relating to financing of state and local government; making changes to individual
         <br/>
<a id="pl.1.3"></a><var>1.3</var>income and corporate franchise, property, sales and use, estate, mineral, tobacco,
         <br/>
<a id="pl.1.4"></a><var>1.4</var>special, local, and other taxes and tax-related provisions; providing for and <br/>
<a id="pl.1.5"></a><var>1.5</var>expanding credits; modifying local government aids; modifying exclusions, <br/>
<a id="pl.1.6"></a><var>1.6</var>exemptions, and levy deadlines; modifying sales and use tax exemptions; <br/>
<a id="pl.1.7"></a><var>1.7</var>changing sales, use, and excise tax remittances; modifying certain local sales and
         <br/>
<a id="pl.1.8"></a><var>1.8</var>use taxes; modifying income tax credits; modifying the payment in lieu of tax <br/>
<a id="pl.1.9"></a><var>1.9</var>provisions; clarifying estate tax provisions; providing for and modifying certain
         <br/>
<a id="pl.1.10"></a><var>1.10</var>local development projects; modifying electric generation machinery valuation; <br/>
<a id="pl.1.11"></a><var>1.11</var>clarifying tax increment financing rules; modifying property tax interest rates; <br/>
<a id="pl.1.12"></a><var>1.12</var>modifying valuation and taxation of railroad property; modifying the Sustainable <br/>
<a id="pl.1.13"></a><var>1.13</var>Forest Incentive Act; modifying Iron Range fiscal disparities program; modifying <br/>
<a id="pl.1.14"></a><var>1.14</var>certain county levy authority; allocating additional tax reductions for border <br/>
<a id="pl.1.15"></a><var>1.15</var>cities; modifying the distribution of taconite production and occupation taxes; <br/>
<a id="pl.1.16"></a><var>1.16</var>modifying and providing provisions for public finance; making conforming, <br/>
<a id="pl.1.17"></a><var>1.17</var>policy, and technical changes to tax provisions; requiring reports; appropriating
         <br/>
<a id="pl.1.18"></a><var>1.18</var>money;amending Minnesota Statutes 2014, sections 13.51, subdivision 2; <br/>
<a id="pl.1.19"></a><var>1.19</var>16A.152, subdivisions 2, 8; 16D.08, subdivision 2; 69.021, subdivision 5; <br/>
<a id="pl.1.20"></a><var>1.20</var>126C.01, subdivision 3; 126C.40, subdivision 1; 136A.129, subdivision 3; <br/>
<a id="pl.1.21"></a><var>1.21</var>138.053; 216B.1621, subdivision 2; 216B.164, subdivision 2a; 216B.2424, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 270.072, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivisions 2, 3, by adding a subdivision; 270.12, by adding a subdivision; <br/>
<a id="pl.1.24"></a><var>1.24</var>270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1, <br/>
<a id="pl.1.25"></a><var>1.25</var>3, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; <br/>
<a id="pl.1.26"></a><var>1.26</var>270.87; 270A.03, subdivision 5; 270B.14, subdivision 1; 270C.03, subdivision <br/>
<a id="pl.1.27"></a><var>1.27</var>1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.347, <br/>
<a id="pl.1.28"></a><var>1.28</var>subdivision 1; 270C.35, subdivision 3, by adding a subdivision; 270C.38, <br/>
<a id="pl.1.29"></a><var>1.29</var>subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision <br/>
<a id="pl.1.30"></a><var>1.30</var>5; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, <br/>
<a id="pl.1.31"></a><var>1.31</var>7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10; <br/>
<a id="pl.1.32"></a><var>1.32</var>272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, <br/>
<a id="pl.1.33"></a><var>1.33</var>by adding a subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; <br/>
<a id="pl.1.34"></a><var>1.34</var>273.032; 273.061, subdivision 7; 273.08; 273.121, by adding a subdivision; <br/>
<a id="pl.1.35"></a><var>1.35</var>273.124, subdivision 13; 273.13, subdivisions 23, 24; 273.1392; 273.1393; <br/>
<a id="pl.1.36"></a><var>1.36</var>273.33, subdivisions 1, 2; 273.37, subdivision 1; 273.371; 273.372, subdivisions <br/>
<a id="pl.1.37"></a><var>1.37</var>2, 4, by adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; <br/>
<a id="pl.1.38"></a><var>1.38</var>274.135, subdivision 3; 275.025, subdivisions 1, 3; 275.065, subdivisions 1, 3; <br/>
<a id="pl.1.39"></a><var>1.39</var>275.066; 275.07, subdivision 1; 275.62, subdivision 2; 276.04, subdivision 2; <br/>
<a id="pl.2.1"></a><var>2.1</var>276A.06, subdivisions 3, 5; 278.01, subdivision 1; 279.01, subdivision 1; 279.37,
         <br/>
<a id="pl.2.2"></a><var>2.2</var>subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 287.2205; <br/>
<a id="pl.2.3"></a><var>2.3</var>289A.02, subdivision 7, as amended; 289A.08, subdivisions 11, 16, by adding <br/>
<a id="pl.2.4"></a><var>2.4</var>a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, <br/>
<a id="pl.2.5"></a><var>2.5</var>subdivision 14; 289A.20, subdivision 4; 289A.38, subdivision 6; 289A.50, <br/>
<a id="pl.2.6"></a><var>2.6</var>subdivision 7; 289A.60, subdivisions 15, 28; 290.01, subdivisions 4a, 7, 19, <br/>
<a id="pl.2.7"></a><var>2.7</var>as amended, 19b, 19c, 19d, 31, as amended, by adding a subdivision; 290.06, <br/>
<a id="pl.2.8"></a><var>2.8</var>by adding subdivisions; 290.0671, subdivisions 1, 6a; 290.0672, subdivision <br/>
<a id="pl.2.9"></a><var>2.9</var>1; 290.0674, subdivisions 1, 2; 290.068, subdivisions 1, 2, 3, 6a, by adding <br/>
<a id="pl.2.10"></a><var>2.10</var>a subdivision; 290.091, subdivision 3; 290.0921, subdivision 3; 290.0922, <br/>
<a id="pl.2.11"></a><var>2.11</var>subdivision 2; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision
         <br/>
<a id="pl.2.12"></a><var>2.12</var>4; 290A.03, subdivisions 13, 15, as amended; 290A.04, subdivision 2h; 290A.19; <br/>
<a id="pl.2.13"></a><var>2.13</var>290B.03, subdivision 1; 290B.04, subdivision 1; 290C.01; 290C.02, subdivisions <br/>
<a id="pl.2.14"></a><var>2.14</var>1, 3, 6; 290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision <br/>
<a id="pl.2.15"></a><var>2.15</var>1; 290C.10; 290C.11; 290C.13, subdivisions 3, 6; 291.005, subdivision 1; <br/>
<a id="pl.2.16"></a><var>2.16</var>291.03, subdivision 10, by adding a subdivision; 291.031; 295.54, subdivision 2; <br/>
<a id="pl.2.17"></a><var>2.17</var>295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; <br/>
<a id="pl.2.18"></a><var>2.18</var>296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, <br/>
<a id="pl.2.19"></a><var>2.19</var>subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; <br/>
<a id="pl.2.20"></a><var>2.20</var>296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision <br/>
<a id="pl.2.21"></a><var>2.21</var>1; 296A.22, subdivision 9; 296A.26; 297A.62, subdivision 3; 297A.67, <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision 7a, by adding subdivisions; 297A.68, subdivisions 5, 35a; 297A.70, <br/>
<a id="pl.2.23"></a><var>2.23</var>subdivisions 4, 14, by adding a subdivision; 297A.82, subdivision 4a; 297A.994, <br/>
<a id="pl.2.24"></a><var>2.24</var>subdivision 4; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision <br/>
<a id="pl.2.25"></a><var>2.25</var>1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.05, subdivision 3; <br/>
<a id="pl.2.26"></a><var>2.26</var>297F.09, subdivisions 1, 10; 297F.23; 297G.09, subdivisions 1, 9; 297G.22; <br/>
<a id="pl.2.27"></a><var>2.27</var>297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, <br/>
<a id="pl.2.28"></a><var>2.28</var>subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; <br/>
<a id="pl.2.29"></a><var>2.29</var>298.01, subdivisions 3b, 4c; 298.17; 298.227; 298.24, subdivision 1, by adding <br/>
<a id="pl.2.30"></a><var>2.30</var>a subdivision; 298.28, subdivisions 3, 7a; 366.095, subdivision 1; 383B.117, <br/>
<a id="pl.2.31"></a><var>2.31</var>subdivision 2; 410.32; 412.301; 469.034, subdivision 2; 469.101, subdivision <br/>
<a id="pl.2.32"></a><var>2.32</var>1; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175, <br/>
<a id="pl.2.33"></a><var>2.33</var>subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision; <br/>
<a id="pl.2.34"></a><var>2.34</var>469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions <br/>
<a id="pl.2.35"></a><var>2.35</var>1, 7; 469.194, subdivision 1; 469.319, subdivision 5; 469.40, subdivision <br/>
<a id="pl.2.36"></a><var>2.36</var>11, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; <br/>
<a id="pl.2.37"></a><var>2.37</var>469.47, subdivision 4, as amended; 473H.09; 475.58, subdivision 3b; 475.60, <br/>
<a id="pl.2.38"></a><var>2.38</var>subdivision 2; 477A.0124, subdivision 4; 477A.013, subdivision 1, by adding a <br/>
<a id="pl.2.39"></a><var>2.39</var>subdivision; 477A.014, subdivision 1; 477A.015; 477A.017, subdivisions 2, 3; <br/>
<a id="pl.2.40"></a><var>2.40</var>477A.03, subdivisions 2a, 2b, 2c; 477A.12, subdivisions 1, 2; 477A.13; 477A.15; <br/>
<a id="pl.2.41"></a><var>2.41</var>477A.19, by adding subdivisions; 477A.20; 524.3-916; 559.202, subdivision 2; <br/>
<a id="pl.2.42"></a><var>2.42</var>Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; <br/>
<a id="pl.2.43"></a><var>2.43</var>Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, <br/>
<a id="pl.2.44"></a><var>2.44</var>as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 2001, <br/>
<a id="pl.2.45"></a><var>2.45</var>First Special Session chapter 5, article 3, section 86; Laws 2006, chapter 257, <br/>
<a id="pl.2.46"></a><var>2.46</var>section 2, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2013, <br/>
<a id="pl.2.47"></a><var>2.47</var>chapter 143, article 8, sections 22, as amended; 23, as amended; Laws 2014, <br/>
<a id="pl.2.48"></a><var>2.48</var>chapter 308, article 1, section 14, subdivision 2; article 7, section 7; proposing
         <br/>
<a id="pl.2.49"></a><var>2.49</var>coding for new law in Minnesota Statutes, chapters 103C; 116J; 270C; 273; 290; <br/>
<a id="pl.2.50"></a><var>2.50</var>290B; 290C; 293; 383B; 465; 477A; repealing Minnesota Statutes 2014, sections <br/>
<a id="pl.2.51"></a><var>2.51</var>3.192; 270.81, subdivision 4; 270.83, subdivision 3; 272.02, subdivisions 23, 29,
         <br/>
<a id="pl.2.52"></a><var>2.52</var>33, 41, 44, 45, 47, 52, 54, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, 99; <br/>
<a id="pl.2.53"></a><var>2.53</var>272.0211; 273.111, subdivision 9a; 275.025, subdivision 4; 281.22; 290C.02, <br/>
<a id="pl.2.54"></a><var>2.54</var>subdivisions 5, 9; 469.194, subdivisions 2, 4; Minnesota Rules, parts 8092.2000; <br/>
<a id="pl.2.55"></a><var>2.55</var>8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a, 18, 19, 20, <br/>
<a id="pl.2.56"></a><var>2.56</var>21; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600; 8106.0700; <br/>
<a id="pl.2.57"></a><var>2.57</var>8106.0800; 8106.9900; 8125.1300, subpart 3.<br/>
<a id="pl.3.1"></a><var>3.1</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.3.4"></a><var>3.4</var>    Section 1. Minnesota Statutes 2014, section 16D.08, subdivision 2, is amended to read:<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 2. <b>Powers.</b> (a) In addition to the collection remedies available to private <br/>
<a id="pl.3.6"></a><var>3.6</var>collection agencies in this state, the commissioner, with legal assistance from the
         attorney <br/>
<a id="pl.3.7"></a><var>3.7</var>general, may utilize any statutory authority granted to a referring agency for purposes
         of <br/>
<a id="pl.3.8"></a><var>3.8</var>collecting debt owed to that referring agency. The commissioner may also use the tax
         <br/>
<a id="pl.3.9"></a><var>3.9</var>collection remedies in sections 
         <statute_ref>270C.03, subdivision 1</statute_ref>, clause (8) (9), 
         <statute_ref>270C.31</statute_ref>, 
         <statute_ref>270C.32</statute_ref>, <br/>
<statute_ref><a id="pl.3.10"></a><var>3.10</var>270C.52
         </statute_ref>, subdivisions 2 and 3, 
         <statute_ref>270C.63</statute_ref>, 
         <statute_ref>270C.65</statute_ref>, and 
         <statute_ref>270C.67</statute_ref> to 
         <statute_ref>270C.72</statute_ref>. A debtor <br/>
<a id="pl.3.11"></a><var>3.11</var>may take advantage of any administrative or appeal rights contained in the listed
         sections. <br/>
<a id="pl.3.12"></a><var>3.12</var>For administrative and appeal rights for nontax debts, references to administrative
         <br/>
<a id="pl.3.13"></a><var>3.13</var>appeals or to the taxpayer rights advocate shall be construed to be references to
         the case <br/>
<a id="pl.3.14"></a><var>3.14</var>reviewer, references to Tax Court shall be construed to mean district court, and offers
         <br/>
<a id="pl.3.15"></a><var>3.15</var>in compromise shall be submitted to the referring agency. A debtor who qualifies for
         <br/>
<a id="pl.3.16"></a><var>3.16</var>cancellation of collection costs under section 
         <statute_ref>16D.11, subdivision 3</statute_ref>, clause (1), can apply <br/>
<a id="pl.3.17"></a><var>3.17</var>to the commissioner for reduction or release of a continuous wage levy, if the debtor
         <br/>
<a id="pl.3.18"></a><var>3.18</var>establishes that the debtor needs all or a portion of the wages being levied upon
         to pay <br/>
<a id="pl.3.19"></a><var>3.19</var>for essential living expenses, such as food, clothing, shelter, medical care, or expenses
         <br/>
<a id="pl.3.20"></a><var>3.20</var>necessary for maintaining employment. The commissioner's determination not to reduce
         <br/>
<a id="pl.3.21"></a><var>3.21</var>or release a continuous wage levy is appealable to district court. The word "tax"
         or "taxes" <br/>
<a id="pl.3.22"></a><var>3.22</var>when used in the tax collection statutes listed in this subdivision also means debts
         referred <br/>
<a id="pl.3.23"></a><var>3.23</var>under this chapter.<br/>
<a id="pl.3.24"></a><var>3.24</var>(b) Before using the tax collection remedies listed in this subdivision, notice and
         <br/>
<a id="pl.3.25"></a><var>3.25</var>demand for payment of the amount due must be given to the person liable for the payment
         <br/>
<a id="pl.3.26"></a><var>3.26</var>or collection of the debt at least 30 days prior to the use of the remedies. The notice
         must <br/>
<a id="pl.3.27"></a><var>3.27</var>be sent to the person's last known address and must include a brief statement that
         sets forth <br/>
<a id="pl.3.28"></a><var>3.28</var>in simple and nontechnical terms the amount and source of the debt, the nature of
         the <br/>
<a id="pl.3.29"></a><var>3.29</var>available collection remedies, and remedies available to the debtor.<br/>
<a id="pl.3.30"></a><var>3.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.31"></a><var>3.31</var>    Sec. 2. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has <br/>
<a id="pl.4.2"></a><var>4.2</var>been admitted to a major program that is related to the intern experience as determined
         <br/>
<a id="pl.4.3"></a><var>4.3</var>by the eligible institution.<br/>
<a id="pl.4.4"></a><var>4.4</var>(b) To participate in the program, an eligible institution must:<br/>
<a id="pl.4.5"></a><var>4.5</var>(1) enter into written agreements with eligible employers to provide internships that
