1interest due on the bonds for each year. The proceeds of the bonds must be used for a 140.2qualified housing development project or projects. The obligations must be issued and 140.3sold in the manner and following the procedures provided by chapter 475, except the 140.4obligations are not subject to approval by the electors, and the maturities may extend to 140.5not more than 35 years for obligations sold to finance housing for the elderly and 40 years 140.6for other obligations issued under this subdivision. The authority is the municipality for 140.7purposes of chapter 475. 140.8    (b) The principal amount of the issue must be approved by the governing body of 140.9the general jurisdiction governmental unit whose general obligation is pledged. Public 140.10hearings must be held on issuance of the obligations by both the authority and the general 140.11jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 140.12than 120 days, before the sale of the obligations. 140.13    (c) The maximum amount of general obligation bonds that may be issued and 140.14outstanding under this section equals the greater of (1) one-half of one percent of the 140.15estimated market value of the general jurisdiction governmental unit whose general 140.16obligation is pledged, or (2) $3,000,000 new text begin $5,000,000 new text end . In the case of county or multicounty 140.17general obligation bonds, the outstanding general obligation bonds of all cities in the 140.18county or counties issued under this subdivision must be added in calculating the limit 140.19under clause (1). 140.20    (d) "General jurisdiction governmental unit" means the city in which the housing 140.21development project is located. In the case of a county or multicounty authority, the 140.22county or counties may act as the general jurisdiction governmental unit. In the case of 140.23a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 140.24taxable property in each of the counties. 140.25    (e) "Qualified housing development project" means a housing development project 140.26providing housing either for the elderly or for individuals and families with incomes not 140.27greater than 80 percent of the median family income as estimated by the United States 140.28Department of Housing and Urban Development for the standard metropolitan statistical 140.29area or the nonmetropolitan county in which the project is located. The project must be 140.30owned for the term of the bonds either by the authority or by a limited partnership or other 140.31entity in which the authority or another entity under the sole control of the authority is 140.32the sole general partner and the partnership or other entity must receive (1) an allocation 140.33from the Department of Management and Budget or an entitlement issuer of tax-exempt 140.34bonding authority for the project and a preliminary determination by the Minnesota 140.35Housing Finance Agency or the applicable suballocator of tax credits that the project 140.36will qualify for four percent low-income housing tax credits or (2) a reservation of nine 141.1percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 141.2suballocator of tax credits for the project. A qualified housing development project may 141.3admit nonelderly individuals and families with higher incomes if: 141.4    (1) three years have passed since initial occupancy; 141.5    (2) the authority finds the project is experiencing unanticipated vacancies resulting in 141.6insufficient revenues, because of changes in population or other unforeseen circumstances 141.7that occurred after the initial finding of adequate revenues; and 141.8    (3) the authority finds a tax levy or payment from general assets of the general 141.9jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 141.10income individuals or families are not admitted. 141.11    (f) The authority may issue bonds to refund bonds issued under this subdivision in 141.12accordance with section 475.67. The finding of the adequacy of pledged revenues required 141.13by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 141.14issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 141.15after July 1, 1992. 141.16    Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read: 141.17    Subdivision 1. Establishment. An economic development authority may create 141.18and define the boundaries of economic development districts at any place or places within 141.19the city, except that the district boundaries must be contiguous, and may use the powers 141.20granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must 141.21hold a public hearing on the matter. At least ten days before the hearing, the authority 141.22shall publish notice of the hearing in a daily newspaper of general circulation in the city. 141.23Also, the authority shall find that an economic development district is proper and desirable 141.24to establish and develop within the city. 141.25    Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision 141.26to read: 141.27     new text begin Subd. 1u. new text end new text begin Obligations. new text end new text begin (a) In addition to other authority in this section, the council new text end 141.28 new text begin may issue certificates of indebtedness, bonds, or other obligations under this section in an new text end 141.29 new text begin amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's new text end 141.30 new text begin transit capital improvement program and for related costs, including the costs of issuance new text end 141.31 new text begin and sale of the obligations. Of this authorization, after July 1, 2016, the council may new text end 141.32 new text begin issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding new text end 141.33 new text begin $40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness, new text end 141.34 new text begin bonds, or other obligations in an additional amount not exceeding $42,000,000. new text end 142.1 new text begin (b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, new text end 142.2 new text begin Ramsey, Scott, and Washington. new text end 142.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 142.4    Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read: 142.5    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, 142.6without regard to the election requirement under subdivision 1, issue and sell obligations 142.7for street reconstruction or bituminous overlays, if the following conditions are met: 142.8    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay 142.9plan that describes the street reconstruction or overlay to be financed, the estimated costs, 142.10and any planned reconstruction or overlay of other streets in the municipality over the next 142.11five years, and the plan and issuance of the obligations has been approved by a vote of 142.12all new text begin a majority new text end of the members of the governing body present at the meeting following a 142.13public hearing for which notice has been published in the official newspaper at least ten 142.14days but not more than 28 days prior to the hearing; and 142.15    (2) if a petition requesting a vote on the issuance is signed by voters equal to 142.16five percent of the votes cast in the last municipal general election and is filed with the 142.17municipal clerk within 30 days of the public hearing, the municipality may issue the bonds 142.18only after obtaining the approval of a majority of the voters voting on the question of the 142.19issuance of the obligations. If the municipality elects not to submit the question to the 142.20voters, the municipality shall not propose the issuance of bonds under this section for the 142.21same purpose and in the same amount for a period of 365 days from the date of receipt 142.22of the petition. If the question of issuing the bonds is submitted and not approved by the 142.23voters, the provisions of section 475.58, subdivision 1a, shall apply. 142.24    (b) Obligations issued under this subdivision are subject to the debt limit of the 142.25municipality and are not excluded from net debt under section 475.51, subdivision 4. 142.26    (c) For purposes of this subdivision, street reconstruction and bituminous overlays 142.27includes utility replacement and relocation and other activities incidental to the street 142.28reconstruction, turn lanes and other improvements having a substantial public safety 142.29function, realignments, other modifications to intersect with state and county roads, and 142.30the local share of state and county road projects. For purposes of this subdivision, "street 142.31reconstruction" includes expenditures for street reconstruction that have been incurred 142.32by a municipality before approval of a street reconstruction plan, if such expenditures 142.33are included in a street reconstruction plan approved on or before the date of the public 142.34hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures. 143.1    (d) Except in the case of turn lanes, safety improvements, realignments, intersection 143.2modifications, and the local share of state and county road projects, street reconstruction 143.3and bituminous overlays does not include the portion of project cost allocable to widening 143.4a street or adding curbs and gutters where none previously existed. 143.5    Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read: 143.6    Subd. 2. Requirements waived. The requirements as to public sale shall not 143.7apply to: 143.8(1) obligations issued under the provisions of a home rule charter or of a law 143.9specifically authorizing a different method of sale, or authorizing them to be issued in such 143.10manner or on such terms and conditions as the governing body may determine; 143.11(2) obligations sold by an issuer in an amount not exceeding the total sum of 143.12$1,200,000 in any 12-month period; 143.13(3) obligations issued by a governing body other than a school board in anticipation 143.14of the collection of taxes or other revenues appropriated for expenditure in a single year, if 143.15sold in accordance with the most favorable of two or more proposals solicited privately; 143.16(4) obligations sold to any board, department, or agency of the United States of 143.17America or of the state of Minnesota, in accordance with rules or regulations promulgated 143.18by such board, department, or agency; 143.19(5) obligations issued to fund pension and retirement fund liabilities under section 143.20475.52, subdivision 6 , obligations issued with tender options under section 475.54, 143.21subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision 143.2213 , and any issue of obligations comprised in whole or in part of obligations bearing 143.23interest at a rate or rates which vary periodically referred to in section 475.56; 143.24(6) obligations to be issued for a purpose, in a manner, and upon terms and 143.25conditions authorized by law, if the governing body of the municipality, on the advice of 143.26bond counsel or special tax counsel, determines that interest on the obligations cannot be 143.27represented to be excluded from gross income for purposes of federal income taxation; 143.28(7) obligations issued in the form of an installment purchase contract, lease purchase 143.29agreement, or other similar agreement; 143.30(8) obligations sold under a bond reinvestment program; and 143.31(9) if the municipality has retained an independent financial new text begin municipal new text end advisor, 143.32obligations which the governing body determines shall be sold by private negotiation. 144.1ARTICLE 9 144.2IRON RANGE RESOURCES AND REHABILITATION 144.3    Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read: 144.4    Subd. 7. Iron Range resources and rehabilitation Board. new text begin After seeking new text end 144.5 new text begin a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the 144.6 new text begin commissioner of new text end Iron Range resources and rehabilitation Board may purchase insurance it 144.7considers new text begin the commissioner deems new text end necessary and appropriate to insure facilities operated 144.8by the board. 144.9    Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read: 144.10116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 144.11CONTRIBUTION. 144.12The commissioner of the Iron Range resources and rehabilitation Board with 144.13approval by the board, shall provide an equal match for any loan or equity investment 144.14made for a facility located in the tax relief area defined in section 273.134, paragraph (b), 144.15by the Minnesota minerals 21st century fund created by section 116J.423. The match may 144.16be in the form of a loan or equity investment, notwithstanding whether the fund makes 144.17a loan or equity investment. The state shall not acquire an equity interest because of an 144.18equity investment or loan by the board new text begin under this section new text end and the board at its sole discretion new text begin new text end 144.19 new text begin commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, new text end 144.20shall new text begin have the sole discretion to new text end decide what interest it new text begin the board new text end acquires in a project. The 144.21commissioner of employment and economic development may require a commitment 144.22from the board new text begin commissioner new text end to make the match prior to disbursing money from the fund. 144.23    Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read: 144.24    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 144.25have the meanings given them in this subdivision. 144.26(b) "Area development rate" means a rate schedule established by a utility that 144.27provides customers within an area development zone service under a base utility rate 144.28schedule, except that charges may be reduced from the base rate as agreed upon by the 144.29utility and the customer consistent with this section. 144.30(c) "Area development zone" means a contiguous or noncontiguous area designated 144.31by an authority or municipality for development or redevelopment and within which one 144.32of the following conditions exists: 144.33(1) obsolete buildings not suitable for improvement or conversion or other identified 144.34hazards to the health, safety, and general well-being of the community; 145.1(2) buildings in need of substantial rehabilitation or in substandard condition; or 145.2(3) low values and damaged investments. 145.3(d) "Authority" means a rural development financing authority established under 145.4sections 469.142 to 469.151; a housing and redevelopment authority established under 145.5sections 469.001 to 469.047; a port authority established under sections 469.048 to 145.6469.068 ; an economic development authority established under sections 469.090 145.7to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the 145.8 new text begin commissioner of new text end Iron Range resources and rehabilitation new text begin , acting after consultation new text end 145.9 new text begin with the new text end board established under section 298.22; a municipality that is administering a 145.10development district created under sections 469.124 to 469.133 or any special law; a 145.11municipality that undertakes a project under sections 469.152 to 469.165, except a town 145.12located outside the metropolitan area as defined in section 473.121, subdivision 2, or with 145.13a population of 5,000 persons or less; or a municipality that exercises the powers of a port 145.14authority under any general or special law. 145.15(e) "Municipality" means a city, however organized, and, with respect to a project 145.16undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 145.17sections 469.152 to 469.165, and, with respect to a project undertaken under sections 145.18469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004 145.19to 469.008, also includes any county. 145.20    Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read: 145.21    Subd. 8. Municipality. "Municipality" means a city, town, or township located 145.22in whole or part within the area. If a municipality is located partly within and partly 145.23without the area, the references in sections 276A.01 to 276A.09 to property or any portion 145.24thereof subject to taxation or taxing jurisdiction within the municipality are to the property 145.25or portion thereof that is located in that portion of the municipality within the area, 145.26except that the fiscal capacity of the municipality must be computed upon the basis of the 145.27valuation and population of the entire municipality. A municipality shall be excluded from 145.28the area if its municipal comprehensive zoning and planning policies conscientiously 145.29exclude most commercial-industrial development, for reasons other than preserving an 145.30agricultural use. The new text begin commissioner of new text end Iron Range resources and rehabilitation Board and 145.31the commissioner of revenue shall jointly make this determination annually and shall 145.32notify those municipalities that are ineligible to participate in the tax base sharing program 145.33provided in this chapter for the following year. new text begin Before making the joint determination, the new text end 145.34 new text begin commissioner of Iron Range resources and rehabilitation shall seek a recommendation new text end 145.35 new text begin from the Iron Range Resources and Rehabilitation Board. new text end 146.1    Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read: 146.2    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up 146.3to 25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources new text end 146.4 new text begin and rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and 146.5Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation 146.6and cooperatively operated school account under section 298.28, subdivision 7a. 146.7(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of new text end 146.8 new text begin Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron 146.9Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range 146.10school consolidation and cooperatively operated account has insufficient funds to make 146.11payments as authorized under section 298.28, subdivision 7a. 146.12    Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read: 146.13    Subdivision 1. Development. In any county where the county board by proper 146.14resolution sets aside funds for forest development pursuant to section 282.08, clause (5), 146.15item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources 146.16and rehabilitation with the approval of the new text begin , after seeking a recommendation from the new text end 146.17 new text begin Iron Range Resources and Rehabilitation new text end Board new text begin , new text end may upon request of the county board 146.18assist said county in carrying out any project for the long range development of its forest 146.19resources through matching of funds or otherwise. 146.20    Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read: 146.21    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue 146.22of the state of Minnesota new text begin , except that when used in sections 298.22 to 298.227, and new text end 146.23 new text begin 298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources new text end 146.24 new text begin and rehabilitation new text end . 146.25    Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read: 146.26    Subdivision 1. The Office of the Commissioner of Iron Range resources 146.27and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 146.28rehabilitation is created as an agency in the executive branch of state government. The 146.29governor shall appoint the commissioner of Iron Range resources and rehabilitation 146.30under section 15.06. new text begin The commissioner may expend amounts appropriated to the new text end 146.31 new text begin commissioner or the board for projects after submitting the expenditure to the board for new text end 146.32 new text begin a recommendation under subdivision 1a. new text end 147.1(b) The commissioner may hold other positions or appointments that are not 147.2incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 147.3commissioner may appoint a deputy commissioner. All expenses of the commissioner, 147.4including the payment of staff and other assistance as may be necessary, must be paid 147.5out of the amounts appropriated by section 298.28 or otherwise made available by law 147.6to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 147.7may utilize contracting options available under section 471.345 when the commissioner 147.8determines it is in the best interest of the agency. The agency is not subject to sections 147.916E.016 and 16C.05. 147.10(c) When the commissioner determines that distress and unemployment exists or 147.11may exist in the future in any county by reason of the removal of natural resources or 147.12a possibly limited use of natural resources in the future and any resulting decrease in 147.13employment, the commissioner may use whatever amounts of the appropriation made to 147.14the commissioner of revenue in section 298.28 that are determined to be necessary and 147.15proper in the development of the remaining resources of the county and in the vocational 147.16training and rehabilitation of its residents, except that the amount needed to cover cost 147.17overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 147.18the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 147.19For the purposes of this section, "development of remaining resources" includes, but is 147.20not limited to, the promotion of tourism. 147.21    Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read: 147.22    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range 147.23Resources and Rehabilitation Board consists of the state senators and representatives 147.24elected from state senatorial or legislative districts in which one-third or more of the 147.25residents reside in a taconite assistance area as defined in section 273.1341. One additional 147.26state senator shall also be appointed by the senate Subcommittee on Committees of the 147.27Committee on Rules and Administration. All expenditures and projects made by the 147.28commissioner shall first be submitted to the board for approval. new text begin The board shall recommend new text end 147.29 new text begin approval or disapproval or modification of the expenditures and projects. new text end The expenses 147.30of the board shall be paid by the state from the funds raised pursuant to this section. 147.31Members of the board may be reimbursed for expenses in the manner provided in sections 147.323.099 , subdivision 1, and 3.101, and may receive per diem payments during the interims 147.33between legislative sessions in the manner provided in section 3.099, subdivision 1. 148.1The members shall be appointed in January of every odd-numbered year, and shall 148.2serve until January of the next odd-numbered year. Vacancies on the board shall be filled 148.3in the same manner as original members were chosen. 148.4    Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read: 148.5    Subd. 5a. Forest trust. The commissioner, upon approval by new text begin after requesting a new text end 148.6 new text begin recommendation from new text end the board, may purchase forest lands in the taconite assistance area 148.7defined in under section 273.1341 with funds specifically authorized for the purchase. The 148.8acquired forest lands must be held in trust for the benefit of the citizens of the taconite 148.9assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall 148.10be managed and developed for recreation and economic development purposes. The 148.11commissioner, upon approval by new text begin after requesting a recommendation from new text end the board, 148.12may sell forest lands purchased under this subdivision if the board finds new text begin commissioner new text end 148.13 new text begin determines new text end that the sale advances the purposes of the trust. Proceeds derived from the 148.14management or sale of the lands and from the sale of timber or removal of gravel or 148.15other minerals from these forest lands shall be deposited into an Iron Range Miners' 148.16Memorial Forest account that is established within the state financial accounts. Funds may 148.17be expended from the account upon approval by new text begin after the commissioner has sought a new text end 148.18 new text begin recommendation from new text end the board, to purchase, manage, administer, convey interests in, 148.19and improve the forest lands. With approval by new text begin After the commissioner has sought a new text end 148.20 new text begin recommendation from new text end the board, money in the Iron Range Miners' Memorial Forest 148.21account may be transferred into the corpus of the Douglas J. Johnson economic protection 148.22trust fund established under sections 298.291 to 298.294. The property acquired under 148.23the authority granted by this subdivision and income derived from the property or the 148.24operation or management of the property are exempt from taxation by the state or its 148.25political subdivisions while held by the forest trust. 148.26    Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read: 148.27    Subd. 6. Private entity participation. new text begin After seeking a recommendation from new text end the 148.28board new text begin , the commissioner new text end may acquire an equity interest in any project for which it new text begin the new text end 148.29 new text begin commissioner new text end provides funding. The commissioner may establish, participate in the 148.30management of, and dispose of the assets of charitable foundations, nonprofit limited 148.31liability companies, and nonprofit corporations associated with any project for which it 148.32provides funding, including specifically, but without limitation, a corporation within the 148.33meaning of section 317A.011, subdivision 6. 149.1    Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read: 149.2    Subd. 8. Spending priority. In making or approving new text begin recommending new text end any 149.3expenditures on programs or projects, the commissioner and the board shall give the 149.4highest priority to programs and projects that target relief to those areas of the taconite 149.5assistance area as defined in section 273.1341, that have the largest percentages of job 149.6losses and population losses directly attributable to the economic downturn in the taconite 149.7industry since the 1980s. The commissioner and the board shall compare the 1980 149.8population and employment figures with the 2000 population and employment figures, 149.9and shall specifically consider the job losses in 2000 and 2001 resulting from the closure 149.10of LTV Steel Mining Company, in making or approving new text begin recommending new text end expenditures 149.11consistent with this subdivision, as well as the areas of residence of persons who suffered 149.12job loss for which relief is to be targeted under this subdivision. The commissioner 149.13may lease, for a term not exceeding 50 years and upon the terms determined by the 149.14commissioner and approved new text begin after seeking review new text end by the board, surface and mineral 149.15interests owned or acquired by the state of Minnesota acting by and through the office of 149.16the commissioner of Iron Range resources and rehabilitation within those portions of the 149.17taconite assistance area affected by the closure of the LTV Steel Mining Company facility 149.18near Hoyt Lakes. The payments and royalties from these leases must be deposited into the 149.19fund established in section 298.292. This subdivision supersedes any other conflicting 149.20provisions of law and does not preclude the commissioner and the board from making 149.21expenditures for programs and projects in other areas new text begin after seeking review by the board new text end . 149.22    Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read: 149.23    Subd. 10. Sale or privatization of functions. The commissioner of Iron 149.24Range resources and rehabilitation may not sell or privatize the Ironworld Discovery 149.25Center or Giants Ridge Golf and Ski Resort without prior approval by new text begin first seeking a new text end 149.26 new text begin recommendation from new text end the board. 149.27    Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read: 149.28    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation 149.29shall annually prepare a budget for operational expenditures, programs, and projects, and 149.30submit it to the Iron Range Resources and Rehabilitation Board new text begin for a recommendation new text end . 149.31After the budget is approved by the board and the governor, the commissioner may spend 149.32money in accordance with the approved budget. 149.33    Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read: 150.1298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION. 150.2(a) Except as provided in paragraph (c), all money paid to the state of Minnesota 150.3pursuant to the terms of any contract entered into by the state under authority of section 150.4298.22 and any fees which may, in the discretion of the commissioner of Iron Range 150.5resources and rehabilitation, be charged in connection with any project pursuant to that 150.6section as amended, shall be deposited in the state treasury to the credit of the Iron Range 150.7Resources and Rehabilitation Board account in the special revenue fund and are hereby 150.8appropriated for the purposes of section 298.22. 150.9(b) Notwithstanding section 16A.013, merchandise may be accepted by the 150.10commissioner of the Iron Range Resources and Rehabilitation Board for payment of 150.11advertising contracts if the commissioner determines that the merchandise can be used 150.12for special event prizes or mementos at facilities operated by the board. Nothing in this 150.13paragraph authorizes the commissioner or a member of the board to receive merchandise 150.14for personal use. 150.15(c) All fees charged by the commissioner in connection with public use of the 150.16state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other 150.17revenues derived by the commissioner from the operation or lease of those facilities 150.18and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge 150.19Recreation Area must be deposited into an Iron Range Resources and Rehabilitation 150.20Board account that is created within the state enterprise fund. All funds deposited in the 150.21enterprise fund account are appropriated to the commissioner to be expended, subject to 150.22approval by new text begin after seeking a recommendation from new text end the board, as follows: 150.23(1) to pay costs associated with the construction, equipping, operation, repair, or 150.24improvement of the Giants Ridge Recreation Area facilities or lands; 150.25(2) to pay principal, interest and associated bond issuance, reserve, and servicing 150.26costs associated with the financing of the facilities; and 150.27(3) to pay the costs of any other project authorized under section 298.22. 150.28    Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read: 150.29    Subd. 3. Project approval. All projects authorized by this section shall be submitted 150.30by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 150.31by new text begin a recommendation from new text end the board. Prior to the commencement of a project involving 150.32the exercise by the commissioner of any authority of sections 469.174 to 469.179, the 150.33governing body of each municipality in which any part of the project is located and the 150.34county board of any county containing portions of the project not located in an incorporated 150.35area shall by majority vote approve or disapprove the project. Any project approved by 151.1the board new text begin commissioner new text end and the applicable governing bodies, if any, together with detailed 151.2information concerning the project, its costs, the sources of its funding, and the amount of 151.3any bonded indebtedness to be incurred in connection with the project, shall be transmitted 151.4to the governor, who shall approve, disapprove, or return the proposal for additional 151.5consideration within 30 days of receipt. No project authorized under this section shall be 151.6undertaken, and no obligations shall be issued and no tax increments shall be expended for 151.7a project authorized under this section until the project has been approved by the governor. 151.8    Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read: 151.9    Subd. 4. Project approval. new text begin After seeking a recommendation from new text end the board and new text begin , new text end 151.10 new text begin the new text end commissioner shall by August 1 each year prepare a list of projects to be funded from 151.11the money appropriated in this section with necessary supporting information including 151.12descriptions of the projects, plans, and cost estimates. A project must not be approved by 151.13the board new text begin commissioner new text end unless it new text begin the commissioner new text end finds that: 151.14(1) the project will materially assist, directly or indirectly, the creation of additional 151.15long-term employment opportunities; 151.16(2) the prospective benefits of the expenditure exceed the anticipated costs; and 151.17(3) in the case of assistance to private enterprise, the project will serve a sound 151.18business purpose. 151.19Each project must be approved by the board and the commissioner of Iron Range 151.20resources and rehabilitation. The list of projects must be submitted to the governor, 151.21who shall, by November 15 of each year, approve, disapprove, or return for further 151.22consideration, each project. The money for a project may be spent only upon approval of 151.23the project by the governor. The board new text begin commissioner new text end may submit supplemental projects 151.24for approval at any time new text begin , after seeking a recommendation from the board new text end . 151.25    Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read: 151.26    Subd. 5. Advisory committees. Before submission to the board of a proposal for 151.27a project for expenditure of money appropriated under this section, The commissioner 151.28of Iron Range resources and rehabilitation shall appoint a technical advisory committee 151.29consisting of at least seven persons who are knowledgeable in areas related to the 151.30objectives of the proposal. If the project involves investment in a scientific research 151.31proposal, at least four of the committee members must be knowledgeable in the specific 151.32scientific research area relating to the project. Members of the committees must be 151.33compensated as provided in section 15.059, subdivision 3. The board new text begin commissioner new text end shall 151.34not act on a proposal new text begin for a request for expenditure of money appropriated under this new text end 152.1 new text begin section new text end until it has received new text begin the commissioner has sought review from the board of new text end the 152.2evaluation and recommendations of the technical advisory committee. 152.3    Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read: 152.4    Subd. 6. Use of repayments and earnings. Principal and interest received in 152.5repayment of loans made under this section must be deposited in the state treasury 152.6and are appropriated to the board for the purposes of this section new text begin northeast Minnesota new text end 152.7 new text begin economic development fund account in the special revenue fund in the state treasury. The new text end 152.8 new text begin commissioner of Iron Range resources and rehabilitation must seek a recommendation new text end 152.9 new text begin from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated new text end 152.10 new text begin under this section new text end . 152.11    Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read: 152.12    Subdivision 1. Creation; purposes. A fund called the taconite environmental 152.13protection fund is created for the purpose of reclaiming, restoring and enhancing those 152.14areas of northeast Minnesota located within the taconite assistance area defined in section 152.15273.1341 , that are adversely affected by the environmentally damaging operations 152.16involved in mining taconite and iron ore and producing iron ore concentrate and for the 152.17purpose of promoting the economic development of northeast Minnesota. The taconite 152.18environmental protection fund shall be used for the following purposes: 152.19(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 152.20Board determines are in need of study and which will determine the environmental 152.21problems requiring remedial action; 152.22(2) reclamation, restoration, or reforestation of mine lands not otherwise provided 152.23for by state law; 152.24(3) local economic development projects but only if those projects are approved by 152.25the board new text begin commissioner after seeking a recommendation of the projects from the board new text end , 152.26and public works, including construction of sewer and water systems located within the 152.27taconite assistance area defined in section 273.1341; 152.28(4) monitoring of mineral industry related health problems among mining employees; 152.29(5) local public works projects under section 298.227, paragraph (c); and 152.30(6) local public works projects as provided under this clause. The following amounts 152.31shall be distributed in 2009 based upon the taxable tonnage of production in 2008: 152.32(i) .4651 cent per ton to the city of Aurora for street repair and renovation; 152.33(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure 152.34improvements to the south side industrial site; 153.1(iii) .6460 cent per ton to the city of Buhl for street repair; 153.2(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements; 153.3(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure 153.4upgrades; 153.5(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure 153.6upgrades; 153.7(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure; 153.8(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility 153.9modifications for the miners' memorial; 153.10(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades; 153.11(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects; 153.12(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair; 153.13(xii) .6460 cent per ton to the town of Balkan for community center repairs; 153.14(xiii) .9044 cent per ton to the city of Babbitt for city garage construction; 153.15(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects; 153.16(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West; 153.17(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades; 153.18(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades; 153.19(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup; 153.20(xix) .3230 cent per ton to Lake County for trail construction; 153.21(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand 153.22Marais; 153.23(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure 153.24improvements; 153.25(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project; 153.26(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer 153.27improvements along Gayley Avenue; 153.28(xxiv) .3876 cent per ton to the city of Marble for construction of a city 153.29administration facility; 153.30(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the 153.31community center; 153.32(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure 153.33upgrades; 153.34(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades 153.35along Depot Street; 154.1(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter 154.2improvements; 154.3(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer 154.4infrastructure upgrades at Pokegema Golf Course and Park Place; 154.5(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades 154.6for 1st Avenue from River Road to 3rd Street SE; and 154.7(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing 154.8at Highway 2 and County Road 62. 154.9    Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read: 154.10    Subd. 2. Administration. (a) The taconite area environmental protection fund shall 154.11be administered by the commissioner of the Iron Range Resources and Rehabilitation 154.12Board. The commissioner shall by September 1 of each year submit to the board a list 154.13of projects to be funded from the taconite area environmental protection fund, with such 154.14supporting information including description of the projects, plans, and cost estimates as 154.15may be necessary. 154.16    (b) Each year no less than one-half of the amounts deposited into the taconite 154.17environmental protection fund must be used for public works projects, including 154.18construction of sewer and water systems, as specified under subdivision 1, clause (3). 154.19 new text begin After seeking a recommendation from new text end the Iron Range Resources and Rehabilitation Board new text begin , new text end 154.20 new text begin the commissioner new text end may waive the requirements of this paragraph. 154.21    (c) Upon approval by the board, The list of projects approved new text begin by the commissioner new text end 154.22under this subdivision new text begin , after the commissioner has sought review of the projects by the new text end 154.23 new text begin board, new text end shall be submitted to the governor by November 1 of each year. By December 1 of 154.24each year, the governor shall approve or disapprove, or return for further consideration, 154.25each project. Funds for a project may be expended only upon approval of the project by 154.26the board new text begin commissioner new text end and the governor. The commissioner may submit supplemental 154.27projects to the board and new text begin for approval from the new text end governor for approval new text begin after seeking review new text end 154.28 new text begin of the supplemental projects from the board new text end at any time. 154.29    Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read: 154.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 154.31    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 154.32production and qualifying sales under section 298.28, subdivision 9a, shall be held by 154.33the Iron Range Resources and Rehabilitation Board in a separate taconite economic 154.34development fund for each taconite and direct reduced ore producer. Money from the 155.1fund for each producer shall be released by the commissioner after review by a joint 155.2committee consisting of an equal number of representatives of the salaried employees and 155.3the nonsalaried production and maintenance employees of that producer. The District 11 155.4director of the United States Steelworkers of America, on advice of each local employee 155.5president, shall select the employee members. In nonorganized operations, the employee 155.6committee shall be elected by the nonsalaried production and maintenance employees. The 155.7review must be completed no later than six months after the producer presents a proposal 155.8for expenditure of the funds to the committee. The funds held pursuant to this section may 155.9be released only for workforce development and associated public facility improvement, 155.10or for acquisition of plant and stationary mining equipment and facilities for the producer 155.11or for research and development in Minnesota on new mining, or taconite, iron, or steel 155.12production technology, but only if the producer provides a matching expenditure equal to 155.13the amount of the distribution to be used for the same purpose beginning with distributions 155.14in 2014. Effective for proposals for expenditures of money from the fund beginning May 155.1526, 2007, the commissioner may not release the funds before the next scheduled meeting 155.16of the board. If a proposed expenditure is not approved by the new text begin commissioner, after new text end 155.17 new text begin seeking a recommendation from the new text end board, the funds must be deposited in the Taconite 155.18Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses 155.19money which has been released from the fund prior to May 26, 2007 to procure haulage 155.20trucks, mobile equipment, or mining shovels, and the producer removes the piece of 155.21equipment from the taconite tax relief area defined in section 273.134 within ten years 155.22from the date of receipt of the money from the fund, a portion of the money granted 155.23from the fund must be repaid to the taconite economic development fund. The portion 155.24of the money to be repaid is 100 percent of the grant if the equipment is removed from 155.25the taconite tax relief area within 12 months after receipt of the money from the fund, 155.26declining by ten percent for each of the subsequent nine years during which the equipment 155.27remains within the taconite tax relief area. If a taconite production facility is sold after 155.28operations at the facility had ceased, any money remaining in the fund for the former 155.29producer may be released to the purchaser of the facility on the terms otherwise applicable 155.30to the former producer under this section. If a producer fails to provide matching funds 155.31for a proposed expenditure within six months after the commissioner approves release 155.32of the funds, the funds are available for release to another producer in proportion to the 155.33distribution provided and under the conditions of this section. Any portion of the fund 155.34which is not released by the commissioner within one year of its deposit in the fund shall 155.35be divided between the taconite environmental protection fund created in section 298.223 155.36and the Douglas J. Johnson economic protection trust fund created in section 298.292 for 156.1placement in their respective special accounts. Two-thirds of the unreleased funds shall be 156.2distributed to the taconite environmental protection fund and one-third to the Douglas J. 156.3Johnson economic protection trust fund. 156.4    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 156.5distributions and the review process, an amount equal to ten cents per taxable ton of 156.6production in 2007, for distribution in 2008 only, that would otherwise be distributed under 156.7paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 156.8wood product facility located in the taconite tax relief area and in a county that contains a 156.9city of the first class. This amount must be deducted from the distribution under paragraph 156.10(a) for which a matching expenditure by the producer is not required. The granting of the 156.11loan or grant is subject to approval by new text begin the commissioner, after seeking a recommendation new text end 156.12 new text begin from new text end the board. If the money is provided as a loan, interest must be payable on the loan at 156.13the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and 156.14interest, if any, must be deposited in the taconite environment protection fund under 156.15sections 298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1, 156.162012, the amount that had been made available for the loan under this paragraph must be 156.17transferred to the taconite environment protection fund under sections 298.222 to 298.225. 156.18(iii) Money distributed in 2008 to the fund established under this section that exceeds ten 156.19cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis. 156.20(c) Repayment or transfer of money to the taconite environmental protection fund 156.21under paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range 156.22resources and rehabilitation new text begin , after seeking a recommendation from the Iron Range new text end 156.23 new text begin Resources and Rehabilitation new text end Board for public works projects in house legislative districts 156.24in the same proportion as taxable tonnage of production in 2007 in each house legislative 156.25district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for 156.26distribution in 2008. Notwithstanding any other law to the contrary, expenditures under 156.27this paragraph do not require approval by the governor. For purposes of this paragraph, 156.28"house legislative districts" means the legislative districts in existence on May 15, 2009. 156.29    Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read: 156.30    Subd. 7a. Iron Range school consolidation and cooperatively operated school 156.31account. The following amounts must be allocated to the Iron Range Resources and 156.32Rehabilitation Board to be deposited in the Iron Range school consolidation and 156.33cooperatively operated school account that is hereby created: 157.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax 157.2imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per 157.3taxable ton of the tax imposed under section 298.24; 157.4(2) the amount as determined under section 298.17, paragraph (b), clause (3); 157.5(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 157.6proceeds attributable to the increase in the implicit price deflator as provided in section 157.7298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J. 157.8Johnson economic protection trust fund; 157.9(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 157.10increased tax proceeds attributable to the increase in the implicit price deflator as provided 157.11in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 157.12one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and 157.13(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the 157.14increased tax proceeds attributable to the increase in the implicit price deflator as provided 157.15in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the 157.16remaining one-third to be distributed to the Douglas J. Johnson economic protection 157.17trust fund; and 157.18(4) any other amount as provided by law. 157.19Expenditures from this account new text begin may be approved as ongoing annual expenditures new text end 157.20 new text begin and new text end shall be made only to provide disbursements to assist school districts with the 157.21payment of bonds that were issued for qualified school projects, or for any other school 157.22disbursement as approved by the new text begin commissioner of Iron Range resources and rehabilitation new text end 157.23 new text begin after the commissioner of Iron Range resources and rehabilitation has sought review of the new text end 157.24 new text begin expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this 157.25section, "qualified school projects" means school projects within the taconite assistance 157.26area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 157.272006; and (2) approved by the commissioner of education pursuant to section 123B.71. 157.28Beginning in fiscal year 2019, the disbursement to school districts for payments for 157.29bonds issued under section 123A.482, subdivision 9, must be increased each year to 157.30offset any reduction in debt service equalization aid that the school district qualifies for in 157.31that year, under section 123B.53, subdivision 6, compared with the amount the school 157.32district qualified for in fiscal year 2018. 157.33No expenditure under this section shall be made unless approved by seven members 157.34of new text begin the commissioner of Iron Range resources and rehabilitation after seeking review of the new text end 157.35 new text begin expenditure from new text end the Iron Range Resources and Rehabilitation Board. 158.1    Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read: 158.2    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must 158.3be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in 158.4an Iron Range higher education account that is hereby created, to be used for higher 158.5education programs conducted at educational institutions in the taconite assistance area 158.6defined in section 273.1341. The Iron Range Higher Education committee under section 158.7298.2214, and the Iron Range Resources and Rehabilitation Board new text begin commissioner of Iron new text end 158.8 new text begin Range resources and rehabilitation new text end must approve all expenditures from the account new text begin , after new text end 158.9 new text begin seeking review and recommendation of the expenditures from the Iron Range Resources new text end 158.10 new text begin and Rehabilitation Board new text end . 158.11    Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read: 158.12    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 158.13fund may be used for the following purposes: 158.14    (1) to provide loans, loan guarantees, interest buy-downs and other forms of 158.15participation with private sources of financing, but a loan to a private enterprise shall be 158.16for a principal amount not to exceed one-half of the cost of the project for which financing 158.17is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 158.18lesser of eight percent or an interest rate three percentage points less than a full faith 158.19and credit obligation of the United States government of comparable maturity, at the 158.20time that the loan is approved; 158.21    (2) to fund reserve accounts established to secure the payment when due of the 158.22principal of and interest on bonds issued pursuant to section 298.2211; 158.23    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest 158.24on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 158.25or retrofitting heating facilities in connection with district heating systems or systems 158.26utilizing alternative energy sources; 158.27    (4) to invest in a venture capital fund or enterprise that will provide capital to other 158.28entities that are engaging in, or that will engage in, projects or programs that have the 158.29purposes set forth in subdivision 1. No investments may be made in a venture capital fund 158.30or enterprise unless at least two other unrelated investors make investments of at least 158.31$500,000 in the venture capital fund or enterprise, and the investment by the Douglas 158.32J. Johnson economic protection trust fund may not exceed the amount of the largest 158.33investment by an unrelated investor in the venture capital fund or enterprise. For purposes 158.34of this subdivision, an "unrelated investor" is a person or entity that is not related to 158.35the entity in which the investment is made or to any individual who owns more than 40 159.1percent of the value of the entity, in any of the following relationships: spouse, parent, 159.2child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 159.3the value of all interests in it. For purposes of determining the limitations under this 159.4clause, the amount of investments made by an investor other than the Douglas J. Johnson 159.5economic protection trust fund is the sum of all investments made in the venture capital 159.6fund or enterprise during the period beginning one year before the date of the investment 159.7by the Douglas J. Johnson economic protection trust fund; and 159.8    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 159.9to be held and managed as a public trust for the benefit of the area for the purposes 159.10authorized in section 298.22, subdivision 5a. Property purchased under this section may 159.11be sold by the commissioner upon approval by new text begin after seeking a recommendation from new text end 159.12the board. The net proceeds must be deposited in the trust fund for the purposes and 159.13uses of this section. 159.14    Money from the trust fund shall be expended only in or for the benefit of the taconite 159.15assistance area defined in section 273.1341. 159.16    Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read: 159.17298.294 INVESTMENT OF FUND. 159.18(a) The trust fund established by section 298.292 shall be invested pursuant to law 159.19by the State Board of Investment and the net interest, dividends, and other earnings arising 159.20from the investments shall be transferred, except as provided in paragraph (b), on the first 159.21day of each month to the trust and shall be included and become part of the trust fund. 159.22The amounts transferred, including the interest, dividends, and other earnings earned 159.23prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 159.241983, which is appropriated April 21, 1983, are appropriated from the trust fund to the 159.25commissioner of Iron Range resources and rehabilitation for deposit in a separate account 159.26for expenditure for the purposes set forth in section 298.292. Amounts appropriated 159.27pursuant to this section shall not cancel but shall remain available unless expended. 159.28(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, 159.29and other earnings under paragraph (a) shall be transferred to a special account. Funds 159.30in the special account are available for loans or grants to businesses, with priority given 159.31to businesses with 25 or fewer employees. Funds may be used for wage subsidies for 159.32up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, 159.33short-term operating expenses and purchase of equipment and materials by businesses 159.34under financial duress, that will create additional jobs in the taconite assistance area 160.1under section 273.1341. Expenditures from the special account must be approved by the 160.2 new text begin commissioner after seeking a recommendation from the new text end board. 160.3(c) To qualify for a grant or loan, a business must be currently operating and have 160.4been operating for one year immediately prior to its application for a loan or grant, and its 160.5corporate headquarters must be located in the taconite assistance area. 160.6    Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read: 160.7    Subdivision 1. Project approval. new text begin (a) new text end The new text begin commissioner of Iron Range resources and new text end 160.8 new text begin rehabilitation, after seeking a recommendation from the new text end board and commissioner new text begin , new text end shall by 160.9August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson 160.10economic protection trust with necessary supporting information including description of 160.11the projects, plans, and cost estimates. These projects shall be consistent with the priorities 160.12established in section 298.292 and shall not be approved by the board new text begin commissioner new text end 160.13unless it new text begin the commissioner, after seeking a recommendation from the board, new text end finds that: 160.14(a) new text begin (1) new text end the project will materially assist, directly or indirectly, the creation of 160.15additional long-term employment opportunities; 160.16(b) new text begin (2) new text end the prospective benefits of the expenditure exceed the anticipated costs; and 160.17(c) new text begin (3) new text end in the case of assistance to private enterprise, the project will serve a sound 160.18business purpose. 160.19 new text begin (b) new text end Each project must be approved by over one-half of all of the members of the 160.20board and the commissioner of Iron Range resources and rehabilitation new text begin after seeking a new text end 160.21 new text begin recommendation from the board for the project new text end . The list of projects shall be submitted to 160.22the governor, who shall, by November 15 of each year, approve or disapprove, or return 160.23for further consideration, each project. The money for a project may be expended only 160.24upon approval of the project by the governor. The board new text begin commissioner new text end may submit new text begin a new text end 160.25supplemental projects new text begin project new text end for approval at any time new text begin after seeking a recommendation for new text end 160.26 new text begin the project from the board new text end . 160.27    Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read: 160.28    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended 160.29on projects and for administration of the trust fund only from the net interest, earnings, 160.30and dividends arising from the investment of the trust at any time, including net interest, 160.31earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made 160.32available for use in fiscal year 1983, except that any amount required to be paid out of the 160.33trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article 160.34X, section 4, and to make school bond payments and payments to recipients of taconite 161.1production tax proceeds pursuant to section 298.225, may be taken from the corpus of 161.2the trust. 161.3    (b) Additionally, upon recommendation by the new text begin commissioner after seeking a new text end 161.4 new text begin recommendation from the new text end board, up to $13,000,000 from the corpus of the trust may be 161.5made available for use as provided in subdivision 4, and up to $10,000,000 from the 161.6corpus of the trust may be made available for use as provided in section 298.2961. 161.7    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 161.8on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 161.9made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 161.108, section 17, may be expended on projects. Funds may be expended for projects under 161.11this paragraph only if the project: 161.12    (1) is for the purposes established under section 298.292, subdivision 1, clause 161.13(1) or (2); and 161.14    (2) is approved by two-thirds of all of the members of new text begin the commissioner after new text end 161.15 new text begin seeking a recommendation from new text end the board. 161.16No money made available under this paragraph or paragraph (d) can be used for 161.17administrative or operating expenses of the Iron Range Resources and Rehabilitation Board 161.18or expenses relating to any facilities owned or operated by the board on May 18, 2002. 161.19    (d) Upon recommendation by a unanimous vote of all members new text begin the commissioner new text end 161.20 new text begin after seeking a unanimous recommendation new text end of the board, amounts in addition to those 161.21authorized under paragraphs (a), (b), and (c) may be expended on projects described in 161.22section 298.292, subdivision 1. 161.23    (e) Annual administrative costs, not including detailed engineering expenses for the 161.24projects, shall not exceed five percent of the net interest, dividends, and earnings arising 161.25from the trust in the preceding fiscal year. 161.26    (f) Principal and interest received in repayment of loans made pursuant to this 161.27section, and earnings on other investments made under section 298.292, subdivision 2, 161.28clause (4), shall be deposited in the state treasury and credited to the trust. These receipts 161.29are appropriated to the board for the purposes of sections 298.291 to 298.298. 161.30    (g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the new text end 161.31 new text begin commissioner of Iron Range resources and rehabilitation, after seeking a recommendation new text end 161.32 new text begin from new text end the board, money from the corpus of the trust may be expanded to purchase forest 161.33lands within the taconite assistance area as provided in sections 298.22, subdivision 5a, 161.34and 298.292, subdivision 2, clause (5). 161.35    Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read: 162.1    Subd. 4. Temporary loan authority. (a) new text begin After seeking a recommendation from new text end the 162.2board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may recommend that new text begin new text end 162.3 new text begin use new text end up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 162.4grants, or equity investments as provided in this subdivision. The money would be 162.5available for loans for construction and equipping of facilities constituting (1) a value 162.6added iron products plant, which may be either a new plant or a facility incorporated into 162.7an existing plant that produces iron upgraded to a minimum of 75 percent iron content or 162.8any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine 162.9or minerals processing plant for any mineral subject to the net proceeds tax imposed 162.10under section 298.015. A loan or loan guarantee under this paragraph may not exceed 162.11$5,000,000 for any facility. 162.12(b) Additionally, the board new text begin commissioner of Iron Range resources and rehabilitation new text end 162.13must reserve the first $2,000,000 of the net interest, dividends, and earnings arising 162.14from the investment of the trust after June 30, 1996, to be used for grants, loans, loan 162.15guarantees, or equity investments for the purposes set forth in paragraph (a). This amount 162.16must be reserved until it is used as described in this subdivision. 162.17(c) Additionally, the board new text begin commissioner new text end may recommend that up to $5,500,000 162.18from the corpus of the trust may be used for additional grants, loans, loan guarantees, or 162.19equity investments for the purposes set forth in paragraph (a). 162.20(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a new text end 162.21 new text begin recommendation from the new text end board new text begin , new text end may require that it new text begin the board new text end receive an equity percentage 162.22in any project to which it contributes under this section. 162.23    Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read: 162.24    Subd. 2. Projects; approval. (a) Projects funded must be for: 162.25    (1) environmentally unique reclamation projects; or 162.26    (2) pit or plant repairs, expansions, or modernizations other than for a value added 162.27iron products plant. 162.28    (b) To be proposed by the board, a project must be approved by new text begin Before the new text end 162.29 new text begin commissioner may propose a project, the commissioner must seek a recommendation new text end 162.30 new text begin from new text end the board. The money for a project may be spent only upon approval of the project 162.31by the governor. The board new text begin commissioner new text end may submit new text begin a new text end supplemental projects new text begin project new text end for 162.32approval at any time new text begin after seeking a recommendation for the project from the board new text end . 162.33    (c) The board new text begin commissioner new text end may require that it new text begin the board new text end receive an equity 162.34percentage in any project to which it contributes under this section. 163.1    Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read: 163.2    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions 163.3under section 298.28, subdivision 9b, and to make grants or loans as provided in this 163.4subdivision. Any grant or loan made under this subdivision must new text begin first new text end be approved by 163.5the new text begin commissioner after seeking a recommendation from the new text end board, established under 163.6section 298.22. 163.7    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia 163.8for improvements and repairs to the city's steam heating system. 163.9    (c) Distributions received in calendar year 2006 are allocated to a project of the 163.10public utilities commissions of the cities of Hibbing and Virginia to convert their electrical 163.11generating plants to the use of biomass products, such as wood. 163.12    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to 163.13be used for the East Two Rivers project in or near the city of Tower. 163.14    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution 163.15must be paid to St. Louis County for deposit in its county road and bridge fund to be 163.16used for relocation of St. Louis County Road 715, commonly referred to as Pike River 163.17Road. The remainder of the 2008 distribution must be paid to St. Louis County for a 163.18grant to the city of Virginia for connecting sewer and water lines to the St. Louis County 163.19maintenance garage on Highway 135, further extending the lines to interconnect with the 163.20city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent 163.21years are allocated for projects under section 298.223, subdivision 1. 163.22    Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read: 163.23298.298 LONG-RANGE PLAN. 163.24Consistent with the policy established in sections 298.291 to 298.298, the Iron 163.25Range Resources and Rehabilitation Board shall prepare and present to the governor and 163.26the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. 163.27Johnson economic protection trust fund for the economic development and diversification 163.28of the taconite assistance area defined in section 273.1341. No project shall be approved new text begin new text end 163.29 new text begin recommended new text end by the Iron Range Resources and Rehabilitation Board which new text begin if the board new text end 163.30 new text begin finds that the project new text end is not consistent with the goals and objectives established in the 163.31long-range plan. 163.32    Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read: 163.33    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly 163.34constituted authorities of a taxing district there are in existence reserves of unmined iron 164.1ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range 164.2resources and rehabilitation Board for authority to petition the county assessor to verify 164.3the existence of such reserves and to ascertain the value thereof by drilling in a manner 164.4consistent with established engineering and geological exploration methods, in order that 164.5such taxing district may be able to forecast in a proper manner its future economic and 164.6fiscal potentials. new text begin The commissioner of Iron Range resources and rehabilitation may grant new text end 164.7 new text begin the authority to petition after seeking a recommendation from the Iron Range Resources new text end 164.8 new text begin and Rehabilitation Board. new text end 164.9    Sec. 34. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD; new text end 164.10 new text begin EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION. new text end 164.11 new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron new text end 164.12 new text begin Range Resources and Rehabilitation Board unless otherwise specified. new text end 164.13 new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation new text end 164.14 new text begin with the commissioner of management and budget, shall offer a targeted early separation new text end 164.15 new text begin incentive program for employees of the commissioner who have attained the age of 60 new text end 164.16 new text begin years or who have received credit for at least 30 years of allowable service under the new text end 164.17 new text begin provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a new text end 164.18 new text begin targeted separation incentive program for employees of the commissioner whose positions new text end 164.19 new text begin are in support of operations at Giants Ridge and will be eliminated if the agency no longer new text end 164.20 new text begin directly manages Giants Ridge operations. new text end 164.21 new text begin (c) The early separation incentive program may include one or more of the following: new text end 164.22 new text begin (1) employer-paid postseparation health, medical, and dental insurance until age new text end 164.23 new text begin 65; and new text end 164.24 new text begin (2) cash incentives that may, but are not required to be, used to purchase additional new text end 164.25 new text begin years of service credit through the Minnesota State Retirement System, to the extent that new text end 164.26 new text begin the purchases are otherwise authorized by law. new text end 164.27 new text begin (d) The commissioner shall establish eligibility requirements for employees to new text end 164.28 new text begin receive an incentive. new text end 164.29 new text begin (e) The commissioner, consistent with the established program provisions under new text end 164.30 new text begin paragraph (b), and with the eligibility requirements under paragraph (f), may designate new text end 164.31 new text begin specific programs or employees as eligible to be offered the incentive program. new text end 164.32 new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the new text end 164.33 new text begin employee and must be in writing. The incentive may only be offered at the sole discretion new text end 164.34 new text begin of the commissioner. new text end 165.1 new text begin (g) The cost of the incentive is payable solely by funds made available to the new text end 165.2 new text begin commissioner by law, but only on prior approval of the expenditures by the commissioner, new text end 165.3 new text begin after seeking a recommendation from the Iron Range Resources and Rehabilitation Board. new text end 165.4 new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair new text end 165.5 new text begin labor practice under Minnesota Statutes, chapter 179A. new text end 165.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 165.7 new text begin This section is repealed June 30, 2017. new text end 165.8    Sec. 35. new text begin REVISOR'S INSTRUCTION. new text end 165.9 new text begin The revisor of statutes shall identify and propose necessary changes to Minnesota new text end 165.10 new text begin Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer new text end 165.11 new text begin discretionary approval authority for all expenditures and projects from the Iron Range new text end 165.12 new text begin Resources and Rehabilitation Board to the commissioner of Iron Range resources and new text end 165.13 new text begin rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review new text end 165.14 new text begin and recommendation of the board, as required, before exercising approval authority. The new text end 165.15 new text begin revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular new text end 165.16 new text begin legislative session to the chairs and ranking minority members of the senate and house of new text end 165.17 new text begin representatives committees with jurisdiction over taxes. new text end 165.18ARTICLE 10 165.19SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS 165.20    Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read: 165.21290C.01 PURPOSE. 165.22It is the policy of this state to promote sustainable forest resource management on 165.23the state's public and private lands. Recognizing that new text begin The state's new text end private forests comprise 165.24approximately one-half of the state forest land resources, that healthy and robust forest 165.25land provides significant benefits to the state of Minnesota, and that ad new text begin . These forests new text end 165.26 new text begin play a critical role in protecting water quality and soil resources, and provide extensive new text end 165.27 new text begin wildlife habitat, diverse recreational experiences, and significant forest products that new text end 165.28 new text begin support the state's economy. Ad new text end valorem property taxes represent a significant annual 165.29cost that can discourage long-term forest management investments new text begin . In order to foster new text end 165.30 new text begin silviculture investments and retain these forests for their economic and ecological benefits new text end , 165.31this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted 165.32to encourage the state's private forest landowners to make a long-term commitment to 165.33sustainable forest management. 166.1    Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read: 166.2    Subdivision 1. Application. When used in sections 290C.01 to new text begin 290C.13 new text end , 166.3the terms in this section have the meanings given them. 166.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 166.5    Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read: 166.6    Subd. 3. Claimant. (a) "Claimant" means: 166.7    (1) a person, as that term is defined in section 290.01, subdivision 2, who owns 166.8forest land in Minnesota and files an application authorized by the Sustainable Forest 166.9Incentive Act; 166.10    (2) a purchaser or grantee if property enrolled in the program was sold or transferred 166.11after the original application was filed and prior to the annual incentive payment being 166.12made; or 166.13    (3) an owner of land previously covered by an auxiliary forest contract that 166.14automatically qualifies for inclusion in the Sustainable Forest Incentive Act program 166.15pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2. 166.16    The purchaser or grantee must notify the commissioner in writing of the sale or 166.17transfer of the property. new text begin (b) new text end Owners of land that qualifies for inclusion pursuant to section 166.1888.49, subdivision 9a , or 88.491, subdivision 2, must notify the commissioner in writing 166.19of the expiration of the auxiliary forest contract or land trade with a governmental unit 166.20and submit an application to the commissioner by August 15 new text begin July 1 new text end in order to be eligible 166.21to receive a payment by October 1 of that same year. For purposes of section 290C.11, 166.22claimant also includes any person bound by the covenant required in section 290C.04. 166.23    (b) new text begin (c) new text end No more than one claimant is entitled to a payment under this chapter with 166.24respect to any tract, parcel, or piece of land enrolled under this chapter that has been 166.25assigned the same parcel identification number. When enrolled forest land is owned by 166.26two or more persons, the owners must determine between them which person is eligible 166.27to claim the payments provided under sections 290C.01 to 290C.11 new text begin 209C.13 new text end . In the 166.28case of property sold or transferred, the former owner and the purchaser or grantee must 166.29determine between them which person is eligible to claim the payments provided under 166.30sections 290C.01 to 290C.11 new text begin 209C.13 new text end . The owners, transferees, or grantees must notify 166.31the commissioner in writing which person is eligible to claim the payments. 166.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications new text end 166.33 new text begin due in 2017 and thereafter. new text end 167.1    Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read: 167.2    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 167.3contiguous acres for which the owner has implemented a forest management plan that was 167.4prepared or updated within the past ten years by an approved plan writer. For purposes of 167.5this subdivision, acres are considered to be contiguous even if they are separated by a road, 167.6waterway, railroad track, or other similar intervening property. At least 50 percent of the 167.7contiguous acreage must meet the definition of forest land in section 88.01, subdivision 7. 167.8For the purposes of sections 290C.01 to 290C.11 new text begin 209C.13 new text end , forest land does not include 167.9(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in 167.10Minnesota program, a state or federal conservation reserve or easement reserve program 167.11under sections 103F.501 to 103F.531, the Minnesota agricultural property tax law under 167.12section 273.111, or land subject to agricultural land preservation controls or restrictions 167.13as defined in section 40A.02 or under the Metropolitan Agricultural Preserves Act under 167.14chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation 167.15easement funded under section or a comparable permanent easement conveyed 167.16to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation 167.17easement funded under section 97A.056 or a comparable permanent easement conveyed 167.18to a governmental or nonprofit entity after May 30, 2013; or (v) new text begin (iv) new text end land improved with a 167.19structure, new text begin ; new text end pavement, new text begin other than a paved trail under easement, lease, or terminable license new text end 167.20 new text begin to the state of Minnesota or a political subdivision; new text end sewer, new text begin ; new text end campsite, new text begin ; new text end or any road, other 167.21than a township road, used for purposes not prescribed in the forest management plan. 167.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications made in 2017 and new text end 167.23 new text begin thereafter. new text end 167.24    Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read: 167.25290C.03 ELIGIBILITY REQUIREMENTS. 167.26(a) Land may be enrolled in the sustainable forest incentive program under this 167.27chapter if all of the following conditions are met: 167.28(1) the land consists of at least 20 contiguous acres and at least 50 percent of the 167.29land must meet the definition of forest land in section 88.01, subdivision 7, during the 167.30enrollment; 167.31(2) a forest management plan for the land must be prepared by an approved plan 167.32writer and implemented during the period in which the land is enrolled; 168.1(3) timber harvesting and forest management guidelines must be used in conjunction 168.2with any timber harvesting or forest management activities conducted on the land during 168.3the period in which the land is enrolled; 168.4(4) the land must be enrolled for a minimum of eight years; 168.5(5) there are no delinquent property taxes on the land; and 168.6(6) claimants enrolling more than 1,920 acres new text begin or enrolling any land that is subject new text end 168.7 new text begin to a conservation easement funded under section 97A.056, or a comparable permanent new text end 168.8 new text begin easement conveyed to a governmental or nonprofit entity new text end in the sustainable forest incentive 168.9program must allow year-round, nonmotorized access to fish and wildlife resources and 168.10motorized access on established and maintained roads and trails, unless the road or trail is 168.11temporarily closed for safety, natural resource, or road damage reasons on enrolled land 168.12except within one-fourth mile of a permanent dwelling or during periods of high fire 168.13hazard as determined by the commissioner of natural resources. new text begin ; new text end 168.14 new text begin (7) the claimant has registered the forest management plan under clause (2) with the new text end 168.15 new text begin commissioner of natural resources, who has determined that the land meets qualifications new text end 168.16 new text begin for enrollment; and new text end 168.17 new text begin (8) the land is not classified as class 2c managed forest land. new text end 168.18(b) Claimants required to allow access under paragraph (a), clause (6), do not by 168.19that action: 168.20(1) extend any assurance that the land is safe for any purpose; 168.21(2) confer upon the person the legal status of an invitee or licensee to whom a duty 168.22of care is owed; or 168.23(3) assume responsibility for or incur liability for any injury to the person or property 168.24caused by an act or omission of the person. 168.25 new text begin (c) The commissioner of natural resources shall annually provide county assessors new text end 168.26 new text begin verification information regarding plan registration under paragraph (a), clause (7), on new text end 168.27 new text begin a timely basis. new text end 168.28 new text begin (d) A minimum of three acres must be excluded from enrolled land when the land is new text end 168.29 new text begin improved with a structure that is not a minor, ancillary, and nonresidential structure. new text end 168.30 new text begin (e) If land does not meet the definition of forest land in section 290C.02, subdivision new text end 168.31 new text begin 6, because the land is: new text end 168.32 new text begin (1) enrolled in a state or federal conservation reserve or easement program under new text end 168.33 new text begin sections 103F.501 to 103F.531; new text end 168.34 new text begin (2) subject to the Minnesota agricultural property tax under section 273.111; or new text end 169.1 new text begin (3) subject to agricultural land preservation controls or restrictions as defined in new text end 169.2 new text begin section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the new text end 169.3 new text begin entire tax parcel that contains the land is not eligible to be enrolled in the program. new text end 169.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications new text end 169.5 new text begin due in 2017 and thereafter. new text end 169.6    Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read: 169.7290C.04 APPLICATIONS. 169.8    (a) A landowner may apply to enroll forest land for the sustainable forest incentive 169.9program under this chapter. The claimant must complete, sign, and submit an application 169.10to the commissioner by September 30 in order for the land to become eligible beginning 169.11in the next year. The application shall be on a form prescribed by the commissioner 169.12 new text begin commissioners of revenue and natural resources new text end and must include the information the 169.13commissioner deems necessary. At a minimum, the application must show the following 169.14information for the land and the claimant: (i) the claimant's Social Security number or 169.15state or federal business tax registration number and date of birth, (ii) the claimant's 169.16address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for 169.17the tax parcels that completely contain the claimant's forest land that is sought to be 169.18enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved 169.19plan writer's signature and identification number, and (vii) proof, in a form specified by the 169.20commissioner, that the claimant has executed and acknowledged in the manner required 169.21by law for a deed, and recorded, a covenant that the land is not and shall not be developed 169.22in a manner inconsistent with the requirements and conditions of this chapter new text begin , and (viii) a new text end 169.23 new text begin registration number for the forest management plan, issued by the commissioner of natural new text end 169.24 new text begin resources new text end . The covenant shall state in writing that the covenant is binding on the claimant 169.25and the claimant's successor or assignee, and that it runs with the land for a period of not 169.26less than eight years new text begin unless the claimant requests termination of the covenant after a new text end 169.27 new text begin reduction in payments due to changes in the payment formula under section 290C.07 or as new text end 169.28 new text begin a result of executive action, the amount of payment a claimant is eligible to receive under new text end 169.29 new text begin section 290C.07 is reduced or limited new text end . The commissioner shall specify the form of the 169.30covenant and provide copies upon request. The covenant must include a legal description 169.31that encompasses all the forest land that the claimant wishes to enroll under this section or 169.32the certificate of title number for that land if it is registered land. new text begin The commissioner of new text end 169.33 new text begin natural resources shall record the area eligible for enrollment into the Sustainable Forest new text end 169.34 new text begin Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10. new text end 170.1 new text begin (b) The commissioner shall provide a copy of the application filed by the claimant new text end 170.2 new text begin and all supporting materials to the commissioner of natural resources within 15 days of new text end 170.3 new text begin receipt or by September 1, whichever is sooner. The commissioner of natural resources new text end 170.4 new text begin must notify the commissioner whether the applicant qualifies for enrollment within 30 new text end 170.5 new text begin days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural new text end 170.6 new text begin resources shall specify the number of qualifying acres per tax parcel. new text end 170.7    (b) In all cases, new text begin (c) new text end The commissioner shall notify the claimant within 90 days after 170.8receipt of a completed application that either the land has or has not been approved for 170.9enrollment. A claimant whose application is denied may appeal the denial as provided 170.10in section 290C.13. 170.11    (c) new text begin (d) new text end Within 90 days after the denial of an application, or within 90 days after the 170.12final resolution of any appeal related to the denial, the commissioner shall execute and 170.13acknowledge a document releasing the land from the covenant required under this chapter. 170.14The document must be mailed to the claimant and is entitled to be recorded. 170.15    (d) new text begin (e) new text end The Social Security numbers collected from individuals under this section are 170.16private data as provided in section 13.355. The federal business tax registration number 170.17and date of birth data collected under this section are also private data on individuals or 170.18nonpublic data, as defined in section 13.02, subdivisions 9 and 12, but may be shared 170.19with county assessors for purposes of tax administration and with county treasurers for 170.20purposes of the revenue recapture under chapter 270A. 170.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications new text end 170.22 new text begin due in 2017 and thereafter. new text end 170.23    Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read: 170.24290C.05 ANNUAL CERTIFICATION new text begin AND MONITORING new text end . 170.25     new text begin (a) new text end On or before July 1 new text begin May 15 new text end of each year, beginning with the year after the 170.26original claimant has received an approved application, the commissioner shall send each 170.27claimant enrolled under the sustainable forest incentive program a certification form. For 170.28purposes of this section, the original claimant is the person that filed the first application 170.29under section to enroll the land in the program new text begin current property owner on record, new text end 170.30 new text begin or the person designated by the owners in the case of multiple ownership new text end . The claimant 170.31must sign new text begin and return new text end the certification, attesting new text begin to the commissioner by July 1 of that new text end 170.32 new text begin same year, and (1) attest new text end that the requirements and conditions for continued enrollment 170.33in the program are currently being met, and must return the signed certification form to 170.34the commissioner by August 15 of that same year new text begin (2) provide a report in the form and new text end 171.1 new text begin manner determined by the commissioner of natural resources describing the management new text end 171.2 new text begin practices that have been carried out on the enrolled property during the prior year new text end . If the 171.3claimant does not return an annual certification form by the due date, the provisions 171.4in section 290C.11 apply. new text begin The commissioner of natural resources must verify that the new text end 171.5 new text begin claimant meets program requirements. new text end 171.6 new text begin (b) The commissioner must provide the certification form and annual report described new text end 171.7 new text begin in paragraph (a), clause (2), to the commissioner of natural resources by August 1. new text end 171.8 new text begin (c) The commissioner of natural resources must conduct annual monitoring new text end 171.9 new text begin of a subset of claimants, excluding land also enrolled in a conservation easement new text end 171.10 new text begin program. Claimants will be selected for monitoring based on reported violations, annual new text end 171.11 new text begin certification, and random selections. Monitoring will be conducted on ten percent of new text end 171.12 new text begin claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site new text end 171.13 new text begin visit by a Department of Natural Resources or contracted forester. The commissioner of new text end 171.14 new text begin natural resources must develop a monitoring form to record the monitoring data. new text end 171.15 new text begin EFFECTIVE DATE. new text end new text begin Paragraphs (a) and (b) are effective for certifications and new text end 171.16 new text begin applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019. new text end 171.17    Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read: 171.18290C.055 LENGTH OF COVENANT. 171.19(a) The covenant remains in effect for a minimum of eight years. new text begin Claimants enrolling new text end 171.20 new text begin any land that is subject to a conservation easement funded under section 97A.056 or a new text end 171.21 new text begin comparable permanent easement conveyed to a governmental or nonprofit entity must new text end 171.22 new text begin enroll their land under a covenant with a minimum duration of eight years. All other new text end 171.23 new text begin claimants may choose to enroll their land under a covenant with a minimum duration of new text end 171.24 new text begin eight, 20, or 50 years. new text end If land is removed new text begin the claimant requests removal of land new text end from the 171.25program before it has been enrolled for four years new text begin one-half the number of years of the new text end 171.26 new text begin covenant's duration new text end , the covenant remains in effect for eight years new text begin the entire duration new text end 171.27 new text begin of the covenant new text end from the date recorded. 171.28(b) If land that has been enrolled for four years new text begin one-half the number of years of the new text end 171.29 new text begin covenant's minimum duration new text end or more is removed from the program for any reason, there 171.30is a waiting period before the covenant terminates. The covenant terminates on January 1 171.31of the fifth new text begin , 11th, or 26th new text end calendar year new text begin for the eight-, 20-, or 50-year minimum covenant, new text end 171.32 new text begin respectively, new text end that begins after the date that: 171.33(1) the commissioner receives notification from the claimant that the claimant wishes 171.34to remove the land from the program under section 290C.10; or 172.1(2) the date that the land is removed from the program under section 290C.11. 172.2(c) Notwithstanding the other provisions of this section, the covenant is terminated: 172.3(1) at the same time that the land is removed from the program due to acquisition of 172.4title or possession for a public purpose under section 290C.10; or 172.5(2) at the request of the claimant after new text begin (i) if there is new text end a reduction in payments due to 172.6changes in the payment formula under section 290C.07 new text begin ; or (ii) if, as a result of executive new text end 172.7 new text begin action, the amount of payment a claimant is eligible to receive under section 290C.07 is new text end 172.8 new text begin reduced or limited new text end . 172.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications in new text end 172.10 new text begin 2017 and thereafter. new text end 172.11    Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read: 172.12290C.07 CALCULATION OF INCENTIVE PAYMENT. 172.13     new text begin (a) new text end An approved claimant under the sustainable forest incentive program is eligible 172.14to receive an annual payment new text begin for each acre of enrolled land, excluding any acre improved new text end 172.15 new text begin with a paved trail under easement, lease, or terminable license to the state of Minnesota or new text end 172.16 new text begin a political subdivision new text end . The payment shall equal $7 per acre for each acre enrolled in the 172.17sustainable forest incentive program. new text begin a percentage of the property tax that would be paid new text end 172.18 new text begin on the land determined by using the previous year's statewide average total tax rate for all new text end 172.19 new text begin taxes levied within townships and unorganized territories, the estimated market value per new text end 172.20 new text begin acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for new text end 172.21 new text begin claimants enrolling land that is subject to a conservation easement funded under section new text end 172.22 new text begin or a comparable permanent easement conveyed to a governmental or nonprofit new text end 172.23 new text begin entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject new text end 172.24 new text begin to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants new text end 172.25 new text begin enrolling land that is not subject to a conservation easement under a 20-year covenant, 90 new text end 172.26 new text begin percent; and (4) for claimants enrolling land that is not subject to a conservation easement new text end 172.27 new text begin under a 50-year covenant, 115 percent. new text end 172.28     new text begin (b) The calculated payment shall not be less than the payment received in 2016 and new text end 172.29 new text begin shall not increase or decrease by more than ten percent relative to the payment received new text end 172.30 new text begin for the previous year. new text end 172.31 new text begin (c) In addition to the payments provided under this section, a claimant enrolling new text end 172.32 new text begin more than 1,920 acres shall be allowed an additional payment per acre equal to the new text end 172.33 new text begin amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which new text end 172.34 new text begin public access is allowed, as required under section 290C.03, paragraph (a), clause (6), new text end 173.1 new text begin excluding any land subject to a conservation easement funded under section 97A.056, or a new text end 173.2 new text begin permanent easement conveyed to a governmental or nonprofit entity that is required to new text end 173.3 new text begin allow for public access under section 290C.03, paragraph (a), clause (6). new text end 173.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for calculations made in 2017 and new text end 173.5 new text begin thereafter. new text end 173.6    Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read: 173.7    Subdivision 1. Annual payment. An incentive payment for each acre of enrolled 173.8land will be made annually to each claimant in the amount determined under section 173.9290C.07 . new text begin By September 15 of each year, the commissioner of natural resources will new text end 173.10 new text begin certify to the commissioner the eligibility of each claimant to receive a payment. new text end The 173.11incentive payment shall be paid new text begin by the commissioner new text end on or before October 1 each year 173.12based on the certifications due August 15 new text begin July 1 new text end of that year. Interest at the annual rate 173.13determined under section 270C.40 shall be included with any incentive payment not 173.14paid by the later of October 1 of the year the certification was due, or 45 days after the 173.15completed certification was returned or filed if the commissioner accepts a certification 173.16filed after August 15 new text begin July 1 new text end of the taxes payable year as the resolution of an appeal. 173.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications new text end 173.18 new text begin due in 2017 and thereafter. new text end 173.19    Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read: 173.20290C.10 WITHDRAWAL PROCEDURES. 173.21An approved claimant new text begin (a) The current owner of land enrolled new text end under the sustainable 173.22forest incentive program for a minimum of four years new text begin one-half the number of years new text end 173.23 new text begin of the covenant's minimum duration new text end may notify the commissioner of the intent to 173.24terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the 173.25commissioner shall inform the claimant in writing, acknowledging receipt of this notice 173.26and indicating the effective date of termination from the sustainable forest incentive 173.27program. Termination of enrollment in the sustainable forest incentive program occurs on 173.28January 1 of the fifth new text begin , 11th, or 26th new text end calendar year new text begin for the eight-, 20-, or 50-year respective new text end 173.29 new text begin minimum covenant new text end that begins after receipt by the commissioner of the termination 173.30notice. After the commissioner issues an effective date of termination, a claimant wishing 173.31to continue the land's enrollment in the sustainable forest incentive program beyond the 173.32termination date must apply for enrollment as prescribed in section 290C.04. A claimant 173.33who withdraws a parcel of land from this program may not reenroll the parcel for a period 174.1of three years. Within 90 days after the termination date, the commissioner shall execute 174.2and acknowledge a document releasing the land from the covenant required under this 174.3chapter. The document must be mailed to the claimant and is entitled to be recorded. 