         <br/>
<a id="pl.4.6"></a><var>4.6</var>are at least eight weeks long and located in greater Minnesota; and<br/>
<a id="pl.4.7"></a><var>4.7</var>(2) provide academic credit for the successful completion of the internship or ensure
         <br/>
<a id="pl.4.8"></a><var>4.8</var>that it fulfills requirements necessary to complete a vocational technical education
         program.<br/>
<a id="pl.4.9"></a><var>4.9</var>(c) To participate in the program, an eligible employer must enter into a written
         <br/>
<a id="pl.4.10"></a><var>4.10</var>agreement with an eligible institution specifying that the intern:<br/>
<a id="pl.4.11"></a><var>4.11</var>(1) would not have been hired without the tax credit described in subdivision 4;<br/>
<a id="pl.4.12"></a><var>4.12</var>(2) did not work for the employer in the same or a similar job prior to entering <br/>
<a id="pl.4.13"></a><var>4.13</var>the agreement;<br/>
<a id="pl.4.14"></a><var>4.14</var>(3) (2) does not replace an existing employee;<br/>
<a id="pl.4.15"></a><var>4.15</var>(4) (3) has not previously participated in the program;<br/>
<a id="pl.4.16"></a><var>4.16</var>(5) (4) will be employed at a location in greater Minnesota;<br/>
<a id="pl.4.17"></a><var>4.17</var>(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week <br/>
<a id="pl.4.18"></a><var>4.18</var>for a period of at least eight weeks; and<br/>
<a id="pl.4.19"></a><var>4.19</var>(7) (6) will be supervised and evaluated by the employer.<br/>
<a id="pl.4.20"></a><var>4.20</var>(d) The written agreement between the eligible institution and the eligible employer
         <br/>
<a id="pl.4.21"></a><var>4.21</var>must certify a credit amount to the employer, not to exceed $2,000 per intern. The
         total <br/>
<a id="pl.4.22"></a><var>4.22</var>dollar amount of credits that an eligible institution certifies to eligible employers
         in a <br/>
<a id="pl.4.23"></a><var>4.23</var>calendar year may not exceed the amount of its allocation under subdivision 4.<br/>
<a id="pl.4.24"></a><var>4.24</var>(e) Participating eligible institutions and eligible employers must report annually
         to <br/>
<a id="pl.4.25"></a><var>4.25</var>the office. The report must include at least the following:<br/>
<a id="pl.4.26"></a><var>4.26</var>(1) the number of interns hired;<br/>
<a id="pl.4.27"></a><var>4.27</var>(2) the number of hours and weeks worked by interns; and<br/>
<a id="pl.4.28"></a><var>4.28</var>(3) the compensation paid to interns.<br/>
<a id="pl.4.29"></a><var>4.29</var>(f) An internship required to complete an academic program does not qualify for the
         <br/>
<a id="pl.4.30"></a><var>4.30</var>greater Minnesota internship program under this section.<br/>
<a id="pl.4.31"></a><var>4.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.4.32"></a><var>4.32</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.33"></a><var>4.33</var>    Sec. 3. Minnesota Statutes 2014, section 270C.03, subdivision 1, is amended to read:<br/>
<a id="pl.4.34"></a><var>4.34</var>    Subdivision 1. <b>Powers and duties.</b> The commissioner shall have and exercise <br/>
<a id="pl.4.35"></a><var>4.35</var>the following powers and duties:<br/>
<a id="pl.5.1"></a><var>5.1</var>    (1) administer and enforce the assessment and collection of taxes;<br/>
<a id="pl.5.2"></a><var>5.2</var>    (2) make determinations, corrections, and assessments with respect to taxes, <br/>
<a id="pl.5.3"></a><var>5.3</var>including interest, additions to taxes, and assessable penalties;<br/>
<a id="pl.5.4"></a><var>5.4</var>    (3) disallow the tax effects of a transaction governed under chapter 290 that does
         not <br/>
<a id="pl.5.5"></a><var>5.5</var>have economic substance;<br/>
<a id="pl.5.6"></a><var>5.6</var>    (3) (4) use statistical or other sampling techniques consistent with generally accepted <br/>
<a id="pl.5.7"></a><var>5.7</var>auditing standards in examining returns or records and making assessments;<br/>
<a id="pl.5.8"></a><var>5.8</var>    (4) (5) investigate the tax laws of other states and countries, and formulate and <br/>
<a id="pl.5.9"></a><var>5.9</var>submit to the legislature such legislation as the commissioner may deem expedient
         <br/>
<a id="pl.5.10"></a><var>5.10</var>to prevent evasions of state revenue laws and to secure just and equal taxation and
         <br/>
<a id="pl.5.11"></a><var>5.11</var>improvement in the system of state revenue laws;<br/>
<a id="pl.5.12"></a><var>5.12</var>    (5) (6) consult and confer with the governor upon the subject of taxation, the <br/>
<a id="pl.5.13"></a><var>5.13</var>administration of the laws in regard thereto, and the progress of the work of the
         <br/>
<a id="pl.5.14"></a><var>5.14</var>department, and furnish the governor, from time to time, such assistance and information
         <br/>
<a id="pl.5.15"></a><var>5.15</var>as the governor may require relating to tax matters;<br/>
<a id="pl.5.16"></a><var>5.16</var>    (6) (7) execute and administer any agreement with the secretary of the treasury or the <br/>
<a id="pl.5.17"></a><var>5.17</var>Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of
         the <br/>
<a id="pl.5.18"></a><var>5.18</var>United States or a representative of another state regarding the exchange of information
         <br/>
<a id="pl.5.19"></a><var>5.19</var>and administration of the state revenue laws;<br/>
<a id="pl.5.20"></a><var>5.20</var>    (7) (8) require town, city, county, and other public officers to report information <br/>
<a id="pl.5.21"></a><var>5.21</var>as to the collection of taxes received from licenses and other sources, and such other
         <br/>
<a id="pl.5.22"></a><var>5.22</var>information as may be needful in the work of the commissioner, in such form as the
         <br/>
<a id="pl.5.23"></a><var>5.23</var>commissioner may prescribe;<br/>
<a id="pl.5.24"></a><var>5.24</var>    (8) (9) authorize the use of unmarked motor vehicles to conduct seizures or criminal <br/>
<a id="pl.5.25"></a><var>5.25</var>investigations pursuant to the commissioner's authority;<br/>
<a id="pl.5.26"></a><var>5.26</var>    (9) (10) authorize the participation in audits performed by the Multistate Tax <br/>
<a id="pl.5.27"></a><var>5.27</var>Commission. For the purposes of chapter 270B, the Multistate Tax Commission will be
         <br/>
<a id="pl.5.28"></a><var>5.28</var>considered to be a state for the purposes of auditing corporate sales, excise, and
         income <br/>
<a id="pl.5.29"></a><var>5.29</var>tax returns;<br/>
<a id="pl.5.30"></a><var>5.30</var>    (10) (11) maintain toll-free telephone access for taxpayer assistance for calls from <br/>
<a id="pl.5.31"></a><var>5.31</var>locations within the state; and<br/>
<a id="pl.5.32"></a><var>5.32</var>    (11) (12) exercise other powers and authority and perform other duties required of or <br/>
<a id="pl.5.33"></a><var>5.33</var>imposed upon the commissioner by law.<br/>
<a id="pl.5.34"></a><var>5.34</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.5.35"></a><var>5.35</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.1"></a><var>6.1</var>    Sec. 4. <b>[270C.331] ECONOMIC SUBSTANCE.</b><br/>
<a id="pl.6.2"></a><var>6.2</var>    Subdivision 1. <b>Economic substance.</b> (a) For the purposes of disallowing the <br/>
<a id="pl.6.3"></a><var>6.3</var>tax effects of a transaction that does not have substance pursuant to section 270C.03,
         <br/>
<a id="pl.6.4"></a><var>6.4</var>subdivision 1, clause (3), a transaction shall be treated as having economic substance
         <br/>
<a id="pl.6.5"></a><var>6.5</var>only if:<br/>
<a id="pl.6.6"></a><var>6.6</var>(1) the transaction changes in a meaningful way, apart from tax effects, the taxpayer's
         <br/>
<a id="pl.6.7"></a><var>6.7</var>economic position; and<br/>
<a id="pl.6.8"></a><var>6.8</var>(2) the taxpayer has a substantial purpose, apart from tax effects, for entering into
         <br/>
<a id="pl.6.9"></a><var>6.9</var>the transaction.<br/>
<a id="pl.6.10"></a><var>6.10</var>(b) In determining whether the requirements of paragraph (a), clauses (1) and (2),
         <br/>
<a id="pl.6.11"></a><var>6.11</var>are met, the potential for profit of a transaction shall be taken into account only
         if the <br/>
<a id="pl.6.12"></a><var>6.12</var>present value of the reasonable expected pretax profit from the transaction is substantial
         in <br/>
<a id="pl.6.13"></a><var>6.13</var>relation to the present value of the expected net tax benefits that would be allowed
         if the <br/>
<a id="pl.6.14"></a><var>6.14</var>transaction was respected. Fees and other transaction expenses shall be taken into
         account <br/>
<a id="pl.6.15"></a><var>6.15</var>as expenses in determining pretax profit.<br/>
<a id="pl.6.16"></a><var>6.16</var>(c) For the purposes of paragraph (a), clause (2), achieving a financial accounting
         <br/>
<a id="pl.6.17"></a><var>6.17</var>benefit shall not be taken into account as a purpose for entering into a transaction
         if the <br/>
<a id="pl.6.18"></a><var>6.18</var>origin of such financial accounting benefit is a reduction of federal, state, or local
         tax.<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 2. <b>Apart from tax effects.</b> For purposes of this section, "apart from tax <br/>
<a id="pl.6.20"></a><var>6.20</var>effects" means without regard to the state and local tax effects arising from the
         application <br/>
<a id="pl.6.21"></a><var>6.21</var>of the laws of any state or local unit of government to the form of the transaction,
         the <br/>
<a id="pl.6.22"></a><var>6.22</var>federal tax effects, or both.<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 3. <b>Transaction.</b> For purposes of this section and section 270C.03, subdivision <br/>
<a id="pl.6.24"></a><var>6.24</var>1, clause (3), "transaction" includes a series of transactions.<br/>
<a id="pl.6.25"></a><var>6.25</var>    Subd. 4. <b>Personal transactions of individuals.</b> In the case of an individual, <br/>
<a id="pl.6.26"></a><var>6.26</var>subdivision 1 shall only apply to transactions entered into in connection with the
         trade or <br/>
<a id="pl.6.27"></a><var>6.27</var>business activity engaged in for the production of income.<br/>
<a id="pl.6.28"></a><var>6.28</var>    Subd. 5. <b>Commissioner to issue guidance.</b> (a) The commissioner shall promulgate <br/>
<a id="pl.6.29"></a><var>6.29</var>guidance on how the provisions of this section will be applied.  The guidance must
         <br/>
<a id="pl.6.30"></a><var>6.30</var>include, at a minimum, types of transactions that will not be challenged as not having
         <br/>
<a id="pl.6.31"></a><var>6.31</var>economic substance, and types of transactions that would be challenged as not having
         <br/>
<a id="pl.6.32"></a><var>6.32</var>economic substance.<br/>
<a id="pl.6.33"></a><var>6.33</var>(b) The commissioner shall promulgate rules setting forth how the requirements <br/>
<a id="pl.6.34"></a><var>6.34</var>of subdivision 1, paragraphs (a) and (b), would be determined, including definitions
         of <br/>
<a id="pl.6.35"></a><var>6.35</var>relevant terms used in this section that the commissioner would apply in determining
         <br/>
<a id="pl.6.36"></a><var>6.36</var>whether a transaction has economic substance.<br/>
<a id="pl.7.1"></a><var>7.1</var>(c) The commissioner shall establish and publish a formal departmental procedure <br/>
<a id="pl.7.2"></a><var>7.2</var>for uniform application of this section.<br/>
<a id="pl.7.3"></a><var>7.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.7.4"></a><var>7.4</var>December 31, 2015, except that subdivision 5 is effective the day following final
         enactment.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.7.5"></a><var>7.5</var>    Sec. 5. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws <br/>
<a id="pl.7.6"></a><var>7.6</var>2015, chapter 1, section 1, is amended to read:<br/>
<a id="pl.7.7"></a><var>7.7</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.7.8"></a><var>7.8</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.7.9"></a><var>7.9</var>31, 2014 April 1, 2015.<br/>
<a id="pl.7.10"></a><var>7.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.7.11"></a><var>7.11</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 4a, is amended to read:<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 4a. <b>Financial institution.</b> (a) "Financial institution" means:<br/>
<a id="pl.7.14"></a><var>7.14</var>(1) a holding company any corporation or other business entity registered (i) under <br/>
<a id="pl.7.15"></a><var>7.15</var>state law as a bank holding company; (ii) under the federal Bank Holding Company Act
         <br/>
<a id="pl.7.16"></a><var>7.16</var>of 1956, as amended; or (iii) as a savings and loan holding company under the federal
         <br/>
<a id="pl.7.17"></a><var>7.17</var>National Housing Act, as amended;<br/>
<a id="pl.7.18"></a><var>7.18</var>(2) any regulated financial corporation; or a national bank organized and existing <br/>
<a id="pl.7.19"></a><var>7.19</var>as a national bank association pursuant to the provisions of United States Code, title
         <br/>
<a id="pl.7.20"></a><var>7.20</var>12, chapter 2;<br/>
<a id="pl.7.21"></a><var>7.21</var>(3) any other corporation organized under the laws of the United States or organized <br/>
<a id="pl.7.22"></a><var>7.22</var>under the laws of this state or any other state or country that is carrying on the
         business of <br/>
<a id="pl.7.23"></a><var>7.23</var>a financial institution. a savings association or federal savings bank as defined in United <br/>
<a id="pl.7.24"></a><var>7.24</var>States Code, title 12, section 1813(b)(1);<br/>
<a id="pl.7.25"></a><var>7.25</var>(4) any bank or thrift institution incorporated or organized under the laws of any
         state;<br/>
<a id="pl.7.26"></a><var>7.26</var>(5) any corporation organized under United States Code, title 12, sections 611 to
         631;<br/>
<a id="pl.7.27"></a><var>7.27</var>(6) any agency or branch of a foreign depository as defined under United States <br/>
<a id="pl.7.28"></a><var>7.28</var>Code, title 12, section 3101;<br/>
<a id="pl.7.29"></a><var>7.29</var>(7) any corporation or other business entity that is more than 50 percent owned, <br/>
<a id="pl.7.30"></a><var>7.30</var>directly or indirectly, by any person or business entity described in clauses (1)
         to (6), other <br/>
<a id="pl.7.31"></a><var>7.31</var>than an insurance company taxable under chapter 297I;<br/>
<a id="pl.7.32"></a><var>7.32</var>(8) a corporation or other business entity that derives more than 50 percent of its
         <br/>
<a id="pl.7.33"></a><var>7.33</var>total gross income for financial accounting purposes from finance leases. For the
         purposes <br/>
<a id="pl.8.1"></a><var>8.1</var>of this clause, "gross income" is the average from the current tax year and immediately
         <br/>
<a id="pl.8.2"></a><var>8.2</var>preceding two years and excludes gross income from incidental or occasional transactions.