174.4 new text begin (b) Notwithstanding paragraph (a), on request of the claimant, new text end the commissioner may 174.5allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the 174.6state of Minnesota, any local government unit, or any other entity which has the power of 174.7eminent domain acquires title or possession to the land for a public purpose notwithstanding 174.8the provisions of this section. In the case of such new text begin an eligible new text end acquisition new text begin under this new text end 174.9 new text begin paragraph new text end , the commissioner shall execute and acknowledge a document releasing the 174.10land acquired by the state, local government unit, or other entity from the covenant. 174.11 new text begin (c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner new text end 174.12 new text begin shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty new text end 174.13 new text begin when a government or nonprofit entity acquires a permanent conservation easement on the new text end 174.14 new text begin enrolled property and the conservation easement is at least as restrictive as the covenant new text end 174.15 new text begin required under section 290C.04. The commissioner of natural resources must notify the new text end 174.16 new text begin commissioner of lands acquired under this paragraph that are eligible for withdrawal. new text end 174.17 new text begin In the case of an eligible easement acquisition under this paragraph, the commissioner new text end 174.18 new text begin shall execute and acknowledge a document releasing the land subject to the easement new text end 174.19 new text begin from the covenant. new text end 174.20 new text begin (d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner new text end 174.21 new text begin shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for new text end 174.22 new text begin land that is subject to fee or easement acquisition or lease to the state of Minnesota or a new text end 174.23 new text begin political subdivision of the state for the public purpose of a paved trail. The commissioner new text end 174.24 new text begin of natural resources must notify the commissioner of lands acquired under this paragraph new text end 174.25 new text begin that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or new text end 174.26 new text begin lease under this paragraph, the commissioner shall execute and acknowledge a document new text end 174.27 new text begin releasing the land subject to fee or easement acquisition or lease by the state or political new text end 174.28 new text begin subdivision of the state. new text end 174.29 new text begin (e) new text end All other enrolled land must remain in the program. 174.30 new text begin EFFECTIVE DATE. new text end new text begin The amendments to paragraphs (c) and (d) are effective new text end 174.31 new text begin the day following final enactment. The amendments to paragraphs (a), (b), and (e) are new text end 174.32 new text begin effective for notifications made in 2017 and thereafter. new text end 174.33    Sec. 12. new text begin [290C.101] TRANSFER OF OWNERSHIP. new text end 174.34     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 174.35 new text begin have the meanings provided. new text end 175.1 new text begin (b) "New owner" means a prospective purchaser or grantee. new text end 175.2 new text begin (c) "Owner" means a grantor or seller. new text end 175.3     new text begin Subd. 2. new text end new text begin Notification to commissioner. new text end new text begin (a) An owner must notify the commissioner new text end 175.4 new text begin if the owner transfers any or all of the owner's land enrolled in the sustainable forest new text end 175.5 new text begin incentive program to one or more new owners within 60 days of the transfer of title to the new text end 175.6 new text begin property. The notification must include the legal descriptions of the transferred property, new text end 175.7 new text begin the tax parcel numbers, and the name and address of the new owner. If transfer of ownership new text end 175.8 new text begin is a result of the death of the claimant, the provisions of section 290C.12 shall apply. new text end 175.9 new text begin (b) Upon notification, the commissioner shall inform the new owner of the new text end 175.10 new text begin restrictions of the covenant required by section 290C.04 and the withdrawal procedures new text end 175.11 new text begin under section 290C.10. In order for the new owner to receive payments pursuant to this new text end 175.12 new text begin chapter, the new owner must file an application and register a new forest management plan new text end 175.13 new text begin with the commissioner of natural resources within two years from the date the title of the new text end 175.14 new text begin property was transferred to remain eligible. new text end 175.15     new text begin Subd. 3. new text end new text begin Termination of enrollment. new text end new text begin The commissioner will terminate enrollment new text end 175.16 new text begin according to the procedure in section 290C.10 for failure of the new owner to register a new text end 175.17 new text begin forest management plan within the time period in subdivision 2, paragraph (b). new text end 175.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 175.19    Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read: 175.20290C.11 PENALTIES FOR REMOVAL. 175.21    (a) If the commissioner determines that land enrolled in the sustainable forest 175.22incentive program is in violation of the conditions for enrollment as specified in section 175.23290C.03 , new text begin or upon notification by the commissioner of natural resources that land enrolled new text end 175.24 new text begin is in violation of the conditions for enrollment, new text end the commissioner shall notify the claimant 175.25 new text begin current owner of the land new text end of the intent to remove all new text begin the tax parcel of the new text end enrolled land 175.26 new text begin where the violation has occurred new text end from the sustainable forest incentive program. new text begin The new text end 175.27 new text begin penalties described under paragraph (c) apply. new text end The claimant new text begin current owner new text end has 60 days to 175.28appeal this determination under the provisions of section 290C.13. 175.29    (b) If the commissioner determines the land is to be removed from the sustainable 175.30forest incentive program new text begin due to the construction or addition of an improvement to the new text end 175.31 new text begin property new text end , the claimant new text begin owner of the tax parcel that is in violation new text end is liable for payment 175.32to the commissioner in the amount equal to new text begin : (1) new text end the payments received new text begin issued related to new text end 175.33 new text begin the enrolled tax parcel new text end under this chapter for the previous four-year period new text begin in the case of new text end 175.34 new text begin an eight-year minimum covenant, ten-year period in the case of a 20-year minimum new text end 176.1 new text begin covenant, or 25-year period in the case of a 50-year minimum covenant new text end , plus interest new text begin ; and new text end 176.2 new text begin (2) 25 percent of the estimated market value of the property as reclassified under section new text end 176.3 new text begin 273.13 due to the structure being on the tax parcel, as determined by the assessor new text end . 176.4 new text begin (c) If the commissioner of natural resources determines that the land is used for new text end 176.5 new text begin purposes other than forestry purposes, the commissioner of natural resources shall notify new text end 176.6 new text begin the commissioner of revenue, who shall notify the current owner of the tax parcel that is in new text end 176.7 new text begin violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 new text end 176.8 new text begin percent of the estimated market value as property reclassified under section 273.13, due new text end 176.9 new text begin to the change in use, as determined by the assessor; and (2) the payments issued related new text end 176.10 new text begin to the enrolled tax parcel under this chapter for the previous four-year period in the case new text end 176.11 new text begin of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year new text end 176.12 new text begin period in the case of a 50-year covenant, plus interest. new text end 176.13     new text begin (d) new text end The claimant has 90 days to satisfy the payment for removal of land from the 176.14sustainable forest incentive program under this section. If the penalty is not paid within 176.15the 90-day period under this paragraph, the commissioner shall certify the amount to the 176.16county auditor for collection as a part of the general ad valorem real property taxes on the 176.17land in the following taxes payable year. 176.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 176.19    Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read: 176.20    Subd. 6. Determination of appeal. On the basis of applicable law and available 176.21information, the commissioner shall determine the validity, if any, in whole or in part, 176.22of the appeal and notify the claimant of the decision. This notice must be in writing 176.23and contain the basis for the determination. new text begin The commissioner shall consult with the new text end 176.24 new text begin commissioner of natural resources when an appeal relates to the use of the property for new text end 176.25 new text begin forestry or nonforestry purposes and for appeals related to forest management plans. new text end 176.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 176.27    Sec. 15. new text begin SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION new text end 176.28 new text begin PROVISION. new text end 176.29 new text begin (a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the new text end 176.30 new text begin owner of enrolled lands may elect through May 15, 2018, and without penalty, to change new text end 176.31 new text begin the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The new text end 176.32 new text begin owner of enrolled land must provide notice to the Department of Revenue of its intent to new text end 176.33 new text begin change the length of its covenant. new text end 177.1 new text begin (b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the new text end 177.2 new text begin owner of enrolled land must comply with the changes made in the act by certifications due new text end 177.3 new text begin in 2018, as required under Minnesota Statutes, section 290C.05. new text end 177.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 177.5    Sec. 16. new text begin ADMINISTRATIVE APPROPRIATION. new text end 177.6 new text begin $600,000 in fiscal year 2017 is appropriated from the general fund to the new text end 177.7 new text begin commissioner of natural resources for administering this article. The funding base for new text end 177.8 new text begin administering this article in fiscal year 2018 and thereafter is $600,000. new text end 177.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 177.10    Sec. 17. new text begin REPEALER. new text end 177.11 new text begin Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, new text end new text begin are repealed. new text end 177.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 177.13ARTICLE 11 177.14MISCELLANEOUS 177.15    Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, 177.16is amended to read: 177.17    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general 177.18fund revenues and expenditures, the commissioner of management and budget determines 177.19that there will be a positive unrestricted budgetary general fund balance at the close of 177.20the biennium, the commissioner of management and budget must allocate money to the 177.21following accounts and purposes in priority order: 177.22    (1) the cash flow account established in subdivision 1 until that account reaches 177.23$350,000,000; 177.24    (2) the budget reserve account established in subdivision 1a until that account 177.25reaches $810,992,000 new text begin $1,596,522,000 new text end ; 177.26    (3) the amount necessary to increase the aid payment schedule for school district 177.27aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 177.28nearest tenth of a percent without exceeding the amount available and with any remaining 177.29funds deposited in the budget reserve; new text begin and new text end 177.30    (4) the amount necessary to restore all or a portion of the net aid reductions under 177.31section 127A.441 and to reduce the property tax revenue recognition shift under section 177.32123B.75, subdivision 5 , by the same amount; new text begin . new text end 178.1    (5) the closed landfill investment fund established in section until 178.2$63,215,000 has been transferred into the account. This clause expires after the entire 178.3amount of the transfer has been made; and 178.4(6) the metropolitan landfill contingency action trust account established in section 178.5 until $8,100,000 has been transferred into the account. This clause expires after 178.6the entire amount of the transfer has been made. 178.7    (b) The amounts necessary to meet the requirements of this section are appropriated 178.8from the general fund within two weeks after the forecast is released or, in the case of 178.9transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 178.10schedules otherwise established in statute. 178.11    (c) The commissioner of management and budget shall certify the total dollar 178.12amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 178.13education. The commissioner of education shall increase the aid payment percentage and 178.14reduce the property tax shift percentage by these amounts and apply those reductions to 178.15the current fiscal year and thereafter. 178.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 178.17    Sec. 2. new text begin [116J.952] NEW MARKETS GRANT PROGRAM. new text end 178.18     new text begin Subdivision 1. new text end new text begin Grant program established. new text end new text begin The commissioner shall award new new text end 178.19 new text begin markets grants for qualified low-income community investments as specified under this new text end 178.20 new text begin section. The commissioner shall adopt rules to establish criteria for determining grant new text end 178.21 new text begin eligibility. new text end 178.22     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have new text end 178.23 new text begin the meanings given. new text end 178.24 new text begin (b) "Applicant" means a qualified community development entity as defined in new text end 178.25 new text begin paragraph (h). new text end 178.26 new text begin (c) "Commissioner" means the commissioner of employment and economic new text end 178.27 new text begin development. new text end 178.28 new text begin (d) "Greater Minnesota" means the area of the state that excludes the metropolitan new text end 178.29 new text begin area, as defined in section 473.121, subdivision 2. new text end 178.30 new text begin (e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31. new text end 178.31 new text begin (f) "Qualified active low-income community business" has the meaning given in new text end 178.32 new text begin section 45D of the Internal Revenue Code. The term does not include: new text end 178.33 new text begin (1) any trade or business engaged in insurance, banking, lending, lobbying, political new text end 178.34 new text begin consulting, or leisure; or new text end 179.1 new text begin (2) any trade or business activity consisting of the operation of any private or new text end 179.2 new text begin commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race new text end 179.3 new text begin track, or other facility used for gambling, or any store the principal business of which is new text end 179.4 new text begin the sale of alcoholic beverages for consumption off premises. new text end 179.5     new text begin (g) "Low-income communities" as defined in section 45D of the Internal Revenue new text end 179.6 new text begin Code and applied to any term or requirement used in this section or an incorporated new text end 179.7 new text begin provision of federal law includes the area of any home rule charter or statutory city that: new text end 179.8     new text begin (1) is located in greater Minnesota; new text end 179.9     new text begin (2) has a population, as defined in section 477A.011, subdivision 3, of 500 or new text end 179.10 new text begin more; and new text end 179.11     new text begin (3) has net tax capacity of property, classified as class 3 under section 273.13, of new text end 179.12 new text begin less than $500 per capita for property taxes assessed in 2015, payable in 2016, including new text end 179.13 new text begin the city's distribution net tax capacity and excluding its contribution net tax capacity new text end 179.14 new text begin under chapter 276A. new text end 179.15 new text begin (h) "Qualified community development entity" has the meaning given in section new text end 179.16 new text begin 45D of the Internal Revenue Code, provided that the entity has direct lending experience new text end 179.17 new text begin serving businesses in disadvantaged communities in the state and a primary mission of new text end 179.18 new text begin economic development. new text end 179.19 new text begin (i) "Qualified low-income community investment" means any capital or equity new text end 179.20 new text begin investment in, or loan to, any qualified active low-income community business. new text end 179.21     new text begin Subd. 3. new text end new text begin Grant awards. new text end new text begin The commissioner shall award grants to qualified new text end 179.22 new text begin community development entities based on a competitive review of applications received new text end 179.23 new text begin by the commissioner using criteria established in subdivision 4. new text end 179.24     new text begin Subd. 4. new text end new text begin Application. new text end new text begin (a) The commissioner shall develop an application form new text end 179.25 new text begin requiring information necessary to evaluate the benefits to Minnesota from awarding new text end 179.26 new text begin the grants. new text end 179.27 new text begin (b) Prior to awarding grants to an applicant under this subdivision, the commissioner new text end 179.28 new text begin shall consider the following: new text end 179.29 new text begin (1) whether the qualified community development entity has demonstrated new text end 179.30 new text begin experience providing capital or technical assistance to disadvantaged businesses or new text end 179.31 new text begin communities in the state; new text end 179.32 new text begin (2) the extent to which an applicant demonstrates direct experience in asset and risk new text end 179.33 new text begin management and in fulfilling government compliance requirements; new text end 179.34 new text begin (3) the extent to which an applicant demonstrates a capitalization strategy that new text end 179.35 new text begin ensures that the economic benefit of the grant allocation remains in the state; new text end 180.1 new text begin (4) the extent to which the applicant establishes standards for wages and benefits new text end 180.2 new text begin exceeding federal poverty guidelines and includes a means by which to monitor and new text end 180.3 new text begin measure ongoing compliance with those standards; new text end 180.4 new text begin (5) the financial contributions expected to be made to the project from nonstate new text end 180.5 new text begin sources; and new text end 180.6 new text begin (6) any other criteria the commissioner deems necessary. new text end 180.7     new text begin Subd. 5. new text end new text begin Annual reporting by community development entities. new text end new text begin A community new text end 180.8 new text begin development entity that has been awarded a grant must submit an annual report to the new text end 180.9 new text begin commissioner within 180 days after the end of the fiscal year. The report must include new text end 180.10 new text begin information on investments made in the preceding year, including but not limited to the new text end 180.11 new text begin following: new text end 180.12 new text begin (1) the types of industries, identified by the North American Industry Classification new text end 180.13 new text begin System Code, in which a qualified low-income community investment was made; new text end 180.14 new text begin (2) the names of the counties in which the qualified active low-income community new text end 180.15 new text begin businesses are located which received qualified low-income community investments; new text end 180.16 new text begin (3) the number of jobs created and retained by qualified active low-income new text end 180.17 new text begin community businesses receiving qualified low-income community investments, including new text end 180.18 new text begin verification that the average wages and benefits paid to full-time employees, based on an new text end 180.19 new text begin hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty new text end 180.20 new text begin income guidelines for a family of four; and new text end 180.21 new text begin (4) other information and documentation required by the commissioner to verify new text end 180.22 new text begin continued certification as a qualified community development entity under United States new text end 180.23 new text begin Code, title 26, section 45D. new text end 180.24     new text begin Subd. 6. new text end new text begin Application fees; fund created. new text end new text begin The qualified community development new text end 180.25 new text begin entity must submit a nonrefundable application fee at the time the application is submitted new text end 180.26 new text begin equal to the amount published in the Minnesota new markets grant program application. new text end 180.27 new text begin The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days new text end 180.28 new text begin following the grant award and up to 25 percent of the fee to be submitted up to 270 days new text end 180.29 new text begin following the grant award. Application fees are deposited in the new markets grant new text end 180.30 new text begin program administration account in the special revenue fund. new text end 180.31     new text begin Subd. 7. new text end new text begin Administrative fees. new text end new text begin Upon the issuance of a qualified low-income new text end 180.32 new text begin community investment by a qualified community development entity, an administrative new text end 180.33 new text begin fee in an amount determined by the commissioner and published in the grant agreement new text end 180.34 new text begin must be deposited in the new markets grant program administration account in the special new text end 180.35 new text begin revenue fund. new text end 181.1     new text begin Subd. 8. new text end new text begin Administrative expenses. new text end new text begin Amounts in the new markets grant program new text end 181.2 new text begin administration account are appropriated annually to the commissioner for administrative new text end 181.3 new text begin expenses related to administering the new markets grant program in this section. new text end 181.4     new text begin Subd. 9. new text end new text begin Annual report. new text end new text begin The commissioner shall annually by January 15, 2018 new text end 181.5 new text begin through 2023, report to the chairs and ranking minority members of the legislative new text end 181.6 new text begin committees on economic development on the implementation of the grant program, new text end 181.7 new text begin including an evaluation of the success and economic impact of the program in the state. new text end 181.8 new text begin The report must include: new text end 181.9 new text begin (1) the number of women-owned and minority-owned businesses assisted by the new text end 181.10 new text begin grants; new text end 181.11 new text begin (2) the number of greater Minnesota-located businesses assisted by the grants and new text end 181.12 new text begin the amount of that assistance; new text end 181.13 new text begin (3) the number of metropolitan area-located businesses assisted by the grants and the new text end 181.14 new text begin amount of that assistance; new text end 181.15 new text begin (4) the number of jobs created by the grants including the number of women and new text end 181.16 new text begin minorities obtaining jobs; and new text end 181.17 new text begin (5) the number of jobs created by the grants located in greater Minnesota and in the new text end 181.18 new text begin metropolitan area. new text end 181.19     new text begin Subd. 10. new text end new text begin Expiration. new text end new text begin This section expires the earlier of July 1, 2024, or when the new text end 181.20 new text begin last of the grant funds have been awarded. The commissioner must issue the rules for the new text end 181.21 new text begin implementation of this section to allow commencement of grant awards by January 1, 2017. new text end 181.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 181.23    Sec. 3. new text begin [270C.22] TAX TIME SAVINGS GRANT PROGRAM. new text end 181.24     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 181.25 new text begin have the meanings given. new text end 181.26 new text begin (b) "Financial capability services" means any of the following: new text end 181.27 new text begin (1) assistance with opening a savings or transactional account that meets the Federal new text end 181.28 new text begin Deposit Insurance Corporation's model safe accounts template standards; new text end 181.29 new text begin (2) assistance with depositing all or part of a tax refund into a savings or transactional new text end 181.30 new text begin account; new text end 181.31 new text begin (3) assistance with obtaining and reviewing a consumer report or credit score, as new text end 181.32 new text begin those terms are defined in United States Code, title 15, section 1681a; new text end 181.33 new text begin (4) assistance with obtaining and reviewing a banking history report; new text end 181.34 new text begin (5) financial coaching, or referral to financial coaching services, as provided in new text end 181.35 new text begin section 256E.35, subdivision 4a; new text end 182.1 new text begin (6) National Foundation for Credit Counseling certified consumer credit and debt new text end 182.2 new text begin counseling or referral to these services; new text end 182.3 new text begin (7) enrollment in a matched or incentivized savings program, including the provision new text end 182.4 new text begin of matching or incentive funds; new text end 182.5 new text begin (8) assistance with purchasing federal retirement savings bonds, as described in new text end 182.6 new text begin Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner, new text end 182.7 new text begin registered investment adviser, licensed insurance producer or agent, or a registered new text end 182.8 new text begin securities broker-dealer representative for private sector retirement options; or new text end 182.9 new text begin (9) assistance with purchasing a Series I United States Savings Bond with all or new text end 182.10 new text begin part of a tax refund. new text end 182.11 new text begin (c) "Transactional account" means a traditional demand deposit account or a general new text end 182.12 new text begin purpose reloadable prepaid card offered by a bank or credit union. new text end 182.13 new text begin (d) "TCE" means the Tax Counseling for the Elderly program established by the new text end 182.14 new text begin Internal Revenue Service. new text end 182.15 new text begin (e) "VITA" means the Volunteer Income Tax Assistance program established by the new text end 182.16 new text begin Internal Revenue Service. new text end 182.17     new text begin Subd. 2. new text end new text begin Creation. new text end new text begin The commissioner of revenue shall establish a tax time new text end 182.18 new text begin savings grant program to make grants to one or more nonprofit organizations to fund the new text end 182.19 new text begin integration of financial capability services into the delivery of taxpayer assistance services new text end 182.20 new text begin funded by grants under section 270C.21. new text end 182.21     new text begin Subd. 3. new text end new text begin Qualified applicant. new text end new text begin To be eligible to receive a grant under the tax time new text end 182.22 new text begin savings grant program, an applicant must: new text end 182.23 new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered new text end 182.24 new text begin with the Internal Revenue Service as part of either the VITA or TCE programs; and new text end 182.25 new text begin (2) commit to dedicate at least one staff or volunteer position to coordinate financial new text end 182.26 new text begin capability services at a VITA or TCE program site and to offer VITA or TCE program new text end 182.27 new text begin participants free assistance with the initiation through completion of: new text end 182.28 new text begin (i) opening a savings and a transactional account that meet the Federal Deposit new text end 182.29 new text begin Insurance Corporation's model safe accounts template standards; new text end 182.30 new text begin (ii) depositing all or part of a tax refund into a savings or transactional account; and new text end 182.31 new text begin (iii) purchasing a Series I United States Savings Bond with all or part of a tax refund. new text end 182.32     new text begin Subd. 4. new text end new text begin Conflict of interest. new text end new text begin (a) No applicant may receive direct compensation new text end 182.33 new text begin from a bank, credit union, other financial services provider, or vendor in exchange for the new text end 182.34 new text begin applicant offering to program participants the products or services of that bank, credit new text end 182.35 new text begin union, other financial services provider, or vendor. new text end 183.1 new text begin (b) No applicant may receive funding from a bank, credit union, other financial new text end 183.2 new text begin services provider, or vendor that is contingent on the applicant offering products or new text end 183.3 new text begin services of that bank, credit union, other financial services provider, or vendor to program new text end 183.4 new text begin participants. new text end 183.5 new text begin (c) An applicant may receive funding from a bank, credit union, other financial new text end 183.6 new text begin services provider, or vendor that is not in exchange for or contingent upon the applicant new text end 183.7 new text begin offering products or services of that bank, credit union, other financial services provider, new text end 183.8 new text begin or vendor to program participants. new text end 183.9     new text begin Subd. 5. new text end new text begin Permitted use of grant funds. new text end new text begin (a) A grant recipient may use grant funds new text end 183.10 new text begin to dedicate a staff or volunteer position to coordinate financial capability services at a new text end 183.11 new text begin VITA or TCE site and to offer VITA or TCE program participants free assistance with the new text end 183.12 new text begin initiation through completion of: new text end 183.13 new text begin (1) opening a savings and a transactional account that meet the Federal Deposit new text end 183.14 new text begin Insurance Corporation's model safe accounts template standards; new text end 183.15 new text begin (2) depositing all or part of a tax refund into a savings or transactional account; and new text end 183.16 new text begin (3) purchasing a Series I United States Savings Bond with all or part of a tax refund. new text end 183.17 new text begin (b) A grant recipient who offers all of the financial capability services enumerated new text end 183.18 new text begin in paragraph (a) may also use grant funds to provide one or more additional financial new text end 183.19 new text begin capability services to VITA or TCE program participants at no cost to the participant. new text end 183.20    Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read: 183.21    Subdivision 1. Written order. The Tax Court, except in Small Claims Division, 183.22shall determine every appeal by written order containing findings of fact and the decision 183.23of the tax court. A memorandum of the grounds of the decision shall be appended. Notice 183.24of the entry of the order and of the substance of the decision shall be mailed to all parties. 183.25A motion for rehearing, which includes a motion for amended findings of fact, conclusions 183.26of law, or a new trial, must be served by the moving party within 15 new text begin 30 new text end days after mailing 183.27of the notice by the court as specified in this subdivision, and the motion must be heard 183.28within 30 new text begin 60 new text end days thereafter, unless the time for hearing is extended by the court within 183.29the 30-day new text begin 60-day new text end period for good cause shown. 183.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 183.31    Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read: 183.32    Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division 183.33shall have jurisdiction only in the following matters: 183.34(a) cases involving valuation, assessment, or taxation of real or personal property, if: 184.1(i) the issue is a denial of a current year application for the homestead classification 184.2for the taxpayer's property; 184.3(ii) only one parcel is included in the petition, the entire parcel is classified as 184.4homestead class 1a or 1b under section 273.13, and the parcel contains no more than 184.5one dwelling unit; 184.6(iii) the entire property is classified as agricultural homestead class 2a or 1b under 184.7section 273.13; or 184.8(iv) the assessor's estimated market value of the property included in the petition 184.9is less than $300,000; or 184.10(b) any case not involving valuation, assessment, or taxation of real and personal 184.11property in which the amount in controversy does not exceed $5,000 new text begin $15,000 new text end , including 184.12penalty and interest. 184.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 184.14    Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision 184.15to read: 184.16     new text begin Subd. 32. new text end new text begin Sales suppression. new text end new text begin (a) A person who: new text end 184.17 new text begin (1) sells; new text end 184.18 new text begin (2) transfers; new text end 184.19 new text begin (3) develops; new text end 184.20 new text begin (4) manufactures; or new text end 184.21 new text begin (5) possesses with the intent to sell or transfer new text end new text begin new text end 184.22 new text begin an automated sales suppression device, zapper, phantom-ware, or similar device capable new text end 184.23 new text begin of being used to commit tax fraud or suppress sales is liable for a civil penalty calculated new text end 184.24 new text begin under paragraph (b). new text end 184.25 new text begin (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total new text end 184.26 new text begin amount of all taxes and penalties due that are attributable to the use of any automated new text end 184.27 new text begin sales suppression device, zapper, phantom-ware, or similar device facilitated by the sale, new text end 184.28 new text begin transfer, development, or manufacture of the automated sales suppression device, zapper, new text end 184.29 new text begin phantom-ware, or similar device by the person. new text end 184.30 new text begin (c) The definitions in section 609.858 apply to this subdivision. new text end 184.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated in new text end 184.32 new text begin paragraph (a) that occur after July 1, 2016. new text end 184.33    Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read: 185.1    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax 185.2exclusive of special assessments, penalties, and interest payable on a claimant's homestead 185.3after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 185.4and any other state paid property tax credits in any calendar year, and after any refund 185.5claimed and allowable under section 290A.04, subdivision 2h, that is first payable in 185.6the year that the property tax is payable. In the case of a claimant who makes ground 185.7lease payments, "property taxes payable" includes the amount of the payments directly 185.8attributable to the property taxes assessed against the parcel on which the house is located. 185.9No apportionment or reduction of the "property taxes payable" shall be required for the 185.10use of a portion of the claimant's homestead for a business purpose if the claimant does 185.11not deduct any business depreciation expenses for the use of a portion of the homestead new text begin , new text end 185.12 new text begin or does not deduct expenses under section 280A of the Internal Revenue Code for a new text end 185.13 new text begin business operated in the home, new text end in the determination of federal adjusted gross income. For 185.14homesteads which are manufactured homes as defined in section 273.125, subdivision 8, 185.15and for homesteads which are park trailers taxed as manufactured homes under section 185.16168.012, subdivision 9 , "property taxes payable" shall also include 17 percent of the gross 185.17rent paid in the preceding year for the site on which the homestead is located. When 185.18a homestead is owned by two or more persons as joint tenants or tenants in common, 185.19such tenants shall determine between them which tenant may claim the property taxes 185.20payable on the homestead. If they are unable to agree, the matter shall be referred to the 185.21commissioner of revenue whose decision shall be final. Property taxes are considered 185.22payable in the year prescribed by law for payment of the taxes. 185.23In the case of a claim relating to "property taxes payable," the claimant must have 185.24owned and occupied the homestead on January 2 of the year in which the tax is payable 185.25and (i) the property must have been classified as homestead property pursuant to section 185.26273.124 , on or before December 15 of the assessment year to which the "property taxes 185.27payable" relate; or (ii) the claimant must provide documentation from the local assessor 185.28that application for homestead classification has been made on or before December 15 185.29of the year in which the "property taxes payable" were payable and that the assessor has 185.30approved the application. 185.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on rent paid after new text end 185.32 new text begin December 31, 2014, and property taxes payable after December 31, 2015. new text end 185.33    Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision 185.34to read: 186.1     new text begin Subd. 20. new text end new text begin Additional allocation; 2016. new text end new text begin In addition to the tax reductions in new text end 186.2 new text begin subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise new text end 186.3 new text begin zones in cities located on the western border of the state. The commissioner shall allocate new text end 186.4 new text begin this amount among cities on a per capita basis. Allocations under this subdivision may new text end 186.5 new text begin be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other new text end 186.6 new text begin offsets of taxes imposed on or remitted by businesses located in the enterprise zone, new text end 186.7 new text begin but only if the municipality determines that the granting of the tax reduction or offset is new text end 186.8 new text begin necessary to retain a business within or attract a business to the zone. new text end 186.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 186.10    Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read: 186.11    Subd. 3. Weapons, telephone cloning paraphernalia, new text begin automated sales new text end 186.12 new text begin suppression devices, new text end and bullet-resistant vests. Weapons used are contraband and 186.13must be summarily forfeited to the appropriate agency upon conviction of the weapon's 186.14owner or possessor for a controlled substance crime; for any offense of this chapter 186.15or chapter 624, or for a violation of an order for protection under section 518B.01, 186.16subdivision 14 . Bullet-resistant vests, as defined in section 609.486, worn or possessed 186.17during the commission or attempted commission of a crime are contraband and must be 186.18summarily forfeited to the appropriate agency upon conviction of the owner or possessor 186.19for a controlled substance crime or for any offense of this chapter. Telephone cloning 186.20paraphernalia used in a violation of section 609.894 new text begin , and automated sales suppression new text end 186.21 new text begin devices, phantom-ware, and other devices containing an automated sales suppression or new text end 186.22 new text begin phantom-ware device or software used in violation of section 609.858, new text end are contraband and 186.23must be summarily forfeited to the appropriate agency upon a conviction. 186.24    Sec. 10. new text begin [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES. new text end 186.25     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms new text end 186.26 new text begin have the meanings given. new text end 186.27 new text begin (b) "Automated sales suppression device" or "zapper" means a software program, new text end 186.28 new text begin carried on any tangible medium, or accessed through any other means, that falsifies the new text end 186.29 new text begin electronic records of electronic cash registers and other point-of-sale systems including, new text end 186.30 new text begin but not limited to, transaction data and transaction reports. new text end 186.31 new text begin (c) "Electronic cash register" means a device that keeps a register or supporting new text end 186.32 new text begin documents through the means of an electronic device or computer system designed to new text end 186.33 new text begin record transaction data for the purpose of computing, compiling, or processing retail new text end 186.34 new text begin sales transaction data in whatever manner. new text end 187.1 new text begin (d) "Phantom-ware" means hidden preinstalled, or later-installed programming new text end 187.2 new text begin option embedded in the operating system of an electronic cash register or hardwired new text end 187.3 new text begin into the electronic cash register that can be used to create a virtual second electronic new text end 187.4 new text begin cash register or may eliminate or manipulate transaction records that may or may not be new text end 187.5 new text begin preserved in digital formats to represent the true or manipulated record of transactions in new text end 187.6 new text begin the electronic cash register. new text end 187.7 new text begin (e) "Transaction data" includes items purchased by a customer, the price of each new text end 187.8 new text begin item, the taxability determination for each item, a segregated tax amount for each of new text end 187.9 new text begin the taxed items, the date and time of the purchase, the name, address and identification new text end 187.10 new text begin number of the vendor, and the receipt or invoice number of the transaction. new text end 187.11 new text begin (f) "Transaction report" means a report documenting, but not limited to, the sales, new text end 187.12 new text begin taxes collected, media totals, and discount voids at an electronic cash register that is new text end 187.13 new text begin printed on cash register tape at the end of a day or shift, or a report documenting every new text end 187.14 new text begin action at an electronic cash register that is stored electronically. new text end 187.15     new text begin Subd. 2. new text end new text begin Felony. new text end new text begin A person who sells, purchases, installs, transfers, possesses, new text end 187.16 new text begin develops, manufactures, accesses, or uses an automated sales suppression device, zapper, new text end 187.17 new text begin phantom-ware, or similar device knowing that the device or phantom-ware is capable new text end 187.18 new text begin of being used to commit tax fraud or suppress sales is guilty of a felony and may be new text end 187.19 new text begin sentenced to imprisonment for not more than five years or to a payment of a fine of not new text end 187.20 new text begin more than $10,000, or both. new text end 187.21     new text begin Subd. 3. new text end new text begin Forfeiture. new text end new text begin An automated sales suppression device, zapper, phantom-ware, new text end 187.22 new text begin and any other device containing an automated sales suppression, zapper, or phantom-ware new text end 187.23 new text begin device or software is contraband and subject to forfeiture under section 609.5316. new text end 187.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2015, and applies to crimes new text end 187.25 new text begin committed on or after that date. new text end 187.26    Sec. 11. new text begin APPROPRIATIONS. new text end 187.27     new text begin Subdivision 1. new text end new text begin New markets grant program. new text end new text begin $30,000,000 in fiscal year 2017 is new text end 187.28 new text begin appropriated from the general fund to the commissioner of employment and economic new text end 187.29 new text begin development for the new markets grant program under Minnesota Statutes, section new text end 187.30 new text begin 116J.952. This appropriation is a onetime appropriation and is available until June 30, new text end 187.31 new text begin 2024. The commissioner may award grants of up to $10,000,000 per fiscal year. new text end 187.32     new text begin Subd. 2. new text end new text begin Department of Revenue. new text end new text begin $5,000,000 in fiscal year 2017 is appropriated new text end 187.33 new text begin from the general fund to the commissioner of revenue for administering this act. The new text end 187.34 new text begin funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000. new text end 188.1     new text begin Subd. 3. new text end new text begin Tax time savings grant program. new text end new text begin (a) $400,000 is appropriated in fiscal new text end 188.2 new text begin year 2017 from the general fund to the commissioner of revenue to make grants under the new text end 188.3 new text begin tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount, new text end 188.4 new text begin up to five percent may be used for the administration of the tax time savings grant program. new text end 188.5 new text begin (b) The base funding for the grant program authorized under paragraph (a) is new text end 188.6 new text begin $400,000 each year. new text end 188.7     new text begin Subd. 4. new text end new text begin Taxpayer assistance grants. new text end new text begin (a) $400,000 is appropriated in fiscal year new text end 188.8 new text begin 2017 from the general fund to the commissioner of revenue for the provision of taxpayer new text end 188.9 new text begin assistance grants under Minnesota Statutes, section 270C.21, in addition to the current new text end 188.10 new text begin base funding for the program. Of the amount appropriated under this paragraph and the new text end 188.11 new text begin current base funding for the provision of taxpayer assistance grants, up to five percent may new text end 188.12 new text begin be used for the administration of the taxpayer assistance grants program. new text end 188.13 new text begin (b) Beginning in fiscal year 2018, the total base funding for the program under new text end 188.14 new text begin paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000 new text end 188.15 new text begin each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2, new text end 188.16 new text begin paragraph (a). new text end 188.17     new text begin Subd. 5. new text end new text begin Local government grants. new text end new text begin (a) The following amounts are appropriated in new text end 188.18 new text begin fiscal year 2016 only from the general fund to the commissioner of revenue for grants that new text end 188.19 new text begin shall be paid by June 30, 2016, and allocated as follows: new text end 188.20 new text begin (1) $1,200,000 to the city of Madelia; new text end 188.21 new text begin (2) $465,000 to the city of Hibbing; and new text end 188.22 new text begin (3) $52,288 to Stearns County. new text end 188.23 new text begin (b) The following amounts are appropriated in fiscal year 2017 only from the new text end 188.24 new text begin general fund to the commissioner of revenue for grants that shall be paid by June 30, new text end 188.25 new text begin 2017, and allocated as follows: new text end 188.26 new text begin (1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used new text end 188.27 new text begin by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the new text end 188.28 new text begin county to the White Earth Band of Ojibwe; new text end 188.29 new text begin (2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the new text end 188.30 new text begin North Branch Library EMERGE Career and Technology Center, and $400,000 must be new text end 188.31 new text begin used for the Cedar Riverside Opportunity Center; new text end 188.32 new text begin (3) $1,000,000 to the city of Mahnomen; and new text end 188.33 new text begin (4) $150,000 to the city of Lilydale. new text end 188.34 new text begin (c) All of the appropriations under this subdivision are onetime and are not added new text end 188.35 new text begin to the base budget. new text end 189.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 189.2ARTICLE 12 189.3DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME, 189.4CORPORATE FRANCHISE, AND ESTATE TAXES 189.5    Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to 189.6read: 189.7    Subd. 11. Information included in income tax return. (a) The return must state: 189.8    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the 189.9address of the taxpayer in the same name or names and same address as the taxpayer has 189.10used in making the taxpayer's income tax return to the United States; 189.11    (2) the date or dates of birth of the taxpayer or taxpayers; 189.12    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security 189.13number has been issued by the United States with respect to the taxpayers; and 189.14    (4) the amount of the taxable income of the taxpayer as it appears on the federal 189.15return for the taxable year to which the Minnesota state return applies. 