         <br/>
<a id="pl.8.3"></a><var>8.3</var>For purposes of this clause, "finance lease" means any lease transaction which is
         the <br/>
<a id="pl.8.4"></a><var>8.4</var>functional equivalent of an extension of credit, and that transfers substantially
         all of the <br/>
<a id="pl.8.5"></a><var>8.5</var>benefits and risks incident to the ownership of property, including any direct financing
         <br/>
<a id="pl.8.6"></a><var>8.6</var>lease or leverage lease that meets the criteria of Financial Accounting Standards
         Board <br/>
<a id="pl.8.7"></a><var>8.7</var>Statement No. 13, accounting for leases, or any other lease that is accounted for
         as <br/>
<a id="pl.8.8"></a><var>8.8</var>financing by a lessor under generally accepted accounting principles; or<br/>
<a id="pl.8.9"></a><var>8.9</var>(9) any other person or business entity, other than an insurance company taxable under
         <br/>
<a id="pl.8.10"></a><var>8.10</var>chapter 297I, which derives more than 50 percent of its gross income from activities
         that an <br/>
<a id="pl.8.11"></a><var>8.11</var>entity described in clauses (2) to (6), or (8), is authorized to transact. For the
         purposes of <br/>
<a id="pl.8.12"></a><var>8.12</var>this clause, gross income does not include income from nonrecurring, extraordinary
         items.<br/>
<a id="pl.8.13"></a><var>8.13</var>(b) "Holding company" means any corporation registered under the Federal Bank <br/>
<a id="pl.8.14"></a><var>8.14</var>Holding Company Act of 1956, as amended, or registered as a savings and loan holding
         <br/>
<a id="pl.8.15"></a><var>8.15</var>company under the Federal National Housing Act, as amended, or a federal savings <br/>
<a id="pl.8.16"></a><var>8.16</var>bank holding company. The commissioner is authorized to exclude any person from the <br/>
<a id="pl.8.17"></a><var>8.17</var>application of paragraph (a), clause (9), if the person proves by clear and convincing
         <br/>
<a id="pl.8.18"></a><var>8.18</var>evidence that the person's income-producing activity is not in substantial competition
         with <br/>
<a id="pl.8.19"></a><var>8.19</var>any person described in paragraph (a), clauses (2) to (6), or (8).<br/>
<a id="pl.8.20"></a><var>8.20</var>(c) "Regulated financial corporation" means an institution, the deposits or accounts
         <br/>
<a id="pl.8.21"></a><var>8.21</var>of which are insured under the Federal Deposit Insurance Act or by the Federal Savings
         <br/>
<a id="pl.8.22"></a><var>8.22</var>and Loan Insurance Corporation, any institution which is a member of a Federal Home
         <br/>
<a id="pl.8.23"></a><var>8.23</var>Loan Bank, any other bank or thrift institution incorporated or organized under the
         laws of <br/>
<a id="pl.8.24"></a><var>8.24</var>any state or any foreign country which is engaged in the business of receiving deposits,
         <br/>
<a id="pl.8.25"></a><var>8.25</var>any corporation organized under the provisions of United States Code, title 12, sections
         <br/>
<a id="pl.8.26"></a><var>8.26</var>611 to 631 (Edge Act Corporations), and any agency of a foreign depository as defined
         in <br/>
<a id="pl.8.27"></a><var>8.27</var>United States Code, title 12, section 3101.<br/>
<a id="pl.8.28"></a><var>8.28</var>(d) "Business of a financial institution" means:<br/>
<a id="pl.8.29"></a><var>8.29</var>(1) the business that any corporation organized under the authority of the United
         <br/>
<a id="pl.8.30"></a><var>8.30</var>States or organized under the laws of this state or any other state or country does
         or has <br/>
<a id="pl.8.31"></a><var>8.31</var>authority to do which is substantially similar to the business which a corporation
         may be <br/>
<a id="pl.8.32"></a><var>8.32</var>created to do under chapters 46 to 55 or any business which a corporation is authorized
         <br/>
<a id="pl.8.33"></a><var>8.33</var>to do by those laws; or<br/>
<a id="pl.8.34"></a><var>8.34</var>(2) the business that any corporation organized under the authority of the United
         <br/>
<a id="pl.8.35"></a><var>8.35</var>States or organized under the laws of this state or any other state or country does
         or has <br/>
<a id="pl.8.36"></a><var>8.36</var>authority to do if the corporation derives more than 50 percent of its gross income
         from <br/>
<a id="pl.9.1"></a><var>9.1</var>lending activities (including discounting obligations) in substantial competition
         with the <br/>
<a id="pl.9.2"></a><var>9.2</var>businesses described in clause (1). For purposes of this clause, the computation of
         the gross <br/>
<a id="pl.9.3"></a><var>9.3</var>income of a corporation does not include income from nonrecurring, extraordinary items.<br/>
<a id="pl.9.4"></a><var>9.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.9.5"></a><var>9.5</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.9.6"></a><var>9.6</var>    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:<br/>
<a id="pl.9.7"></a><var>9.7</var>    Subd. 7. <b>Resident.</b> (a) The term "resident" means any individual domiciled <br/>
<a id="pl.9.8"></a><var>9.8</var>in Minnesota, except that an individual is not a "resident" for the period of time
         that <br/>
<a id="pl.9.9"></a><var>9.9</var>the individual is a "qualified individual" as defined in section 911(d)(1) of the
         Internal <br/>
<a id="pl.9.10"></a><var>9.10</var>Revenue Code, if the qualified individual notifies the county within three months
         of <br/>
<a id="pl.9.11"></a><var>9.11</var>moving out of the country that homestead status be revoked for the Minnesota residence
         <br/>
<a id="pl.9.12"></a><var>9.12</var>of the qualified individual, and the property is not classified as a homestead while
         the <br/>
<a id="pl.9.13"></a><var>9.13</var>individual remains a qualified individual.<br/>
<a id="pl.9.14"></a><var>9.14</var>(b) "Resident" also means any individual domiciled outside the state who maintains
         <br/>
<a id="pl.9.15"></a><var>9.15</var>a place of abode in the state and spends in the aggregate more than one-half of the
         tax <br/>
<a id="pl.9.16"></a><var>9.16</var>year in Minnesota, unless:<br/>
<a id="pl.9.17"></a><var>9.17</var>(1) the individual or the spouse of the individual is in the armed forces of the United
         <br/>
<a id="pl.9.18"></a><var>9.18</var>States; or<br/>
<a id="pl.9.19"></a><var>9.19</var>(2) the individual is covered under the reciprocity provisions in section 
         <statute_ref>290.081</statute_ref>.<br/>
<a id="pl.9.20"></a><var>9.20</var>For purposes of this subdivision, presence within the state for any part of a calendar
         <br/>
<a id="pl.9.21"></a><var>9.21</var>day constitutes a day spent in the state. Individuals shall keep adequate records
         to <br/>
<a id="pl.9.22"></a><var>9.22</var>substantiate the days spent outside the state, except that a day spent in Minnesota for the <br/>
<a id="pl.9.23"></a><var>9.23</var>primary purpose of receiving medical treatment by the taxpayer, or the spouse, child,
         or <br/>
<a id="pl.9.24"></a><var>9.24</var>parent of the taxpayer, is not treated as a day spent in Minnesota. "Medical treatment"
         <br/>
<a id="pl.9.25"></a><var>9.25</var>means treatment as defined in section 213(d)(1)(A) of the Internal Revenue Code.<br/>
<a id="pl.9.26"></a><var>9.26</var>The term "abode" means a dwelling maintained by an individual, whether or not <br/>
<a id="pl.9.27"></a><var>9.27</var>owned by the individual and whether or not occupied by the individual, and includes
         a <br/>
<a id="pl.9.28"></a><var>9.28</var>dwelling place owned or leased by the individual's spouse.<br/>
<a id="pl.9.29"></a><var>9.29</var>(c) In determining where an individual is domiciled, neither the commissioner nor <br/>
<a id="pl.9.30"></a><var>9.30</var>any court shall consider:<br/>
<a id="pl.9.31"></a><var>9.31</var>(1) charitable contributions made by an the individual within or without the state in <br/>
<a id="pl.9.32"></a><var>9.32</var>determining if the individual is domiciled in Minnesota;<br/>
<a id="pl.9.33"></a><var>9.33</var>(2) the location of the individual's attorney, certified public accountant, or financial
         <br/>
<a id="pl.9.34"></a><var>9.34</var>advisor; or<br/>
<a id="pl.10.1"></a><var>10.1</var>(3) the place of business of a financial institution at which the individual applies
         for <br/>
<a id="pl.10.2"></a><var>10.2</var>any new type of credit or at which the individual opens or maintains any type of account.<br/>
<a id="pl.10.3"></a><var>10.3</var>(d) For purposes of this subdivision, the following terms have the meanings given
         <br/>
<a id="pl.10.4"></a><var>10.4</var>them:<br/>
<a id="pl.10.5"></a><var>10.5</var>(1) "financial advisor" means an individual, financial institution, or other firm
         <br/>
<a id="pl.10.6"></a><var>10.6</var>engaged in the business of providing services related to trust and estate administration;
         <br/>
<a id="pl.10.7"></a><var>10.7</var>financial advice and budgeting; investment selection or allocation; or purchase of
         life, <br/>
<a id="pl.10.8"></a><var>10.8</var>disability, long-term care, annuities, or similar insurance products; and includes
         certified <br/>
<a id="pl.10.9"></a><var>10.9</var>financial planners, registered investment advisors, securities broker-dealers, associated
         <br/>
<a id="pl.10.10"></a><var>10.10</var>persons and representatives of registered investment advisors and securities broker-dealers,
         <br/>
<a id="pl.10.11"></a><var>10.11</var>agents licensed to sell life insurance or annuities, and similar regulated products;
         and<br/>
<a id="pl.10.12"></a><var>10.12</var>(2) "financial institution" means a financial institution as that term is defined
         in <br/>
<a id="pl.10.13"></a><var>10.13</var>section 47.015, subdivision 1, a state or nationally chartered credit union, and a
         registered <br/>
<a id="pl.10.14"></a><var>10.14</var>broker-dealer under the Securities and Exchange Act of 1934.<br/>
<a id="pl.10.15"></a><var>10.15</var><b>EFFECTIVE DATE.</b>Changes to paragraph (b) are effective for taxable years <br/>
<a id="pl.10.16"></a><var>10.16</var>beginning after December 31, 2014. Changes to paragraphs (c) and (d) are effective
         the <br/>
<a id="pl.10.17"></a><var>10.17</var>day following final enactment, but apply to any case for which an appeal, petition,
         or <br/>
<a id="pl.10.18"></a><var>10.18</var>complaint has been filed in tax court or district court on or after April 28, 2015.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.10.19"></a><var>10.19</var>    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19, as amended by Laws <br/>
<a id="pl.10.20"></a><var>10.20</var>2015, chapter 1, section 2, is amended to read:<br/>
<a id="pl.10.21"></a><var>10.21</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.10.22"></a><var>10.22</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through
         the <br/>
<a id="pl.10.23"></a><var>10.23</var>date named in this subdivision, incorporating the federal effective dates of changes
         to the <br/>
<a id="pl.10.24"></a><var>10.24</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the
         <br/>
<a id="pl.10.25"></a><var>10.25</var>Internal Revenue Code in determining federal taxable income for federal income tax
         <br/>
<a id="pl.10.26"></a><var>10.26</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.10.27"></a><var>10.27</var>    In the case of a regulated investment company or a fund thereof, as defined in section
         <br/>
<a id="pl.10.28"></a><var>10.28</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
         <br/>
<a id="pl.10.29"></a><var>10.29</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
         <br/>
<a id="pl.10.30"></a><var>10.30</var>except that:<br/>
<a id="pl.10.31"></a><var>10.31</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
         <br/>
<a id="pl.10.32"></a><var>10.32</var>Revenue Code does not apply;<br/>
<a id="pl.10.33"></a><var>10.33</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.10.34"></a><var>10.34</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and
         <br/>
<a id="pl.11.1"></a><var>11.1</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the
         Internal <br/>
<a id="pl.11.2"></a><var>11.2</var>Revenue Code; and<br/>
<a id="pl.11.3"></a><var>11.3</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.11.4"></a><var>11.4</var>undistributed capital gains which the regulated investment company elects to have
         treated <br/>
<a id="pl.11.5"></a><var>11.5</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.11.6"></a><var>11.6</var>    The net income of a real estate investment trust as defined and limited by section
         <br/>
<a id="pl.11.7"></a><var>11.7</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment
         trust <br/>
<a id="pl.11.8"></a><var>11.8</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.11.9"></a><var>11.9</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.11.10"></a><var>11.10</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of
         the <br/>
<a id="pl.11.11"></a><var>11.11</var>Internal Revenue Code.<br/>
<a id="pl.11.12"></a><var>11.12</var>    The Internal Revenue Code of 1986, as amended through December 31, 2014 April <br/>
<a id="pl.11.13"></a><var>11.13</var>1, 2015, shall be in effect for taxable years beginning after December 31, 1996.<br/>
<a id="pl.11.14"></a><var>11.14</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.11.15"></a><var>11.15</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income
         for <br/>
<a id="pl.11.16"></a><var>11.16</var>the applicable year.<br/>
<a id="pl.11.17"></a><var>11.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.11.18"></a><var>11.18</var>except the changes incorporated by federal changes are effective retroactively at
         the same <br/>
<a id="pl.11.19"></a><var>11.19</var>time the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.11.20"></a><var>11.20</var>    Sec. 9. Minnesota Statutes 2014, section 290.01, is amended by adding a subdivision <br/>
<a id="pl.11.21"></a><var>11.21</var>to read:<br/>
<a id="pl.11.22"></a><var>11.22</var>    Subd. 19i. <b>Accelerated recognition of certain installment sale gains.</b> (a) For the <br/>
<a id="pl.11.23"></a><var>11.23</var>purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.11.24"></a><var>11.24</var>(1) "realized" means realized as defined by section 1001(b) of the Internal Revenue
         <br/>
<a id="pl.11.25"></a><var>11.25</var>Code;<br/>
<a id="pl.11.26"></a><var>11.26</var>(2) "installment sale" means any installment sale under section 453 of the Internal
         <br/>
<a id="pl.11.27"></a><var>11.27</var>Revenue Code, and any other sale which is reported utilizing a method of accounting
         <br/>
<a id="pl.11.28"></a><var>11.28</var>authorized under subchapter E of the Internal Revenue Code, which allows taxpayers
         to <br/>
<a id="pl.11.29"></a><var>11.29</var>delay reporting or recognition of a realized gain until a future year; and<br/>
<a id="pl.11.30"></a><var>11.30</var>(3) "allocable amount" means the full amount to be apportioned to Minnesota under
         <br/>
<a id="pl.11.31"></a><var>11.31</var>section 290.191, or the full amount to be assigned under section 290.17.<br/>
<a id="pl.11.32"></a><var>11.32</var>(b) In the case of a nonresident individual or a person who becomes a nonresident
         <br/>
<a id="pl.11.33"></a><var>11.33</var>individual during the tax year, net income includes the allocable amount realized
         upon a <br/>
<a id="pl.11.34"></a><var>11.34</var>sale of the assets of, or the sale of any interest in, an S corporation or partnership
         which <br/>
<a id="pl.11.35"></a><var>11.35</var>operated in Minnesota during the taxable year of sale, including any income or gain
         to be <br/>
<a id="pl.12.1"></a><var>12.1</var>recognized in future years pursuant to an installment sale method of reporting under
         the <br/>
<a id="pl.12.2"></a><var>12.2</var>Internal Revenue Code.<br/>
<a id="pl.12.3"></a><var>12.3</var>(c) An individual who becomes a nonresident of Minnesota in any year after an <br/>
<a id="pl.12.4"></a><var>12.4</var>installment sale is required to recognize the full amount of any income or gain not
         <br/>
<a id="pl.12.5"></a><var>12.5</var>recognized in a prior year on the individual's final Minnesota resident tax return.<br/>
<a id="pl.12.6"></a><var>12.6</var>(d) Notwithstanding paragraphs (b) and (c), taxpayers may elect to defer the <br/>
<a id="pl.12.7"></a><var>12.7</var>recognition of installment sale gains by making an election under this paragraph.
         The <br/>
<a id="pl.12.8"></a><var>12.8</var>election must be filed on a form prescribed by the commissioner and must be filed
         by <br/>
<a id="pl.12.9"></a><var>12.9</var>the due date of the individual tax return, including any extension. Electing taxpayers
         <br/>
<a id="pl.12.10"></a><var>12.10</var>are required to:<br/>
<a id="pl.12.11"></a><var>12.11</var>(1) file Minnesota tax returns in all subsequent years when gains from the installment
         <br/>
<a id="pl.12.12"></a><var>12.12</var>sale are recognized and reported to the Internal Revenue Service;<br/>
<a id="pl.12.13"></a><var>12.13</var>(2) allocate gains to the state of Minnesota as though the gains were incurred in
         the <br/>
<a id="pl.12.14"></a><var>12.14</var>year of sale under section 290.191 or 290.17; and<br/>
<a id="pl.12.15"></a><var>12.15</var>(3) include all relevant federal tax documents reporting the installment sale with
         <br/>
<a id="pl.12.16"></a><var>12.16</var>subsequent Minnesota tax returns.<br/>
<a id="pl.12.17"></a><var>12.17</var>(e) Income or gain recognized for Minnesota purposes under paragraphs (b) and (c)
         <br/>
<a id="pl.12.18"></a><var>12.18</var>and subjected to tax, is excluded from net income in future years.<br/>
<a id="pl.12.19"></a><var>12.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.12.20"></a><var>12.20</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.12.21"></a><var>12.21</var>    Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 31, as amended by Laws <br/>
<a id="pl.12.22"></a><var>12.22</var>2015, chapter 1, section 3, is amended to read:<br/>
<a id="pl.12.23"></a><var>12.23</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.12.24"></a><var>12.24</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.12.25"></a><var>12.25</var>31, 2014 April 1, 2015. Internal Revenue Code also includes any uncodified provision in <br/>
<a id="pl.12.26"></a><var>12.26</var>federal law that relates to provisions of the Internal Revenue Code that are incorporated
         <br/>
<a id="pl.12.27"></a><var>12.27</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter
         1, <br/>
<a id="pl.12.28"></a><var>12.28</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code
         as <br/>
<a id="pl.12.29"></a><var>12.29</var>amended through March 18, 2010.<br/>
<a id="pl.12.30"></a><var>12.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.12.31"></a><var>12.31</var>except the changes incorporated by federal changes are effective retroactively at
         the same <br/>
<a id="pl.12.32"></a><var>12.32</var>time the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 11. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision <br/>
<a id="pl.13.2"></a><var>13.2</var>to read:<br/>
<a id="pl.13.3"></a><var>13.3</var>    Subd. 37. <b>Refundable film production credit.</b> (a) A taxpayer is allowed a <br/>
<a id="pl.13.4"></a><var>13.4</var>credit against the taxes due under this chapter equal to 25 percent of film production
         <br/>
<a id="pl.13.5"></a><var>13.5</var>and postproduction expenditures made in Minnesota that are directly attributable to
         film <br/>
<a id="pl.13.6"></a><var>13.6</var>production in Minnesota.<br/>
<a id="pl.13.7"></a><var>13.7</var>(b) For purposes of this subdivision, "film" has the meaning given in section 116U.26.<br/>
<a id="pl.13.8"></a><var>13.8</var>    (c) Expenditures that qualify for the credit under this subdivision must be <br/>
<a id="pl.13.9"></a><var>13.9</var>"production costs" as that term is defined in section 116U.26 and must be subject
         to <br/>
<a id="pl.13.10"></a><var>13.10</var>taxation in Minnesota.<br/>
<a id="pl.13.11"></a><var>13.11</var>    (d) If the amount of the credit under this subdivision exceeds the taxpayer's tax
         <br/>
<a id="pl.13.12"></a><var>13.12</var>liability under this chapter for the taxable year, the amount of the excess must be
         refunded <br/>
<a id="pl.13.13"></a><var>13.13</var>to the taxpayer. The amount necessary to pay the refunds under this subdivision is
         <br/>
<a id="pl.13.14"></a><var>13.14</var>appropriated annually from the general fund to the commissioner of revenue.<br/>
<a id="pl.13.15"></a><var>13.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.13.16"></a><var>13.16</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.13.17"></a><var>13.17</var>    Sec. 12. Minnesota Statutes 2014, section 290.0671, subdivision 1, is amended to read:<br/>
<a id="pl.13.18"></a><var>13.18</var>    Subdivision 1. <b>Credit allowed.</b> (a) An individual who is a resident of Minnesota is <br/>
<a id="pl.13.19"></a><var>13.19</var>allowed a credit against the tax imposed by this chapter equal to a percentage of
         earned <br/>
<a id="pl.13.20"></a><var>13.20</var>income. To receive a credit, a taxpayer must be eligible for a credit under section
         32 of the <br/>
<a id="pl.13.21"></a><var>13.21</var>Internal Revenue Code.<br/>
<a id="pl.13.22"></a><var>13.22</var>(b) For individuals with no qualifying children, the credit equals 2.10 percent of
         the <br/>
<a id="pl.13.23"></a><var>13.23</var>first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income
         <br/>
<a id="pl.13.24"></a><var>13.24</var>or adjusted gross income, whichever is greater, in excess of $8,130, but in no case
         is <br/>
<a id="pl.13.25"></a><var>13.25</var>the credit less than zero.<br/>
<a id="pl.13.26"></a><var>13.26</var>(c) For individuals with one qualifying child, the credit equals 9.35 percent of the
         <br/>
<a id="pl.13.27"></a><var>13.27</var>first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income
         <br/>
<a id="pl.13.28"></a><var>13.28</var>or adjusted gross income, whichever is greater, in excess of $21,190, but in no case
         is <br/>
<a id="pl.13.29"></a><var>13.29</var>the credit less than zero.<br/>
<a id="pl.13.30"></a><var>13.30</var>(d) For individuals with two or more qualifying children, the credit equals 11 percent
         <br/>
<a id="pl.13.31"></a><var>13.31</var>of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
         <br/>
<a id="pl.13.32"></a><var>13.32</var>income or adjusted gross income, whichever is greater, in excess of $25,130, but in
         no <br/>
<a id="pl.13.33"></a><var>13.33</var>case is the credit less than zero.<br/>
<a id="pl.13.34"></a><var>13.34</var>(e) For a nonresident or part-year resident, the credit must be allocated based on the <br/>
<a id="pl.13.35"></a><var>13.35</var>percentage calculated under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br/>
<a id="pl.14.1"></a><var>14.1</var>(f) For a person who was a resident for the entire tax year and has earned income
         <br/>
<a id="pl.14.2"></a><var>14.2</var>not subject to tax under this chapter, including income excluded under section 
         <statute_ref>290.01, <br/>
<a id="pl.14.3"></a><var>14.3</var>subdivision 19b
         </statute_ref>, clause (9), the credit must be allocated based on the ratio of federal <br/>
<a id="pl.14.4"></a><var>14.4</var>adjusted gross income reduced by the earned income not subject to tax under this chapter
         <br/>
<a id="pl.14.5"></a><var>14.5</var>over federal adjusted gross income. For purposes of this paragraph, the subtractions
         <br/>
<a id="pl.14.6"></a><var>14.6</var>for military pay under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (10) and (11), are not <br/>
<a id="pl.14.7"></a><var>14.7</var>considered "earned income not subject to tax under this chapter."<br/>
<a id="pl.14.8"></a><var>14.8</var>For the purposes of this paragraph, the exclusion of combat pay under section 112
         <br/>
<a id="pl.14.9"></a><var>14.9</var>of the Internal Revenue Code is not considered "earned income not subject to tax under
         <br/>
<a id="pl.14.10"></a><var>14.10</var>this chapter."<br/>
<a id="pl.14.11"></a><var>14.11</var>(g) For tax years beginning after December 31, 2007, and before December 31, <br/>
<a id="pl.14.12"></a><var>14.12</var>2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph
         (b), <br/>
<a id="pl.14.13"></a><var>14.13</var>the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted
         for <br/>
<a id="pl.14.14"></a><var>14.14</var>inflation under subdivision 7, are each increased by $3,000 for married taxpayers
         filing joint <br/>
<a id="pl.14.15"></a><var>14.15</var>returns. For tax years beginning after December 31, 2008, the commissioner shall annually
         <br/>
<a id="pl.14.16"></a><var>14.16</var>adjust the $3,000 by the percentage determined pursuant to the provisions of section
         1(f) <br/>
<a id="pl.14.17"></a><var>14.17</var>of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall
         be <br/>
<a id="pl.14.18"></a><var>14.18</var>substituted for the word "1992." For 2009, the commissioner shall then determine the
         <br/>
<a id="pl.14.19"></a><var>14.19</var>percent change from the 12 months ending on August 31, 2007, to the 12 months ending
         on <br/>
<a id="pl.14.20"></a><var>14.20</var>August 31, 2008, and in each subsequent year, from the 12 months ending on August
         31, <br/>
<a id="pl.14.21"></a><var>14.21</var>2007, to the 12 months ending on August 31 of the year preceding the taxable year.
         The <br/>
<a id="pl.14.22"></a><var>14.22</var>earned income thresholds as adjusted for inflation must be rounded to the nearest
         $10. If the <br/>
<a id="pl.14.23"></a><var>14.23</var>amount ends in $5, the amount is rounded up to the nearest $10. The determination
         of the <br/>
<a id="pl.14.24"></a><var>14.24</var>commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.<br/>
<a id="pl.14.25"></a><var>14.25</var>(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
         <br/>
<a id="pl.14.26"></a><var>14.26</var>the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
         (d), <br/>
<a id="pl.14.27"></a><var>14.27</var>after being adjusted for inflation under subdivision 7, are increased by $5,340 for
         married <br/>
<a id="pl.14.28"></a><var>14.28</var>taxpayers filing joint returns; and (2) for tax years beginning after December 31,
         2013, and <br/>
<a id="pl.14.29"></a><var>14.29</var>before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c),
         and the <br/>
<a id="pl.14.30"></a><var>14.30</var>$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7,
         are each <br/>
<a id="pl.14.31"></a><var>14.31</var>increased by $5,000 for married taxpayers filing joint returns. For tax years beginning
         <br/>
<a id="pl.14.32"></a><var>14.32</var>after December 31, 2010, and before January 1, 2012, and for tax years beginning after
         <br/>
<a id="pl.14.33"></a><var>14.33</var>December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust
         <br/>
<a id="pl.14.34"></a><var>14.34</var>the $5,000 by the percentage determined pursuant to the provisions of section 1(f)
         of <br/>
<a id="pl.14.35"></a><var>14.35</var>the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall
         be <br/>
<a id="pl.14.36"></a><var>14.36</var>substituted for the word "1992." For 2011, the commissioner shall then determine the
         <br/>
<a id="pl.15.1"></a><var>15.1</var>percent change from the 12 months ending on August 31, 2008, to the 12 months ending
         on <br/>
<a id="pl.15.2"></a><var>15.2</var>August 31, 2010, and in each subsequent year, from the 12 months ending on August
         31, <br/>
<a id="pl.15.3"></a><var>15.3</var>2008, to the 12 months ending on August 31 of the year preceding the taxable year.
         The <br/>
<a id="pl.15.4"></a><var>15.4</var>earned income thresholds as adjusted for inflation must be rounded to the nearest
         $10. If the <br/>
<a id="pl.15.5"></a><var>15.5</var>amount ends in $5, the amount is rounded up to the nearest $10. The determination
         of the <br/>
<a id="pl.15.6"></a><var>15.6</var>commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.<br/>
<a id="pl.15.7"></a><var>15.7</var>(i) The commissioner shall construct tables showing the amount of the credit at <br/>
<a id="pl.15.8"></a><var>15.8</var>various income levels and make them available to taxpayers. The tables shall follow
         <br/>
<a id="pl.15.9"></a><var>15.9</var>the schedule contained in this subdivision, except that the commissioner may graduate
         <br/>
<a id="pl.15.10"></a><var>15.10</var>the transition between income brackets.<br/>
<a id="pl.15.11"></a><var>15.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.15.12"></a><var>15.12</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.15.13"></a><var>15.13</var>    Sec. 13. Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:<br/>
<a id="pl.15.14"></a><var>15.14</var>    Subd. 6a. <b>TANF appropriation for working family credit expansion.</b> (a) On <br/>
<a id="pl.15.15"></a><var>15.15</var>an annual basis the commissioner of revenue, with the assistance of the commissioner
         <br/>
<a id="pl.15.16"></a><var>15.16</var>of human services, shall calculate the value of the refundable portion of the Minnesota
         <br/>
<a id="pl.15.17"></a><var>15.17</var>Working Family Credit provided under this section that qualifies for payment with
         funds <br/>
<a id="pl.15.18"></a><var>15.18</var>from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this
         <br/>
<a id="pl.15.19"></a><var>15.19</var>total amount, the commissioner of revenue shall estimate the portion entailed by the
         <br/>
<a id="pl.15.20"></a><var>15.20</var>expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, <br/>
<a id="pl.15.21"></a><var>15.21</var>for individuals with qualifying children over the rates provided in Laws 1999, chapter
         <br/>
<a id="pl.15.22"></a><var>15.22</var>243, article 2, section 12.<br/>
<a id="pl.15.23"></a><var>15.23</var>(b) An amount sufficient to pay the refunds entailed by the expansion of the credit
         <br/>
<a id="pl.15.24"></a><var>15.24</var>rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with <br/>
<a id="pl.15.25"></a><var>15.25</var>qualifying children over the rates provided in Laws 1999, chapter 243, article 2,
         section <br/>
<a id="pl.15.26"></a><var>15.26</var>12, as estimated in paragraph (a), is appropriated to the commissioner of human services
         <br/>
<a id="pl.15.27"></a><var>15.27</var>from the federal Temporary Assistance for Needy Families (TANF) block grant funds,
         for <br/>
<a id="pl.15.28"></a><var>15.28</var>transfer to the commissioner of revenue for deposit in the general fund.<br/>
<a id="pl.15.29"></a><var>15.29</var><b>EFFECTIVE DATE.</b>This section is effective only for transfers in fiscal year 2015.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.15.30"></a><var>15.30</var>    Sec. 14. Minnesota Statutes 2014, section 290.0674, subdivision 1, is amended to read:<br/>
<a id="pl.15.31"></a><var>15.31</var>    Subdivision 1. <b>Credit allowed.</b> An individual is allowed a credit against the <br/>
<a id="pl.15.32"></a><var>15.32</var>tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
         <br/>
<a id="pl.16.1"></a><var>16.1</var>education-related expenses for a qualifying child in kindergarten preschool through grade <br/>
<a id="pl.16.2"></a><var>16.2</var>12. For purposes of this section, "education-related expenses" means:<br/>
<a id="pl.16.3"></a><var>16.3</var>(1) fees or tuition for instruction by an instructor under section 
         <statute_ref>120A.22, subdivision <br/>
<a id="pl.16.4"></a><var>16.4</var>10
         </statute_ref>, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers <br/>
<a id="pl.16.5"></a><var>16.5</var>Association, and who is not a lineal ancestor or sibling of the dependent for instruction
         <br/>
<a id="pl.16.6"></a><var>16.6</var>outside the regular school day or school year, including tutoring, driver's education
         <br/>
<a id="pl.16.7"></a><var>16.7</var>offered as part of school curriculum, regardless of whether it is taken from a public
         or <br/>
<a id="pl.16.8"></a><var>16.8</var>private entity or summer camps, in grade or age appropriate curricula that supplement
         <br/>
<a id="pl.16.9"></a><var>16.9</var>curricula and instruction available during the regular school year, that assists a
         dependent <br/>
<a id="pl.16.10"></a><var>16.10</var>to improve knowledge of core curriculum areas or to expand knowledge and skills under
         <br/>
<a id="pl.16.11"></a><var>16.11</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.16.12"></a><var>16.12</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), and that do not include the <br/>
<a id="pl.16.13"></a><var>16.13</var>teaching of religious tenets, doctrines, or worship, the purpose of which is to instill
         such <br/>
<a id="pl.16.14"></a><var>16.14</var>tenets, doctrines, or worship;<br/>
<a id="pl.16.15"></a><var>16.15</var>(2) expenses for textbooks, including books and other instructional materials and
         <br/>
<a id="pl.16.16"></a><var>16.16</var>equipment purchased or leased for use in preschool, elementary, and secondary schools <br/>
<a id="pl.16.17"></a><var>16.17</var>in teaching only those subjects legally and commonly taught in public elementary and
         <br/>
<a id="pl.16.18"></a><var>16.18</var>secondary schools in this state. "Textbooks" does not include instructional books
         and <br/>
<a id="pl.16.19"></a><var>16.19</var>materials used in the teaching of religious tenets, doctrines, or worship, the purpose
         of <br/>
<a id="pl.16.20"></a><var>16.20</var>which is to instill such tenets, doctrines, or worship, nor does it include books
         or materials <br/>
<a id="pl.16.21"></a><var>16.21</var>for extracurricular activities including sporting events, musical or dramatic events,
         speech <br/>
<a id="pl.16.22"></a><var>16.22</var>activities, driver's education, or similar programs;<br/>
<a id="pl.16.23"></a><var>16.23</var>(3) a maximum expense of $200 per family for personal computer hardware, <br/>
<a id="pl.16.24"></a><var>16.24</var>excluding single purpose processors, and educational software that assists a dependent
         to <br/>
<a id="pl.16.25"></a><var>16.25</var>improve knowledge of core curriculum areas or to expand knowledge and skills under
         <br/>
<a id="pl.16.26"></a><var>16.26</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.16.27"></a><var>16.27</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), purchased for use in the <br/>
<a id="pl.16.28"></a><var>16.28</var>taxpayer's home and not used in a trade or business regardless of whether the computer