189.16    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return 189.17a copy of the federal income tax return that the taxpayer has filed or is about to file for 189.18the period, unless the taxpayer is eligible to telefile the federal return and does file the 189.19Minnesota return by telefiling. 189.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 189.21    Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read: 189.22    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee 189.23imposed. (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 189.2413 , paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the 189.25Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota 189.26individual income new text begin , corporate franchise, S corporation, partnership, or fiduciary income new text end tax 189.27returns for the prior calendar year must file all Minnesota individual income new text begin , corporate new text end 189.28 new text begin franchise, S corporation, partnership, or fiduciary income new text end tax returns prepared for that 189.29calendar year by electronic means. 189.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 189.31that the taxpayer did not want the return filed by electronic means. 189.32(c) For each return that is not filed electronically by a tax refund or return preparer 189.33under this subdivision, including returns filed under paragraph (b), a paper filing fee 189.34of $5 is imposed upon the preparer. The fee is collected from the preparer in the same 190.1manner as income tax. The fee does not apply to returns that the commissioner requires 190.2to be filed in paper form. 190.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 190.4 new text begin December 31, 2015. new text end 190.5    Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read: 190.6    Subd. 2. Withholding statement. (a) A person required to deduct and withhold 190.7from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 190.82 , or who would have been required to deduct and withhold a tax under section 290.92, 190.9subdivision 2a or 3, or persons required to withhold tax under section 290.923, subdivision 190.102 , determined without regard to section 290.92, subdivision 19, if the employee or payee 190.11had claimed no more than one withholding exemption, or who paid wages or made 190.12payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, 190.13subdivision 2 , to an employee or person receiving royalty payments in excess of $600, 190.14or who has entered into a voluntary withholding agreement with a payee under section 190.15290.92, subdivision 20 , must give every employee or person receiving royalty payments in 190.16respect to the remuneration paid by the person to the employee or person receiving royalty 190.17payments during the calendar year, on or before January 31 of the succeeding year, or, if 190.18employment is terminated before the close of the calendar year, within 30 days after the 190.19date of receipt of a written request from the employee if the 30-day period ends before 190.20January 31, a written statement showing the following: 190.21    (1) name of the person; 190.22    (2) the name of the employee or payee and the employee's or payee's Social Security 190.23account number; 190.24    (3) the total amount of wages as that term is defined in section 290.92, subdivision 190.251 , paragraph (1); the total amount of remuneration subject to withholding under section 190.26290.92, subdivision 20 ; the amount of sick pay as required under section 6051(f) of the 190.27Internal Revenue Code; and the amount of royalties subject to withholding under section 190.28290.923, subdivision 2 ; and 190.29    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 190.302a or 3, or 290.923, subdivision 2. 190.31    (b) The statement required to be furnished by paragraph (a) with respect to any 190.32remuneration must be furnished at those times, must contain the information required, and 190.33must be in the form the commissioner prescribes. 191.1    (c) The commissioner may prescribe rules providing for reasonable extensions of 191.2time, not in excess of 30 days, to employers or payers required to give the statements to 191.3their employees or payees under this subdivision. 191.4    (d) A duplicate of any statement made under this subdivision and in accordance 191.5with rules prescribed by the commissioner, along with a reconciliation in the form the 191.6commissioner prescribes of the statements for the calendar year, including a reconciliation 191.7of the quarterly returns required to be filed under subdivision 1, must be filed with the 191.8commissioner on or before February 28 new text begin January 31 new text end of the year after the payments were 191.9made. 191.10    (e) If an employer cancels the employer's Minnesota withholding account number 191.11required by section 290.92, subdivision 24, the information required by paragraph (d), 191.12must be filed with the commissioner within 30 days of the end of the quarter in which 191.13the employer cancels its account number. 191.14    (f) The employer must submit the statements required to be sent to the commissioner 191.15in the same manner required to satisfy the federal reporting requirements of section 191.166011(e) of the Internal Revenue Code and the regulations issued under it. An employer 191.17must submit statements to the commissioner required by this section by electronic means 191.18if the employer is required to send more than 25 statements to the commissioner, even 191.19though the employer is not required to submit the returns federally by electronic means. 191.20For statements issued for wages paid in 2011 and after, the threshold is ten. All statements 191.21issued for withholding required under section are aggregated for purposes of 191.22determining whether the electronic submission threshold is met. new text begin The commissioner shall new text end 191.23 new text begin prescribe the content, format, and manner of the statement pursuant to section 270C.30. new text end 191.24    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 191.25(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 191.26paragraph (a), with the commissioner by electronic means. 191.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for statements required to be sent new text end 191.28 new text begin to the commissioner after December 31, 2016, except that the date change in paragraph new text end 191.29 new text begin (d) is effective for wages paid after December 31, 2015. new text end 191.30    Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read: 191.31    Subd. 14. Regulated investment companies; Reporting new text begin exempt interest and new text end 191.32exempt-interest dividends. (a) A regulated investment company paying $10 or more in 191.33exempt-interest dividends to an individual who is a resident of Minnesota new text begin , or any person new text end 191.34 new text begin receiving $10 or more of exempt interest or exempt-interest dividends and paying as new text end 191.35 new text begin nominee to an individual who is a resident of Minnesota, new text end must make a return indicating 192.1the amount of the new text begin exempt interest or new text end exempt-interest dividends, the name, address, and 192.2Social Security number of the recipient, and any other information that the commissioner 192.3specifies. The return must be provided to the shareholder new text begin recipient new text end by February 15 of the 192.4year following the year of the payment. The return provided to the shareholder new text begin recipient new text end 192.5must include a clear statement, in the form prescribed by the commissioner, that the 192.6 new text begin exempt interest or new text end exempt-interest dividends must be included in the computation of 192.7Minnesota taxable income. By June 1 of each year, the regulated investment company 192.8 new text begin payor new text end must file a copy of the return with the commissioner. 192.9    (b) For purposes of this subdivision, the following definitions apply. 192.10    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in 192.11section 852(b)(5) of the Internal Revenue Code, but does not include the portion of 192.12exempt-interest dividends that are not required to be added to federal taxable income 192.13under section 290.01, subdivision 19a, clause (1)(ii). 192.14    (2) "Regulated investment company" means regulated investment company as 192.15defined in section 851(a) of the Internal Revenue Code or a fund of the regulated 192.16investment company as defined in section 851(g) of the Internal Revenue Code. 192.17     new text begin (3) "Exempt interest" means income on obligations of any state other than new text end 192.18 new text begin Minnesota, or a political or governmental subdivision, municipality, or governmental new text end 192.19 new text begin agency or instrumentality of any state other than Minnesota, and exempt from federal new text end 192.20 new text begin income taxes under the Internal Revenue Code or any other federal statute. new text end 192.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports required to be filed after new text end 192.22 new text begin December 31, 2016. new text end 192.23    Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision 192.24to read: 192.25     new text begin Subd. 2a. new text end new text begin Annual withholding returns; eligible employers. new text end new text begin (a) An employer who new text end 192.26 new text begin deducts and withholds an amount required to be withheld by section 290.92 may file an new text end 192.27 new text begin annual return and make an annual payment of the amount required to be deducted and new text end 192.28 new text begin withheld for that calendar year if the employer has received a notification under paragraph new text end 192.29 new text begin (b). The ability to elect to file an annual return continues through the year following the new text end 192.30 new text begin year where an employer is required to deduct and withhold more than $500. new text end 192.31 new text begin (b) The commissioner is authorized to determine which employers are eligible to new text end 192.32 new text begin file an annual return and to notify employers who newly qualify to file an annual return new text end 192.33 new text begin because the amount an employer is required to deduct and withhold for that calendar year new text end 192.34 new text begin is $500 or less based on the most recent period of four consecutive quarters for which the new text end 192.35 new text begin commissioner has compiled data on that employer's withholding tax for that period. At the new text end 193.1 new text begin time of notification, eligible employers may still decide to file returns and make deposits new text end 193.2 new text begin quarterly. An employer who decides to file returns and make deposits quarterly is required new text end 193.3 new text begin to make all returns and deposits required by this chapter and, notwithstanding paragraph new text end 193.4 new text begin (a), is subject to all applicable penalties for failing to do so. new text end 193.5 new text begin (c) If, at the end of any calendar month other than the last month of the calendar new text end 193.6 new text begin year, the aggregate amount of undeposited tax withheld by an employer who has elected to new text end 193.7 new text begin file an annual return exceeds $500, the employer must deposit the aggregate amount with new text end 193.8 new text begin the commissioner within 30 days of the end of the calendar month. new text end 193.9 new text begin (d) If an employer who has elected to file an annual return ceases to pay wages new text end 193.10 new text begin for which withholding is required, the employer must file a final return and deposit any new text end 193.11 new text begin undeposited tax within 30 days of the end of the calendar month following the month in new text end 193.12 new text begin which the employer ceased paying wages. new text end 193.13 new text begin (e) An employer not subject to paragraph (c) or (d) who elects to file an annual new text end 193.14 new text begin return must file the return and pay the tax not previously deposited before February 1 of new text end 193.15 new text begin the year following the year in which the tax was withheld. new text end 193.16 new text begin (f) A notification to an employer regarding eligibility to file an annual return under new text end 193.17 new text begin Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a). new text end 193.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 193.19 new text begin December 31, 2015. new text end 193.20    Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read: 193.21    Subd. 2. Withholding from wages, entertainer withholding, withholding 193.22from payments to out-of-state contractors, and withholding by partnerships, small 193.23business corporations, trusts. (a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end 193.24a tax required to be deducted and withheld during the quarterly period must be paid on 193.25or before the last day of the month following the close of the quarterly period, unless an 193.26earlier time for payment is provided. A tax required to be deducted and withheld from 193.27compensation of an entertainer and from a payment to an out-of-state contractor must be 193.28paid on or before the date the return for such tax must be filed under section 289A.18, 193.29subdivision 2 . Taxes required to be deducted and withheld by partnerships, S corporations, 193.30and trusts must be paid on a quarterly basis as estimated taxes under section 289A.25 for 193.31partnerships and trusts and under section 289A.26 for S corporations. 193.32(b) An employer who, during the previous quarter, withheld more than $1,500 of 193.33tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 193.34withheld under those sections with the commissioner within the time allowed to deposit 193.35the employer's federal withheld employment taxes under Code of Federal Regulations, 194.1title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the 194.2safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). 194.3Taxpayers must submit a copy of their federal notice of deposit status to the commissioner 194.4upon request by the commissioner. 194.5(c) The commissioner may prescribe by rule other return periods or deposit 194.6requirements. In prescribing the reporting period, the commissioner may classify payors 194.7according to the amount of their tax liability and may adopt an appropriate reporting 194.8period for the class that the commissioner judges to be consistent with efficient tax 194.9collection. In no event will the duration of the reporting period be more than one year. 194.10(d) If less than the correct amount of tax is paid to the commissioner, proper 194.11adjustments with respect to both the tax and the amount to be deducted must be made, 194.12without interest, in the manner and at the times the commissioner prescribes. If the 194.13underpayment cannot be adjusted, the amount of the underpayment will be assessed and 194.14collected in the manner and at the times the commissioner prescribes. 194.15(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year 194.16ending June 30, the employer must remit each required deposit for wages paid in all 194.17subsequent calendar years by electronic means. 194.18(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph 194.19(a), clause (2), who remits withholding deposits must remit all deposits by electronic 194.20means as provided in paragraph (e), regardless of the aggregate amount of tax withheld 194.21during a fiscal year for all of the employers. 194.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 194.23 new text begin December 31, 2015. new text end 194.24    Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read: 194.25    Subdivision 1. Individual income, fiduciary income, mining company, corporate 194.26franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 194.27company, and corporate franchise taxes, and interest and penalties, must be paid by the 194.28taxpayer upon whom the tax is imposed, except in the following cases: 194.29(1) The tax due from a decedent for that part of the taxable year in which the 194.30decedent died during which the decedent was alive and the taxes, interest, and penalty 194.31due for the prior years must be paid by the decedent's personal representative, if any. 194.32If there is no personal representative, the taxes, interest, and penalty must be paid by 194.33the transferees, as defined in section 270C.58, subdivision 3, to the extent they receive 194.34property from the decedent; 195.1(2) The tax due from an infant or other incompetent person must be paid by the 195.2person's guardian or other person authorized or permitted by law to act for the person; 195.3(3) The tax due from the estate of a decedent must be paid by the estate's personal 195.4representative; 195.5(4) The tax due from a trust, including those within the definition of a corporation, as 195.6defined in section 290.01, subdivision 4, must be paid by a trustee; and 195.7(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 195.8trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of 195.9the business or property so far as the tax is due to the income from the business or property. 195.10(b) Entertainment taxes are the joint and several liability of the entertainer and the 195.11entertainment entity. The payor is liable to the state for the payment of the tax required to 195.12be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 195.13entertainer for the amount of the payment. 195.14(c) The tax new text begin taxes new text end imposed under section new text begin sections 289A.35 and new text end 290.0922 on 195.15partnerships is new text begin are new text end the joint and several liability of the partnership and the general partners. 195.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 195.17    Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read: 195.18289A.35 ASSESSMENTS ON RETURNS. 195.19(a) The commissioner may audit and adjust the taxpayer's computation of federal 195.20taxable income, items of federal tax preferences, or federal credit amounts to make them 195.21conform with the provisions of chapter 290 or section 298.01. If a return has been filed, 195.22the commissioner shall enter the liability reported on the return and may make any audit 195.23or investigation that is considered necessary. 195.24 new text begin (b) Upon petition by a taxpayer, and when the commissioner determines that it is in new text end 195.25 new text begin the best interest of the state, the commissioner may allow S corporations and partnerships new text end 195.26 new text begin to receive orders of assessment issued under section 270C.33, subdivision 4, on behalf new text end 195.27 new text begin of their owners, and to pay liabilities shown on such orders. In such cases, the owners' new text end 195.28 new text begin liability must be calculated using the method provided in section 289A.08, subdivision 7, new text end 195.29 new text begin paragraph (b). new text end 195.30 new text begin (c) A taxpayer may petition the commissioner for the use of the method described new text end 195.31 new text begin in paragraph (b) after the taxpayer is notified that an audit has been initiated and before new text end 195.32 new text begin an order of assessment has been issued. new text end 195.33 new text begin (d) A determination of the commissioner under paragraph (b) to grant or deny the new text end 195.34 new text begin petition of a taxpayer cannot be appealed to the Tax Court or any other court. new text end 196.1(b) new text begin (e) new text end The commissioner may audit and adjust the taxpayer's computation of 196.2tax under chapter 291. In the case of a return filed pursuant to section 289A.10, the 196.3commissioner shall notify the estate no later than nine months after the filing date, as 196.4provided by section 289A.38, subdivision 2, whether the return is under examination 196.5or the return has been processed as filed. 196.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 196.7    Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read: 196.8    Subd. 28. Preparer identification number. Any Minnesota individual income tax 196.9return or claim for refund prepared by a "tax refund or return preparer" as defined in 196.10subdivision 13, paragraph (f), shall bear the identification number the preparer is required 196.11to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or 196.12return preparer who prepares a Minnesota individual income tax return new text begin return required new text end 196.13 new text begin by section 289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3, new text end or claim for 196.14refund and fails to include the required number on the return or claim is subject to a 196.15penalty of $50 for each failure. 196.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 196.17 new text begin December 31, 2015. new text end 196.18    Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read: 196.19    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 196.20and trusts, there shall be subtracted from federal taxable income: 196.21    (1) net interest income on obligations of any authority, commission, or 196.22instrumentality of the United States to the extent includable in taxable income for federal 196.23income tax purposes but exempt from state income tax under the laws of the United States; 196.24    (2) if included in federal taxable income, the amount of any overpayment of income 196.25tax to Minnesota or to any other state, for any previous taxable year, whether the amount 196.26is received as a refund or as a credit to another taxable year's income tax liability; 196.27    (3) the amount paid to others, less the amount used to claim the credit allowed under 196.28section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 196.29to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 196.30transportation of each qualifying child in attending an elementary or secondary school 196.31situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 196.32resident of this state may legally fulfill the state's compulsory attendance laws, which 196.33is not operated for profit, and which adheres to the provisions of the Civil Rights Act 197.1of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 197.2tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 197.3"textbooks" includes books and other instructional materials and equipment purchased 197.4or leased for use in elementary and secondary schools in teaching only those subjects 197.5legally and commonly taught in public elementary and secondary schools in this state. 197.6Equipment expenses qualifying for deduction includes expenses as defined and limited in 197.7section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 197.8books and materials used in the teaching of religious tenets, doctrines, or worship, the 197.9purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 197.10or materials for, or transportation to, extracurricular activities including sporting events, 197.11musical or dramatic events, speech activities, driver's education, or similar programs. No 197.12deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 197.13the qualifying child's vehicle to provide such transportation for a qualifying child. For 197.14purposes of the subtraction provided by this clause, "qualifying child" has the meaning 197.15given in section 32(c)(3) of the Internal Revenue Code; 197.16    (4) income as provided under section 290.0802; 197.17    (5) to the extent included in federal adjusted gross income, income realized on 197.18disposition of property exempt from tax under section 290.491; 197.19    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 197.20of the Internal Revenue Code in determining federal taxable income by an individual 197.21who does not itemize deductions for federal income tax purposes for the taxable year, an 197.22amount equal to 50 percent of the excess of charitable contributions over $500 allowable 197.23as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 197.24under the provisions of Public Law 109-1 and Public Law 111-126; 197.25    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 197.26qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 197.27of subnational foreign taxes for the taxable year, but not to exceed the total subnational 197.28foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 197.29"federal foreign tax credit" means the credit allowed under section 27 of the Internal 197.30Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 197.31under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 197.32the extent they exceed the federal foreign tax credit; 197.33    (8) in each of the five tax years immediately following the tax year in which an 197.34addition is required under subdivision 19a, clause (7), or 19c, clause (12) new text begin (11) new text end , in the case of 197.35a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 197.36delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 198.1of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 198.2clause (12) new text begin (11) new text end , in the case of a shareholder of an S corporation, minus the positive value 198.3of any net operating loss under section 172 of the Internal Revenue Code generated for the 198.4tax year of the addition. The resulting delayed depreciation cannot be less than zero; 198.5    (9) job opportunity building zone income as provided under section 469.316; 198.6    (10) to the extent included in federal taxable income, the amount of compensation 198.7paid to members of the Minnesota National Guard or other reserve components of the 198.8United States military for active service, including compensation for services performed 198.9under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 198.10service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 198.11(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 198.125b , and "active service" includes service performed in accordance with section 190.08, 198.13subdivision 3 ; 198.14    (11) to the extent included in federal taxable income, the amount of compensation 198.15paid to Minnesota residents who are members of the armed forces of the United States 198.16or United Nations for active duty performed under United States Code, title 10; or the 198.17authority of the United Nations; 198.18    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 198.19qualified donor's donation, while living, of one or more of the qualified donor's organs 198.20to another person for human organ transplantation. For purposes of this clause, "organ" 198.21means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 198.22"human organ transplantation" means the medical procedure by which transfer of a human 198.23organ is made from the body of one person to the body of another person; "qualified 198.24expenses" means unreimbursed expenses for both the individual and the qualified donor 198.25for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 198.26may be subtracted under this clause only once; and "qualified donor" means the individual 198.27or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 198.28individual may claim the subtraction in this clause for each instance of organ donation for 198.29transplantation during the taxable year in which the qualified expenses occur; 198.30    (13) in each of the five tax years immediately following the tax year in which an 198.31addition is required under subdivision 19a, clause (8), or 19c, clause (13) new text begin (12) new text end , in the case 198.32of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of 198.33the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13) 198.34 new text begin (12) new text end , in the case of a shareholder of a corporation that is an S corporation, minus the 198.35positive value of any net operating loss under section 172 of the Internal Revenue Code 199.1generated for the tax year of the addition. If the net operating loss exceeds the addition for 199.2the tax year, a subtraction is not allowed under this clause; 199.3    (14) to the extent included in the federal taxable income of a nonresident of 199.4Minnesota, compensation paid to a service member as defined in United States Code, title 199.510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 199.6Act, Public Law 108-189, section 101(2); 199.7    (15) to the extent included in federal taxable income, the amount of national service 199.8educational awards received from the National Service Trust under United States Code, 199.9title 42, sections 12601 to 12604, for service in an approved Americorps National Service 199.10program; 199.11(16) to the extent included in federal taxable income, discharge of indebtedness 199.12income resulting from reacquisition of business indebtedness included in federal taxable 199.13income under section 108(i) of the Internal Revenue Code. This subtraction applies only 199.14to the extent that the income was included in net income in a prior year as a result of the 199.15addition under subdivision 19a, clause (13); 199.16(17) the amount of the net operating loss allowed under section 290.095, subdivision 199.1711 , paragraph (c); 199.18(18) the amount of expenses not allowed for federal income tax purposes due 199.19to claiming the railroad track maintenance credit under section 45G(a) of the Internal 199.20Revenue Code; 199.21(19) the amount of the limitation on itemized deductions under section 68(b) of the 199.22Internal Revenue Code; 199.23(20) the amount of the phaseout of personal exemptions under section 151(d) of 199.24the Internal Revenue Code; and 199.25(21) to the extent included in federal taxable income, the amount of qualified 199.26transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 199.27Revenue Code. The subtraction is limited to the lesser of the amount of qualified 199.28transportation fringe benefits received in excess of the limitations under section 199.29132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 199.30maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal 199.31Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) 199.32of the Internal Revenue Code. 199.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 199.34    Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read: 200.1    Subd. 19c. Corporations; additions to federal taxable income. For corporations, 200.2there shall be added to federal taxable income: 200.3    (1) the amount of any deduction taken for federal income tax purposes for income, 200.4excise, or franchise taxes based on net income or related minimum taxes, including but not 200.5limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 200.6another state, a political subdivision of another state, the District of Columbia, or any 200.7foreign country or possession of the United States; 200.8    (2) interest not subject to federal tax upon obligations of: the United States, its 200.9possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 200.10state, any of its political or governmental subdivisions, any of its municipalities, or any 200.11of its governmental agencies or instrumentalities; the District of Columbia; or Indian 200.12tribal governments; 200.13    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 200.14Revenue Code; 200.15    (4) the amount of any net operating loss deduction taken for federal income tax 200.16purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 200.17deduction under section 810 of the Internal Revenue Code; 200.18    (5) the amount of any special deductions taken for federal income tax purposes 200.19under sections 241 to 247 and 965 of the Internal Revenue Code; 200.20    (6) losses from the business of mining, as defined in section 290.05, subdivision 1, 200.21clause (a), that are not subject to Minnesota income tax; 200.22    (7) the amount of any capital losses deducted for federal income tax purposes under 200.23sections 1211 and 1212 of the Internal Revenue Code; 200.24    (8) the amount of percentage depletion deducted under sections 611 through 614 and 200.25291 of the Internal Revenue Code; 200.26    (9) for certified pollution control facilities placed in service in a taxable year 200.27beginning before December 31, 1986, and for which amortization deductions were elected 200.28under section 169 of the Internal Revenue Code of 1954, as amended through December 200.2931, 1985, the amount of the amortization deduction allowed in computing federal taxable 200.30income for those facilities; 200.31    (10) new text begin (9) new text end the amount of a partner's pro rata share of net income which does not flow 200.32through to the partner because the partnership elected to pay the tax on the income under 200.33section 6242(a)(2) of the Internal Revenue Code; 200.34    (11) new text begin (10) new text end any increase in subpart F income, as defined in section 952(a) of the 200.35Internal Revenue Code, for the taxable year when subpart F income is calculated without 200.36regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; 201.1    (12) new text begin (11) new text end 80 percent of the depreciation deduction allowed under section 201.2168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if 201.3the taxpayer has an activity that in the taxable year generates a deduction for depreciation 201.4under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable 201.5year that the taxpayer is not allowed to claim for the taxable year, "the depreciation 201.6allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess 201.7of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) 201.8over the amount of the loss from the activity that is not allowed in the taxable year. In 201.9succeeding taxable years when the losses not allowed in the taxable year are allowed, the 201.10depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed; 201.11    (13) new text begin (12) new text end 80 percent of the amount by which the deduction allowed by section 179 of 201.12the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 201.13Revenue Code of 1986, as amended through December 31, 2003; 201.14    (14) new text begin (13) new text end to the extent deducted in computing federal taxable income, the amount of 201.15the deduction allowable under section 199 of the Internal Revenue Code; 201.16    (15) new text begin (14) new text end the amount of expenses disallowed under section 290.10, subdivision 2; and 201.17(16) new text begin (15) new text end discharge of indebtedness income resulting from reacquisition of business 201.18indebtedness and deferred under section 108(i) of the Internal Revenue Code. 201.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 201.20    Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read: 201.21    Subd. 19d. Corporations; modifications decreasing federal taxable income. For 201.22corporations, there shall be subtracted from federal taxable income after the increases 201.23provided in subdivision 19c: 201.24    (1) the amount of foreign dividend gross-up added to gross income for federal 201.25income tax purposes under section 78 of the Internal Revenue Code; 201.26    (2) the amount of salary expense not allowed for federal income tax purposes due to 201.27claiming the work opportunity credit under section 51 of the Internal Revenue Code; 201.28    (3) any dividend (not including any distribution in liquidation) paid within the 201.29taxable year by a national or state bank to the United States, or to any instrumentality of 201.30the United States exempt from federal income taxes, on the preferred stock of the bank 201.31owned by the United States or the instrumentality; 201.32    (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 201.33Internal Revenue Code, except that: 201.34    (i) for capital losses incurred in taxable years beginning after December 31, 1986, 201.35capital loss carrybacks shall not be allowed; 202.1    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, 202.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 202.3allowed; 202.4    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 202.5capital loss carryback to each of the three taxable years preceding the loss year, subject to 202.6the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 202.7    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, 202.8a capital loss carryover to each of the five taxable years succeeding the loss year to the 202.9extent such loss was not used in a prior taxable year and subject to the provisions of 202.10Minnesota Statutes 1986, section 290.16, shall be allowed; 202.11    (5) an amount for interest and expenses relating to income not taxable for federal 202.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 202.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 202.14291 of the Internal Revenue Code in computing federal taxable income; 202.15    (6) in the case of mines, oil and gas wells, other natural deposits, and timber for 202.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 202.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction 202.18must be apportioned between the lessor and lessee in accordance with rules prescribed 202.19by the commissioner. In the case of property held in trust, the allowable deduction must 202.20be apportioned between the income beneficiaries and the trustee in accordance with the 202.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 202.22of the trust's income allocable to each; 202.23    (7) for certified pollution control facilities placed in service in a taxable year 202.24beginning before December 31, 1986, and for which amortization deductions were elected 202.25under section 169 of the Internal Revenue Code of 1954, as amended through December 202.2631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 202.271986, section 290.09, subdivision 7; 202.28    (8) new text begin (7) new text end amounts included in federal taxable income that are due to refunds of 202.29income, excise, or franchise taxes based on net income or related minimum taxes paid 202.30by the corporation to Minnesota, another state, a political subdivision of another state, 202.31the District of Columbia, or a foreign country or possession of the United States to the 202.32extent that the taxes were added to federal taxable income under subdivision 19c, clause 202.33(1), in a prior taxable year; 202.34    (9) new text begin (8) new text end income or gains from the business of mining as defined in section 290.05, 202.35subdivision 1 , clause (a), that are not subject to Minnesota franchise tax; 203.1    (10) new text begin (9) new text end the amount of disability access expenditures in the taxable year which are not 203.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; 203.3    (11) new text begin (10) new text end the amount of qualified research expenses not allowed for federal income 203.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 203.5that the amount exceeds the amount of the credit allowed under section 290.068; 203.6    (12) new text begin (11) new text end the amount of salary expenses not allowed for federal income tax purposes 203.7due to claiming the Indian employment credit under section 45A(a) of the Internal 203.8Revenue Code; 203.9    (13) new text begin (12) new text end any decrease in subpart F income, as defined in section 952(a) of the 203.10Internal Revenue Code, for the taxable year when subpart F income is calculated without 203.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; 203.12    (14) new text begin (13) new text end in each of the five tax years immediately following the tax year in which an 203.13addition is required under subdivision 19c, clause (12) new text begin (11) new text end , an amount equal to one-fifth 203.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the 203.15amount of the addition made by the taxpayer under subdivision 19c, clause (12) new text begin (11) new text end . The 203.16resulting delayed depreciation cannot be less than zero; 203.17    (15) new text begin (14) new text end in each of the five tax years immediately following the tax year in which an 203.18addition is required under subdivision 19c, clause (13) new text begin (12) new text end , an amount equal to one-fifth 203.19of the amount of the addition; 203.20(16) new text begin (15) new text end to the extent included in federal taxable income, discharge of indebtedness 203.21income resulting from reacquisition of business indebtedness included in federal taxable 203.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only 203.23to the extent that the income was included in net income in a prior year as a result of the 203.24addition under subdivision 19c, clause (16) new text begin (15) new text end ; and 203.25(17) new text begin (16) new text end the amount of expenses not allowed for federal income tax purposes due 203.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal 203.27Revenue Code. 203.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 203.29    Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read: 203.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 203.31have the meanings given. 203.32(b) "Long-term care insurance" means a policy that: 203.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code, 203.34disregarding the 7.5 percent new text begin adjusted gross new text end income test; or meets the requirements 204.1given in section 62A.46; or provides similar coverage issued under the laws of another 204.2jurisdiction; and 204.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and 204.4(3) has been offered in compliance with the inflation protection requirements of 204.5section 62S.23. 204.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse. 204.7(d) "Premiums deducted in determining federal taxable income" means the lesser of 204.8(1) long-term care insurance premiums that qualify as deductions under section 213 of 204.9the Internal Revenue Code; and (2) the total amount deductible for medical care under 204.10section 213 of the Internal Revenue Code. 204.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable years new text end 204.12 new text begin beginning after December 31, 2012. new text end 204.13    Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read: 204.14    Subd. 2. Definitions. For purposes of this section, the following terms have the 204.15meanings given. 204.16    (a) "Qualified research expenses" means (i) qualified research expenses and basic 204.17research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except 204.18it does not include expenses incurred for qualified research or basic research conducted 204.19outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue 204.20Code; and (ii) contributions to a nonprofit corporation established and operated pursuant 204.21to the provisions of chapter 317A for the purpose of promoting the establishment and 204.22expansion of business in this state, provided the contributions are invested by the nonprofit 204.23corporation for the purpose of providing funds for small, technologically innovative 204.24enterprises in Minnesota during the early stages of their development. 204.25    (b) "Qualified research" means qualified research as defined in section 41(d) of the 204.26Internal Revenue Code, except that the term does not include qualified research conducted 204.27outside the state of Minnesota. 204.28    (c) "Base amount" means base amount as defined in section 41(c) of the Internal 204.29Revenue Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end 204.30must be calculated using Minnesota sales or receipts under section 290.191 and the 204.31definitions contained in clauses new text begin paragraphs new text end (a) and (b) shall apply. 204.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 204.33    Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read: 205.1    Subd. 3. Exemption amount. (a) For purposes of computing the alternative 205.2minimum tax, the exemption amount is, for taxable years beginning after December 31, 205.32005, $60,000 for married couples filing joint returns, $30,000 for married individuals 205.4filing separate returns, estates, and trusts, and $45,000 for unmarried individuals. 205.5    (b) The exemption amount determined under this subdivision is subject to the phase 205.6out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum 205.7taxable income as determined under this section must be substituted in the computation of 205.8the phase out. 205.9    (c) For taxable years beginning after December 31, 2006, the exemption amount 205.10under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall 205.11adjust the exemption amount by the percentage determined pursuant to the provisions of 205.12section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005" 205.13shall be substituted for the word "1992." For 2007, the commissioner shall then determine 205.14the percent change from the 12 months ending on August 31, 2005, to the 12 months 205.15ending on August 31, 2006, and in each subsequent year, from the 12 months ending on 205.16August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable 205.17year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount 205.18ends in $5, it must be rounded up to the nearest $10 amount. The determination of the 205.19commissioner under this subdivision is not a rule under the Administrative Procedure Act. 205.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 205.21    Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read: 205.22    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable 205.23income" is Minnesota net income as defined in section 290.01, subdivision 19, and 205.24includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 205.25(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 205.26Minnesota tax return, the minimum tax must be computed on a separate company basis. 205.27If a corporation is part of a tax group filing a unitary return, the minimum tax must be 205.28computed on a unitary basis. The following adjustments must be made. 205.29(1) The portion of the depreciation deduction allowed for federal income tax 205.30purposes under section 168(k) of the Internal Revenue Code that is required as an addition 205.31under section 290.01, subdivision 19c, clause (12) new text begin (11) new text end , is disallowed in determining 205.32alternative minimum taxable income. 205.33(2) The subtraction for depreciation allowed under section 290.01, subdivision 205.3419d , clause (14) new text begin (13) new text end , is allowed as a depreciation deduction in determining alternative 205.35minimum taxable income. 206.1(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 206.2of the Internal Revenue Code does not apply. 206.3(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 206.4Revenue Code does not apply. 206.5(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue 206.6Code does not apply. 206.7(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 206.8Revenue Code does not apply. 206.9(7) The tax preference for charitable contributions of appreciated property under 206.10section 57(a)(6) of the Internal Revenue Code does not apply. 206.11(8) For purposes of calculating the adjustment for adjusted current earnings in 206.12section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 206.13income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 206.14minimum taxable income as defined in this subdivision, determined without regard to the 206.15adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code. 206.16(9) For purposes of determining the amount of adjusted current earnings under 206.17section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 206.1856(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 206.19gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 206.20amount of refunds of income, excise, or franchise taxes subtracted as provided in section 206.21290.01, subdivision 19d , clause (8) new text begin (7) new text end . 206.22(10) Alternative minimum taxable income excludes the income from operating in a 206.23job opportunity building zone as provided under section 469.317. 206.24Items of tax preference must not be reduced below zero as a result of the 206.25modifications in this subdivision. 206.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 206.27    Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read: 206.28    Subd. 2. Income not derived from conduct of a trade or business. The income of 206.29a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 206.30business must be assigned in accordance with paragraphs (a) to (f): 206.31    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in 206.32section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the 206.33extent that, the work of the employee is performed within it; all other income from such 206.34sources is treated as income from sources without this state. 207.1    Severance pay shall be considered income from labor or personal or professional 207.2services. 207.3    (2) In the case of an individual who is a nonresident of Minnesota and who is an 207.4athlete or entertainer, income from compensation for labor or personal services performed 207.5within this state shall be determined in the following manner: 207.6    (i) The amount of income to be assigned to Minnesota for an individual who is a 207.7nonresident salaried athletic team employee shall be determined by using a fraction in 207.8which the denominator contains the total number of days in which the individual is under 207.9a duty to perform for the employer, and the numerator is the total number of those days 207.10spent in Minnesota. For purposes of this paragraph, off-season training activities, unless 207.11conducted at the team's facilities as part of a team imposed program, are not included in 207.12the total number of duty days. Bonuses earned as a result of play during the regular season 207.13or for participation in championship, play-off, or all-star games must be allocated under 207.14the formula. Signing bonuses are not subject to allocation under the formula if they are 207.15not conditional on playing any games for the team, are payable separately from any other 207.16compensation, and are nonrefundable; and 207.17    (ii) The amount of income to be assigned to Minnesota for an individual who is a 207.18nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 207.19athletic or entertainment performance in Minnesota shall be determined by assigning to 207.20this state all income from performances or athletic contests in this state. 207.21    (3) For purposes of this section, amounts received by a nonresident as "retirement 207.22income" as defined in section (b)(1) of the State Income Taxation of Pension Income 207.23Act, Public Law 104-95, are not considered income derived from carrying on a trade 207.24or business or from wages or other compensation for work an employee performed in 207.25Minnesota, and are not taxable under this chapter. 207.26    (b) Income or gains from tangible property located in this state that is not employed 207.27in the business of the recipient of the income or gains must be assigned to this state. 207.28    (c) Income or gains from intangible personal property not employed in the business 207.29of the recipient of the income or gains must be assigned to this state if the recipient of the 207.30income or gains is a resident of this state or is a resident trust or estate. 207.31    Gain on the sale of a partnership interest is allocable to this state in the ratio of the 207.32original cost of partnership tangible property in this state to the original cost of partnership 207.33tangible property everywhere, determined at the time of the sale. If more than 50 percent 207.34of the value of the partnership's assets consists of intangibles, gain or loss from the sale 207.35of the partnership interest is allocated to this state in accordance with the sales factor of 208.1the partnership for its first full tax period immediately preceding the tax period of the 208.2partnership during which the partnership interest was sold. 208.3Gain on the sale of an interest in a single member limited liability company that 208.4is disregarded for federal income tax purposes is allocable to this state as if the single 208.5member limited liability company did not exist and the assets of the limited liability 208.6company are personally owned by the sole member. 208.7    Gain on the sale of goodwill or income from a covenant not to compete that is 208.8connected with a business operating all or partially in Minnesota is allocated to this state 208.9to the extent that the income from the business in the year preceding the year of sale was 208.10assignable new text begin allocable new text end to Minnesota under subdivision 3. 208.11    When an employer pays an employee for a covenant not to compete, the income 208.12allocated to this state is in the ratio of the employee's service in Minnesota in the calendar 208.13year preceding leaving the employment of the employer over the total services performed 208.14by the employee for the employer in that year. 208.15    (d) Income from winnings on a bet made by an individual while in Minnesota is 208.16assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75, 208.17subdivision 2 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3). 208.18    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 208.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile. 208.20    (f) For the purposes of this section, working as an employee shall not be considered 208.21to be conducting a trade or business. 208.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 208.23    Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read: 208.24    Subdivision 1. Partners, not partnership, subject to tax. new text begin Except as provided new text end 208.25 new text begin under section 289A.35, paragraph (b), new text end a partnership as such shall not be subject to the 208.26income tax imposed by this chapter, but is subject to the tax imposed under section 208.27290.0922 . Persons carrying on business as partners shall be liable for income tax only 208.28in their separate or individual capacities. 208.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 208.30    Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read: 208.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT 208.32CERTIFICATE. 209.1 new text begin (a) new text end The owner or managing agent of any property for which rent is paid for 209.2occupancy as a homestead must furnish a certificate of rent paid to a person who is a 209.3renter on December 31, in the form prescribed by the commissioner. If the renter moves 209.4before December 31, the owner or managing agent may give the certificate to the renter 209.5at the time of moving, or mail the certificate to the forwarding address if an address has 209.6been provided by the renter. The certificate must be made available to the renter before 209.7February 1 of the year following the year in which the rent was paid. The owner or 209.8managing agent must retain a duplicate of each certificate or an equivalent record showing 209.9the same information for a period of three years. The duplicate or other record must be 209.10made available to the commissioner upon request. 209.11 new text begin (b) The commissioner may require the owner or managing agent, through a new text end 209.12 new text begin simple process, to furnish to the commissioner on or before March 1 a copy of each new text end 209.13 new text begin certificate of rent paid furnished to a renter for rent paid in the prior year, in the content, new text end 209.14 new text begin format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior new text end 209.15 new text begin to implementation, the commissioner, after consulting with representatives of owners new text end 209.16 new text begin or managing agents, shall develop an implementation and administration plan for the new text end 209.17 new text begin requirements of this paragraph that attempts to minimize financial burdens, administration new text end 209.18 new text begin and compliance costs, and takes into consideration existing systems of owners and new text end 209.19 new text begin managing agents. new text end 209.20 new text begin (c) new text end For the purposes of this section, "owner" includes a park owner as defined under 209.21section 327C.01, subdivision 6, and "property" includes a lot as defined under section 209.22327C.01, subdivision 3 . 209.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certificates of rent paid furnished new text end 209.24 new text begin to a renter for rent paid after December 31, 2015. new text end 209.25    Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read: 209.26    Subd. 2. Additions. The following amounts, to the extent deducted in computing new text begin new text end 209.27 new text begin or otherwise excluded from new text end the federal taxable estate, must be added in computing the 209.28Minnesota taxable estate: 209.29(1) the amount of the deduction for state death taxes allowed under section 2058 of 209.30the Internal Revenue Code; 209.31(2) the amount of the deduction for foreign death taxes allowed under section 209.322053(d) of the Internal Revenue Code; and 209.33(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 209.34Revenue Code, made by the decedent within three years of the date of death. For purposes 210.1of this clause, the amount of the addition equals the value of the gift under section 2512 of 210.2the Internal Revenue Code and excludes any value of the gift included in the federal estate. 210.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 210.4 new text begin dying after June 30, 2013. new text end 210.5    Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read: 210.6    Subd. 3. Subtraction. new text begin The following amounts, to the extent included in computing new text end 210.7 new text begin the federal taxable estate, may be subtracted in computing the Minnesota taxable estate new text end 210.8 new text begin but must not reduce the Minnesota taxable estate to less than zero: new text end 210.9 new text begin (1) the value of property subject to an election under section 291.03, subdivision new text end 210.10 new text begin 1d; and new text end 210.11 new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 210.129 , and the value of qualified farm property under section 291.03, subdivision 10, or the 210.13result of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) 210.14 new text begin items (i) to (v) new text end , whichever is less, may be subtracted in computing the Minnesota taxable 210.15estate but must not reduce the Minnesota taxable estate to less than zero: 210.16(1) new text begin (i) new text end $1,200,000 for estates of decedents dying in 2014; 210.17(2) new text begin (ii) new text end $1,400,000 for estates of decedents dying in 2015; 210.18(3) new text begin (iii) new text end $1,600,000 for estates of decedents dying in 2016; 210.19(4) new text begin (iv) new text end $1,800,000 for estates of decedents dying in 2017; and 210.20(5) new text begin (v) new text end $2,000,000 for estates of decedents dying in 2018 and thereafter. 210.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 210.22 new text begin dying after June 30, 2011. new text end 210.23    Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read: 210.24    Subd. 9. Qualified small business property. Property satisfying all of the following 210.25requirements is qualified small business property: 210.26(1) The value of the property was included in the federal adjusted taxable estate. 210.27(2) The property consists of the assets of a trade or business or shares of stock or other 210.28ownership interests in a corporation or other entity engaged in a trade or business. Shares 210.29of stock in a corporation or an ownership interest in another type of entity do not qualify 210.30under this subdivision if the shares or ownership interests are traded on a public stock 210.31exchange at any time during the three-year period ending on the decedent's date of death. 210.32For purposes of this subdivision, an ownership interest includes the interest the decedent 210.33is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code. 211.1(3) During the taxable year that ended before the decedent's death, the trade or 211.2business must not have been a passive activity within the meaning of section 469(c) of the 211.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially 211.4participated in the trade or business within the meaning of section 469(h) of the Internal 211.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other 211.6provision provided by United States Treasury Department regulation that substitutes 211.7material participation in prior taxable years for material participation in the taxable year 211.8that ended before the decedent's death. 211.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the 211.10last taxable year that ended before the date of the death of the decedent. 211.11(5) The property does not consist of new text begin include: new text end 211.12 new text begin (i) new text end cash, new text begin ; new text end 211.13 new text begin (ii) new text end cash equivalents, new text begin ; new text end 211.14 new text begin (iii) new text end publicly traded securities, new text begin ; new text end or 211.15 new text begin (iv) any new text end assets not used in the operation of the trade or business. 211.16 new text begin (6) new text end For property consisting of shares of stock or other ownership interests in an 211.17entity, the value of cash, cash equivalents, publicly traded securities, or assets not used 211.18in the operation of the trade or business held by the corporation or other entity new text begin items new text end 211.19 new text begin described in clause (5) new text end must be deducted from the value of the property qualifying under 211.20this subdivision in proportion to the decedent's share of ownership of the entity on the date 211.21of death new text begin excluded in the valuation of the decedent's interest in the entity new text end . 211.22(6) new text begin (7) new text end The decedent continuously owned the property, including property the 211.23decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue 211.24Code, for the three-year period ending on the date of death of the decedent. In the case of 211.25a sole proprietor, if the property replaced similar property within the three-year period, 211.26the replacement property will be treated as having been owned for the three-year period 211.27ending on the date of death of the decedent. 211.28(7) new text begin (8) new text end For three years following the date of death of the decedent, the trade or business 211.29is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 211.30and a family member materially participates in the operation of the trade or business within 211.31the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 211.32of the Internal Revenue Code and any other provision provided by United States Treasury 211.33Department regulation that substitutes material participation in prior taxable years for 211.34material participation in the three years following the date of death of the decedent. 212.1(8) new text begin (9) new text end The estate and the qualified heir elect to treat the property as qualified small 212.2business property and agree, in the form prescribed by the commissioner, to pay the 212.3recapture tax under subdivision 11, if applicable. 212.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 212.5 new text begin dying after June 30, 2011. new text end 212.6    Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read: 212.7    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and 212.8before the death of the qualified heir, the qualified heir disposes of any interest in the 212.9qualified property, other than by a disposition to a family member, or a family member 212.10ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an 212.11additional estate tax is imposed on the property. In the case of a sole proprietor, if the 212.12qualified heir replaces qualified small business property excluded under subdivision 9 212.13with similar property, then the qualified heir will not be treated as having disposed of an 212.14interest in the qualified property. 212.15(b) The amount of the additional tax equals the amount of the exclusion claimed by 212.16the estate under subdivision 8, paragraph (d), multiplied by 16 percent. 212.17(c) The additional tax under this subdivision is due on the day which is six months 212.18after the date of the disposition or cessation in paragraph (a). 212.19 new text begin (d) This subdivision shall not apply as a result of any of the following: new text end 212.20 new text begin (1) a portion of qualified farm property consisting of less than one-fifth of the acreage new text end 212.21 new text begin of the property is reclassified as class 2b property under section 273.13, subdivision 23, new text end 212.22 new text begin and the qualified heir has not substantially altered the reclassified property during the new text end 212.23 new text begin three-year holding period; or new text end 212.24 new text begin (2) a portion of qualified farm property classified as 2a property at the death of new text end 212.25 new text begin the decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a new text end 212.26 new text begin residence, garage, and immediately surrounding one acre of land is reclassified as 4bb new text end 212.27 new text begin property during the three-year holding period, and the qualified heir has not substantially new text end 212.28 new text begin altered the property. new text end 212.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 212.30 new text begin dying after June 30, 2011. new text end 212.31    Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read: 212.32291.031 CREDIT. 213.1(a) The estate of a nonresident decedent that is subject to tax under this chapter on 213.2the value of Minnesota situs property held in a pass-through entity is allowed a credit 213.3against the tax due under section 291.03 equal to the lesser of: 213.4(1) the amount of estate or inheritance tax paid to another state that is attributable to 213.5the Minnesota situs property held in the pass-through entity; or 213.6(2) the amount of tax paid under this section new text begin due under section 291.03 new text end attributable to 213.7the Minnesota situs property held in the pass-through entity. 213.8(b) The amount of tax attributable to the Minnesota situs property held in the 213.9pass-through entity must be determined by the increase in the estate or inheritance tax that 213.10results from including the market value of the property in the estate or treating the value 213.11as a taxable inheritance to the recipient of the property. 213.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 213.13 new text begin dying after December 31, 2013. new text end 213.14    Sec. 25. new text begin REPEALER. new text end 213.15 new text begin (a) new text end new text begin Minnesota Rules, part 8092.1400, new text end new text begin is repealed. new text end 213.16 new text begin (b) new text end new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed. new text end 213.17 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end 213.18 new text begin December 31, 2015, except that notifications from the Department of Revenue to new text end 213.19 new text begin employers regarding eligibility to file an annual return for taxes withheld in calendar year new text end 213.20 new text begin 2016 remain in force. Paragraph (b) is effective the day following final enactment. new text end 213.21ARTICLE 13 213.22DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL 213.23TAXES AND SALES TAXES 213.24    Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read: 213.25    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 213.26apportionment, before the addition of the minimum fire state aid allocation amount under 213.27subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state 213.28upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to 213.29the commissioner by insurers on the Minnesota Firetown Premium Report. This amount 213.30must be reduced by the amount required to pay the state auditor's costs and expenses of 213.31the audits or exams of the firefighters relief associations. 213.32The total amount for apportionment in respect to fire state aid must not be less than 213.33two percent of the premiums reported to the commissioner by insurers on the Minnesota 213.34Firetown Premium Report after subtracting the following amounts: 214.1(1) the amount required to pay the state auditor's costs and expenses of the audits or 214.2exams of the firefighters relief associations; and 214.3(2) one percent of the premiums reported by town and farmers' new text begin township new text end mutual 214.4insurance companies and mutual property and casualty companies with total assets of 214.5$5,000,000 or less. 214.6(b) The total amount for apportionment as police state aid is equal to 104 percent 214.7of the amount of premium taxes paid to the state on the premiums reported to the 214.8commissioner by insurers on the Minnesota Aid to Police Premium Report. The total 214.9amount for apportionment in respect to the police state aid program must not be less than 214.10two percent of the amount of premiums reported to the commissioner by insurers on the 214.11Minnesota Aid to Police Premium Report. 214.12(c) The commissioner shall calculate the percentage of increase or decrease reflected 214.13in the apportionment over or under the previous year's available state aid using the same 214.14premiums as a basis for comparison. 214.15(d) In addition to the amount for apportionment of police state aid under paragraph 214.16(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to 214.17pay this increase is annually appropriated from the general fund. 214.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 214.19    Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read: 214.20    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed 214.21within 6-1/2 years after the due date of the return or the date the return was filed, 214.22whichever is later, if: 214.23(1) the taxpayer omits from gross income an amount properly includable in it that is 214.24in excess of 25 percent of the amount of gross income stated in the return; 214.25(2) the taxpayer omits from a sales, use, or withholding tax return new text begin , or a return for a new text end 214.26 new text begin tax imposed under section 295.52, new text end an amount of taxes in excess of 25 percent of the 214.27taxes reported in the return; or 214.28(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the 214.29gross estate reported in the return. 214.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 214.31    Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read: 214.32    Subd. 2. Exemptions. The following entities are exempt from the tax imposed 214.33by this section: 215.1(1) corporations exempt from tax under section 290.05; 215.2(2) real estate investment trusts; 215.3(3) regulated investment companies or a fund thereof; and 215.4(4) entities having a valid election in effect under section 860D(b) of the Internal 215.5Revenue Code; 215.6(5) town and farmers' new text begin township new text end mutual insurance companies; 215.7(6) cooperatives organized under chapter 308A or 308B that provide housing 215.8exclusively to persons age 55 and over and are classified as homesteads under section 215.9273.124, subdivision 3 ; and 215.10(7) a qualified business as defined under section 469.310, subdivision 11, if for the 215.11taxable year all of its property is located in a job opportunity building zone designated 215.12under section 469.314 and all of its payroll is a job opportunity building zone payroll 215.13under section 469.310. 215.14Entities not specifically exempted by this subdivision are subject to tax under this 215.15section, notwithstanding section 290.05. 215.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 215.17    Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read: 215.18    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against 215.19the total amount of tax, if any, the pharmacy owes during that calendar year under 215.20section 295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy 215.21to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for 215.22legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax 215.23percentage specified in section 295.52, subdivision 3. If the amount of the refund exceeds 215.24the tax liability of the pharmacy under section 295.52, subdivision 4, the commissioner 215.25shall provide the pharmacy with a refund equal to the excess amount. Each qualifying 215.26pharmacy must apply for the refund on the annual return as provided under section 215.27295.55, subdivision 5 new text begin prescribed by the commissioner, on or before March 15 of the year new text end 215.28 new text begin following the calendar year the legend drugs were delivered outside Minnesota new text end . The 215.29refund must be claimed within 18 months from the date the drugs were delivered outside 215.30of Minnesota new text begin shall not be allowed if the initial claim for refund is filed more than one year new text end 215.31 new text begin after the original due date of the return new text end . Interest on refunds paid under this subdivision 215.32will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this 215.33subdivision, the date a claim is filed is the due date of the return if a return is due or the 215.34date of the actual claim for refund, whichever is later. 216.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for qualifying legend drugs delivered new text end 216.2 new text begin outside Minnesota after December 31, 2015. new text end 216.3    Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 216.4to read: 216.5     new text begin Subd. 9a. new text end new text begin Bulk storage or bulk storage facility. new text end new text begin "Bulk storage" or "bulk storage new text end 216.6 new text begin facility" means a single property, or contiguous or adjacent properties used for a common new text end 216.7 new text begin purpose and owned or operated by the same person, on or in which are located one or more new text end 216.8 new text begin stationary tanks that are used singularly or in combination for the storage or containment new text end 216.9 new text begin of more than 1,100 gallons of petroleum. new text end 216.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 216.11    Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read: 216.12    Subd. 33. Motor fuel. "Motor fuel" means a liquid new text begin or gaseous form of fuel new text end , 216.13regardless of its composition or properties, used to propel a motor vehicle. 216.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 216.15    Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read: 216.16    Subd. 42. Petroleum products. "Petroleum products" means all of the products 216.17defined in subdivisions 2, 7, 8, 8a, new text begin 8b, new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35. 216.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 216.19    Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read: 216.20    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 216.21blended with ethanol, and agricultural alcohol gasoline used in producing and generating 216.22power for propelling motor vehicles used on the public highways of this state. The tax 216.23is imposed on the first licensed distributor who received the product in Minnesota. For 216.24purposes of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 216.2520, 23, 24, 25, 32, and 34 . The tax is payable at the time and in the form and manner 216.26prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3, 216.27subject to the exceptions and reductions specified in section 296A.17. 216.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 216.29    Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read: 217.1    Subd. 10. Tangible personal property. (a) "Tangible personal property" means 217.2personal property that can be seen, weighed, measured, felt, or touched, or that is in any 217.3other manner perceptible to the senses. "Tangible personal property" includes, but is not 217.4limited to, electricity, water, gas, steam, and prewritten computer software. 217.5    (b) Tangible personal property does not include: 217.6    (1) large ponderous machinery and equipment used in a business or production 217.7activity which at common law would be considered to be real property; 217.8    (2) new text begin (1) new text end property which is subject to an ad valorem property tax; 217.9    (3) new text begin (2) new text end property described in section 272.02, subdivision 9, clauses (a) to (d); 217.10    (4) new text begin (3) new text end property described in section 272.03, subdivision 2, clauses (3) and (5); and 217.11(5) new text begin (4) new text end specified digital products, or other digital products, transferred electronically. 217.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 217.13    Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read: 217.14    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax 217.15imposed in this chapter to the extent provided. 217.16(b) The purchase or use of aircraft previously registered in Minnesota by a 217.17corporation or partnership is exempt if the transfer constitutes a transfer within the 217.18meaning of section 351 or 721 of the Internal Revenue Code. 217.19(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer 217.20of an aircraft for which a commercial use permit has been issued pursuant to section 217.21360.654 is exempt, if the aircraft is resold while the permit is in effect. 217.22(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by 217.23airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes 217.24of this subdivision, "air flight equipment" includes airplanes and parts necessary for the 217.25repair and maintenance of such air flight equipment, and flight simulators, but does not 217.26include airplanes new text begin aircraft new text end with a gross new text begin maximum takeoff new text end weight of less than 30,000 pounds 217.27that are used on intermittent or irregularly timed flights. 217.28(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined 217.29in section 360.511 and approved by the Federal Aviation Administration, and which the 217.30seller delivers to a purchaser outside Minnesota or which, without intermediate use, is 217.31shipped or transported outside Minnesota by the purchaser are exempt, but only if the 217.32purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter 217.33returned to a point within Minnesota, except in the course of interstate commerce or 217.34isolated and occasional use, and will be registered in another state or country upon its 217.35removal from Minnesota. This exemption applies even if the purchaser takes possession of 218.1the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes 218.2for a period not to exceed ten days prior to removing the aircraft from this state. 218.3(f) The sale or purchase of the following items that relate to aircraft operated under 218.4Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 218.5equipment and parts necessary for repair and maintenance of aircraft; and equipment 218.6and parts to upgrade and improve aircraft. 218.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 218.8 new text begin December 31, 2016. new text end 218.9    Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read: 218.10    Subd. 4a. Deposit in state airports fund. Tax revenue new text begin , including interest and new text end 218.11 new text begin penalties, new text end collected from the sale or purchase of an aircraft taxable under this chapter must 218.12be deposited in the state airports fund established in section 360.017. new text begin For purposes of this new text end 218.13 new text begin subdivision, "revenue" does not include the revenue, including interest and penalties, new text end 218.14 new text begin generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be new text end 218.15 new text begin deposited as provided under article XI, section 15, of the Minnesota Constitution. new text end 218.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 218.17    Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read: 218.18    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal 218.19sanctions imposed by this chapter, a person, organization, or business entity possessing or 218.20selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by 218.21this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 218.22pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed 218.23as if it were a full deal. 218.24(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 218.25 new text begin (1) new text end not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, 218.26raffles, or paddlewheel games new text begin , or (2) who conducts gambling prohibited under sections new text end 218.27 new text begin 609.75 to 609.763, other than activities subject to tax under section 297E.03, new text end is liable for a 218.28tax of six percent of the gross receipts from that activity. 218.29(c) The tax must new text begin may new text end be assessed by the commissioner. An assessment must be 218.30considered a jeopardy assessment or jeopardy collection as provided in section 270C.36. 218.31The commissioner shall assess the tax based on personal knowledge or information 218.32available to the commissioner. The commissioner shall mail to the taxpayer at the 218.33taxpayer's last known address, or serve in person, a written notice of the amount of tax, 219.1demand its immediate payment, and, if payment is not immediately made, collect the tax 219.2by any method described in chapter 270C, except that the commissioner need not await the 219.3expiration of the times specified in chapter 270C. The tax assessed by the commissioner 219.4is presumed to be valid and correctly determined and assessed. The burden is upon the 219.5taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 219.6does not apply to gambling that is exempt from taxation under subdivision 2. 219.7 new text begin (d) A person, organization, or business entity conducting gambling activity under new text end 219.8 new text begin this subdivision must file monthly tax returns with the commissioner, in the form required new text end 219.9 new text begin by the commissioner. The returns must be filed on or before the 20th day of the month new text end 219.10 new text begin following the month in which the gambling activity occurred. The tax imposed by this new text end 219.11 new text begin section is due and payable at the time when the returns are required to be filed. new text end 219.12 new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public new text end 219.13 new text begin employee may reveal facts contained in a tax return filed with the commissioner of new text end 219.14 new text begin revenue as required by this subdivision, nor can any information contained in the report or new text end 219.15 new text begin return be used against the tax obligor in any criminal proceeding, unless independently new text end 219.16 new text begin obtained, except in connection with a proceeding involving taxes due under this section, new text end 219.17 new text begin or as provided in section 270C.055, subdivision 1. However, this paragraph does not new text end 219.18 new text begin prohibit the commissioner from publishing statistics that do not disclose the identity of new text end 219.19 new text begin tax obligors or the contents of particular returns or reports. Any person violating this new text end 219.20 new text begin paragraph is guilty of a gross misdemeanor. new text end 219.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games played or purchased after new text end 219.22 new text begin June 30, 2016. new text end 219.23    Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read: 219.24    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed 219.25municipal solid waste or upon the volume of nonmixed municipal solid waste for waste 219.26management services to manage the following materials: 219.27(1) mixed municipal solid waste and nonmixed municipal solid waste generated 219.28outside of Minnesota; 219.29(2) recyclable materials that are separated for recycling by the generator, collected 219.30separately from other waste, and recycled, to the extent the price of the service for 219.31handling recyclable material is separately itemized new text begin on a bill to the generator new text end ; 219.32(3) recyclable nonmixed municipal solid waste that is separated for recycling by 219.33the generator, collected separately from other waste, delivered to a waste facility for the 219.34purpose of recycling, and recycled; 220.1(4) industrial waste, when it is transported to a facility owned and operated by 220.2the same person that generated it; 220.3(5) mixed municipal solid waste from a recycling facility that separates or processes 220.4recyclable materials and reduces the volume of the waste by at least 85 percent, provided 220.5that the exempted waste is managed separately from other waste; 220.6(6) recyclable materials that are separated from mixed municipal solid waste by the 220.7generator, collected and delivered to a waste facility that recycles at least 85 percent of its 220.8waste, and are collected with mixed municipal solid waste that is segregated in leakproof 220.9bags, provided that the mixed municipal solid waste does not exceed five percent of the 220.10total weight of the materials delivered to the facility and is ultimately delivered to a waste 220.11facility identified as a preferred waste management facility in county solid waste plans 220.12under section 115A.46; 220.13(7) source-separated compostable waste new text begin materials new text end , if the waste is new text begin materials are new text end 220.14delivered to a facility exempted as described in this clause. To initially qualify for an 220.15exemption, a facility must apply for an exemption in its application for a new or amended 220.16solid waste permit to the Pollution Control Agency. The first time a facility applies to the 220.17agency it must certify in its application that it will comply with the criteria in items (i) to (v) 220.18and the commissioner of the agency shall so certify to the commissioner of revenue who 220.19must grant the exemption. The facility must annually apply to the agency for certification 220.20to renew its exemption for the following year. The application must be filed according to 220.21the procedures of, and contain the information required by, the agency. The commissioner 220.22of revenue shall grant the exemption if the commissioner of the Pollution Control Agency 220.23finds and certifies to the commissioner of revenue that based on an evaluation of the 220.24composition of incoming waste and residuals and the quality and use of the product: 220.25(i) generators separate materials at the source; 220.26(ii) the separation is performed in a manner appropriate to the technology specific 220.27to the facility that: 220.28(A) maximizes the quality of the product; 220.29(B) minimizes the toxicity and quantity of residuals new text begin rejects new text end ; and 220.30(C) provides an opportunity for significant improvement in the environmental 220.31efficiency of the operation; 220.32(iii) the operator of the facility educates generators, in coordination with each county 220.33using the facility, about separating the waste to maximize the quality of the waste stream 220.34for technology specific to the facility; 220.35(iv) process residuals new text begin rejects new text end do not exceed 15 percent of the weight of the total 220.36material delivered to the facility; and 221.1(v) the final product is accepted for use; 221.2(8) waste and waste by-products for which the tax has been paid; and 221.3(9) daily cover for landfills that has been approved in writing by the Minnesota 221.4Pollution Control Agency. 221.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 221.6    Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read: 221.7    Subd. 2. Town and farmers' new text begin Township new text end mutual insurance. A tax is imposed on 221.8town and farmers' new text begin township new text end mutual insurance companies. The rate of tax is equal to one 221.9percent of gross premiums less return premiums on all direct business received by the 221.10insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year. 221.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 221.12    Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read: 221.13    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct 221.14a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 221.15premiums, less return premiums, on all direct business received by any licensed foreign or 221.16domestic fire insurance company on property in a city of the first class, or by its agents for 221.17it, in cash or otherwise. 221.18(b) By July 31 and December 31 of each year, the commissioner of management 221.19and budget shall pay to each city of the first class a warrant for an amount equal to the 221.20total amount of the surcharge on the premiums collected within that city since the previous 221.21payment. 221.22(c) The treasurer of the city shall place the money received under this subdivision 221.23in a special account or fund to defray all or a portion of the employer contribution 221.24requirement of public employees police and fire plan coverage for city firefighters. 221.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 221.26    Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read: 221.27    Subd. 3. Appropriation. The amount necessary to make the payments required 221.28under this section is appropriated to the commissioner of management and budget from 221.29the general fund. 221.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 222.1    Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read: 222.2    Subd. 3b. Deductions. (a) For purposes of determining taxable income under 222.3subdivision 3, the deductions from gross income include only those expenses necessary 222.4to convert raw ores to marketable quality. Such expenses include costs associated with 222.5refinement but do not include expenses such as transportation, stockpiling, marketing, or 222.6marine insurance that are incurred after marketable ores are produced, unless the expenses 222.7are included in gross income. The allowable deductions from a mine or plant that mines 222.8and produces more than one mineral, metal, or energy resource must be determined 222.9separately for the purposes of computing the deduction in section 290.01, subdivision 19c, 222.10clause (8). These deductions may be combined on one occupation tax return to arrive at 222.11the deduction from gross income for all production. 222.12(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d, 222.13clauses (6) and (9) new text begin (8) new text end , are not used to determine taxable income. 222.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 222.15    Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read: 222.16    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining 222.17taxable income under subdivision 4, the provisions of section 290.01, subdivisions 19c, 222.18clauses (6) and (8), and 19d, clauses (6) and (9) new text begin (8) new text end , are not used to determine taxable 222.19income. 222.20(b) The amount of net operating loss incurred in a taxable year beginning before 222.21January 1, 1990, that may be carried over to a taxable year beginning after December 31, 222.221989, is the amount of net operating loss carryover determined in the calculation of the 222.23hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 298.40 222.24and . 222.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 222.26ARTICLE 14 222.27DEPARTMENT OF REVENUE TECHNICAL AND POLICY; 222.28PROPERTY TAX PROVISIONS 222.29    Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read: 222.30    Subd. 2. Income property assessment data. The following data collected by 222.31political subdivisions new text begin and the state new text end from individuals or business entities concerning 222.32income properties are classified as private or nonpublic data pursuant to section 13.02, 222.33subdivisions 9 and 12: 222.34(a) detailed income and expense figures; 223.1(b) average vacancy factors; 223.2(c) verified net rentable areas or net usable areas, whichever is appropriate; 223.3(d) anticipated income and expenses; 223.4(e) projected vacancy factors; and 223.5(f) lease information. 223.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 223.7    Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read: 223.8    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft 223.9of persons or property for hire in interstate, intrastate, or international transportation 223.10on regularly scheduled flights or on intermittent or irregularly timed flights by airline 223.11companies new text begin and includes transportation by any airline company making three or more new text end 223.12 new text begin flights in or out of Minnesota, or within Minnesota, during a calendar year new text end . 223.13(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 223.14flight, a flight arranged at the convenience of an airline and the person contracting for the 223.15transportation, or a charter flight. It includes any airline company making three or more 223.16flights in or out of Minnesota during a calendar year. 223.17(c) "Air commerce" does not include casual transportation for hire by aircraft 223.18commonly owned and used for private air flight purposes if the person furnishing the 223.19transportation does not hold out to be engaged regularly in transportation for hire. 223.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 223.21 new text begin thereafter. new text end 223.22    Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read: 223.23    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment 223.24used in connection therewith, including spare flight equipment. Flight property also 223.25includes computers and computer software used in operating, controlling, or regulating 223.26aircraft and flight equipment. new text begin Flight property does not include aircraft with a maximum new text end 223.27 new text begin takeoff weight of less than 30,000 pounds. new text end 223.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 223.29 new text begin thereafter. new text end 223.30    Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read: 223.31    Subd. 8. Person. "Person" means any new text begin an new text end individual, corporation, firm, 223.32copartnership, company, or association, and includes any guardian, trustee, executor, 224.1administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor 224.2 new text begin trust, estate, fiduciary, partnership, company, corporation, limited liability company, new text end 224.3 new text begin association, governmental unit or agency, public or private organization of any kind, new text end 224.4 new text begin or other legal entity new text end . 224.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 224.6 new text begin thereafter. new text end 224.7    Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision 224.8to read: 224.9     new text begin Subd. 10. new text end new text begin Intermittent or irregularly timed flights. new text end new text begin "Intermittently or irregularly new text end 224.10 new text begin timed flights" means any flight in which the departure time, departure location, and arrival new text end 224.11 new text begin location are specifically negotiated with the customer or the customer's representative, new text end 224.12 new text begin including but not limited to charter flights. new text end 224.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 224.14 new text begin thereafter. new text end 224.15    Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read: 224.16    Subd. 2. Assessment of flight property. Flight property that is owned by, or is 224.17leased, loaned, or otherwise made available to an airline company operating in Minnesota 224.18shall be assessed and appraised annually by the commissioner with reference to its value 224.19on January 2 of the assessment year in the manner prescribed by sections 270.071 to 224.20270.079 . Aircraft with a gross weight of less than 30,000 pounds and used on intermittent 224.21or irregularly timed flights shall be excluded from the provisions of sections to 224.22. 224.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 224.24 new text begin thereafter. new text end 224.25    Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read: 224.26    Subd. 3. Report by airline company. new text begin (a) new text end Each year, on or before July 1, every 224.27airline company engaged in air commerce in this state shall file with the commissioner a 224.28report under oath setting forth specifically the information prescribed by the commissioner 224.29to enable the commissioner to make the assessment required in sections 270.071 to 224.30270.079 , unless the commissioner determines that the airline company or person should be 224.31excluded from new text begin is exempt from new text end filing because its activities do not constitute air commerce 224.32as defined herein. 225.1     new text begin (b) The commissioner shall prescribe the content, format, and manner of the report new text end 225.2 new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" new text end 225.3 new text begin includes the property tax laws. If a report is made by electronic means, the taxpayer's new text end 225.4 new text begin signature is defined pursuant to section 270C.304, except that a "law administered by the new text end 225.5 new text begin commissioner" includes the property tax laws. new text end 225.6 new text begin EFFECTIVE DATE. new text end new text begin The amendment to paragraph (a) is effective for reports new text end 225.7 new text begin filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day new text end 225.8 new text begin following final enactment. new text end 225.9    Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision 225.10to read: 225.11     new text begin Subd. 3a. new text end new text begin Commissioner filed reports. new text end new text begin If an airline company fails to file a report new text end 225.12 new text begin required by subdivision 3, the commissioner may, from information in the commissioner's new text end 225.13 new text begin possession or obtainable by the commissioner, make and file a report for the airline new text end 225.14 new text begin company, or may issue a notice of net tax capacity and tax under section 270.075, new text end 225.15 new text begin subdivision 2. new text end 225.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 225.17 new text begin thereafter. new text end 225.18    Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision 225.19to read: 225.20     new text begin Subd. 6. new text end new text begin Reassessment orders. new text end new text begin If the State Board of Equalization determines that a new text end 225.21 new text begin considerable amount of property has been undervalued or overvalued compared to like new text end 225.22 new text begin property such that the assessment is grossly unfair or inequitable, the State Board of new text end 225.23 new text begin Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders new text end 225.24 new text begin to the county assessor to reassess all or any part of a parcel in a county. new text end 225.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 225.26 new text begin thereafter. new text end 225.27    Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read: 225.28    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 225.29commissioner a copy of the abstract that will be acted upon by the local and county 225.30boards of review. The abstract must list the real and personal property in the county 225.31itemized by assessment districts. The assessor of each county in the state shall file with 225.32the commissioner, within ten working days following final action of the local board of 226.1review or equalization and within five days following final action of the county board of 226.2equalization, any changes made by the local or county board. The information must be 226.3filed in the manner prescribed by the commissioner. It must be accompanied by a printed 226.4or typewritten copy of the proceedings of the appropriate board. 226.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county boards of appeal and new text end 226.6 new text begin equalization meetings held in 2017 and thereafter. new text end 226.7    Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read: 226.8    Subd. 9. Personal property; exceptions. Except for the taxable personal property 226.9enumerated below, all personal property and the property described in section 272.03, 226.10subdivision 1 , paragraphs (c) and (d), shall be exempt. 