         is <br/>
<a id="pl.16.29"></a><var>16.29</var>required by the dependent's school; and<br/>
<a id="pl.16.30"></a><var>16.30</var>(4) the amount paid to others for transportation of a qualifying child attending an a <br/>
<a id="pl.16.31"></a><var>16.31</var>preschool, elementary, or secondary school situated in Minnesota, North Dakota, South <br/>
<a id="pl.16.32"></a><var>16.32</var>Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the
         state's <br/>
<a id="pl.16.33"></a><var>16.33</var>compulsory attendance laws, which is not operated for profit, and which adheres to
         the <br/>
<a id="pl.16.34"></a><var>16.34</var>provisions of the Civil Rights Act of 1964 and chapter 363A.<br/>
<a id="pl.16.35"></a><var>16.35</var>For purposes of this section, "qualifying child" has the meaning given in section
         <br/>
<a id="pl.16.36"></a><var>16.36</var>32(c)(3) of the Internal Revenue Code who is at least four years old when the expenses <br/>
<a id="pl.17.1"></a><var>17.1</var>are incurred. "Preschool" means the Head Start program under section 119A.50 or a
         <br/>
<a id="pl.17.2"></a><var>17.2</var>school district prekindergarten program.<br/>
<a id="pl.17.3"></a><var>17.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.17.4"></a><var>17.4</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.17.5"></a><var>17.5</var>    Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:<br/>
<a id="pl.17.6"></a><var>17.6</var>    Subd. 2. <b>Limitations.</b> (a) For claimants with income not greater than $33,500 <br/>
<a id="pl.17.7"></a><var>17.7</var>$45,000, the maximum credit allowed for a family is $1,000 multiplied by the number <br/>
<a id="pl.17.8"></a><var>17.8</var>of qualifying children in kindergarten preschool through grade 12 in the family. The <br/>
<a id="pl.17.9"></a><var>17.9</var>maximum credit for families with one qualifying child in kindergarten preschool through <br/>
<a id="pl.17.10"></a><var>17.10</var>grade 12 is reduced by $1 for each $4 of household income over $33,500 $45,000, and <br/>
<a id="pl.17.11"></a><var>17.11</var>the maximum credit for families with two or more qualifying children in kindergarten
         <br/>
<a id="pl.17.12"></a><var>17.12</var>through grade 12 is reduced by $2 for each $4 of household income over $33,500 $45,000, <br/>
<a id="pl.17.13"></a><var>17.13</var>but in no case is the credit less than zero.<br/>
<a id="pl.17.14"></a><var>17.14</var>For purposes of this section "income" has the meaning given in section 
         <statute_ref>290.067, <br/>
<a id="pl.17.15"></a><var>17.15</var>subdivision 2a
         </statute_ref>. In the case of a married claimant, a credit is not allowed unless a joint <br/>
<a id="pl.17.16"></a><var>17.16</var>income tax return is filed.<br/>
<a id="pl.17.17"></a><var>17.17</var>(b) For a nonresident or part-year resident, the credit determined under subdivision
         1 <br/>
<a id="pl.17.18"></a><var>17.18</var>and the maximum credit amount in paragraph (a) must be allocated using the percentage
         <br/>
<a id="pl.17.19"></a><var>17.19</var>calculated in section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br/>
<a id="pl.17.20"></a><var>17.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.17.21"></a><var>17.21</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.17.22"></a><var>17.22</var>    Sec. 16. Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:<br/>
<a id="pl.17.23"></a><var>17.23</var>    Subdivision 1. <b>Credit allowed.</b> Subject to the requirements in subdivision 8, a <br/>
<a id="pl.17.24"></a><var>17.24</var>corporation, partners in a partnership, or shareholders in a corporation treated as an "S" <br/>
<a id="pl.17.25"></a><var>17.25</var>corporation under section 
<statute_ref>290.9725</statute_ref> are individual, trust, or estate is allowed a credit <br/>
<a id="pl.17.26"></a><var>17.26</var>against the tax computed under this chapter for the taxable year equal to:<br/>
<a id="pl.17.27"></a><var>17.27</var>    (a) ten percent of the first $2,000,000 of the excess (if any) of<br/>
<a id="pl.17.28"></a><var>17.28</var>    (1) the qualified research expenses for the taxable year, over<br/>
<a id="pl.17.29"></a><var>17.29</var>    (2) the base amount; and<br/>
<a id="pl.17.30"></a><var>17.30</var>    (b) 2.5 percent on all of such excess expenses over $2,000,000.<br/>
<a id="pl.17.31"></a><var>17.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.17.32"></a><var>17.32</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.18.1"></a><var>18.1</var>    Sec. 17. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:<br/>
<a id="pl.18.2"></a><var>18.2</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the <br/>
<a id="pl.18.3"></a><var>18.3</var>meanings given.<br/>
<a id="pl.18.4"></a><var>18.4</var>    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         <br/>
<a id="pl.18.5"></a><var>18.5</var>research payments as defined in section 41(b) and (e) of the Internal Revenue Code,
         except <br/>
<a id="pl.18.6"></a><var>18.6</var>it does not include expenses incurred for qualified research or basic research conducted
         <br/>
<a id="pl.18.7"></a><var>18.7</var>outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
         <br/>
<a id="pl.18.8"></a><var>18.8</var>Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
         <br/>
<a id="pl.18.9"></a><var>18.9</var>to the provisions of chapter 317A for the purpose of promoting the establishment and
         <br/>
<a id="pl.18.10"></a><var>18.10</var>expansion of business in this state, provided the contributions are invested by the
         nonprofit <br/>
<a id="pl.18.11"></a><var>18.11</var>corporation for the purpose of providing funds for small, technologically innovative
         <br/>
<a id="pl.18.12"></a><var>18.12</var>enterprises in Minnesota during the early stages of their development.<br/>
<a id="pl.18.13"></a><var>18.13</var>    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         <br/>
<a id="pl.18.14"></a><var>18.14</var>Internal Revenue Code, except that the term does not include qualified research conducted
         <br/>
<a id="pl.18.15"></a><var>18.15</var>outside the state of Minnesota.<br/>
<a id="pl.18.16"></a><var>18.16</var>    (c) "Base amount" means base amount as defined in section 41(c) of the Internal <br/>
<a id="pl.18.17"></a><var>18.17</var>Revenue Code, except that the average annual gross receipts must be calculated using
         <br/>
<a id="pl.18.18"></a><var>18.18</var>Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the definitions contained in clauses <br/>
<a id="pl.18.19"></a><var>18.19</var>(a) and (b) shall apply. If there are inadequate records or the records are unavailable to <br/>
<a id="pl.18.20"></a><var>18.20</var>compute or verify the base percentage, a fixed base percentage of 16 percent must
         be used.<br/>
<a id="pl.18.21"></a><var>18.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.18.22"></a><var>18.22</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.18.23"></a><var>18.23</var>    Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 3, is amended to read:<br/>
<a id="pl.18.24"></a><var>18.24</var>    Subd. 3. <b>Limitation; carryover.</b> (a) Except as provided in subdivision 6a, <br/>
<a id="pl.18.25"></a><var>18.25</var>paragraph (b), the credit for a taxable year beginning before January 1, 2010, and after <br/>
<a id="pl.18.26"></a><var>18.26</var>December 31, 2012, shall not exceed the liability for tax. "Liability for tax" for purposes <br/>
<a id="pl.18.27"></a><var>18.27</var>of this section means the sum of the tax imposed under section 
         <statute_ref>290.06, subdivisions 1 and <br/>
<a id="pl.18.28"></a><var>18.28</var>2c
         </statute_ref>, for the taxable year reduced by the sum of the nonrefundable credits allowed under
         <br/>
<a id="pl.18.29"></a><var>18.29</var>this chapter, on all of the entities required to be included on the combined report
         of the <br/>
<a id="pl.18.30"></a><var>18.30</var>unitary business. If the amount of the credit allowed exceeds the liability for tax
         of the <br/>
<a id="pl.18.31"></a><var>18.31</var>taxpayer, but is allowed as a result of the liability for tax of other members of
         the unitary <br/>
<a id="pl.18.32"></a><var>18.32</var>group for the taxable year, the taxpayer must allocate the excess as a research credit
         <br/>
<a id="pl.18.33"></a><var>18.33</var>to another member of the unitary group.<br/>
<a id="pl.18.34"></a><var>18.34</var>    (b) In the case of a corporation which is a partner in a partnership, the credit allowed
         <br/>
<a id="pl.18.35"></a><var>18.35</var>for the taxable year shall not exceed the lesser of the amount determined under paragraph
         <br/>
<a id="pl.19.1"></a><var>19.1</var>(a) for the taxable year or an amount (separately computed with respect to the corporation's
         <br/>
<a id="pl.19.2"></a><var>19.2</var>interest in the trade or business or entity) equal to the amount of tax attributable
         to that <br/>
<a id="pl.19.3"></a><var>19.3</var>portion of taxable income which is allocable or apportionable to the corporation's
         interest <br/>
<a id="pl.19.4"></a><var>19.4</var>in the trade or business or entity.<br/>
<a id="pl.19.5"></a><var>19.5</var>    (c) If the amount of the credit determined under this section for any taxable year
         <br/>
<a id="pl.19.6"></a><var>19.6</var>exceeds the limitation under paragraph (a) or (b), including amounts allowed as a refund <br/>
<a id="pl.19.7"></a><var>19.7</var>under subdivision 6a, paragraph (b), or allocated to other members of the unitary group, <br/>
<a id="pl.19.8"></a><var>19.8</var>the excess shall be a research credit carryover to each of the 15 succeeding taxable
         years. <br/>
<a id="pl.19.9"></a><var>19.9</var>The entire amount of the excess unused credit for the taxable year shall be carried
         first <br/>
<a id="pl.19.10"></a><var>19.10</var>to the earliest of the taxable years to which the credit may be carried and then to
         each <br/>
<a id="pl.19.11"></a><var>19.11</var>successive year to which the credit may be carried. The amount of the unused credit
         <br/>
<a id="pl.19.12"></a><var>19.12</var>which may be added under this clause shall not exceed the taxpayer's liability for
         tax <br/>
<a id="pl.19.13"></a><var>19.13</var>less the research credit for the taxable year.<br/>
<a id="pl.19.14"></a><var>19.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.19.15"></a><var>19.15</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.19.16"></a><var>19.16</var>    Sec. 19. Minnesota Statutes 2014, section 290.068, subdivision 6a, is amended to read:<br/>
<a id="pl.19.17"></a><var>19.17</var>    Subd. 6a. <b>Credit to be refundable.</b> (a) If the amount of credit allowed in this <br/>
<a id="pl.19.18"></a><var>19.18</var>section for qualified research expenses incurred in taxable years beginning after
         December <br/>
<a id="pl.19.19"></a><var>19.19</var>31, 2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this
         <br/>
<a id="pl.19.20"></a><var>19.20</var>chapter, the commissioner shall refund the excess amount. The credit allowed for qualified
         <br/>
<a id="pl.19.21"></a><var>19.21</var>research expenses incurred in taxable years beginning after December 31, 2009, and
         before <br/>
<a id="pl.19.22"></a><var>19.22</var>January 1, 2013, must be used before any research credit earned under subdivision
         3.<br/>
<a id="pl.19.23"></a><var>19.23</var>(b) If the first $15,000 of the credit allowed in this section for qualified research
         <br/>
<a id="pl.19.24"></a><var>19.24</var>expenses incurred in taxable years beginning after December 31, 2014, exceeds the
         <br/>
<a id="pl.19.25"></a><var>19.25</var>taxpayer's tax liability under this chapter, the commissioner shall refund the excess
         <br/>
<a id="pl.19.26"></a><var>19.26</var>amount. The $15,000 limit must be applied at the corporation, partnership, or other
         entity <br/>
<a id="pl.19.27"></a><var>19.27</var>level, including sole proprietorships. The credit allowed for qualified research expenses
         <br/>
<a id="pl.19.28"></a><var>19.28</var>incurred in taxable years beginning before January 1, 2015, must be used before any
         <br/>
<a id="pl.19.29"></a><var>19.29</var>research credit earned under subdivision 3.<br/>
<a id="pl.19.30"></a><var>19.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.19.31"></a><var>19.31</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.19.32"></a><var>19.32</var>    Sec. 20. Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision <br/>
<a id="pl.19.33"></a><var>19.33</var>to read:<br/>
<a id="pl.20.1"></a><var>20.1</var>    Subd. 8. <b>Application and certification requirement for sole proprietors.</b> (a) A <br/>
<a id="pl.20.2"></a><var>20.2</var>taxpayer who is a sole proprietor claiming a credit under this section must submit
         an <br/>
<a id="pl.20.3"></a><var>20.3</var>application to the commissioner for determination that the expenses for which the
         credit is <br/>
<a id="pl.20.4"></a><var>20.4</var>claimed are qualified research expenses. The application must be submitted by September
         <br/>
<a id="pl.20.5"></a><var>20.5</var>15 of the calendar year following the taxable year in which the qualified research
         <br/>
<a id="pl.20.6"></a><var>20.6</var>expenses were incurred.  The application must be in a form and manner prescribed by
         the <br/>
<a id="pl.20.7"></a><var>20.7</var>commissioner and must contain information sufficient to verify that the expenses for
         <br/>
<a id="pl.20.8"></a><var>20.8</var>which the credit is claimed under this section are qualified research expenses.<br/>
<a id="pl.20.9"></a><var>20.9</var>(b) The commissioner must notify the sole proprietor of the determination of the <br/>
<a id="pl.20.10"></a><var>20.10</var>application under paragraph (a) no later than 60 days after the application is received.<br/>
<a id="pl.20.11"></a><var>20.11</var>(c) Upon approving an application for credit under paragraph (a), the commissioner
         <br/>
<a id="pl.20.12"></a><var>20.12</var>must issue a credit certificate to the sole proprietor that verifies eligibility for
         the credit <br/>
<a id="pl.20.13"></a><var>20.13</var>and states the amount of credit and the taxable year to which the credit applies.<br/>
<a id="pl.20.14"></a><var>20.14</var>(d) The sole proprietor must claim the credit under this section in the return for
         the <br/>
<a id="pl.20.15"></a><var>20.15</var>taxable year immediately following the taxable year to which the credit applies. The
         <br/>
<a id="pl.20.16"></a><var>20.16</var>return must contain a copy of the credit certificate issued under paragraph (c).<br/>
<a id="pl.20.17"></a><var>20.17</var>(e) A credit must not be issued under this section unless the commissioner has <br/>
<a id="pl.20.18"></a><var>20.18</var>received the certification required under paragraph (c).<br/>
<a id="pl.20.19"></a><var>20.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.20.20"></a><var>20.20</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.20.21"></a><var>20.21</var>    Sec. 21. <b>[290.0693] MINNESOTA COLLEGE SAVINGS PLAN CREDIT.</b><br/>
<a id="pl.20.22"></a><var>20.22</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the terms "Minnesota <br/>
<a id="pl.20.23"></a><var>20.23</var>college savings plan," "account," "nonqualified distribution," and "plan administrator"
         <br/>
<a id="pl.20.24"></a><var>20.24</var>have the meanings given them in chapter 136G.<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 2. <b>Credit allowed.</b> (a) A credit of up to $500 is allowed against the tax <br/>
<a id="pl.20.26"></a><var>20.26</var>imposed by this chapter, subject to the limitations in paragraph (b).<br/>
<a id="pl.20.27"></a><var>20.27</var>(b) The credit allowed must be calculated by applying the following rates to the <br/>
<a id="pl.20.28"></a><var>20.28</var>amount contributed to a Minnesota college savings plan, as established in chapter
         136G, <br/>
<a id="pl.20.29"></a><var>20.29</var>in a taxable year:<br/>
<a id="pl.20.30"></a><var>20.30</var>(1) 200 percent for individual filers and married couples filing a joint return who
         <br/>
<a id="pl.20.31"></a><var>20.31</var>have federal adjusted gross income of not more than 150 percent of the federal poverty
         <br/>
<a id="pl.20.32"></a><var>20.32</var>guideline for a household size of four;<br/>
<a id="pl.20.33"></a><var>20.33</var>(2) 100 percent for individual filers and married couples filing a joint return who
         <br/>
<a id="pl.20.34"></a><var>20.34</var>have federal adjusted gross income over 150 percent, but not more than 200 percent
         of <br/>
<a id="pl.20.35"></a><var>20.35</var>the federal poverty guideline for a household size of four;<br/>
<a id="pl.21.1"></a><var>21.1</var>(3) 50 percent for individual filers who have federal adjusted gross income over <br/>
<a id="pl.21.2"></a><var>21.2</var>200 percent of the federal poverty guideline for a household size of four, but not
         more <br/>
<a id="pl.21.3"></a><var>21.3</var>than $80,000; and<br/>
<a id="pl.21.4"></a><var>21.4</var>(4) 50 percent for married couples filing a joint return who have federal adjusted
         <br/>
<a id="pl.21.5"></a><var>21.5</var>gross income over 200 percent of the federal poverty guideline for a household size
         of <br/>
<a id="pl.21.6"></a><var>21.6</var>four, except that the credit is reduced by $1 for every $160 over $80,000 in federal
         <br/>
<a id="pl.21.7"></a><var>21.7</var>adjusted gross income.<br/>
<a id="pl.21.8"></a><var>21.8</var>(c) For a nonresident or a part-year resident, the credit under this subdivision <br/>
<a id="pl.21.9"></a><var>21.9</var>must be allocated based on the percentage calculated under section 290.06, subdivision
         <br/>
<a id="pl.21.10"></a><var>21.10</var>2c, paragraph (e).<br/>
<a id="pl.21.11"></a><var>21.11</var>(d) The $80,000 in paragraph (b), clauses (3) and (4), used to calculate the credit
         and <br/>
<a id="pl.21.12"></a><var>21.12</var>phaseout must be adjusted for inflation. The commissioner shall adjust by the percentage
         <br/>
<a id="pl.21.13"></a><var>21.13</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except <br/>
<a id="pl.21.14"></a><var>21.14</var>that in section 1(f)(3)(B) the word "2014" shall be substituted for the word "1992."
         For <br/>
<a id="pl.21.15"></a><var>21.15</var>2016, the commissioner shall then determine the percent change from the 12 months
         ending <br/>
<a id="pl.21.16"></a><var>21.16</var>on August 31, 2014, to the 12 months ending on August 31, 2015, and in each subsequent
         <br/>
<a id="pl.21.17"></a><var>21.17</var>year, from the 12 months ending on August 31, 2014, to the 12 months ending on August
         <br/>
<a id="pl.21.18"></a><var>21.18</var>31 of the year preceding the taxable year. The earned income thresholds as adjusted
         for <br/>
<a id="pl.21.19"></a><var>21.19</var>inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the
         amount <br/>
<a id="pl.21.20"></a><var>21.20</var>is rounded up to the nearest $10 amount. The determination of the commissioner under
         this <br/>
<a id="pl.21.21"></a><var>21.21</var>subdivision is not a rule under the Administrative Procedure Act including section
         14.386.<br/>
<a id="pl.21.22"></a><var>21.22</var>    Subd. 3. <b>Credit transfer.</b> (a) The credit allowed under this section must be <br/>
<a id="pl.21.23"></a><var>21.23</var>calculated after applying all other credits to the taxpayer's tax liability. If the
         amount of <br/>
<a id="pl.21.24"></a><var>21.24</var>credit that the taxpayer is eligible to receive under this section exceeds the taxpayer's
         tax <br/>
<a id="pl.21.25"></a><var>21.25</var>liability after applying all other credits, the commissioner shall transfer the excess
         amount <br/>
<a id="pl.21.26"></a><var>21.26</var>pursuant to the requirements of paragraph (b).<br/>
<a id="pl.21.27"></a><var>21.27</var>(b) The commissioner shall transfer the excess amount calculated under paragraph <br/>
<a id="pl.21.28"></a><var>21.28</var>(a) to the plan administrator to be deposited to the taxpayer's Minnesota college
         savings <br/>
<a id="pl.21.29"></a><var>21.29</var>plan account. If the taxpayer made contributions to more than one account, the credit
         <br/>
<a id="pl.21.30"></a><var>21.30</var>amount must be allocated based on the contributions to each account as a percentage
         <br/>
<a id="pl.21.31"></a><var>21.31</var>of the total contributions to all accounts.<br/>
<a id="pl.21.32"></a><var>21.32</var>    Subd. 4. <b>Verification of contribution amounts.</b> The commissioner of the Office of <br/>
<a id="pl.21.33"></a><var>21.33</var>Higher Education must provide sufficient information to the commissioner of revenue
         to <br/>
<a id="pl.21.34"></a><var>21.34</var>verify the taxpayer's annual contribution amounts to an account.<br/>
<a id="pl.22.1"></a><var>22.1</var>    Subd. 5. <b>Recapture of credit.</b> In the case of a nonqualified distribution, the <br/>
<a id="pl.22.2"></a><var>22.2</var>taxpayer is liable to the commissioner for the lesser of: ten percent of the amount
         of the <br/>
<a id="pl.22.3"></a><var>22.3</var>nonqualified distribution, or the sum of credits received under this section for all
         years.<br/>
<a id="pl.22.4"></a><var>22.4</var>    Subd. 6. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.22.5"></a><var>22.5</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.22.6"></a><var>22.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.22.7"></a><var>22.7</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.22.8"></a><var>22.8</var>    Sec. 22. <b>[290.0694] VETERANS JOBS TAX CREDIT.</b><br/>
<a id="pl.22.9"></a><var>22.9</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.22.10"></a><var>22.10</var>have the meanings given.<br/>
<a id="pl.22.11"></a><var>22.11</var>(b)(1) "Qualified employee" means an employee as defined in section 290.92, <br/>
<a id="pl.22.12"></a><var>22.12</var>subdivision 1, who meets the following criteria:<br/>
<a id="pl.22.13"></a><var>22.13</var>(i) the employee is a resident of Minnesota on the date of hire;<br/>
<a id="pl.22.14"></a><var>22.14</var>(ii) the employee is paid wages as defined in section 290.92, subdivision 1; and<br/>
<a id="pl.22.15"></a><var>22.15</var>(iii) the employee's wages are attributable to Minnesota under section 290.191, <br/>
<a id="pl.22.16"></a><var>22.16</var>subdivision 12;<br/>
<a id="pl.22.17"></a><var>22.17</var>(2) "Qualified employee" does not include:<br/>
<a id="pl.22.18"></a><var>22.18</var>(i) any employee who bears any of the relationships to the employer described in <br/>
<a id="pl.22.19"></a><var>22.19</var>subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code;<br/>
<a id="pl.22.20"></a><var>22.20</var>(ii) if the employer is a corporation, an employee who owns, directly or indirectly,
         <br/>
<a id="pl.22.21"></a><var>22.21</var>more than 50 percent in value of the outstanding stock of the corporation, or if the
         <br/>
<a id="pl.22.22"></a><var>22.22</var>employer is an entity other than a corporation, an employee who owns, directly or
         <br/>
<a id="pl.22.23"></a><var>22.23</var>indirectly, more than 50 percent of the capital and profits interests in the entity,
         as <br/>
<a id="pl.22.24"></a><var>22.24</var>determined with the application of section 267(c) of the Internal Revenue Code; or<br/>
<a id="pl.22.25"></a><var>22.25</var>(iii) if the employer is an estate or trust, any employee who is a fiduciary of the
         estate <br/>
<a id="pl.22.26"></a><var>22.26</var>or trust, or is an individual who bears any of the relationships described in subparagraphs
         <br/>
<a id="pl.22.27"></a><var>22.27</var>(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary,
         <br/>
<a id="pl.22.28"></a><var>22.28</var>or fiduciary of the estate or trust.<br/>
<a id="pl.22.29"></a><var>22.29</var>(c) "Qualified employer" means: (i) an employer that hired an unemployed veteran <br/>
<a id="pl.22.30"></a><var>22.30</var>as a qualified employee; and (ii) an employer not eligible to receive a grant under
         the <br/>
<a id="pl.22.31"></a><var>22.31</var>veterans jobs grant program in section 31.<br/>
<a id="pl.22.32"></a><var>22.32</var>(d) "Unemployed veteran" is a veteran who was unemployed on the date of hire.<br/>
<a id="pl.22.33"></a><var>22.33</var>(e) "Veteran" has the meaning given in section 197.447.<br/>
<a id="pl.22.34"></a><var>22.34</var>(f) "Date of hire" means the day that the qualified employee begins performing <br/>
<a id="pl.22.35"></a><var>22.35</var>services as an employee of the qualified employer.<br/>
<a id="pl.23.1"></a><var>23.1</var>    Subd. 2. <b>Credit for hiring unemployed veterans.</b> A qualified employer who <br/>
<a id="pl.23.2"></a><var>23.2</var>is required to file a return under section 289A.08, subdivision 1, 2, or 3, and hires
         an <br/>
<a id="pl.23.3"></a><var>23.3</var>unemployed veteran as a qualified employee, is allowed a credit against the tax imposed
         <br/>
<a id="pl.23.4"></a><var>23.4</var>by this chapter equal to ten percent of the wages paid to the qualified employee during
         the <br/>
<a id="pl.23.5"></a><var>23.5</var>taxable year, but the amount of the credit shall not exceed $2,500. The credit is
         limited <br/>
<a id="pl.23.6"></a><var>23.6</var>to the liability for tax under this chapter for the taxable year. A qualified employer
         is <br/>
<a id="pl.23.7"></a><var>23.7</var>not eligible for the credit if the qualified employer currently employs or has previously
         <br/>
<a id="pl.23.8"></a><var>23.8</var>employed the qualified veteran.<br/>
<a id="pl.23.9"></a><var>23.9</var>    Subd. 3. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.23.10"></a><var>23.10</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.23.11"></a><var>23.11</var>    Subd. 4. <b>Flow-through entities.</b> Credits granted to a partnership, limited liability <br/>
<a id="pl.23.12"></a><var>23.12</var>company taxed as a partnership, S corporation, or multiple owners of a business are
         passed <br/>
<a id="pl.23.13"></a><var>23.13</var>through to the partners, members, shareholders, or owners, respectively, pro rata
         to each <br/>
<a id="pl.23.14"></a><var>23.14</var>partner, member, shareholder, or owner based on their share of the entity's assets
         or as <br/>
<a id="pl.23.15"></a><var>23.15</var>specially allocated in their organizational documents, as of the last day of the taxable
         year.<br/>
<a id="pl.23.16"></a><var>23.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.23.17"></a><var>23.17</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.23.18"></a><var>23.18</var>    Sec. 23. <b>[290.0695] EMPLOYEE CREDIT FOR CERTAIN </b><br/>
<a id="pl.23.19"></a><var>23.19</var><b>EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.</b><br/>
<a id="pl.23.20"></a><var>23.20</var>    Subdivision 1. <b>Credit allowed.</b> (a) A taxpayer is allowed a credit against the tax <br/>
<a id="pl.23.21"></a><var>23.21</var>imposed by this chapter, subject to the requirements of this section. The credit shall
         not <br/>
<a id="pl.23.22"></a><var>23.22</var>exceed the taxpayer's tax liability. For married taxpayers filing a joint return,
         the credit is <br/>
<a id="pl.23.23"></a><var>23.23</var>$60. For all other taxpayers, the credit is $30.<br/>
<a id="pl.23.24"></a><var>23.24</var>(b) The credit is allowed to an employee whose employer either:<br/>
<a id="pl.23.25"></a><var>23.25</var>(1) pays a portion of any fees, dues, or membership expenses on behalf of the <br/>
<a id="pl.23.26"></a><var>23.26</var>employee to a fitness facility; or<br/>
<a id="pl.23.27"></a><var>23.27</var>(2) reimburses the employee for direct payment of fees, dues, or membership <br/>
<a id="pl.23.28"></a><var>23.28</var>expenses made by the employee to a fitness facility.<br/>
<a id="pl.23.29"></a><var>23.29</var>(c) The credit under this section is only allowed to individuals who use the fitness
         <br/>
<a id="pl.23.30"></a><var>23.30</var>facility for the preservation, maintenance, encouragement, or development of physical
         <br/>
<a id="pl.23.31"></a><var>23.31</var>fitness an average of four days per month, but if the fitness facility is used fewer
         than three <br/>
<a id="pl.23.32"></a><var>23.32</var>days per month, the credit is not allowed. The commissioner shall prescribe the form
         and <br/>
<a id="pl.23.33"></a><var>23.33</var>manner in which eligibility for the credit is determined.<br/>
<a id="pl.23.34"></a><var>23.34</var>(d) For purposes of this section, "fitness facility" means a facility located in the
         state:<br/>
<a id="pl.24.1"></a><var>24.1</var>(1) that provides instruction in a program of physical exercise; offers facilities
         for <br/>
<a id="pl.24.2"></a><var>24.2</var>the preservation, maintenance, encouragement, or development of physical fitness;
         or is <br/>
<a id="pl.24.3"></a><var>24.3</var>the site of such a program of a state or local government;<br/>
<a id="pl.24.4"></a><var>24.4</var>(2) that is not a private club owned and operated by its members;<br/>
<a id="pl.24.5"></a><var>24.5</var>(3) that does not offer golf, hunting, sailing, or horseback riding facilities;<br/>
<a id="pl.24.6"></a><var>24.6</var>(4) whose fitness facility is not incidental to its overall function and purpose;<br/>
<a id="pl.24.7"></a><var>24.7</var>(5) that is compliant with antidiscrimination laws under chapter 363A and applicable
         <br/>
<a id="pl.24.8"></a><var>24.8</var>federal antidiscrimination laws; and<br/>
<a id="pl.24.9"></a><var>24.9</var>(6) is located off the employer's premises.<br/>
<a id="pl.24.10"></a><var>24.10</var>    Subd. 2. <b>Limitation.</b> The credit under this section applies only if the employer's <br/>
<a id="pl.24.11"></a><var>24.11</var>payment of fees, dues, or membership expenses to a fitness facility is available on
         <br/>
<a id="pl.24.12"></a><var>24.12</var>substantially the same terms to each member of a group of employees defined under
         a <br/>
<a id="pl.24.13"></a><var>24.13</var>reasonable classification by the employer, but no classification may include only
         highly <br/>
<a id="pl.24.14"></a><var>24.14</var>compensated employees, as defined under section 414(q) of the Internal Revenue Code,
         or <br/>
<a id="pl.24.15"></a><var>24.15</var>any other group that includes only executives, directors, or other managerial employees.
         <br/>
<a id="pl.24.16"></a><var>24.16</var>    Subd. 3. <b>Nonresidents and part-year residents; flow-through entities.</b> For a <br/>
<a id="pl.24.17"></a><var>24.17</var>nonresident or part-year resident, the credit must be allocated based on the percentage
         <br/>
<a id="pl.24.18"></a><var>24.18</var>calculated under section 290.06, subdivision 2c, paragraph (e).<br/>
<a id="pl.24.19"></a><var>24.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.24.20"></a><var>24.20</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.24.21"></a><var>24.21</var>    Sec. 24. Minnesota Statutes 2014, section 290.17, subdivision 4, is amended to read:<br/>
<a id="pl.24.22"></a><var>24.22</var>    Subd. 4. <b>Unitary business principle.</b> (a) If a trade or business conducted wholly <br/>
<a id="pl.24.23"></a><var>24.23</var>within this state or partly within and partly without this state is part of a unitary
         business, <br/>
<a id="pl.24.24"></a><var>24.24</var>the entire income of the unitary business is subject to apportionment pursuant to
         section <br/>
<statute_ref><a id="pl.24.25"></a><var>24.25</var>290.191
         </statute_ref>. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary <br/>
<a id="pl.24.26"></a><var>24.26</var>business is considered to be derived from any particular source and none may be allocated
         <br/>
<a id="pl.24.27"></a><var>24.27</var>to a particular place except as provided by the applicable apportionment formula.