226.11The following personal property shall be taxable: 226.12(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or 226.13distribution system or new text begin ; (2) new text end a pipeline system transporting or distributing water, gas, crude 226.14oil, or petroleum products new text begin ; new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot 226.15or chilled water for heating or cooling buildings and structures; 226.16(b) railroad docks and wharves which are part of the operating property of a railroad 226.17company as defined in section 270.80; 226.18(c) personal property defined in section 272.03, subdivision 2, clause (3); 226.19(d) leasehold or other personal property interests which are taxed pursuant to section 226.20272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 226.21providing the property is taxable as if the lessee or user were the fee owner; 226.22(e) manufactured homes and sectional structures, including storage sheds, decks, 226.23and similar removable improvements constructed on the site of a manufactured home, 226.24sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 226.258 , paragraph (f); and 226.26(f) flight property as defined in section 270.071. 226.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 226.28    Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read: 226.29    Subd. 2. Definitions. (a) For the purposes of this section, the term: 226.30(1) "wind energy conversion system" has the meaning given in section 216C.06, 226.31subdivision 19, and also includes a substation that is used and owned by one or more 226.32wind energy conversion facilities; 227.1(2) "large scale wind energy conversion system" means a wind energy conversion 227.2system of more than 12 megawatts, as measured by the nameplate capacity of the system 227.3or as combined with other systems as provided in paragraph (b); 227.4(3) "medium scale wind energy conversion system" means a wind energy conversion 227.5system of over two and not more than 12 megawatts, as measured by the nameplate 227.6capacity of the system or as combined with other systems as provided in paragraph (b); and 227.7(4) "small scale wind energy conversion system" means a wind energy conversion 227.8system of two megawatts and under, as measured by the nameplate capacity of the system 227.9or as combined with other systems as provided in paragraph (b). 227.10(b) For systems installed and contracted for after January 1, 2002, the total size of a 227.11wind energy conversion system under this subdivision shall be determined according to 227.12this paragraph. Unless the systems are interconnected with different distribution systems, 227.13the nameplate capacity of one wind energy conversion system shall be combined with the 227.14nameplate capacity of any other wind energy conversion system that is: 227.15(1) located within five miles of the wind energy conversion system; 227.16(2) constructed within the same calendar year new text begin 12-month period new text end as the wind energy 227.17conversion system; and 227.18(3) under common ownership. 227.19In the case of a dispute, the commissioner of commerce shall determine the total size 227.20of the system, and shall draw all reasonable inferences in favor of combining the systems. 227.21(c) In making a determination under paragraph (b), the commissioner of commerce 227.22may determine that two wind energy conversion systems are under common ownership 227.23when the underlying ownership structure contains similar persons or entities, even if the 227.24ownership shares differ between the two systems. Wind energy conversion systems are 227.25not under common ownership solely because the same person or entity provided equity 227.26financing for the systems. 227.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2017 and thereafter. new text end 227.28    Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision 227.29to read: 227.30     new text begin Subd. 8. new text end new text begin Extension. new text end new text begin The commissioner may, for good cause, extend the time for new text end 227.31 new text begin filing the report required by subdivision 4. The extension must not exceed 15 days. new text end 227.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2017 and thereafter. new text end 227.33    Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read: 228.1273.032 MARKET VALUE DEFINITION. 228.2    (a) Unless otherwise provided, for the purpose of determining any property tax 228.3levy limitation based on market value or any limit on net debt, the issuance of bonds, 228.4certificates of indebtedness, or capital notes based on market value, any qualification to 228.5receive state aid based on market value, or any state aid amount based on market value, 228.6the terms "market value," "estimated market value," and "market valuation," whether 228.7equalized or unequalized, mean the estimated market value of taxable property within the 228.8local unit of government before any of the following or similar adjustments for: 228.9    (1) the market value exclusions under: 228.10    (i) section 273.11, subdivisions 14a and 14c (vacant platted land); 228.11    (ii) section 273.11, subdivision 16 (certain improvements to homestead property); 228.12    (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 228.13properties); 228.14    (iv) section 273.11, subdivision 21 (homestead property damaged by mold); 228.15    (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects); 228.16    (vi) new text begin (v) new text end section 273.13, subdivision 34 (homestead of a disabled veteran or family 228.17caregiver); or 228.18    (vii) new text begin (vi) new text end section 273.13, subdivision 35 (homestead market value exclusion); or 228.19    (2) the deferment of value under: 228.20    (i) the Minnesota Agricultural Property Tax Law, section 273.111; 228.21    (ii) the Aggregate Resource Preservation Law, section 273.1115; 228.22    (iii) the Minnesota Open Space Property Tax Law, section 273.112; 228.23    (iv) the rural preserves property tax program, section 273.114; or 228.24    (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or 228.25    (3) the adjustments to tax capacity for: 228.26    (i) tax increment financing under sections 469.174 to 469.1794; 228.27    (ii) fiscal disparities under chapter 276A or 473F; or 228.28    (iii) powerline credit under section 273.425. 228.29    (b) Estimated market value under paragraph (a) also includes the market value 228.30of tax-exempt property if the applicable law specifically provides that the limitation, 228.31qualification, or aid calculation includes tax-exempt property. 228.32    (c) Unless otherwise provided, "market value," "estimated market value," and 228.33"market valuation" for purposes of property tax levy limitations and calculation of state 228.34aid, refer to the estimated market value for the previous assessment year and for purposes 228.35of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 228.36refer to the estimated market value as last finally equalized. 229.1    (d) For purposes of a provision of a home rule charter or of any special law that is not 229.2codified in the statutes and that imposes a levy limitation based on market value or any limit 229.3on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 229.4value, the terms "market value," "taxable market value," and "market valuation," whether 229.5equalized or unequalized, mean "estimated market value" as defined in paragraph (a). 229.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 229.7    Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read: 229.8    Subd. 7. Division of duties between local and county assessor. The duty of the 229.9duly appointed local assessor shall be to view and appraise the value of all property as 229.10provided by law, but all the book work shall be done by the county assessor, or the 229.11assessor's assistants, and the value of all property subject to assessment and taxation shall 229.12be determined by the county assessor, except as otherwise hereinafter provided. If directed 229.13by the county assessor, the local assessor shall new text begin must new text end perform the duties enumerated in 229.14subdivision 8, clause (16) new text begin , and must enter construction and valuation data into the records new text end 229.15 new text begin in the manner prescribed by the county assessor new text end . 229.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 229.17 new text begin thereafter. new text end 229.18    Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read: 229.19273.08 ASSESSOR'S DUTIES. 229.20The assessor shall actually view, and determine the market value of each tract or lot 229.21of real property listed for taxation, including the value of all improvements and structures 229.22thereon, at maximum intervals of five years and shall enter the value opposite each 229.23description. new text begin When directed by the county assessor, local assessors must enter construction new text end 229.24 new text begin and valuation data into the records in the manner prescribed by the county assessor. new text end 229.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 229.26 new text begin thereafter. new text end 229.27    Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision 229.28to read: 229.29     new text begin Subd. 3. new text end new text begin Compliance. new text end new text begin A county assessor, or a city assessor having the powers new text end 229.30 new text begin of a county assessor, who does not comply with the timely notice requirement under new text end 229.31 new text begin subdivision 1 must: new text end 230.1 new text begin (1) mail an additional valuation notice to each person who was not provided timely new text end 230.2 new text begin notice; and new text end 230.3 new text begin (2) convene a supplemental local board of appeal and equalization or local review new text end 230.4 new text begin session no sooner than ten days after sending the additional notices required by clause (1). new text end 230.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for valuation notices sent in 2017 new text end 230.6 new text begin and thereafter. new text end 230.7    Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read: 230.8    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) 230.9and (c), real estate which is residential and used for homestead purposes is class 1a. In the 230.10case of a duplex or triplex in which one of the units is used for homestead purposes, the 230.11entire property is deemed to be used for homestead purposes. The market value of class 1a 230.12property must be determined based upon the value of the house, garage, and land. 230.13    The first $500,000 of market value of class 1a property has a net classification rate 230.14of one percent of its market value; and the market value of class 1a property that exceeds 230.15$500,000 has a classification rate of 1.25 percent of its market value. 230.16    (b) Class 1b property includes homestead real estate or homestead manufactured 230.17homes used for the purposes of a homestead by: 230.18    (1) any person who is blind as defined in section 256D.35, or the blind person and 230.19the blind person's spouse; 230.20    (2) any person who is permanently and totally disabled or by the disabled person and 230.21the disabled person's spouse; or 230.22    (3) the surviving spouse of a permanently and totally disabled veteran homesteading 230.23a property classified under this paragraph for taxes payable in 2008. 230.24    Property is classified and assessed under clause (2) only if the government agency or 230.25income-providing source certifies, upon the request of the homestead occupant, that the 230.26homestead occupant satisfies the disability requirements of this paragraph, and that the 230.27property is not eligible for the valuation exclusion under subdivision 34. 230.28    Property is classified and assessed under paragraph (b) only if the commissioner 230.29of revenue or the county assessor certifies that the homestead occupant satisfies the 230.30requirements of this paragraph. 230.31    Permanently and totally disabled for the purpose of this subdivision means a 230.32condition which is permanent in nature and totally incapacitates the person from working 230.33at an occupation which brings the person an income. The first $50,000 market value of 230.34class 1b property has a net classification rate of .45 percent of its market value. The 231.1remaining market value of class 1b property has a classification rate using the rates for new text begin is new text end 231.2 new text begin classified as new text end class 1a or class 2a property, whichever is appropriate, of similar market value. 231.3    (c) Class 1c property is commercial use real and personal property that abuts public 231.4water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 231.5seasonal residential occupancy for recreational purposes but not devoted to commercial 231.6purposes for more than 250 days in the year preceding the year of assessment, and that 231.7includes a portion used as a homestead by the owner, which includes a dwelling occupied 231.8as a homestead by a shareholder of a corporation that owns the resort, a partner in a 231.9partnership that owns the resort, or a member of a limited liability company that owns the 231.10resort even if the title to the homestead is held by the corporation, partnership, or limited 231.11liability company. For purposes of this paragraph, property is devoted to a commercial 231.12purpose on a specific day if any portion of the property, excluding the portion used 231.13exclusively as a homestead, is used for residential occupancy and a fee is charged for 231.14residential occupancy. Class 1c property must contain three or more rental units. A "rental 231.15unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 231.16site equipped with water and electrical hookups for recreational vehicles. Class 1c property 231.17must provide recreational activities such as the rental of ice fishing houses, boats and 231.18motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, 231.19launch services, or guide services; or sell bait and fishing tackle. Any unit in which the 231.20right to use the property is transferred to an individual or entity by deeded interest, or the 231.21sale of shares or stock, no longer qualifies for class 1c even though it may remain available 231.22for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c 231.23is also class 1c, regardless of the term of the rental agreement, as long as the use of the 231.24camping pad does not exceed 250 days. If the same owner owns two separate parcels that 231.25are located in the same township, and one of those properties is classified as a class 1c 231.26property and the other would be eligible to be classified as a class 1c property if it was 231.27used as the homestead of the owner, both properties will be assessed as a single class 1c 231.28property; for purposes of this sentence, properties are deemed to be owned by the same 231.29owner if each of them is owned by a limited liability company, and both limited liability 231.30companies have the same membership. The portion of the property used as a homestead 231.31is class 1a property under paragraph (a). The remainder of the property is classified as 231.32follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value 231.33is tier II, and any remaining market value is tier III. The classification rates for class 1c 231.34are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and 231.35personal property devoted to temporary and seasonal residential occupancy for recreation 231.36purposes in which all or a portion of the property was devoted to commercial purposes for 232.1not more than 250 days in the year preceding the year of assessment desiring classification 232.2as class 1c, must submit a declaration to the assessor designating the cabins or units 232.3occupied for 250 days or less in the year preceding the year of assessment by January 15 of 232.4the assessment year. Those cabins or units and a proportionate share of the land on which 232.5they are located must be designated as class 1c as otherwise provided. The remainder of 232.6the cabins or units and a proportionate share of the land on which they are located must be 232.7designated as class 3a commercial. The owner of property desiring designation as class 232.81c property must provide guest registers or other records demonstrating that the units for 232.9which class 1c designation is sought were not occupied for more than 250 days in the 232.10year preceding the assessment if so requested. The portion of a property operated as a 232.11(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 232.12nonresidential facility operated on a commercial basis not directly related to temporary 232.13and seasonal residential occupancy for recreation purposes does not qualify for class 1c. 232.14    (d) Class 1d property includes structures that meet all of the following criteria: 232.15    (1) the structure is located on property that is classified as agricultural property under 232.16section 273.13, subdivision 23; 232.17    (2) the structure is occupied exclusively by seasonal farm workers during the time 232.18when they work on that farm, and the occupants are not charged rent for the privilege of 232.19occupying the property, provided that use of the structure for storage of farm equipment 232.20and produce does not disqualify the property from classification under this paragraph; 232.21    (3) the structure meets all applicable health and safety requirements for the 232.22appropriate season; and 232.23    (4) the structure is not salable as residential property because it does not comply 232.24with local ordinances relating to location in relation to streets or roads. 232.25    The market value of class 1d property has the same classification rates as class 232.261a property under paragraph (a). 232.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 232.28    Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read: 232.29    Subdivision 1. Listing and assessment in county. The personal property of express, 232.30stage and transportation companies, and of pipeline companies engaged in the business 232.31of transporting natural gas, gasoline, crude oil, or other petroleum products new text begin , new text end except as 232.32otherwise provided by law, shall be listed and assessed in the county, town or district 232.33where the same is usually kept. 232.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 233.1    Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read: 233.2    Subd. 2. Listing and assessment by commissioner. The personal property, 233.3consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 233.4pipeline companies and others engaged in the operations or business of transporting 233.5natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed 233.6with and assessed by the commissioner of revenue and the values provided to the 233.7city or county assessor by order. This subdivision shall not apply to the assessment of 233.8the products transported through the pipelines nor to the lines of local commercial gas 233.9companies engaged primarily in the business of distributing gas new text begin products new text end to consumers at 233.10retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum 233.11products exclusively for such owner's own consumption and not for resale to others. If 233.12more than 85 percent of the natural gas or other petroleum products actually transported 233.13over the pipeline is used for the owner's own consumption and not for resale to others, 233.14then this subdivision shall not apply; provided, however, that in that event, the pipeline 233.15shall be assessed in proportion to the percentage of gas new text begin products new text end actually transported over 233.16such pipeline that is not used for the owner's own consumption. On or before August 1, 233.17the commissioner shall certify to the auditor of each county, the amount of such personal 233.18property assessment against each company in each district in which such property is 233.19located. If the commissioner determines that the amount of personal property assessment 233.20certified on or before August 1 is in error, the commissioner may issue a corrected 233.21certification on or before October 1. The commissioner may correct errors that are merely 233.22clerical in nature until December 31. 233.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 233.24    Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read: 233.25    Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or 233.26railroad company concerning property for which the commissioner of revenue has provided 233.27the city or county assessor with valuations by order, or for which the commissioner 233.28has recommended values to the city or county assessor, must be brought against the 233.29commissioner, and not against the county or taxing district where the property is located. 233.30 new text begin Service must be made on the commissioner only, and not on the county or taxing district. new text end 233.31(b) This section governs administrative appeals and appeals to court of a claim that 233.32utility or railroad operating property has been partially, unfairly, or unequally assessed, 233.33or assessed at a valuation greater than its real or actual value, misclassified, or that the 233.34property is exempt. This section applies only to property described in sections 270.81, 233.35subdivision 1 , 273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax 234.1capacities that have been provided to the city or county by the commissioner and which 234.2have not been changed by city or county. If the taxable net tax capacity being appealed is 234.3not the taxable net tax capacity established by the commissioner, or if the appeal claims 234.4that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this 234.5section does not apply. 234.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for appeals of valuations made in new text end 234.7 new text begin assessment year 2017 and thereafter. new text end 234.8    Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read: 234.9    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required 234.10to be brought against the commissioner under this section, the petition initiating the appeal 234.11must be served on the commissioner and must be filed with the Tax Court in Ramsey 234.12County, as provided in paragraph (b) or (c). 234.13(b) If the appeal to court is from an order of the commissioner, it must be brought 234.14under chapter 271 new text begin and filed within the time period prescribed in section 271.06, new text end 234.15 new text begin subdivision 2 new text end , except that when the provisions of this section conflict with chapter 234.16271 new text begin or 278 new text end , this section prevails. In addition, the petition must include all the parcels 234.17encompassed by that order which the petitioner claims have been partially, unfairly, 234.18or unequally assessed, assessed at a valuation greater than their real or actual value, 234.19misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a 234.20certification or notice of value by the commissioner for property described in subdivision 234.211, or (2) the final determination by the commissioner of either an administrative appeal 234.22conference or informal administrative appeal described in subdivision 4. 234.23(c) If the appeal is from the tax that results from implementation of the 234.24commissioner's order, certification, or recommendation, it must be brought under 234.25chapter 278, and the provisions in that chapter apply, except that service shall be on the 234.26commissioner only and not on the local officials specified in section 278.01, subdivision 1, 234.27and if any other provision of this section conflicts with chapter 278, this section prevails. 234.28In addition, the petition must include either all the utility parcels or all the railroad parcels 234.29in the state in which the petitioner claims an interest and which the petitioner claims have 234.30been partially, unfairly, or unequally assessed, assessed at a valuation greater than their 234.31real or actual value, misclassified, or are exempt. 234.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 234.33 new text begin thereafter. new text end 235.1    Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read: 235.2    Subd. 4. Administrative appeals. (a) Companies that submit the reports under 235.3section 270.82 or 273.371 by the date specified in that section, or by the date specified 235.4by the commissioner in an extension, may appeal administratively to the commissioner 235.5prior to bringing an action in court. 235.6    (b) Companies that must submit reports under section must submit new text begin file new text end a 235.7written request to new text begin for an appeal with new text end the commissioner for a conference within ten new text begin 30 new text end 235.8days after the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice 235.9to the company, or by June 15, whichever is earlier. new text begin For purposes of this section, the new text end 235.10 new text begin term "notice date" means the date of the valuation certification, commissioner's order, new text end 235.11 new text begin recommendation, or other notice. new text end 235.12    (c) Companies that submit reports under section must submit a written 235.13request to the commissioner for a conference within ten days after the date of the 235.14commissioner's valuation certification or notice to the company, or by July 1, whichever 235.15is earlier. new text begin The appeal need not be in any particular form but must contain the following new text end 235.16 new text begin information: new text end 235.17     new text begin (1) name and address of the company; new text end 235.18     new text begin (2) the date; new text end 235.19     new text begin (3) its Minnesota identification number; new text end 235.20     new text begin (4) the assessment year or period involved; new text end 235.21     new text begin (5) the findings in the valuation that the company disputes; new text end 235.22     new text begin (6) a summary statement specifying its reasons for disputing each item; and new text end 235.23     new text begin (7) the signature of the company's duly authorized agent or representative. new text end 235.24     new text begin (d) When requested in writing and within the time allowed for filing an new text end 235.25 new text begin administrative appeal, the commissioner may extend the time for filing an appeal for a new text end 235.26 new text begin period of not more than 15 days from the expiration of the time for filing the appeal. new text end 235.27    (d) new text begin (e) new text end The commissioner shall conduct the conference new text begin either in person or by new text end 235.28 new text begin telephone new text end upon the commissioner's entire files and records and such further information as 235.29may be offered. The conference must be held no later than 20 days after the date of the 235.30commissioner's valuation certification or notice to the company, or by the date specified 235.31by the commissioner in an extension new text begin request for an appeal new text end . Within 60 new text begin 30 new text end days after the 235.32conference the commissioner shall make a final determination of the matter and shall 235.33notify the company promptly of the determination. The conference is not a contested 235.34case hearing new text begin subject to chapter 14 new text end . 235.35    (e) In addition to the opportunity for a conference under paragraph (a), the 235.36commissioner shall also provide the railroad and utility companies the opportunity to 236.1discuss any questions or concerns relating to the values established by the commissioner 236.2through certification or notice in a less formal manner. This does not change or modify 236.3the deadline for requesting a conference under paragraph (a), the deadline in section 236.4 for appealing an order of the commissioner, or the deadline in section for 236.5appealing property taxes in court. 236.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 236.7 new text begin thereafter. new text end 236.8    Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 236.9to read: 236.10     new text begin Subd. 5. new text end new text begin Agreement determining valuation. new text end new text begin When it appears to be in the best new text end 236.11 new text begin interest of the state, the commissioner may settle any matter under consideration regarding new text end 236.12 new text begin an appeal filed under this section. The agreement must be in writing and signed by new text end 236.13 new text begin the commissioner and the company or the company's authorized representative. The new text end 236.14 new text begin agreement is final and conclusive, and except upon a showing of fraud, malfeasance, new text end 236.15 new text begin or misrepresentation of a material fact, the case may not be reopened as to the matters new text end 236.16 new text begin agreed upon. new text end 236.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2017 and new text end 236.18 new text begin thereafter. new text end 236.19    Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 236.20to read: 236.21     new text begin Subd. 6. new text end new text begin Dismissal of administrative appeal. new text end new text begin If a taxpayer files an administrative new text end 236.22 new text begin appeal from an order of the commissioner and also files an appeal to the tax court for new text end 236.23 new text begin that same order of the commissioner, the administrative appeal is dismissed and the new text end 236.24 new text begin commissioner is no longer required to make the determination of appeal under subdivision new text end 236.25 new text begin 4. new text end 236.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2016. new text end 236.27    Sec. 26. new text begin [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES. new text end 236.28 new text begin After making the apportionment provided in Minnesota Rules, part 8100.0600, the new text end 236.29 new text begin commissioner must equalize the values of the operating structures to the level accepted by new text end 236.30 new text begin the State Board of Equalization if the appropriate sales ratio for each county, as conducted new text end 236.31 new text begin by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is new text end 236.32 new text begin outside the range accepted by the State Board of Equalization. The commissioner must new text end 237.1 new text begin not equalize the value of the operating structures if the sales ratio determined pursuant to new text end 237.2 new text begin this subdivision is within the range accepted by the State Board of Equalization. new text end 237.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2016. new text end 237.4    Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read: 237.5    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town 237.6board of a town, or the council or other governing body of a city, is the new text begin local new text end board 237.7of appeal and equalization except (1) in cities whose charters provide for a board of 237.8equalization or (2) in any city or town that has transferred its local board of review power 237.9and duties to the county board as provided in subdivision 3. The county assessor shall 237.10fix a day and time when the board or the new text begin local new text end board of equalization shall meet in the 237.11assessment districts of the county. Notwithstanding any law or city charter to the contrary, 237.12a city board of equalization shall be referred to as a new text begin local new text end board of appeal and equalization. 237.13On or before February 15 of each year the assessor shall give written notice of the time 237.14to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, 237.15the meetings must be held between April 1 and May 31 each year. The clerk shall give 237.16published and posted notice of the meeting at least ten days before the date of the meeting. 237.17    The board shall meet either at a central location within the county or at the office of 237.18the clerk to review the assessment and classification of property in the town or city. No 237.19changes in valuation or classification which are intended to correct errors in judgment by 237.20the county assessor may be made by the county assessor after the board has adjourned 237.21in those cities or towns that hold a local board of review; however, corrections of errors 237.22that are merely clerical in nature or changes that extend homestead treatment to property 237.23are permitted after adjournment until the tax extension date for that assessment year. The 237.24changes must be fully documented and maintained in the assessor's office and must be 237.25available for review by any person. A copy of the changes made during this period in 237.26those cities or towns that hold a local board of review must be sent to the county board no 237.27later than December 31 of the assessment year. 237.28    (b) The board shall determine whether the taxable property in the town or city has 237.29been properly placed on the list and properly valued by the assessor. If real or personal 237.30property has been omitted, the board shall place it on the list with its market value, and 237.31correct the assessment so that each tract or lot of real property, and each article, parcel, 237.32or class of personal property, is entered on the assessment list at its market value. No 237.33assessment of the property of any person may be raised unless the person has been 237.34duly notified of the intent of the board to do so. On application of any person feeling 237.35aggrieved, the board shall review the assessment or classification, or both, and correct 238.1it as appears just. The board may not make an individual market value adjustment or 238.2classification change that would benefit the property if the owner or other person having 238.3control over the property has refused the assessor access to inspect the property and the 238.4interior of any buildings or structures as provided in section 273.20. A board member 238.5shall not participate in any actions of the board which result in market value adjustments 238.6or classification changes to property owned by the board member, the spouse, parent, 238.7stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 238.8or niece of a board member, or property in which a board member has a financial interest. 238.9The relationship may be by blood or marriage. 238.10    (c) A local board may reduce assessments upon petition of the taxpayer but the total 238.11reductions must not reduce the aggregate assessment made by the county assessor by more 238.12than one percent. If the total reductions would lower the aggregate assessments made by 238.13the county assessor by more than one percent, none of the adjustments may be made. The 238.14assessor shall correct any clerical errors or double assessments discovered by the board 238.15without regard to the one percent limitation. 238.16    (d) A local board does not have authority to grant an exemption or to order property 238.17removed from the tax rolls. 238.18    (e) A majority of the members may act at the meeting, and adjourn from day to day 238.19until they finish hearing the cases presented. The assessor shall attend and take part in 238.20the proceedings, but must not vote. The county assessor, or an assistant delegated by the 238.21county assessor shall attend the meetings. The board shall list separately all omitted 238.22property added to the list by the board and all items of property increased or decreased, 238.23with the market value of each item of property, added or changed by the board. The 238.24county assessor shall enter all changes made by the board. 238.25    (f) Except as provided in subdivision 3, if a person fails to appear in person, by 238.26counsel, or by written communication before the board after being duly notified of the 238.27board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 238.28assessment or classification fails to apply for a review of the assessment or classification, 238.29the person may not appear before the county board of appeal and equalization for a review. 238.30This paragraph does not apply if an assessment was made after the local board meeting, as 238.31provided in section 273.01, or if the person can establish not having received notice of 238.32market value at least five days before the local board meeting. 238.33    (g) The local board must complete its work and adjourn within 20 days from the 238.34time of convening stated in the notice of the clerk, unless a longer period is approved by 238.35the commissioner of revenue. No action taken after that date is valid. All complaints 238.36about an assessment or classification made after the meeting of the board must be heard 239.1and determined by the county board of equalization. A nonresident may, at any time, 239.2before the meeting of the board file written objections to an assessment or classification 239.3with the county assessor. The objections must be presented to the board at its meeting by 239.4the county assessor for its consideration. 239.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 239.6    Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read: 239.7    Subdivision 1. Members; meetings; rules for equalizing assessments. The county 239.8commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 239.9present, the deputy county auditor, or, if there is no deputy, the court administrator of the 239.10district court, shall form a board for the equalization of the assessment of the property 239.11of the county, including the property of all cities whose charters provide for a board of 239.12equalization. This board shall be referred to as the county board of appeal and equalization. 239.13The board shall meet annually, on the date specified in section 274.14, at the office of the 239.14auditor. Each member shall take an oath to fairly and impartially perform duties as a 239.15member. Members shall not participate in any actions of the board which result in market 239.16value adjustments or classification changes to property owned by the board member, the 239.17spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, 239.18aunt, nephew, or niece of a board member, or property in which a board member has a 239.19financial interest. The relationship may be by blood or marriage. The board shall examine 239.20and compare the returns of the assessment of property of the towns or districts, and 239.21equalize them so that each tract or lot of real property and each article or class of personal 239.22property is entered on the assessment list at its market value, subject to the following rules: 239.23    (1) The board shall raise the valuation of each tract or lot of real property which 239.24in its opinion is returned below its market value to the sum believed to be its market 239.25value. The board must first give notice of intention to raise the valuation to the person in 239.26whose name it is assessed, if the person is a resident of the county. The notice must fix 239.27a time and place for a hearing. 239.28    (2) The board shall reduce the valuation of each tract or lot which in its opinion is 239.29returned above its market value to the sum believed to be its market value. 239.30    (3) The board shall raise the valuation of each class of personal property which 239.31in its opinion is returned below its market value to the sum believed to be its market 239.32value. It shall raise the aggregate value of the personal property of individuals, firms, or 239.33corporations, when it believes that the aggregate valuation, as returned, is less than the 239.34market value of the taxable personal property possessed by the individuals, firms, or 240.1corporations, to the sum it believes to be the market value. The board must first give notice 240.2to the persons of intention to do so. The notice must set a time and place for a hearing. 240.3    (4) The board shall reduce the valuation of each class of personal property that 240.4is returned above its market value to the sum it believes to be its market value. Upon 240.5complaint of a party aggrieved, the board shall reduce the aggregate valuation of the 240.6individual's personal property, or of any class of personal property for which the individual 240.7is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes 240.8was the market value of the individual's personal property of that class. 240.9    (5) The board must not reduce the aggregate value of all the property of its county, as 240.10submitted to the county board of equalization, with the additions made by the auditor under 240.11this chapter, by more than one percent of its whole valuation. The board may raise the 240.12aggregate valuation of real property, and of each class of personal property, of the county, 240.13or of any town or district of the county, when it believes it is below the market value of the 240.14property, or class of property, to the aggregate amount it believes to be its market value. 240.15    (6) The board shall change the classification of any property which in its opinion 240.16is not properly classified. 240.17    (7) The board does not have the authority to grant an exemption or to order property 240.18removed from the tax rolls. 240.19     new text begin (8) The board may not make an individual market value adjustment or classification new text end 240.20 new text begin change that would benefit property if the owner or other person having control over the new text end 240.21 new text begin property has refused the assessor access to inspect the property and the interior of any new text end 240.22 new text begin buildings or structures as provided in section 273.20. new text end 240.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county board of appeal and new text end 240.24 new text begin equalization meetings in 2017 and thereafter. new text end 240.25    Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read: 240.26    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts 240.27county boards of appeal and equalization meetings must provide proof to the commissioner 240.28by December 1, 2009, and each year thereafter, new text begin February 1 new text end that it is in compliance with the 240.29requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 240.30was a quorum of voting members at each meeting of the board of appeal and equalization 240.31in the current new text begin previous new text end year. A county that does not comply with these requirements is 240.32deemed to have transferred its board of appeal and equalization powers to the special 240.33board of equalization appointed pursuant to section 274.13, subdivision 2, beginning 240.34with the following year's assessment and continuing unless the powers are reinstated 240.35under paragraph (c). A county that does not comply with the requirements of subdivision 241.12 and has not appointed a special board of equalization shall appoint a special board of 241.2equalization before the following year's assessment. 241.3    (b) The county shall notify the taxpayers when the board of appeal and equalization 241.4for a county has been transferred to the special board of equalization under this subdivision 241.5and, prior to the meeting time of the special board of equalization, the county shall make 241.6available to those taxpayers a procedure for a review of the assessments, including, but 241.7not limited to, open book meetings. This alternate review process must take place in 241.8April and May. 241.9    (c) A county board whose powers are transferred to the special board of equalization 241.10under this subdivision may be reinstated by resolution of the county board and upon proof 241.11of compliance with the requirements of subdivision 2. The resolution and proofs must 241.12be provided to the commissioner by December new text begin February new text end 1 in order to be effective for 241.13the following new text begin current new text end year's assessment. 241.14(d) If a person who was entitled to appeal to the county board of appeal and 241.15equalization or to the county special board of equalization is not able to do so in a 241.16particular year because the county board or special board did not meet the quorum and 241.17training requirements in this section and section 274.13, or because the special board 241.18was not appointed, that person may instead appeal to the commissioner of revenue, 241.19provided that the appeal is received by the commissioner prior to August 1. The appeal 241.20is not subject to either chapter 14 or section 270C.92. The commissioner must issue 241.21an appropriate order to the county assessor in response to each timely appeal, either 241.22upholding or changing the valuation or classification of the property. Prior to October 1 of 241.23each year, the commissioner must charge and bill the county where the property is located 241.24$500 for each tax parcel covered by an order issued under this paragraph in that year. 241.25Amounts received by the commissioner under this paragraph must be deposited in the 241.26state's general fund. If payment of a billed amount is not received by the commissioner 241.27before December 1 of the year when billed, the commissioner must deduct that unpaid 241.28amount from any state aid the commissioner would otherwise pay to the county under 241.29chapter 477A in the next year. Late payments may either be returned to the county 241.30uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 241.31paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 241.32reduction that occurred because the payment was late. Amounts needed to make these 241.33adjustments are included in the appropriation under section 477A.03, subdivision 2. 241.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county boards of appeal and new text end 241.35 new text begin equalization meetings held in 2017 and thereafter. new text end 242.1    Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read: 242.2    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 242.3contrary, on or before September 30, each county and each home rule charter or statutory 242.4city shall certify to the county auditor the proposed property tax levy for taxes payable in 242.5the following year. 242.6    (b) Notwithstanding any law or charter to the contrary, on or before September 15, 242.7each town and each special taxing district shall adopt and certify to the county auditor a 242.8proposed property tax levy for taxes payable in the following year. For towns, the final 242.9certified levy shall also be considered the proposed levy. 242.10    (c) On or before September 30, each school district that has not mutually agreed 242.11with its home county to extend this date shall certify to the county auditor the proposed 242.12property tax levy for taxes payable in the following year. Each school district that has 242.13agreed with its home county to delay the certification of its proposed property tax levy 242.14must certify its proposed property tax levy for the following year no later than October 242.157. The school district shall certify the proposed levy as: 242.16    (1) a specific dollar amount by school district fund, broken down between 242.17voter-approved and non-voter-approved levies and between referendum market value 242.18and tax capacity levies; or 242.19    (2) the maximum levy limitation certified by the commissioner of education 242.20according to section 126C.48, subdivision 1. 242.21    (d) If the board of estimate and taxation or any similar board that establishes 242.22maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 242.23property tax levies for funds under its jurisdiction by charter to the county auditor by the 242.24date specified in paragraph (a), the city shall be deemed to have certified its levies for 242.25those taxing jurisdictions. 242.26    (e) For purposes of this section, "special taxing district" means a special taxing 242.27district as defined in section 275.066. Intermediate school districts that levy a tax 242.28under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 242.29123A.446 , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 242.30also special taxing districts for purposes of this section. 242.31(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 242.32tax levy under this subdivision, the taxing authority shall announce the time and place 242.33of its new text begin any new text end subsequent regularly scheduled meetings at which the budget and levy will be 242.34discussed and at which the public will be allowed to speak. The time and place of those 242.35meetings must be included in the proceedings or summary of proceedings published in the 242.36official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191. 243.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 243.2    Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read: 243.3    Subd. 2. Local governments required to report. For purposes of this section, 243.4"local governmental unit" means a county, home rule charter or statutory city with a 243.5population greater than 2,500, a town with a population greater than 5,000, or a home rule 243.6charter or statutory city or town that receives a distribution from the taconite municipal aid 243.7account in the levy year. 243.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 243.9    Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read: 243.10    Subdivision 1. Determination of validity. (a) Any person having personal property, 243.11or any estate, right, title, or interest in or lien upon any parcel of land, who claims that 243.12such property has been partially, unfairly, or unequally assessed in comparison with other 243.13property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the 243.14first class, the portion of the county excluding the first class city, or that the parcel has 243.15been assessed at a valuation greater than its real or actual value, or that the tax levied 243.16against the same is illegal, in whole or in part, or has been paid, or that the property is 243.17exempt from the tax so levied, may have the validity of the claim, defense, or objection 243.18determined by the district court of the county in which the tax is levied or by the Tax 243.19Court by serving one copy of a petition for such determination upon the county auditor, 243.20one copy on the county attorney, one copy on the county treasurer, and three copies on the 243.21county assessor. The county assessor shall immediately forward one copy of the petition 243.22to the appropriate governmental authority in a home rule charter or statutory city or town 243.23in which the property is located if that city or town employs its own certified assessor. 243.24A copy of the petition shall also be forwarded by the assessor to the school board of the 243.25school district in which the property is located. 