         The <br/>
<a id="pl.24.28"></a><var>24.28</var>provisions of this subdivision do not apply to business income subject to subdivision
         5, <br/>
<a id="pl.24.29"></a><var>24.29</var>income of an insurance company, or income of an investment company determined under
         <br/>
<a id="pl.24.30"></a><var>24.30</var>section 
         <statute_ref>290.36</statute_ref>.<br/>
<a id="pl.24.31"></a><var>24.31</var>(b) The term "unitary business" means business activities or operations which <br/>
<a id="pl.24.32"></a><var>24.32</var>result in a flow of value between them. The term may be applied within a single legal
         <br/>
<a id="pl.24.33"></a><var>24.33</var>entity or between multiple entities and without regard to whether each entity is a
         sole <br/>
<a id="pl.24.34"></a><var>24.34</var>proprietorship, a corporation, a partnership or a trust.<br/>
<a id="pl.25.1"></a><var>25.1</var>(c) Unity is presumed whenever there is unity of ownership, operation, and use, <br/>
<a id="pl.25.2"></a><var>25.2</var>evidenced by centralized management or executive force, centralized purchasing, <br/>
<a id="pl.25.3"></a><var>25.3</var>advertising, accounting, or other controlled interaction, but the absence of these
         <br/>
<a id="pl.25.4"></a><var>25.4</var>centralized activities will not necessarily evidence a nonunitary business. Unity
         is also <br/>
<a id="pl.25.5"></a><var>25.5</var>presumed when business activities or operations are of mutual benefit, dependent upon
         or <br/>
<a id="pl.25.6"></a><var>25.6</var>contributory to one another, either individually or as a group.<br/>
<a id="pl.25.7"></a><var>25.7</var>(d) Where a business operation conducted in Minnesota is owned by a business <br/>
<a id="pl.25.8"></a><var>25.8</var>entity that carries on business activity outside the state different in kind from
         that <br/>
<a id="pl.25.9"></a><var>25.9</var>conducted within this state, and the other business is conducted entirely outside
         the state, it <br/>
<a id="pl.25.10"></a><var>25.10</var>is presumed that the two business operations are unitary in nature, interrelated,
         connected, <br/>
<a id="pl.25.11"></a><var>25.11</var>and interdependent unless it can be shown to the contrary.<br/>
<a id="pl.25.12"></a><var>25.12</var>(e) Unity of ownership does not exist when two or more corporations are involved <br/>
<a id="pl.25.13"></a><var>25.13</var>unless more than 50 percent of the voting stock of each corporation is directly or
         indirectly <br/>
<a id="pl.25.14"></a><var>25.14</var>owned by a common owner or by common owners, either corporate or noncorporate, or
         <br/>
<a id="pl.25.15"></a><var>25.15</var>by one or more of the member corporations of the group. For this purpose, the term
         <br/>
<a id="pl.25.16"></a><var>25.16</var>"voting stock" shall include membership interests of mutual insurance holding companies
         <br/>
<a id="pl.25.17"></a><var>25.17</var>formed under section 
         <statute_ref>66A.40</statute_ref>.<br/>
<a id="pl.25.18"></a><var>25.18</var>(f) The net income and apportionment factors under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> of <br/>
<a id="pl.25.19"></a><var>25.19</var>foreign corporations and other foreign entities which are part of a unitary business
         shall <br/>
<a id="pl.25.20"></a><var>25.20</var>not be included in the net income or the apportionment factors of the unitary business;
         <br/>
<a id="pl.25.21"></a><var>25.21</var>except that the income and apportionment factors of a foreign entity, other than an
         entity <br/>
<a id="pl.25.22"></a><var>25.22</var>treated as a C corporation for federal income tax purposes, that are included in the
         federal <br/>
<a id="pl.25.23"></a><var>25.23</var>taxable income, as defined in section 63 of the Internal Revenue Code as amended through
         <br/>
<a id="pl.25.24"></a><var>25.24</var>the date named in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, of a domestic corporation, domestic <br/>
<a id="pl.25.25"></a><var>25.25</var>entity, or individual must be included in determining net income and the factors to
         be used <br/>
<a id="pl.25.26"></a><var>25.26</var>in the apportionment of net income pursuant to section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>. A foreign <br/>
<a id="pl.25.27"></a><var>25.27</var>corporation or other foreign entity which is not included on a combined report and
         which <br/>
<a id="pl.25.28"></a><var>25.28</var>is required to file a return under this chapter shall file on a separate return basis.<br/>
<a id="pl.25.29"></a><var>25.29</var>(g) For purposes of determining the net income of a unitary business and the factors
         <br/>
<a id="pl.25.30"></a><var>25.30</var>to be used in the apportionment of net income pursuant to section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>, there <br/>
<a id="pl.25.31"></a><var>25.31</var>must be included only the income and apportionment factors of domestic corporations
         <br/>
<a id="pl.25.32"></a><var>25.32</var>or other domestic entities that are determined to be part of the unitary business
         pursuant <br/>
<a id="pl.25.33"></a><var>25.33</var>to this subdivision, notwithstanding that foreign corporations or other foreign entities
         <br/>
<a id="pl.25.34"></a><var>25.34</var>might be included in the unitary business; except that the income and apportionment
         <br/>
<a id="pl.25.35"></a><var>25.35</var>factors of a foreign entity, other than an entity treated as a C corporation for federal
         <br/>
<a id="pl.25.36"></a><var>25.36</var>income tax purposes, that is included in the federal taxable income, as defined in
         section <br/>
<a id="pl.26.1"></a><var>26.1</var>63 of the Internal Revenue Code as amended through the date named in section 
         <statute_ref>290.01, <br/>
<a id="pl.26.2"></a><var>26.2</var>subdivision 19
         </statute_ref>, of a domestic corporation, domestic entity, or individual must be included <br/>
<a id="pl.26.3"></a><var>26.3</var>in determining net income and the factors to be used in the apportionment of net income
         <br/>
<a id="pl.26.4"></a><var>26.4</var>pursuant to section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>.<br/>
<a id="pl.26.5"></a><var>26.5</var>(h) Each corporation or other entity, except a sole proprietorship, that is part of
         a <br/>
<a id="pl.26.6"></a><var>26.6</var>unitary business must file combined reports as the commissioner determines. On the
         <br/>
<a id="pl.26.7"></a><var>26.7</var>reports, all intercompany transactions between entities included pursuant to paragraph
         <br/>
<a id="pl.26.8"></a><var>26.8</var>(g) must be eliminated and the entire net income of the unitary business determined
         in <br/>
<a id="pl.26.9"></a><var>26.9</var>accordance with this subdivision is apportioned among the entities by using each entity's
         <br/>
<a id="pl.26.10"></a><var>26.10</var>Minnesota factors for apportionment purposes in the numerators of the apportionment
         <br/>
<a id="pl.26.11"></a><var>26.11</var>formula and the total factors for apportionment purposes of all entities included
         pursuant <br/>
<a id="pl.26.12"></a><var>26.12</var>to paragraph (g) in the denominators of the apportionment formula. Except as otherwise
         <br/>
<a id="pl.26.13"></a><var>26.13</var>provided by paragraph (f), all sales of the unitary business made within this state
         pursuant <br/>
<a id="pl.26.14"></a><var>26.14</var>to section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> must be included on the combined report of a corporation or <br/>
<a id="pl.26.15"></a><var>26.15</var>other entity that is a member of the unitary business and is subject to the jurisdiction
         of <br/>
<a id="pl.26.16"></a><var>26.16</var>this state to impose tax under this chapter.<br/>
<a id="pl.26.17"></a><var>26.17</var>(i) If a corporation has been divested from a unitary business and is included in
         a <br/>
<a id="pl.26.18"></a><var>26.18</var>combined report for a fractional part of the common accounting period of the combined
         <br/>
<a id="pl.26.19"></a><var>26.19</var>report:<br/>
<a id="pl.26.20"></a><var>26.20</var>(1) its income includable in the combined report is its income incurred for that part
         <br/>
<a id="pl.26.21"></a><var>26.21</var>of the year determined by proration or separate accounting; and<br/>
<a id="pl.26.22"></a><var>26.22</var>(2) its sales, property, and payroll included in the apportionment formula must <br/>
<a id="pl.26.23"></a><var>26.23</var>be prorated or accounted for separately.<br/>
<a id="pl.26.24"></a><var>26.24</var>(j) For purposes of this subdivision, "insurance company" means any company that is:<br/>
<a id="pl.26.25"></a><var>26.25</var>(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
         <br/>
<a id="pl.26.26"></a><var>26.26</var>60A; or<br/>
<a id="pl.26.27"></a><var>26.27</var>(2) domiciled and licensed to engage in the business of insurance in another state
         <br/>
<a id="pl.26.28"></a><var>26.28</var>or country that imposes retaliatory taxes, and that does not grant, on a reciprocal
         basis, <br/>
<a id="pl.26.29"></a><var>26.29</var>exemption from such retaliatory taxes to insurance companies or their agents domiciled
         <br/>
<a id="pl.26.30"></a><var>26.30</var>in Minnesota.<br/>
<a id="pl.26.31"></a><var>26.31</var>(k) For the purposes of this subdivision, "retaliatory taxes" means taxes imposed
         on <br/>
<a id="pl.26.32"></a><var>26.32</var>insurance companies organized in another state or country that result from the fact
         that an <br/>
<a id="pl.26.33"></a><var>26.33</var>insurance company organized in the taxing jurisdiction and doing business in the other
         <br/>
<a id="pl.26.34"></a><var>26.34</var>jurisdiction is subject to taxes, fines, deposits, penalties, licenses, or fees in
         an amount <br/>
<a id="pl.26.35"></a><var>26.35</var>exceeding that imposed by the taxing jurisdiction upon an insurance company organized
         in <br/>
<a id="pl.26.36"></a><var>26.36</var>the other state or country and doing business to the same extent in the taxing jurisdiction.<br/>
<a id="pl.27.1"></a><var>27.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.27.2"></a><var>27.2</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.27.3"></a><var>27.3</var>    Sec. 25. Minnesota Statutes 2014, section 290.191, subdivision 5, is amended to read:<br/>
<a id="pl.27.4"></a><var>27.4</var>    Subd. 5. <b>Determination of sales factor.</b> For purposes of this section, the following <br/>
<a id="pl.27.5"></a><var>27.5</var>rules apply in determining the sales factor.<br/>
<a id="pl.27.6"></a><var>27.6</var>    (a) The sales factor includes all sales, gross earnings, or receipts received in the
         <br/>
<a id="pl.27.7"></a><var>27.7</var>ordinary course of the business, except that the following types of income are not
         included <br/>
<a id="pl.27.8"></a><var>27.8</var>in the sales factor:<br/>
<a id="pl.27.9"></a><var>27.9</var>    (1) interest;<br/>
<a id="pl.27.10"></a><var>27.10</var>    (2) dividends;<br/>
<a id="pl.27.11"></a><var>27.11</var>    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;<br/>
<a id="pl.27.12"></a><var>27.12</var>    (4) sales of property used in the trade or business, except sales of leased property
         of <br/>
<a id="pl.27.13"></a><var>27.13</var>a type which is regularly sold as well as leased; and<br/>
<a id="pl.27.14"></a><var>27.14</var>    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
         <br/>
<a id="pl.27.15"></a><var>27.15</var>Code or sales of stock.; and<br/>
<a id="pl.27.16"></a><var>27.16</var>    (6) sales of derivatives including, but not limited to, swaps, options, futures, and
         <br/>
<a id="pl.27.17"></a><var>27.17</var>forwards.<br/>
<a id="pl.27.18"></a><var>27.18</var>    (b) Sales of tangible personal property are made within this state if the property
         is <br/>
<a id="pl.27.19"></a><var>27.19</var>received by a purchaser at a point within this state, regardless of the f.o.b. point,
         other <br/>
<a id="pl.27.20"></a><var>27.20</var>conditions of the sale, or the ultimate destination of the property.<br/>
<a id="pl.27.21"></a><var>27.21</var>    (c) Tangible personal property delivered to a common or contract carrier or foreign
         <br/>
<a id="pl.27.22"></a><var>27.22</var>vessel for delivery to a purchaser in another state or nation is a sale in that state
         or nation, <br/>
<a id="pl.27.23"></a><var>27.23</var>regardless of f.o.b. point or other conditions of the sale.<br/>
<a id="pl.27.24"></a><var>27.24</var>    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, <br/>
<a id="pl.27.25"></a><var>27.25</var>fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser
         who is <br/>
<a id="pl.27.26"></a><var>27.26</var>licensed by a state or political subdivision to resell this property only within the
         state of <br/>
<a id="pl.27.27"></a><var>27.27</var>ultimate destination, the sale is made in that state.<br/>
<a id="pl.27.28"></a><var>27.28</var>    (e) Sales made by or through a corporation that is qualified as a domestic <br/>
<a id="pl.27.29"></a><var>27.29</var>international sales corporation under section 992 of the Internal Revenue Code are
         not <br/>
<a id="pl.27.30"></a><var>27.30</var>considered to have been made within this state.<br/>
<a id="pl.27.31"></a><var>27.31</var>    (f) Sales, rents, royalties, and other income in connection with real property is
         <br/>
<a id="pl.27.32"></a><var>27.32</var>attributed to the state in which the property is located.<br/>
<a id="pl.27.33"></a><var>27.33</var>    (g) Receipts from the lease or rental of tangible personal property, including finance
         <br/>
<a id="pl.27.34"></a><var>27.34</var>leases and true leases, must be attributed to this state if the property is located
         in this <br/>
<a id="pl.27.35"></a><var>27.35</var>state and to other states if the property is not located in this state. Receipts from
         the <br/>
<a id="pl.28.1"></a><var>28.1</var>lease or rental of moving property including, but not limited to, motor vehicles,
         rolling <br/>
<a id="pl.28.2"></a><var>28.2</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the
         receipts <br/>
<a id="pl.28.3"></a><var>28.3</var>factor to the extent that the property is used in this state. The extent of the use
         of moving <br/>
<a id="pl.28.4"></a><var>28.4</var>property is determined as follows:<br/>
<a id="pl.28.5"></a><var>28.5</var>    (1) A motor vehicle is used wholly in the state in which it is registered.<br/>
<a id="pl.28.6"></a><var>28.6</var>    (2) The extent that rolling stock is used in this state is determined by multiplying
         <br/>
<a id="pl.28.7"></a><var>28.7</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator
         of <br/>
<a id="pl.28.8"></a><var>28.8</var>which is the miles traveled within this state by the leased or rented rolling stock
         and the <br/>
<a id="pl.28.9"></a><var>28.9</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br/>
<a id="pl.28.10"></a><var>28.10</var>    (3) The extent that an aircraft is used in this state is determined by multiplying
         the <br/>
<a id="pl.28.11"></a><var>28.11</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of
         which is <br/>
<a id="pl.28.12"></a><var>28.12</var>the number of landings of the aircraft in this state and the denominator of which
         is the <br/>
<a id="pl.28.13"></a><var>28.13</var>total number of landings of the aircraft.<br/>
<a id="pl.28.14"></a><var>28.14</var>    (4) The extent that a vessel, mobile equipment, or other mobile property is used in
         <br/>
<a id="pl.28.15"></a><var>28.15</var>the state is determined by multiplying the receipts from the lease or rental of the
         property <br/>
<a id="pl.28.16"></a><var>28.16</var>by a fraction, the numerator of which is the number of days during the taxable year
         the <br/>
<a id="pl.28.17"></a><var>28.17</var>property was in this state and the denominator of which is the total days in the taxable
         year.<br/>
<a id="pl.28.18"></a><var>28.18</var>    (h) Royalties and other income received for the use of or for the privilege of using
         <br/>
<a id="pl.28.19"></a><var>28.19</var>intangible property, including patents, know-how, formulas, designs, processes, patterns,
         <br/>
<a id="pl.28.20"></a><var>28.20</var>copyrights, trade names, service names, franchises, licenses, contracts, customer
         lists, or <br/>
<a id="pl.28.21"></a><var>28.21</var>similar items, must be attributed to the state in which the property is used by the
         purchaser. <br/>
<a id="pl.28.22"></a><var>28.22</var>If the property is used in more than one state, the royalties or other income must
         be <br/>
<a id="pl.28.23"></a><var>28.23</var>apportioned to this state pro rata according to the portion of use in this state.
         If the portion <br/>
<a id="pl.28.24"></a><var>28.24</var>of use in this state cannot be determined, the royalties or other income must be excluded
         <br/>
<a id="pl.28.25"></a><var>28.25</var>from both the numerator and the denominator. Intangible property is used in this state
         if <br/>
<a id="pl.28.26"></a><var>28.26</var>the purchaser uses the intangible property or the rights therein in the regular course
         of its <br/>
<a id="pl.28.27"></a><var>28.27</var>business operations in this state, regardless of the location of the purchaser's customers.<br/>
<a id="pl.28.28"></a><var>28.28</var>    (i) Sales of intangible property are made within the state in which the property is
         <br/>
<a id="pl.28.29"></a><var>28.29</var>used by the purchaser. If the property is used in more than one state, the sales must
         be <br/>
<a id="pl.28.30"></a><var>28.30</var>apportioned to this state pro rata according to the portion of use in this state.