243.26(b) In counties where the office of county treasurer has been combined with the 243.27office of county auditor, the county may elect to require the petitioner to serve the number 243.28of copies as determined by the county. The county assessor shall immediately forward one 243.29copy of the petition to the appropriate governmental authority in a home rule charter or 243.30statutory city or town in which the property is located if that city or town employs its own 243.31certified assessor. A list of petitioned properties, including the name of the petitioner, the 243.32identification number of the property, and the estimated market value, shall be sent on 243.33or before the first day of July by the county auditor/treasurer to the school board of the 243.34school district in which the property is located. 244.1(c) For all counties, the petitioner must file the copies with proof of service, in the 244.2office of the court administrator of the district court on or before April 30 of the year in 244.3which the tax becomes payable. A petition for determination under this section may be 244.4transferred by the district court to the Tax Court. An appeal may also be taken to the Tax 244.5Court under chapter 271 at any time following receipt of the valuation notice new text begin that county new text end 244.6 new text begin assessors or city assessors having the powers of a county assessor are new text end required by section 244.7273.121 new text begin to send to persons whose property is to be included on the assessment roll that new text end 244.8 new text begin year, new text end but prior to May 1 of the year in which the taxes are payable. 244.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 244.10    Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read: 244.11    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state 244.12agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land 244.13must be withheld from sale or lease to others for a maximum of six months. The request 244.14must be submitted to the county auditor. Upon receipt, the county auditor must withhold 244.15the parcel from sale or lease to any other party for six months, and must confirm the 244.16starting date of the six-month withholding period to the requesting agency or subdivision. 244.17If the request is from a governmental subdivision of the state, the governmental 244.18subdivision must pay the maintenance costs incurred by the county during the period the 244.19parcel is withheld. The county board may approve a sale or conveyance to the requesting 244.20party during the withholding period. A conveyance of the property to the requesting 244.21party terminates the withholding period. 244.22A governmental subdivision of the state must not make, and a county auditor must 244.23not act upon, a second request to withhold a parcel from sale or lease within 18 months 244.24of a previous request for that parcel. A county may reject a request made under this 244.25paragraph if the request is made more than 30 days after the county has given notice to the 244.26requesting state agency or governmental subdivision of the state that the county intends to 244.27sell or otherwise dispose of the property. 244.28(b) Nonconservation tax-forfeited lands may be sold by the county board, for 244.29their market value as determined by the county board, to an organized or incorporated 244.30governmental subdivision of the state for any public purpose for which the subdivision is 244.31authorized to acquire property. When the term "market value" is used in this section, it 244.32means an estimate of the full and actual market value of the parcel as determined by the 244.33county board, but in making this determination, the board and the persons employed by or 244.34under contract with the board in order to perform, conduct, or assist in the determination, 244.35are exempt from the licensure requirements of chapter 82B. 245.1(c) Nonconservation tax-forfeited lands may be released from the trust in favor of 245.2the taxing districts on application to new text begin sold by new text end the county board by new text begin , for their market value as new text end 245.3 new text begin determined by the county board, to new text end a state agency for an authorized use at not less than 245.4their market value as determined by the county board new text begin any public purpose for which the new text end 245.5 new text begin agency is authorized to acquire property new text end . 245.6(d) Nonconservation tax-forfeited lands may be sold by the county board to an 245.7organized or incorporated governmental subdivision of the state or state agency for less 245.8than their market value if: 245.9(1) the county board determines that a sale at a reduced price is in the public interest 245.10because a reduced price is necessary to provide an incentive to correct the blighted 245.11conditions that make the lands undesirable in the open market, or the reduced price will 245.12lead to the development of affordable housing; and 245.13(2) the governmental subdivision or state agency has documented its specific plans 245.14for correcting the blighted conditions or developing affordable housing, and the specific 245.15law or laws that empower it to acquire real property in furtherance of the plans. 245.16If the sale under this paragraph is to a governmental subdivision of the state, the 245.17commissioner of revenue must convey the property on behalf of the state by quitclaim 245.18deed. If the sale under this paragraph is to a state agency, new text begin the property is released from new text end 245.19 new text begin the trust in favor of the taxing districts and new text end the commissioner new text begin of revenue new text end must issue a 245.20conveyance document that releases the property from the trust in favor of the taxing 245.21districts new text begin convey the property on behalf of the state by quitclaim deed to the agency new text end . 245.22(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts 245.23may be conveyed by the commissioner of revenue in the name of the state to a 245.24governmental subdivision for an authorized public use, if an application is submitted to the 245.25commissioner which includes a statement of facts as to the use to be made of the tract and 245.26the favorable recommendation of the county board. For the purposes of this paragraph, 245.27"authorized public use" means a use that allows an indefinite segment of the public to 245.28physically use and enjoy the property in numbers appropriate to its size and use, or is for a 245.29public service facility. Authorized public uses as defined in this paragraph are limited to: 245.30(1) a road, or right-of-way for a road; 245.31(2) a park that is both available to, and accessible by, the public that contains 245.32improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters; 245.33(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 245.34with a reasonable amount of surrounding land maintained in its natural state; 246.1(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, 246.2including transit ways, park-and-ride lots, transit stations, maintenance and garage 246.3facilities, and other facilities related to a public transit system; 246.4(5) public beaches or boat launches; 246.5(6) public parking; 246.6(7) civic recreation or conference facilities; and 246.7(8) public service facilities such as fire halls, police stations, lift stations, water 246.8towers, sanitation facilities, water treatment facilities, and administrative offices. 246.9No monetary compensation or consideration is required for the conveyance, except as 246.10provided in subdivision 1g, but the conveyance is subject to the conditions provided in 246.11law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d. 246.12(f) The commissioner of revenue shall convey a parcel of nonconservation 246.13tax-forfeited land to a local governmental subdivision of the state by quitclaim deed 246.14on behalf of the state upon the favorable recommendation of the county board if the 246.15governmental subdivision has certified to the board that prior to forfeiture the subdivision 246.16was entitled to the parcel under a written development agreement or instrument, but 246.17the conveyance failed to occur prior to forfeiture. No compensation or consideration is 246.18required for, and no conditions attach to, the conveyance. 246.19(g) The commissioner of revenue shall convey a parcel of nonconservation 246.20tax-forfeited land to the association of a common interest community by quitclaim deed 246.21upon the favorable recommendation of the county board if the association certifies to the 246.22board that prior to forfeiture the association was entitled to the parcel under a written 246.23agreement, but the conveyance failed to occur prior to forfeiture. No compensation or 246.24consideration is required for, and no conditions attach to, the conveyance. 246.25(h) Conservation tax-forfeited land may be sold to a governmental subdivision of 246.26the state for less than its market value for either: (1) creation or preservation of wetlands; 246.27(2) drainage or storage of storm water under a storm water management plan; or (3) 246.28preservation, or restoration and preservation, of the land in its natural state. The deed must 246.29contain a restrictive covenant limiting the use of the land to one of these purposes for 246.3030 years or until the property is reconveyed back to the state in trust. At any time, the 246.31governmental subdivision may reconvey the property to the state in trust for the taxing 246.32districts. The deed of reconveyance is subject to approval by the commissioner of revenue. 246.33No part of a purchase price determined under this paragraph shall be refunded upon a 246.34reconveyance, but the amount paid for a conveyance under this paragraph may be taken 246.35into account by the county board when setting the terms of a future sale of the same 246.36property to the same governmental subdivision under paragraph (b) or (d). If the lands 247.1are unplatted and located outside of an incorporated municipality and the commissioner 247.2of natural resources determines there is a mineral use potential, the sale is subject to the 247.3approval of the commissioner of natural resources. 247.4(i) A park and recreation board in a city of the first class is a governmental 247.5subdivision for the purposes of this section. 247.6(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed 247.7by the commissioner of revenue in the name of the state to a governmental subdivision for 247.8a school forest under section 89.41. An application that includes a statement of facts as 247.9to the use to be made of the tract and the favorable recommendation of the county board 247.10and the commissioner of natural resources must be submitted to the commissioner of 247.11revenue. No monetary compensation or consideration is required for the conveyance, but 247.12the conveyance is subject to the conditional use and reversion provisions of subdivisions 247.131c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the 247.14property back to the state in trust for the taxing districts. The deed of reconveyance is 247.15subject to approval by the commissioner of revenue. 247.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 247.17    Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read: 247.18    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years 247.19from the date of any conveyance of tax-forfeited land to a governmental subdivision for 247.20an authorized public use as provided in this section, regardless of when the deed for the 247.21authorized public use was executed, if the governmental subdivision has failed to put the 247.22land to that use, or abandons that use, the governing body of the subdivision must: (1) 247.23with the approval of the county board, purchase the property for an authorized public 247.24purpose at the present market value as determined by the county board, or (2) authorize 247.25the proper officers to convey the land, or the part of the land not required for an authorized 247.26public use, to the state of Minnesota in trust for the taxing districts. If the governing body 247.27purchases the property under clause (1), the commissioner of revenue shall, upon proper 247.28application submitted by the county auditor new text begin and upon the reconveyance of the land subject new text end 247.29 new text begin to the conditional use deed to the state new text end , convey the property on behalf of the state by 247.30quitclaim deed to the subdivision free of a use restriction and the possibility of reversion 247.31or defeasement. If the governing body decides to reconvey the property to the state under 247.32this clause, the officers shall execute a deed of conveyance immediately. The conveyance 247.33is subject to the approval of the commissioner and its form must be approved by the 247.34attorney general. For 15 years from the date of the conveyance, there is no failure to put 247.35the land to the authorized public use and no abandonment of that use if a formal plan of 248.1the governmental subdivision, including, but not limited to, a comprehensive plan or land 248.2use plan, shows an intended future use of the land for the authorized public use. 248.3(b) Property held by a governmental subdivision of the state under a conditional use 248.4deed executed under this section by the commissioner of revenue on or after January 1, 248.52007, may be acquired by that governmental subdivision after 15 years from the date 248.6of the conveyance if the commissioner determines upon written application from the 248.7subdivision that the subdivision has in fact put the property to the authorized public use for 248.8which it was conveyed, and the subdivision has made a finding that it has no current plans 248.9to change the use of the lands. Prior to conveying the property, the commissioner shall 248.10inquire whether the county board where the land is located objects to a conveyance of the 248.11property to the subdivision without conditions and without further act by or obligation 248.12of the subdivision. If the county does not object within 60 days, and the commissioner 248.13makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf 248.14of the state unconditionally conveying the property to the governmental subdivision. For 248.15purposes of this paragraph, demonstration of an intended future use for the authorized 248.16public use in a formal plan of the governmental subdivision does not constitute use for 248.17that authorized public use. 248.18(c) Property held by a governmental subdivision of the state under a conditional use 248.19deed executed under this section by the commissioner of revenue before January 1, 2007, 248.20is released from the use restriction and possibility of reversion on January 1, 2022, if the 248.21county board records a resolution describing the land and citing this paragraph. The 248.22county board may authorize the county treasurer to deduct the amount of the recording 248.23fees from future settlements of property taxes to the subdivision. 248.24(d) Except for tax-forfeited land conveyed to establish a school forest under section 248.2589.41 , property conveyed under a conditional use deed executed under this section by 248.26the commissioner of revenue, regardless of when the deed for the authorized public use 248.27was executed, is released from the use restriction and reverter, and any use restriction or 248.28reverter for which no declaration of reversion has been recorded with the county recorder 248.29or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 248.30years from the date the deed was acknowledged; or (3) final resolution of an appeal to 248.31district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the 248.32office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015. 248.33(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 248.34school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 248.35The property reverts to the state in trust for the taxing districts by operation of law if the 248.36commissioner of natural resources determines and reports to the commissioner of revenue 249.1under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 249.2land for school forest purposes for three consecutive years. The commissioner of revenue 249.3shall record a declaration of reversion for land that has reverted under this paragraph. 249.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 249.5    Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a 249.6subdivision to read: 249.7     new text begin Subd. 14. new text end new text begin Communication by electronic mail. new text end new text begin Prior to receiving aid pursuant to new text end 249.8 new text begin this section, a city must register an official electronic mail address with the commissioner, new text end 249.9 new text begin which the commissioner may use as an exclusive means to communicate with the city. new text end 249.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017 and thereafter. new text end 249.11    Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a 249.12subdivision to read: 249.13     new text begin Subd. 3a. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of new text end 249.14 new text begin natural resources shall certify to the commissioner of revenue the number of watercraft new text end 249.15 new text begin launches and the number of watercraft trailer parking spaces in each county. new text end 249.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017 and thereafter. new text end 249.17    Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a 249.18subdivision to read: 249.19     new text begin Subd. 3b. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of new text end 249.20 new text begin natural resources shall certify to the commissioner of revenue the counties that complied new text end 249.21 new text begin with the requirements of subdivision 3 the prior year and are eligible to receive aid new text end 249.22 new text begin under this section. new text end 249.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017 and thereafter. new text end 249.24    Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read: 249.25    Subd. 2. Exception. This section does not apply new text begin to sales made under chapter 282 or new text end 249.26if the purchaser is represented throughout the transaction by either: 249.27(1) a person licensed to practice law in this state; or 249.28(2) a person licensed as a real estate broker or salesperson under chapter 82, 249.29provided that the representation does not create a dual agency, as that term is defined 249.30in section 82.55, subdivision 6. 250.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales of tax-forfeited land new text end 250.2 new text begin occurring after the day following final enactment. new text end 250.3    Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read: 250.4    Subd. 2. Payment of supplemental credit. new text begin (a) new text end The commissioner must pay 250.5supplemental credit amounts to each qualifying taxpayer by October 15, 2014. 250.6 new text begin (b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, new text end 250.7 new text begin or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within new text end 250.8 new text begin two years from the date the warrant was issued, the right to the credit shall lapse and the new text end 250.9 new text begin warrant shall be deposited in the general fund. new text end 250.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 250.11    Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read: 250.12    Sec. 94. REPEALER. 250.13(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 250.1419e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 250.15part 8007.0200, are repealed. 250.16(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, 250.17subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 250.1853, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, 250.19subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 250.20279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, 250.21subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 250.227; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, 250.23subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 250.242b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; 250.25and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter 250.26375, article 9, section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; 250.27and 8130.7500, subpart 7, are repealed. 250.28(c) Minnesota Statutes 2012, section 469.1764, is repealed. 250.29(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 250.3038; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 250.31469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 250.32Supplement, section 469.340, subdivision 4, are repealed. 250.33(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed. 251.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from May 20, 2014, new text end 251.2 new text begin and pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, new text end 251.3 new text begin subdivision 2, is revived and reenacted as of that date. new text end 251.4    Sec. 41. new text begin REPEALER. new text end 251.5 new text begin (a) new text end new text begin Minnesota Statutes 2014, section 281.22, new text end new text begin is repealed. new text end 251.6 new text begin (b) new text end new text begin Minnesota Rules, part 8100.0700, new text end new text begin is repealed. new text end 251.7 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective the day following final enactment. new text end 251.8 new text begin Paragraph (b) is effective beginning with assessment year 2016. new text end 251.9ARTICLE 15 251.10DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS 251.11    Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read: 251.12    Subdivision 1. Annual report required. Every railroad company doing business 251.13in Minnesota shall annually file with the commissioner on or before March 31 a report 251.14under oath setting forth the information prescribed by the commissioner to enable the 251.15commissioner to make the valuation and equalization required by sections 270.80 to 251.16270.87 . new text begin The commissioner shall prescribe the content, format, and manner of the report new text end 251.17 new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" new text end 251.18 new text begin includes the property tax laws. If a report is made by electronic means, the taxpayer's new text end 251.19 new text begin signature is defined pursuant to section 270C.304, except that a "law administered by the new text end 251.20 new text begin commissioner" includes the property tax laws. new text end 251.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 251.22    Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read: 251.23    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed 251.24and certain amount of money, which equals or exceeds $25 and which is due and payable 251.25to a claimant agency. The term includes criminal fines imposed under section 609.10 or 251.26609.125 , fines imposed for petty misdemeanors as defined in section 609.02, subdivision 251.274a , and restitution. A debt may arise under a contractual or statutory obligation, a court 251.28order, or other legal obligation, but need not have been reduced to judgment. 251.29    A debt includes any legal obligation of a current recipient of assistance which is 251.30based on overpayment of an assistance grant where that payment is based on a client 251.31waiver or an administrative or judicial finding of an intentional program violation; 251.32or where the debt is owed to a program wherein the debtor is not a client at the time 252.1notification is provided to initiate recovery under this chapter and the debtor is not a 252.2current recipient of food support, transitional child care, or transitional medical assistance. 252.3    (b) A debt does not include any legal obligation to pay a claimant agency for medical 252.4care, including hospitalization if the income of the debtor at the time when the medical 252.5care was rendered does not exceed the following amount: 252.6    (1) for an unmarried debtor, an income of $8,800 new text begin $12,560 new text end or less; 252.7    (2) for a debtor with one dependent, an income of $11,270 new text begin $16,080 new text end or less; 252.8    (3) for a debtor with two dependents, an income of $13,330 new text begin $19,020 new text end or less; 252.9    (4) for a debtor with three dependents, an income of $15,120 new text begin $21,580 new text end or less; 252.10    (5) for a debtor with four dependents, an income of $15,950 new text begin $22,760 new text end or less; and 252.11    (6) for a debtor with five or more dependents, an income of $16,630 new text begin $23,730 new text end or less. 252.12 new text begin For purposes of this paragraph, "debtor" means the individual whose income, new text end 252.13 new text begin together with the income of the individual's spouse, other than a separated spouse, brings new text end 252.14 new text begin the individual within the income provisions of this paragraph. For purposes of this new text end 252.15 new text begin paragraph, a spouse, other than a separated spouse, shall be considered a dependent. new text end 252.16    (c) The commissioner shall adjust the income amounts in paragraph (b) by the 252.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 252.18Code, except that in section 1(f)(3)(B) the word "1999 new text begin 2014 new text end " shall be substituted for 252.19the word "1992." For 2001 new text begin 2016 new text end , the commissioner shall then determine the percent 252.20change from the 12 months ending on August 31, 1999 new text begin 2014 new text end , to the 12 months ending on 252.21August 31, 2000 new text begin 2015 new text end , and in each subsequent year, from the 12 months ending on August 252.2231, 1999 new text begin 2014 new text end , to the 12 months ending on August 31 of the year preceding the taxable 252.23year. The determination of the commissioner pursuant to this subdivision shall not be 252.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained 252.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount. 252.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount. 252.27    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of 252.28the dollar amount of the premium authorized under section 256L.15, subdivision 1a. 252.29 new text begin EFFECTIVE DATE. new text end new text begin The section is effective retroactively for debts incurred after new text end 252.30 new text begin December 31, 2014. new text end 252.31    Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read: 252.32    Subdivision 1. Disclosure to commissioner of human services. (a) On the request 252.33of the commissioner of human services, the commissioner shall disclose return information 252.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to 252.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c). 253.1    (b) Data that may be disclosed are limited to data relating to the identity, 253.2whereabouts, employment, income, and property of a person owing or alleged to be owing 253.3an obligation of child support. 253.4    (c) The commissioner of human services may request data only for the purposes of 253.5carrying out the child support enforcement program and to assist in the location of parents 253.6who have, or appear to have, deserted their children. Data received may be used only 253.7as set forth in section 256.978. 253.8    (d) The commissioner shall provide the records and information necessary to 253.9administer the supplemental housing allowance to the commissioner of human services. 253.10    (e) At the request of the commissioner of human services, the commissioner of 253.11revenue shall electronically match the Social Security numbers and names of participants 253.12in the telephone assistance plan operated under sections 237.69 to 237.71, with those of 253.13property tax refund filers, and determine whether each participant's household income is 253.14within the eligibility standards for the telephone assistance plan. 253.15    (f) The commissioner may provide records and information collected under sections 253.16295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 253.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 253.18102-234. Upon the written agreement by the United States Department of Health and 253.19Human Services to maintain the confidentiality of the data, the commissioner may provide 253.20records and information collected under sections 295.50 to 295.59 to the Centers for 253.21Medicare and Medicaid Services section of the United States Department of Health and 253.22Human Services for purposes of meeting federal reporting requirements. 253.23    (g) The commissioner may provide records and information to the commissioner of 253.24human services as necessary to administer the early refund of refundable tax credits. 253.25    (h) The commissioner may disclose information to the commissioner of human 253.26services new text begin as new text end necessary to verify income new text begin for income verification new text end for eligibility and premium 253.27payment under the MinnesotaCare program, under section 256L.05, subdivision 2 new text begin , as well new text end 253.28 new text begin as the medical assistance program under section 256B new text end . 253.29    (i) The commissioner may disclose information to the commissioner of human 253.30services necessary to verify whether applicants or recipients for the Minnesota family 253.31investment program, general assistance, food support, Minnesota supplemental aid 253.32program, and child care assistance have claimed refundable tax credits under chapter 290 253.33and the property tax refund under chapter 290A, and the amounts of the credits. 253.34    (j) The commissioner may disclose information to the commissioner of human 253.35services necessary to verify income for purposes of calculating parental contribution 253.36amounts under section 252.27, subdivision 2a. 254.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 254.2    Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read: 254.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING. 254.4 new text begin Except as otherwise provided by law, new text end the commissioner shall prescribe the content 254.5and new text begin , new text end format new text begin , and manner new text end of all returns and other forms required to be filed under a law 254.6administered by the commissioner, and may furnish them subject to charge on application. 254.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 254.8    Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read: 254.9    Subd. 5. Prohibition against collection during appeal period of an order. No 254.10collection action can be taken on an order of assessment, or any other order imposing a 254.11liability, including the filing of liens under section 270C.63, and no late payment penalties 254.12may be imposed when a return has been filed for the tax type and period upon which the 254.13order is based, during the appeal period of an order. The appeal period of an order ends: 254.14(1) 60 days after the order has been mailed to the taxpayer new text begin notice date designated new text end by the 254.15commissioner new text begin on the order new text end ; (2) if an administrative appeal is filed under section 270C.35, 254.1660 days after new text begin the notice date designated by the commissioner on the written new text end determination 254.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when 254.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the 254.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination 254.20of the appeal. This subdivision does not apply to a jeopardy assessment under section 254.21270C.36 , or a jeopardy collection under section 270C.36. 254.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 254.23 new text begin 31, 2016. new text end 254.24    Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read: 254.25    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, 254.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known 254.27address, or sent by electronic mail to the taxpayer's last known electronic mailing address 254.28as provided for in section 325L.08, is sufficient even if the taxpayer is deceased or is 254.29under a legal disability, or, in the case of a corporation, has terminated its existence, unless 254.30the commissioner has been provided with a new address by a party authorized to receive 254.31notices of assessment. new text begin Notice of an assessment is sufficient if it is sent on or before the new text end 254.32 new text begin notice date designated by the commissioner on the assessment. new text end 255.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments dated after December new text end 255.2 new text begin 31, 2016. new text end 255.3    Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read: 255.4    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 255.5section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 255.6charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the notice 255.7was mailed to the taxpayer's last known address, stating that a penalty has been imposed 255.8 new text begin or additional tax charge. For purposes of this section, the term "notice date" means the new text end 255.9 new text begin notice date designated by the commissioner on the order or other notice that a penalty or new text end 255.10 new text begin additional tax charge has been imposed new text end . 255.11(b) If the commissioner issues an order denying a request for abatement of penalty, 255.12interest, or additional tax charge, the taxpayer may file an administrative appeal as 255.13provided in section 270C.35 or appeal to Tax Court as provided in section 271.06. 255.14(c) If the commissioner does not issue an order on the abatement request within 255.1560 days from the date the request is received, the taxpayer may appeal to Tax Court as 255.16provided in section 271.06. 255.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 255.18 new text begin December 31, 2016. new text end 255.19    Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read: 255.20    Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any 255.21other provision of law, the commissioner may, based on a showing of reasonable cause, 255.22reissue an uncashed rebate new text begin , supplemental agricultural credit, new text end or property tax refund warrant 255.23or check that has lapsed under any provision of law relating to rebates or under section 255.24290A.18, subdivision 2 . The authority to reissue warrants or checks under this subdivision 255.25is limited to five years after the date of issuance of the original warrant or check. 255.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 255.27    Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read: 255.28    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the 255.29date of new text begin designated by the commissioner on new text end the order adjusting the tax or order denying a 255.30request for abatement, or, in the case of a denied refund, the new text begin notice new text end date of new text begin designated by new text end 255.31 new text begin the commissioner on new text end the notice of denial. 256.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 256.2 new text begin December 31, 2016. new text end 256.3    Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a 256.4subdivision to read: 256.5     new text begin Subd. 11. new text end new text begin Dismissal of administrative appeal. new text end new text begin If a taxpayer files an administrative new text end 256.6 new text begin appeal for an order of the commissioner and also files an appeal to the Tax Court for new text end 256.7 new text begin that same order of the commissioner, the administrative appeal is dismissed and the new text end 256.8 new text begin commissioner is no longer required to make a determination of appeal under subdivision 6. new text end 256.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all administrative appeals filed new text end 256.10 new text begin after June 30, 2016. new text end 256.11    Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read: 256.12    Subdivision 1. Sufficient notice. (a) If no method of notification of a written 256.13determination or action of the commissioner is otherwise specifically provided for by 256.14law, notice of the determination or action sent postage prepaid by United States mail to 256.15the taxpayer or other person affected by the determination or action at the taxpayer's 256.16or person's last known address, is sufficient. If the taxpayer or person being notified is 256.17deceased or is under a legal disability, or, in the case of a corporation being notified that 256.18has terminated its existence, notice to the last known address of the taxpayer, person, or 256.19corporation is sufficient, unless the department has been provided with a new address by a 256.20party authorized to receive notices from the commissioner. 256.21(b) If a taxpayer or other person agrees to accept notification by electronic means, 256.22notice of a determination or action of the commissioner sent by electronic mail to the 256.23taxpayer's or person's last known electronic mailing address as provided for in section 256.24325L.08 is sufficient. 256.25 new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent new text end 256.26 new text begin on or before the notice date designated by the commissioner on the notice. new text end 256.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices dated after December new text end 256.28 new text begin 31, 2016. new text end 256.29    Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a 256.30subdivision to read: 256.31     new text begin Subd. 9. new text end new text begin Enforcement; limitations. new text end new text begin (a) Notwithstanding any other law, the new text end 256.32 new text begin imposition of a penalty or any other action against a tax return preparer authorized by new text end 257.1 new text begin subdivision 6 with respect to a return may be taken by the commissioner within the period new text end 257.2 new text begin provided by section 289A.38 to assess tax on that return. new text end 257.3 new text begin (b) Imposition of a penalty or other action against a tax return preparer authorized new text end 257.4 new text begin by subdivision 6 other than with respect to a return must be taken by the commissioner new text end 257.5 new text begin within five years of the violation of statute. new text end 257.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax preparation services provided new text end 257.7 new text begin after the day following final enactment. new text end 257.8    Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read: 257.9    Subd. 5. Removal from list. The commissioner shall remove the name of a tax 257.10preparer from the list of tax preparers published under this section: 257.11(1) when the commissioner determines that the name was included on the list in error; 257.12(2) within 90 days new text begin three years new text end after the preparer has demonstrated to the commissioner 257.13that the preparer fully paid all fines new text begin or penalties new text end imposed, served any suspension, satisfied 257.14any sentence imposed, new text begin successfully completed any probationary period imposed, new text end and 257.15successfully completed any remedial actions required by the commissioner, the State 257.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or 257.17(3) when the commissioner has been notified that the tax preparer is deceased. 257.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 257.19    Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read: 257.20    Subd. 4. Licensing authority; duties. All licensing authorities must require 257.21the applicant to provide the applicant's Social Security number new text begin or individual taxpayer new text end 257.22 new text begin identification number new text end and Minnesota business identification number new text begin , as applicable, new text end on 257.23all license applications. Upon request of the commissioner, the licensing authority 257.24must provide the commissioner with a list of all applicants, including the name, 257.25address, business name and address, new text begin and new text end Social Security number, new text begin or individual taxpayer new text end 257.26 new text begin identification number new text end and business identification number new text begin , as applicable, new text end of each applicant. 257.27The commissioner may request from a licensing authority a list of the applicants no more 257.28than once each calendar year. 257.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 257.30    Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read: 257.31    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 257.3260 days after new text begin the new text end notice of the making and filing new text begin date new text end of an order of the commissioner of 258.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon 258.2the commissioner and file the original, with proof of such service, with the Tax Court 258.3administrator or with the court administrator of district court acting as court administrator 258.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order 258.5extend the time for appealing for an additional period not exceeding 30 days. new text begin For purposes new text end 258.6 new text begin of this section, the term "notice date" means the notice date designated by the commissioner new text end 258.7 new text begin on the order. new text end The notice of appeal shall be in the form prescribed by the Tax Court. Within 258.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal to 258.9the attorney general. The attorney general shall represent the commissioner, if requested, 258.10upon all such appeals except in cases where the attorney general has appealed in behalf of 258.11the state, or in other cases where the attorney general deems it against the interests of the 258.12state to represent the commissioner, in which event the attorney general may intervene or 258.13be substituted as an appellant in behalf of the state at any stage of the proceedings. 258.14Upon a final determination of any other matter over which the court is granted 258.15jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney 258.16shall file a petition or notice of appeal as provided by law with the court administrator of 258.17district court, acting in the capacity of court administrator of the Tax Court, with proof of 258.18service of the petition or notice of appeal as required by law and within the time required 258.19by law. As used in this subdivision, "final determination" includes a notice of assessment 258.20and equalization for the year in question received from the local assessor, an order of the 258.21local board of equalization, or an order of a county board of equalization. 258.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition 258.23filed with the district court administrator acting as court administrator of the Tax Court is 258.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 258.25property valuation for which the assessor, a local board of equalization, a county board of 258.26equalization or the commissioner of revenue has issued an order, the officer issuing the 258.27order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 258.28in the form prescribed by the Tax Court. 258.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 258.30 new text begin 31, 2016. new text end 258.31    Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read: 258.32    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules 258.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the 258.34procedures in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply new text end 258.35 new text begin to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. new text end The 259.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, 259.2apply until superseded. 259.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 259.4 new text begin 31, 2016. new text end 259.5    Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read: 259.6    Subd. 10. Personal property used for pollution control. Personal property used 259.7primarily for the abatement and control of air, water, or land pollution is exempt to the 259.8extent that it is so used, and real property is exempt if it is used primarily for abatement 259.9and control of air, water, or land pollution as part of an agricultural operation, as a part 259.10of a centralized treatment and recovery facility operating under a permit issued by the 259.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 259.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 259.13treatment facility and for the treatment, recovery, and stabilization of metals, oils, 259.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 259.15part of an electric generation system. For purposes of this subdivision, personal property 259.16includes ponderous machinery and equipment used in a business or production activity 259.17that at common law is considered real property. 259.18Any taxpayer requesting exemption of all or a portion of any real property or any 259.19equipment or device, or part thereof, operated primarily for the control or abatement of air, 259.20water, or land pollution shall file an application with the commissioner of revenue. The 259.21commissioner shall develop an electronic means to notify interested parties when electric 259.22power generation facilities have filed an application. new text begin The commissioner shall prescribe new text end 259.23 new text begin the content, format, and manner of the application pursuant to section 270C.30, except new text end 259.24 new text begin that a "law administered by the commissioner" includes the property tax laws, and if an new text end 259.25 new text begin application is made by electronic means, the taxpayer's signature is defined pursuant to new text end 259.26 new text begin section 270C.304, except that a "law administered by the commissioner" includes the new text end 259.27 new text begin property tax laws. new text end The Minnesota Pollution Control Agency shall upon request of the 259.28commissioner furnish information and advice to the commissioner. 259.29The information and advice furnished by the Minnesota Pollution Control 259.30Agency must include statements as to whether the equipment, device, or real property 259.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution 259.32Control Agency, and whether the equipment, device, or real property is installed or 259.33operated in accordance with it. On determining that property qualifies for exemption, 259.34the commissioner shall issue an order exempting the property from taxation. The 259.35commissioner shall develop an electronic means to notify interested parties when 260.1the commissioner has issued an order exempting property from taxation under this 260.2subdivision. The equipment, device, or real property shall continue to be exempt from 260.3taxation as long as the order issued by the commissioner remains in effect. 260.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 260.5    Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read: 260.6    Subdivision 1. Efficiency determination and certification. An owner or operator 260.7of a new or existing electric power generation facility, excluding wind energy conversion 260.8systems, may apply to the commissioner of revenue for a market value exclusion on the 260.9property as provided for in this section. This exclusion shall apply only to the market 260.10value of the equipment of the facility, and shall not apply to the structures and the land 260.11upon which the facility is located. The commissioner of revenue shall prescribe the forms 260.12 new text begin content, format, manner, new text end and procedures for this application new text begin pursuant to section 270C.30, new text end 260.13 new text begin except that a "law administered by the commissioner" includes the property tax laws. If new text end 260.14 new text begin an application is made by electronic means, the taxpayer's signature is defined pursuant new text end 260.15 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 260.16 new text begin property tax laws new text end . Upon receiving the application, the commissioner of revenue shall: (1) 260.17request the commissioner of commerce to make a determination of the efficiency of the 260.18applicant's electric power generation facility; and (2) shall develop an electronic means to 260.19notify interested parties when electric power generation facilities have filed an application. 260.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy 260.21outputs to energy inputs, expressed as a percentage, based on the performance of the 260.22facility's equipment during normal full load operation. The commissioner must include in 260.23this formula the energy used in any on-site preparation of materials necessary to convert 260.24the materials into the fuel used to generate electricity, such as a process to gasify petroleum 260.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in 260.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible 260.27project under section 216B.2424; for these instances, the commissioner shall adjust the 260.28heating value to allow for energy consumed for evaporation of the moisture in the wood. 260.29The applicant shall provide the commissioner of commerce with whatever information the 260.30commissioner deems necessary to make the determination. Within 30 days of the receipt 260.31of the necessary information, the commissioner of commerce shall certify the findings of 260.32the efficiency determination to the commissioner of revenue and to the applicant. The 260.33commissioner of commerce shall determine the efficiency of the facility and certify the 260.34findings of that determination to the commissioner of revenue every two years thereafter 260.35from the date of the original certification. 261.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 261.2    Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read: 261.3    Subdivision 1. Statement of exemption. (a) Except in the case of property owned 261.4by the state of Minnesota or any political subdivision thereof, and property exempt from 261.5taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at 261.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation 261.7on property described in section 272.02, subdivisions 2 to 33, must file a statement of 261.8exemption with the assessor of the assessment district in which the property is located. 261.9(b) A taxpayer claiming an exemption from taxation on property described in section 261.10272.02, subdivision 10 , must file a statement of exemption with the commissioner of 261.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption. 261.12(c) In case of sickness, absence or other disability or for good cause, the assessor 261.13or the commissioner may extend the time for filing the statement of exemption for a 261.14period not to exceed 60 days. 261.15(d) The commissioner of revenue shall prescribe the form and contents new text begin content, new text end 261.16 new text begin format, and manner new text end of the statement of exemption new text begin pursuant to section 270C.30, except new text end 261.17 new text begin that a "law administered by the commissioner" includes the property tax laws new text end . 261.18 new text begin (e) If a statement is made by electronic means, the taxpayer's signature is defined new text end 261.19 new text begin pursuant to section 270C.304, except that a "law administered by the commissioner" new text end 261.20 new text begin includes the property tax laws. new text end 261.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 261.22    Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read: 261.23    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax 261.24under subdivision 3 shall file a report with the commissioner of revenue annually on or 261.25before February 1 new text begin January 15 new text end detailing the amount of electricity in kilowatt-hours that 261.26was produced by the wind energy conversion system for the previous calendar year. The 261.27commissioner shall prescribe the form new text begin content, format, and manner new text end of the report new text begin pursuant new text end 261.28 new text begin to section 270C.30, except that a "law administered by the commissioner" includes the new text end 261.29 new text begin property tax laws new text end . The report must contain the information required by the commissioner 261.30to determine the tax due to each county under this section for the current year. If an owner 261.31of a wind energy conversion system subject to taxation under this section fails to file the 261.32report by the due date, the commissioner of revenue shall determine the tax based upon 261.33the nameplate capacity of the system multiplied by a capacity factor of 60 percent. 262.1 new text begin (b) If a report is made by electronic means, the taxpayer's signature is defined new text end 262.2 new text begin pursuant to section 270C.304, except that a "law administered by the commissioner" new text end 262.3 new text begin includes the property tax laws. new text end 262.4(b) new text begin (c) new text end On or before February 28, the commissioner of revenue shall notify the owner 262.5of the wind energy conversion systems of the tax due to each county for the current year 262.6and shall certify to the county auditor of each county in which the systems are located the 262.7tax due from each owner for the current year. 262.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 262.9 new text begin except that the amendment in paragraph (a) moving the date to file the report is effective new text end 262.10 new text begin for reports filed in 2017 and thereafter. new text end 262.11    Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read: 262.12    Subd. 4. Reports. An owner of a solar energy generating system subject to tax 262.13under this section shall file a report with the commissioner of revenue annually on or 262.14before January 15 detailing the amount of electricity in megawatt-hours that was produced 262.15by the system in the previous calendar year. The commissioner shall prescribe the form 262.16 new text begin content, format, and manner new text end of the report new text begin pursuant to section 270C.30 new text end . The report must 262.17contain the information required by the commissioner to determine the tax due to each 262.18county under this section for the current year. If an owner of a solar energy generating 262.19system subject to taxation under this section fails to file the report by the due date, the 262.20commissioner of revenue shall determine the tax based upon the nameplate capacity of 262.21the system multiplied by a capacity factor of 30 percent. 262.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 262.23    Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read: 262.24    Subd. 2. Form; information required. The certificate of value shall require 262.25such facts and information as may be determined by the commissioner to be reasonably 262.26necessary in the administration of the state education aid formulas. The form 262.27 new text begin commissioner shall prescribe the content, format, and manner new text end of the certificate of value 262.28shall be prescribed by the Department of Revenue which shall provide an adequate 262.29supply of forms to each county auditor new text begin pursuant to section 270C.30, except that a "law new text end 262.30 new text begin administered by the commissioner" includes the property tax laws new text end . 262.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 262.32    Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read: 263.1    Subd. 13. Homestead application. (a) A person who meets the homestead 263.2requirements under subdivision 1 must file a homestead application with the county 263.3assessor to initially obtain homestead classification. 263.4    (b) The format and contents of a uniform homestead application shall be prescribed 263.5by the commissioner of revenue. new text begin The commissioner shall prescribe the content, format, new text end 263.6 new text begin and manner of the homestead application required to be filed under this chapter pursuant new text end 263.7 new text begin to section 270C.30. new text end The application must clearly inform the taxpayer that this application 263.8must be signed by all owners who occupy the property or by the qualifying relative and 263.9returned to the county assessor in order for the property to receive homestead treatment. 263.10    (c) Every property owner applying for homestead classification must furnish to the 263.11county assessor the Social Security number of each occupant who is listed as an owner 263.12of the property on the deed of record, the name and address of each owner who does not 263.13occupy the property, and the name and Social Security number of each owner's spouse who 263.14occupies the property. The application must be signed by each owner who occupies the 263.15property and by each owner's spouse who occupies the property, or, in the case of property 263.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 263.17    If a property owner occupies a homestead, the property owner's spouse may not 263.18claim another property as a homestead unless the property owner and the property owner's 263.19spouse file with the assessor an affidavit or other proof required by the assessor stating that 263.20the property qualifies as a homestead under subdivision 1, paragraph (e). 263.21    Owners or spouses occupying residences owned by their spouses and previously 263.22occupied with the other spouse, either of whom fail to include the other spouse's name 263.23and Social Security number on the homestead application or provide the affidavits or 263.24other proof requested, will be deemed to have elected to receive only partial homestead 263.25treatment of their residence. The remainder of the residence will be classified as 263.26nonhomestead residential. When an owner or spouse's name and Social Security number 263.27appear on homestead applications for two separate residences and only one application is 263.28signed, the owner or spouse will be deemed to have elected to homestead the residence for 263.29which the application was signed. 263.30    (d) If residential real estate is occupied and used for purposes of a homestead by a 263.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 263.32order for the property to receive homestead status, a homestead application must be filed 263.33with the assessor. The Social Security number of each relative and spouse of a relative 263.34occupying the property shall be required on the homestead application filed under this 263.35subdivision. If a different relative of the owner subsequently occupies the property, the 263.36owner of the property must notify the assessor within 30 days of the change in occupancy. 264.1The Social Security number of a relative or relative's spouse occupying the property 264.2is private data on individuals as defined by section 13.02, subdivision 12, but may be 264.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 264.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. 264.5    (e) The homestead application shall also notify the property owners that if the 264.6property is granted homestead status for any assessment year, that same property shall 264.7remain classified as homestead until the property is sold or transferred to another person, 264.8or the owners, the spouse of the owner, or the relatives no longer use the property as their 264.9homestead. Upon the sale or transfer of the homestead property, a certificate of value must 264.10be timely filed with the county auditor as provided under section 272.115. Failure to 264.11notify the assessor within 30 days that the property has been sold, transferred, or that the 264.12owner, the spouse of the owner, or the relative is no longer occupying the property as a 264.13homestead, shall result in the penalty provided under this subdivision and the property 264.14will lose its current homestead status. 264.15    (f) If a homestead application has not been filed with the county by December 15, 264.16the assessor shall classify the property as nonhomestead for the current assessment year 264.17for taxes payable in the following year, provided that the owner may be entitled to receive 264.18the homestead classification by proper application under section 375.192. 264.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 264.20    Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read: 264.21273.371 REPORTS OF UTILITY COMPANIES. 264.22    Subdivision 1. Report required. Every electric light, power, gas, water, express, 264.23stage, and transportation company and pipeline new text begin company new text end doing business in Minnesota 264.24shall annually file with the commissioner on or before March 31 a report under oath 264.25setting forth the information prescribed by the commissioner to enable the commissioner 264.26to make valuations, recommended valuations, and equalization required under sections 264.27273.33 , 273.35, 273.36, 273.37, and 273.3711. new text begin The commissioner shall prescribe the new text end 264.28 new text begin content, format, and manner of the report pursuant to section 270C.30, except that new text end 264.29 new text begin a "law administered by the commissioner" includes the property tax laws. new text end If all the 264.30required information is not available on March 31, the company or pipeline shall file the 264.31information that is available on or before March 31, and the balance of the information 264.32as soon as it becomes available. new text begin If a report is made by electronic means, the taxpayer's new text end 264.33 new text begin signature is defined pursuant to section 270C.304, except that a "law administered by the new text end 264.34 new text begin commissioner" includes the property tax laws. new text end 265.1    Subd. 2. Extension. The commissioner for good cause may extend the time for 265.2filing the report required by subdivision 1. The extension may new text begin must new text end not exceed 15 days. 265.3     new text begin Subd. 3. new text end new text begin Reports filed by the commissioner. new text end new text begin If a company fails to file a report new text end 265.4 new text begin required by subdivision 1, the commissioner may, from information in the commissioner's new text end 265.5 new text begin possession or obtainable by the commissioner, make and file a report for the company or new text end 265.6 new text begin make the valuations, recommended valuations, and equalizations required under sections new text end 265.7 new text begin 273.33, 273.35 to 273.37, and 273.3711. new text end 265.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 265.9    Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read: 265.10287.2205 TAX-FORFEITED LAND. 265.11    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid 265.12by the purchaser of tax-forfeited land whether the purchase is the result of a public 265.13auction or private sale or a repurchase of tax-forfeited land. State agencies and local 265.14units of government that acquire tax-forfeited land by purchase or any other means are 265.15subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a 265.16governmental subdivision for an authorized public use under section 282.01, subdivision 265.171a , new text begin for a school forest under section 282.01, subdivision 1a, new text end or for redevelopment purposes 265.18under section 282.01, subdivision 1b. 265.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 265.20    Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a 265.21subdivision to read: 265.22     new text begin Subd. 17. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and new text end 265.23 new text begin manner of the returns and other documents pursuant to section 270C.30. This does not new text end 265.24 new text begin authorize the commissioner to require individual income taxpayers to file individual new text end 265.25 new text begin income tax returns electronically. new text end 265.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 265.27    Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read: 265.28    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 265.29under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold 265.30tax under section 290.923, subdivision 2, must file a return with the commissioner for each 265.31quarterly period unless otherwise prescribed by the commissioner. 266.1(b) A person or corporation required to make deposits under section 290.9201, 266.2subdivision 8 , must file an entertainer withholding tax return with the commissioner. 266.3(c) A person required to withhold an amount under section 290.9705, subdivision 1, 266.4must file a return. 266.5(d) A partnership required to deduct and withhold tax under section 290.92, 266.6subdivision 4b , must file a return. 266.7(e) An S corporation required to deduct and withhold tax under section 290.92, 266.8subdivision 4c , must also file a return. 266.9(f) Returns must be filed in the form and manner, and contain the information 266.10prescribed by the commissioner. new text begin The commissioner shall prescribe the content, format, new text end 266.11 new text begin and manner of the returns pursuant to section 270C.30. new text end Every return for taxes withheld 266.12must be signed by the employer, entertainment entity, contract payor, partnership, or S 266.13corporation, or a designee. 266.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 266.15    Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read: 266.16    Subdivision 1. Return required. (a) Except as provided in section 289A.18, 266.17subdivision 4 , for the month in which taxes imposed by chapter 297A are payable, or for 266.18which a return is due, a return for the preceding reporting period must be filed with the 266.19commissioner in the form and manner the commissioner prescribes. new text begin The commissioner new text end 266.20 new text begin shall prescribe the content, format, and manner of the returns pursuant to section 270C.30. new text end 266.21A person making sales at retail at two or more places of business may file a consolidated 266.22return subject to rules prescribed by the commissioner. In computing the dollar amount of 266.23items on the return, the amounts are rounded off to the nearest whole dollar, disregarding 266.24amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next 266.25highest dollar. 266.26(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 266.27permit under chapter 297A and who makes annual purchases, for use in a trade or business, 266.28of less than $18,500, or a person who is not required to hold a sales tax permit and who 266.29makes purchases for personal use, that are subject to the use tax imposed by section 266.30297A.63 , may file an annual use tax return on a form prescribed by the commissioner. 266.31 new text begin The commissioner shall prescribe the content, format, and manner of the return pursuant new text end 266.32 new text begin to section 270C.30. new text end If a person who qualifies for an annual use tax reporting period is 266.33required to obtain a sales tax permit or makes use tax purchases, for use in a trade or 266.34business, in excess of $18,500 during the calendar year, the reporting period must be 267.1considered ended at the end of the month in which the permit is applied for or the purchase 267.2in excess of $18,500 is made and a return must be filed for the preceding reporting period. 267.3(c) Notwithstanding paragraph new text begin paragraphs new text end (a) new text begin and (b) new text end , a person prohibited by the 267.4person's religious beliefs from using electronics shall be allowed to file by mail, without 267.5any additional fees. The filer must notify the commissioner of revenue of the intent to file 267.6by mail on a form prescribed by the commissioner. A return filed under this paragraph 267.7must be postmarked no later than the day the return is due in order to be considered filed 267.8on a timely basis. 267.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 267.10    Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read: 267.11    Subdivision 1. Individual income, fiduciary income, corporate franchise, and 267.12entertainment taxes; partnership and S corporation returns; information returns; 267.13mining company returns. The returns required to be made under sections 289A.08 and 267.14289A.12 must be filed at the following times: 267.15    (1) returns made on the basis of the calendar year must be filed on April 15 following 267.16the close of the calendar year, except that returns of corporations new text begin and partnerships new text end must be 267.17filed on the due date for filing the federal income tax return; 267.18    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the 267.19fourth month following the close of the fiscal year, except that returns of corporations new text begin and new text end 267.20 new text begin partnerships new text end must be filed on the due date for filing the federal income tax return; 267.21    (3) returns for a fractional part of a year must be filed on the due date for filing the 267.22federal income tax return; 267.23    (4) in the case of a final return of a decedent for a fractional part of a year, the return 267.24must be filed on the 15th day of the fourth month following the close of the 12-month 267.25period that began with the first day of that fractional part of a year; 267.26    (5) in the case of the return of a cooperative association, returns must be filed on or 267.27before the 15th day of the ninth month following the close of the taxable year; 267.28    (6) if a corporation has been divested from a unitary group and files a return for 267.29a fractional part of a year in which it was a member of a unitary business that files a 267.30combined report under section 290.17, subdivision 4, the divested corporation's return 267.31must be filed on the 15th day of the third month following the close of the common 267.32accounting period that includes the fractional year; 267.33    (7) returns of entertainment entities must be filed on April 15 following the close of 267.34the calendar year; 268.1    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed 268.2on the 15th day of the fifth month following the close of the taxable year; 268.3    (9) returns of mining companies must be filed on May 1 following the close of the 268.4calendar year; and 268.5    (10) returns required to be filed with the commissioner under section 289A.12, 268.6subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the 268.7commissioner. 268.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 268.9    Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read: 268.10    Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment 268.11of tax on the date made. An assessment of a deficiency arising out of an erroneous refund 268.12may be made at any time within two years from the making of the refund. If part of the 268.13refund was induced by fraud or misrepresentation of a material fact, the assessment may 268.14be made at any time. new text begin (a) Except as provided in paragraph (b), an erroneous refund occurs new text end 268.15 new text begin when the commissioner issues a payment to a person that exceeds the amount the person new text end 268.16 new text begin is entitled to receive under law. An erroneous refund is considered an underpayment new text end 268.17 new text begin of tax on the date issued. new text end 268.18 new text begin (b) To the extent that the amount paid does not exceed the amount claimed by the new text end 268.19 new text begin taxpayer, an erroneous refund does not include the following: new text end 268.20 new text begin (1) any amount of a refund or credit paid pursuant to a claim for refund filed by new text end 268.21 new text begin a taxpayer, including but not limited to refunds of claims made under section 290.06, new text end 268.22 new text begin subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; new text end 268.23 new text begin 290.0681; or 290.0692; or chapter 290A; or new text end 268.24 new text begin (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed new text end 268.25 new text begin by a taxpayer. new text end 268.26 new text begin (c) The commissioner may make an assessment to recover an erroneous refund at new text end 268.27 new text begin any time within two years from the issuance of the erroneous refund. If all or part of new text end 268.28 new text begin the erroneous refund was induced by fraud or misrepresentation of a material fact, the new text end 268.29 new text begin assessment may be made at any time. new text end 268.30 new text begin (d) Assessments of amounts that are not erroneous refunds under paragraph (b) new text end 268.31 new text begin must be conducted under section 289A.38. new text end 268.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 268.33 new text begin applies retroactively to all refunds issued on, before, or after that date, but does not apply to new text end 268.34 new text begin the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d new text end 269.1 new text begin 234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do new text end 269.2 new text begin not invalidate any assessments made by the commissioner prior to this effective date. new text end 269.3    Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read: 269.4    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the 269.5refund claim is denied in whole or in part, the taxpayer may: 269.6(1) file an administrative appeal as provided in section 270C.35, or an appeal 269.7with the Tax Court, within 60 days after issuance new text begin the notice date new text end of the commissioner's 269.8notice of denial; or 269.9(2) file an action in the district court to recover the refund. 269.10(b) An action in the district court on a denied claim for refund must be brought 269.11within 18 months of the new text begin notice new text end date of the denial of the claim by the commissioner. new text begin For new text end 269.12 new text begin the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3. new text end 269.13(c) No action in the district court or the Tax Court shall be brought within six months 269.14of the filing of the refund claim unless the commissioner denies the claim within that period. 269.15(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 269.16of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 269.17time after the expiration of six months from the time the claim was filed. 269.18(e) The commissioner and the taxpayer may agree to extend the period for bringing 269.19an action in the district court. 269.20(f) An action for refund of tax by the taxpayer must be brought in the district court 269.21of the district in which lies the county of the taxpayer's residence or principal place of 269.22business. In the case of an estate or trust, the action must be brought at the principal place 269.23of its administration. Any action may be brought in the district court for Ramsey County. 269.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 269.25 new text begin December 31, 2016. new text end 269.26    Sec. 32. new text begin [290B.11] FORMS. new text end 269.27 new text begin The commissioner shall prescribe the content, format, and manner of all forms and new text end 269.28 new text begin other documents required to be filed under this chapter pursuant to section 270C.30. new text end 269.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 269.30    Sec. 33. new text begin [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN. new text end 270.1 new text begin On request of the commissioner, the commissioner of natural resources must new text end 270.2 new text begin annually provide verification that the claimant has a current forest management plan on new text end 270.3 new text begin file with the Department of Natural Resources. new text end 270.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications filed after July new text end 270.5 new text begin 1, 2017. new text end 270.6    Sec. 34. new text begin [293.15] FORMS. new text end 270.7 new text begin The commissioner shall prescribe the content, format, and manner of all forms and new text end 270.8 new text begin other documents required to be filed under this chapter pursuant to section 270C.30. new text end 270.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 270.10    Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read: 270.11    Subd. 6. Form of returns. The estimated payments and annual return must contain 270.12the information and be in the form prescribed by the commissioner. new text begin The commissioner new text end 270.13 new text begin shall prescribe the content, format, and manner of the estimated payment forms and annual new text end 270.14 new text begin return pursuant to section 270C.30. new text end 270.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 270.16    Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a 270.17subdivision to read: 270.18     new text begin Subd. 5. new text end new text begin Forms. new text end new text begin The commissioner shall prescribe the content, format, and manner new text end 270.19 new text begin of all forms and other documents required to be filed under this chapter pursuant to section new text end 270.20 new text begin 270C.30. new text end 270.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 270.22    Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read: 270.23    Subd. 9. Abatement of penalty. (a) The commissioner may by written order 270.24abate any penalty imposed under this section, if in the commissioner's opinion there is 270.25reasonable cause to do so. 270.26(b) A request for abatement of penalty must be filed with the commissioner within 270.2760 days of the new text begin notice new text end date new text begin of new text end the notice stating that a penalty has been imposed was mailed 270.28to the taxpayer's last known address. new text begin For purposes of this section, the term "notice date" new text end 270.29 new text begin means the notice date designated by the commissioner on the order or other notice that a new text end 270.30 new text begin penalty has been imposed. new text end 271.1(c) If the commissioner issues an order denying a request for abatement of penalty, 271.2the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to 271.3Tax Court as provided in section 271.06. If the commissioner does not issue an order on 271.4the abatement request within 60 days from the date the request is received, the taxpayer 271.5may appeal to Tax Court as provided in section 271.06. 271.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 271.7 new text begin December 31, 2016. new text end 271.8    Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read: 271.9296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT. 271.10In lieu of an administrative appeal under section 270C.35, any person aggrieved by 271.11an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 271.1260 days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 271.13provided under section 271.06. new text begin For purposes of this section, the term "notice date" means new text end 271.14 new text begin the notice date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 271.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 271.16 new text begin 31, 2016. new text end 271.17    Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read: 271.18297D.02 ADMINISTRATION. 271.19The commissioner of revenue shall administer this chapter. new text begin The commissioner shall new text end 271.20 new text begin prescribe the content, format, and manner of all forms and other documents required to be new text end 271.21 new text begin filed under this chapter pursuant to section 270C.30. new text end Payments required by this chapter 271.22must be made to the commissioner on the form provided by the commissioner. Tax obligors 271.23are not required to give their name, address, Social Security number, or other identifying 271.24information on the form. The commissioner shall collect all taxes under this chapter. 271.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 271.26    Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read: 271.27    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due 271.28and payable to the commissioner when the gambling tax return is required to be filed. 271.29Distributors must file their monthly sales figures with the commissioner on a form 271.30prescribed by the commissioner. Returns covering the taxes imposed under this section 271.31must be filed with the commissioner on or before the 20th day of the month following the 272.1close of the previous calendar month. The commissioner may require that the returns be 272.2filed via magnetic media or electronic data transfer. new text begin The commissioner shall prescribe the new text end 272.3 new text begin content, format, and manner of returns or other documents pursuant to section 270C.30. new text end 272.4The proceeds, along with the revenue received from all license fees and other fees under 272.5sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of 272.6management and budget for deposit in the general fund. 272.7(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by 272.8the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards 272.9by the organization is exempt from taxes imposed by chapter 297A and is exempt from all 272.10local taxes and license fees except a fee authorized under section 349.16, subdivision 8. 272.11(c) One-half of one percent of the revenue deposited in the general fund under 272.12paragraph (a), is appropriated to the commissioner of human services for the compulsive 272.13gambling treatment program established under section 245.98. One-half of one percent 272.14of the revenue deposited in the general fund under paragraph (a), is appropriated to 272.15the commissioner of human services for a grant to the state affiliate recognized by 272.16the National Council on Problem Gambling to increase public awareness of problem 272.17gambling, education and training for individuals and organizations providing effective 272.18treatment services to problem gamblers and their families, and research relating to 272.19problem gambling. Money appropriated by this paragraph must supplement and must not 272.20replace existing state funding for these programs. 272.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 272.22    Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read: 272.23    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for 272.24use or resale in this state, or for receipt by a person or entity in this state, shall file with the 272.25commissioner, on a form prescribed by the commissioner, a report of gambling product 272.26sold to any person in the state, including the established governing body of an Indian tribe 272.27recognized by the United States Department of the Interior. The report must be filed 272.28monthly on or before the 20th day of the month succeeding the month in which the sale 272.29was made. The commissioner may require that the report be submitted via magnetic 272.30media or electronic data transfer. new text begin The commissioner shall prescribe the content, format, new text end 272.31 new text begin and manner of returns or other documents pursuant to section 270C.30. new text end The commissioner 272.32may inspect the premises, books, records, and inventory of a manufacturer without notice 272.33during the normal business hours of the manufacturer. A person violating this section is 272.34guilty of a misdemeanor. 273.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 273.2    Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read: 273.3    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form 273.4the commissioner prescribes, its sales of each type of gambling product. This report must 273.5be filed monthly on or before the 20th day of the month succeeding the month in which 273.6the sale was made. The commissioner may require that a distributor submit the monthly 273.7report and invoices required in this subdivision via magnetic media or electronic data 273.8transfer. new text begin The commissioner shall prescribe the content, format, and manner of returns or new text end 273.9 new text begin other documents pursuant to section 270C.30. new text end 273.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 273.11    Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read: 273.12    Subdivision 1. Reports. An organization must file with the commissioner, on a form 273.13prescribed by the commissioner, a report showing all gambling activity conducted by that 273.14organization for each month. Gambling activity includes all gross receipts, prizes, all 273.15gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 273.16purpose and board-approved expenditures. The report must be filed with the commissioner 273.17on or before the 20th day of the month following the month in which the gambling activity 273.18takes place. The commissioner may require that the reports be filed via magnetic media or 273.19electronic data transfer. new text begin The commissioner shall prescribe the content, format, and manner new text end 273.20 new text begin of returns or other documents pursuant to section 270C.30. new text end 273.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 273.22    Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read: 273.23    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day 273.24of each calendar month, a distributor with a place of business in this state shall file a 273.25return with the commissioner showing the quantity of cigarettes manufactured or brought 273.26in from outside the state or purchased during the preceding calendar month and the 273.27quantity of cigarettes sold or otherwise disposed of in this state and outside this state 273.28during that month. A licensed distributor outside this state shall in like manner file a 273.29return showing the quantity of cigarettes shipped or transported into this state during the 273.30preceding calendar month. Returns must be made in the form and manner prescribed by 273.31The commissioner new text begin shall prescribe the content, format, and manner of returns pursuant to new text end 273.32 new text begin section 270C.30, new text end and new text begin the returns new text end must contain any other information required by the 274.1commissioner. The return must be accompanied by a remittance for the full unpaid tax 274.2liability shown by it. For distributors subject to the accelerated tax payment requirements 274.3in subdivision 10, the return for the May liability is due two business days before June 30th 274.4of the year and the return for the June liability is due on or before August 18th of the year. 274.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 274.6    Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read: 274.7297F.23 JUDICIAL REVIEW. 274.8In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 274.9order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 274.10days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 274.11provided under section 271.06. new text begin For purposes of this section, the term "notice date" means new text end 274.12 new text begin the notice date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 274.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 274.14 new text begin 31, 2016. new text end 274.15    Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read: 274.16    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or 274.17importers. On or before the 18th day of each calendar month following the month in 274.18which a licensed manufacturer or wholesaler first sells wine and distilled spirits within 274.19the state, or a brewer or importer first sells or imports fermented malt beverages, or a 274.20wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages, 274.21the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must 274.22file a return with the commissioner, and in addition must keep records and render reports 274.23as required by the commissioner. Returns must be made in a form and manner prescribed 274.24by the commissioner, and new text begin The commissioner shall prescribe the content, format, and new text end 274.25 new text begin manner of returns pursuant to section 270C.30. The returns new text end must contain any other 274.26information required by the commissioner. Returns must be accompanied by a remittance 274.27for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due. 274.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 274.29    Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read: 274.30297G.22 JUDICIAL REVIEW. 275.1In lieu of an administrative appeal under this chapter, a person aggrieved by an order 275.2of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 275.3from the date of the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided 275.4under section 271.06. new text begin For purposes of this section, the term "notice date" means the notice new text end 275.5 new text begin date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 275.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December new text end 275.7 new text begin 31, 2016. new text end 275.8    Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision 275.9to read: 275.10     new text begin Subd. 11. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and new text end 275.11 new text begin manner of returns or other documents pursuant to section 270C.30. new text end 275.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.13    Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read: 275.14    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in 275.15whole or in part, the taxpayer may contest the denial by: 275.16(1) filing an administrative appeal with the commissioner under section 270C.35; 275.17(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the notice of 275.18denial; or 275.19(3) filing an action in the district court to recover the refund. 275.20(b) An action in the district court must be brought within 18 months following new text begin of new text end the 275.21 new text begin notice new text end date of the notice of denial. new text begin For purposes of this section, "notice date" is defined in new text end 275.22 new text begin section 270C.35, subdivision 3. new text end An action for refund of tax or surcharge must be brought 275.23in the district court of the district in which lies the taxpayer's principal place of business or 275.24in the District Court for Ramsey County. If a taxpayer files a claim for refund and the 275.25commissioner has not issued a denial of the claim, the taxpayer may bring an action in 275.26the district court or the Tax Court at any time after the expiration of six months from the 275.27time the claim was filed. 275.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 275.29 new text begin December 31, 2016. new text end 275.30    Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read: 275.31    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a 275.32repayment required under subdivision 1, if the commissioner, in consultation with 276.1the commissioner of employment and economic development and appropriate officials 276.2from the local government units in which the qualified business is located, determines 276.3that requiring repayment of the tax is not in the best interest of the state or the local 276.4government units and the business ceased operating as a result of circumstances beyond 276.5its control including, but not limited to: 276.6    (1) a natural disaster; 276.7    (2) unforeseen industry trends; or 276.8    (3) loss of a major supplier or customer. 276.9    (b)(1) The commissioner shall waive repayment required under subdivision 1a if 276.10the commissioner has waived repayment by the operating business under subdivision 1, 276.11unless the person that received benefits without having to operate a business in the zone 276.12was a contributing factor in the qualified business becoming subject to repayment under 276.13subdivision 1; 276.14    (2) the commissioner shall waive the repayment required under subdivision 1a, even 276.15if the repayment has not been waived for the operating business if: 276.16    (i) the person that received benefits without having to operate a business in the zone 276.17and the business that operated in the zone are not related parties as defined in section 276.18267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and 276.19    (ii) actions of the person were not a contributing factor in the qualified business 276.20becoming subject to repayment under subdivision 1. 276.21(c) Requests for waiver must be made no later than 60 days after the earlier of the 276.22notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax 276.23statement issued under subdivision 4, paragraph (c). new text begin For purposes of this section, the term new text end 276.24 new text begin "notice date" means the notice date designated by the commissioner on the order. new text end 276.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders of the commissioner of new text end 276.26 new text begin revenue dated after December 31, 2016. new text end 276.27    Sec. 51. new text begin REPEALER. new text end 276.28 new text begin Minnesota Statutes 2014, section 290C.06, new text end new text begin is repealed. new text end 276.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end "276.30Delete the title and insert: 276.31"A bill for an act 276.32relating to financing of state and local government; making changes to property, 276.33individual income, corporate franchise, estate, sales and use, excise, petroleum 276.34and other fuel, gambling, tobacco, special, mineral, local, and other taxes and 276.35tax-related provisions; modifying local government aids and credits; amending 276.36county levy authority; exempting certain electric generation facility property and 277.1soccer stadium property from property tax; extending homestead value exclusion 277.2for spouses of qualifying deceased veterans; amending the state general levy; 277.3abating local property taxes in the Lake Mille Lacs area; establishing school 277.4building bond agricultural credit; establishing reimbursement for certain 277.5out-of-home placements of Indian children; establishing riparian protection 277.6aid; forgiving certain aid penalties; providing for federal tax conformity; 277.7modifying income tax credits; providing income tax credits; changing income 277.8tax modifications; modifying residency rules; modifying sales and use tax 277.9definitions; modifying sales and use tax collection requirements; modifying sales 277.10and use tax exemptions; providing for reimbursement from the Minnesota Sports 277.11Facilities Authority of certain sales and use taxes; allocating certain sales and use 277.12tax revenues; modifying and allowing certain local sales and use taxes; modifying 277.13provisions for gasoline used as a substitute for aviation gasoline; providing 277.14tax rates on paper pull-tabs sold at bingo halls; providing definitions and a 277.15tax rate for vapor products; modifying taconite tax distributions and deposits; 277.16providing for local development projects; modifying public finance provisions; 277.17transferring approval authority from the Iron Range Resources and Rehabilitation 277.18Board to the commissioner of Iron Range resources and rehabilitation; 277.19requiring the commissioner of Iron Range resources and rehabilitation to seek 277.20a recommendation from the board in certain circumstances; providing for 277.21transfer of ownership, eligibility, certification, and notification requirements for 277.22enrollment of land in the Sustainable Forest Incentive Act; modifying the budget 277.23reserve; providing a new markets grant program; providing a tax time savings 277.24grant program; providing civil and criminal penalties for sales suppression 277.25devices; allocating additional amounts to the border city enterprise zones; making 277.26clarifying and conforming changes; removing obsolete language; requiring 277.27reports; appropriating money;amending Minnesota Statutes 2014, sections 13.51, 277.28subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129, 277.29subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8, 277.30by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; 277.31270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision 277.325; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, 277.33subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding 277.34a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision; 277.35270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1; 277.36271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, 277.37subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025, 277.38subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295, 277.39subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision 277.407; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, 277.41subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; 277.42273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1; 277.43274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, 277.444; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08, 277.45subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision 277.461; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14, 277.47subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37, 277.48subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38, 277.49subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; 277.50289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision 277.5114; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision 277.522; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, 277.53subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a 277.54subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22; 277.55290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision 277.561; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision 277.571a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision 277.583; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 278.1290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; 278.2290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1; 278.3290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03, 278.4subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2; 278.5295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; 278.6296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, 278.7subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; 278.8296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision 278.91; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66, 278.10subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding 278.11subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by 278.12adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; 278.13297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04, 278.14subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, 278.15subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding 278.16subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22; 278.17297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, 278.18subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 278.19298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a, 278.205a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, 278.216; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28, 278.22subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions 278.231, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by 278.24adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 278.25412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a 278.26subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, 278.27subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision 278.283b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017, 278.29subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions; 278.30559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015 278.31Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01, 278.32subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005, 278.33subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws 278.341980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 278.351988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8, 278.36section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter 278.37471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws 278.381999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001, 278.39First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154, 278.40article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20; 278.41Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as 278.42amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article 278.431, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing 278.44coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C; 278.45273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014, 278.46sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02, 278.47subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules, 278.48parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3." 279.1 We request the adoption of this report and repassage of the bill. 279.2 House Conferees: 279.3 ..... ..... 279.4 Greg Davids Steve Drazkowski 279.5 ..... ..... 279.6 Bob Barrett Chris Swedzinski 279.7 ..... 279.8 Gene Pelowski Jr. 279.9 Senate Conferees: 279.10 ..... ..... 279.11 Rod Skoe Ann H. Rest 279.12 ..... ..... 279.13 Lyle Koenen Kari Dziedzic 279.14 ..... 279.15 Paul E. Gazelka