         If the <br/>
<a id="pl.28.31"></a><var>28.31</var>portion of use in this state cannot be determined, the sale must be excluded from
         both the <br/>
<a id="pl.28.32"></a><var>28.32</var>numerator and the denominator of the sales factor. Intangible property is used in
         this <br/>
<a id="pl.28.33"></a><var>28.33</var>state if the purchaser used the intangible property in the regular course of its business
         <br/>
<a id="pl.28.34"></a><var>28.34</var>operations in this state.<br/>
<a id="pl.28.35"></a><var>28.35</var>    (j) Receipts from the performance of services must be attributed to the state where
         <br/>
<a id="pl.28.36"></a><var>28.36</var>the services are received. For the purposes of this section, receipts from the performance
         <br/>
<a id="pl.29.1"></a><var>29.1</var>of services provided to a corporation, partnership, or trust may only be attributed
         to a <br/>
<a id="pl.29.2"></a><var>29.2</var>state where it has a fixed place of doing business. If the state where the services
         are <br/>
<a id="pl.29.3"></a><var>29.3</var>received is not readily determinable or is a state where the corporation, partnership,
         or <br/>
<a id="pl.29.4"></a><var>29.4</var>trust receiving the service does not have a fixed place of doing business, the services
         <br/>
<a id="pl.29.5"></a><var>29.5</var>shall be deemed to be received at the location of the office of the customer from
         which <br/>
<a id="pl.29.6"></a><var>29.6</var>the services were ordered in the regular course of the customer's trade or business.
         If the <br/>
<a id="pl.29.7"></a><var>29.7</var>ordering office cannot be determined, the services shall be deemed to be received
         at the <br/>
<a id="pl.29.8"></a><var>29.8</var>office of the customer to which the services are billed. Receipts received as compensation <br/>
<a id="pl.29.9"></a><var>29.9</var>by a nonresident individual for the performance of services as a member of a board
         of <br/>
<a id="pl.29.10"></a><var>29.10</var>directors, or similar body, are attributed to Minnesota based on the ratio of the
         time spent <br/>
<a id="pl.29.11"></a><var>29.11</var>in Minnesota providing services as a member of that board divided by the time spent
         <br/>
<a id="pl.29.12"></a><var>29.12</var>everywhere providing services as a member of that board.<br/>
<a id="pl.29.13"></a><var>29.13</var>    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
         <br/>
<a id="pl.29.14"></a><var>29.14</var>from management, distribution, or administrative services performed by a corporation
         <br/>
<a id="pl.29.15"></a><var>29.15</var>or trust for a fund of a corporation or trust regulated under United States Code,
         title 15, <br/>
<a id="pl.29.16"></a><var>29.16</var>sections 80a-1 through 80a-64, must be attributed to the state where the shareholder
         of <br/>
<a id="pl.29.17"></a><var>29.17</var>the fund resides. Under this paragraph, receipts for services attributed to shareholders
         are <br/>
<a id="pl.29.18"></a><var>29.18</var>determined on the basis of the ratio of: (1) the average of the outstanding shares
         in the <br/>
<a id="pl.29.19"></a><var>29.19</var>fund owned by shareholders residing within Minnesota at the beginning and end of each
         <br/>
<a id="pl.29.20"></a><var>29.20</var>year; and (2) the average of the total number of outstanding shares in the fund at
         the <br/>
<a id="pl.29.21"></a><var>29.21</var>beginning and end of each year. Residence of the shareholder, in the case of an individual,
         <br/>
<a id="pl.29.22"></a><var>29.22</var>is determined by the mailing address furnished by the shareholder to the fund. Residence
         <br/>
<a id="pl.29.23"></a><var>29.23</var>of the shareholder, when the shares are held by an insurance company as a depositor
         for <br/>
<a id="pl.29.24"></a><var>29.24</var>the insurance company policyholders, is the mailing address of the policyholders.
         In <br/>
<a id="pl.29.25"></a><var>29.25</var>the case of an insurance company holding the shares as a depositor for the insurance
         <br/>
<a id="pl.29.26"></a><var>29.26</var>company policyholders, if the mailing address of the policyholders cannot be determined
         <br/>
<a id="pl.29.27"></a><var>29.27</var>by the taxpayer, the receipts must be excluded from both the numerator and denominator.
         <br/>
<a id="pl.29.28"></a><var>29.28</var>Residence of other shareholders is the mailing address of the shareholder.<br/>
<a id="pl.29.29"></a><var>29.29</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br/>
<a id="pl.29.30"></a><var>29.30</var>December 31, 2014. Paragraph (j) is effective the day following final enactment and
         <br/>
<a id="pl.29.31"></a><var>29.31</var>applies retroactively to all open taxable years and returns.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.29.32"></a><var>29.32</var>    Sec. 26. Minnesota Statutes 2014, section 290.21, subdivision 4, is amended to read:<br/>
<a id="pl.29.33"></a><var>29.33</var>    Subd. 4. <b>Dividends received from another corporation.</b> (a)(1) Eighty percent <br/>
<a id="pl.29.34"></a><var>29.34</var>of dividends received by a corporation during the taxable year from another corporation,
         <br/>
<a id="pl.29.35"></a><var>29.35</var>in which the recipient owns 20 percent or more of the stock, by vote and value, not
         <br/>
<a id="pl.30.1"></a><var>30.1</var>including stock described in section 1504(a)(4) of the Internal Revenue Code when
         the <br/>
<a id="pl.30.2"></a><var>30.2</var>corporate stock with respect to which dividends are paid does not constitute the stock
         in <br/>
<a id="pl.30.3"></a><var>30.3</var>trade of the taxpayer or would not be included in the inventory of the taxpayer, or
         does not <br/>
<a id="pl.30.4"></a><var>30.4</var>constitute property held by the taxpayer primarily for sale to customers in the ordinary
         <br/>
<a id="pl.30.5"></a><var>30.5</var>course of the taxpayer's trade or business, or when the trade or business of the taxpayer
         <br/>
<a id="pl.30.6"></a><var>30.6</var>does not consist principally of the holding of the stocks and the collection of the
         income <br/>
<a id="pl.30.7"></a><var>30.7</var>and gains therefrom; and<br/>
<a id="pl.30.8"></a><var>30.8</var>    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock
         in <br/>
<a id="pl.30.9"></a><var>30.9</var>an affiliated company transferred in an overall plan of reorganization and the dividend
         <br/>
<a id="pl.30.10"></a><var>30.10</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a),
         as <br/>
<a id="pl.30.11"></a><var>30.11</var>amended through December 31, 1989;<br/>
<a id="pl.30.12"></a><var>30.12</var>    (ii) the remaining 20 percent of dividends if the dividends are received from a <br/>
<a id="pl.30.13"></a><var>30.13</var>corporation which is subject to tax under section 
         <statute_ref>290.36</statute_ref> and which is a member of an <br/>
<a id="pl.30.14"></a><var>30.14</var>affiliated group of corporations as defined by the Internal Revenue Code and the dividend
         <br/>
<a id="pl.30.15"></a><var>30.15</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a),
         as <br/>
<a id="pl.30.16"></a><var>30.16</var>amended through December 31, 1989, or is deducted under an election under section
         <br/>
<a id="pl.30.17"></a><var>30.17</var>243(b) of the Internal Revenue Code; or<br/>
<a id="pl.30.18"></a><var>30.18</var>    (iii) the remaining 20 percent of the dividends if the dividends are received from
         a <br/>
<a id="pl.30.19"></a><var>30.19</var>property and casualty insurer as defined under section 
         <statute_ref>60A.60, subdivision 8</statute_ref>, which is a <br/>
<a id="pl.30.20"></a><var>30.20</var>member of an affiliated group of corporations as defined by the Internal Revenue Code
         <br/>
<a id="pl.30.21"></a><var>30.21</var>and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
         <br/>
<a id="pl.30.22"></a><var>30.22</var>1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
         <br/>
<a id="pl.30.23"></a><var>30.23</var>under an election under section 243(b) of the Internal Revenue Code.<br/>
<a id="pl.30.24"></a><var>30.24</var>    (b) Seventy percent of dividends received by a corporation during the taxable year
         <br/>
<a id="pl.30.25"></a><var>30.25</var>from another corporation in which the recipient owns less than 20 percent of the stock,
         <br/>
<a id="pl.30.26"></a><var>30.26</var>by vote or value, not including stock described in section 1504(a)(4) of the Internal
         <br/>
<a id="pl.30.27"></a><var>30.27</var>Revenue Code when the corporate stock with respect to which dividends are paid does
         not <br/>
<a id="pl.30.28"></a><var>30.28</var>constitute the stock in trade of the taxpayer, or does not constitute property held
         by the <br/>
<a id="pl.30.29"></a><var>30.29</var>taxpayer primarily for sale to customers in the ordinary course of the taxpayer's
         trade or <br/>
<a id="pl.30.30"></a><var>30.30</var>business, or when the trade or business of the taxpayer does not consist principally
         of the <br/>
<a id="pl.30.31"></a><var>30.31</var>holding of the stocks and the collection of income and gain therefrom.<br/>
<a id="pl.30.32"></a><var>30.32</var>    (c) The dividend deduction provided in this subdivision shall be allowed only with
         <br/>
<a id="pl.30.33"></a><var>30.33</var>respect to dividends that are included in a corporation's Minnesota taxable net income
         <br/>
<a id="pl.30.34"></a><var>30.34</var>for the taxable year.<br/>
<a id="pl.30.35"></a><var>30.35</var>    The dividend deduction provided in this subdivision does not apply to a dividend <br/>
<a id="pl.30.36"></a><var>30.36</var>from a corporation which, for the taxable year of the corporation in which the distribution
         <br/>
<a id="pl.31.1"></a><var>31.1</var>is made or for the next preceding taxable year of the corporation, is a corporation
         exempt <br/>
<a id="pl.31.2"></a><var>31.2</var>from tax under section 501 of the Internal Revenue Code.<br/>
<a id="pl.31.3"></a><var>31.3</var>The dividend deduction provided in this subdivision does not apply to a dividend <br/>
<a id="pl.31.4"></a><var>31.4</var>received from a real estate investment trust as defined in section 856 of the Internal
         <br/>
<a id="pl.31.5"></a><var>31.5</var>Revenue Code.<br/>
<a id="pl.31.6"></a><var>31.6</var>    The dividend deduction provided in this subdivision applies to the amount of <br/>
<a id="pl.31.7"></a><var>31.7</var>regulated investment company dividends only to the extent determined under section
         <br/>
<a id="pl.31.8"></a><var>31.8</var>854(b) of the Internal Revenue Code.<br/>
<a id="pl.31.9"></a><var>31.9</var>    The dividend deduction provided in this subdivision shall not be allowed with <br/>
<a id="pl.31.10"></a><var>31.10</var>respect to any dividend for which a deduction is not allowed under the provisions
         of <br/>
<a id="pl.31.11"></a><var>31.11</var>section 246(c) or 246A of the Internal Revenue Code.<br/>
<a id="pl.31.12"></a><var>31.12</var>    (d) If dividends received by a corporation that does not have nexus with Minnesota
         <br/>
<a id="pl.31.13"></a><var>31.13</var>under the provisions of Public Law 86-272 are included as income on the return of
         <br/>
<a id="pl.31.14"></a><var>31.14</var>an affiliated corporation permitted or required to file a combined report under section
         <br/>
<statute_ref><a id="pl.31.15"></a><var>31.15</var>290.17, subdivision 4
         </statute_ref>, or 
         <statute_ref>290.34, subdivision 2</statute_ref>, then for purposes of this subdivision the <br/>
<a id="pl.31.16"></a><var>31.16</var>determination as to whether the trade or business of the corporation consists principally
         <br/>
<a id="pl.31.17"></a><var>31.17</var>of the holding of stocks and the collection of income and gains therefrom shall be
         made <br/>
<a id="pl.31.18"></a><var>31.18</var>with reference to the trade or business of the affiliated corporation having a nexus
         with <br/>
<a id="pl.31.19"></a><var>31.19</var>Minnesota.<br/>
<a id="pl.31.20"></a><var>31.20</var>    (e) The deduction provided by this subdivision does not apply if the dividends are
         <br/>
<a id="pl.31.21"></a><var>31.21</var>paid by a FSC as defined in section 922 of the Internal Revenue Code.<br/>
<a id="pl.31.22"></a><var>31.22</var>    (f) If one or more of the members of the unitary group whose income is included on
         <br/>
<a id="pl.31.23"></a><var>31.23</var>the combined report received a dividend, the deduction under this subdivision for
         each <br/>
<a id="pl.31.24"></a><var>31.24</var>member of the unitary business required to file a return under this chapter is the
         product <br/>
<a id="pl.31.25"></a><var>31.25</var>of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
         <br/>
<a id="pl.31.26"></a><var>31.26</var>allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's
         business <br/>
<a id="pl.31.27"></a><var>31.27</var>income apportionable to this state for the taxable year under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>.<br/>
<a id="pl.31.28"></a><var>31.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.31.29"></a><var>31.29</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.31.30"></a><var>31.30</var>    Sec. 27. Minnesota Statutes 2014, section 290A.03, subdivision 15, as amended by <br/>
<a id="pl.31.31"></a><var>31.31</var>Laws 2015, chapter 1, section 4, is amended to read:<br/>
<a id="pl.31.32"></a><var>31.32</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.31.33"></a><var>31.33</var>Revenue Code of 1986, as amended through December 31, 2014 April 1, 2015.<br/>
<a id="pl.32.1"></a><var>32.1</var><b>EFFECTIVE DATE.</b>This section is effective for property tax refunds based on <br/>
<a id="pl.32.2"></a><var>32.2</var>property taxes payable after December 31, 2015, and rent paid after December 31, 2014.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.32.3"></a><var>32.3</var>    Sec. 28. Minnesota Statutes 2014, section 291.005, subdivision 1, is amended to read:<br/>
<a id="pl.32.4"></a><var>32.4</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.32.5"></a><var>32.5</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.32.6"></a><var>32.6</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.32.7"></a><var>32.7</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.32.8"></a><var>32.8</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be
         valued <br/>
<a id="pl.32.9"></a><var>32.9</var>and otherwise determined for federal estate tax purposes under the Internal Revenue
         Code, <br/>
<a id="pl.32.10"></a><var>32.10</var>increased by the value of any property in which the decedent had a qualifying income
         <br/>
<a id="pl.32.11"></a><var>32.11</var>interest for life and for which an election was made under section 
         <statute_ref>291.03, subdivision 1d</statute_ref>, <br/>
<a id="pl.32.12"></a><var>32.12</var>for Minnesota estate tax purposes, but was not made for federal estate tax purposes.<br/>
<a id="pl.32.13"></a><var>32.13</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.32.14"></a><var>32.14</var>1986, as amended through March 26, 2014.<br/>
<a id="pl.32.15"></a><var>32.15</var>    (4) "Minnesota gross estate" means the federal gross estate of a decedent after <br/>
<a id="pl.32.16"></a><var>32.16</var>(a) excluding therefrom any property included in the estate which has its situs outside
         <br/>
<a id="pl.32.17"></a><var>32.17</var>Minnesota, and (b) including any property omitted from the federal gross estate which
         <br/>
<a id="pl.32.18"></a><var>32.18</var>is includable in the estate, has its situs in Minnesota, and was not disclosed to
         federal <br/>
<a id="pl.32.19"></a><var>32.19</var>taxing authorities.<br/>
<a id="pl.32.20"></a><var>32.20</var>    (5) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.32.21"></a><var>32.21</var>death was not in Minnesota.<br/>
<a id="pl.32.22"></a><var>32.22</var>    (6) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.32.23"></a><var>32.23</var>appointed by the court to administer and dispose of the property of the decedent.
         If there <br/>
<a id="pl.32.24"></a><var>32.24</var>is no executor, administrator or other person appointed, qualified, and acting within
         this <br/>
<a id="pl.32.25"></a><var>32.25</var>state, then any person in actual or constructive possession of any property having
         a situs in <br/>
<a id="pl.32.26"></a><var>32.26</var>this state which is included in the federal gross estate of the decedent shall be
         deemed <br/>
<a id="pl.32.27"></a><var>32.27</var>to be a personal representative to the extent of the property and the Minnesota estate
         tax <br/>
<a id="pl.32.28"></a><var>32.28</var>due with respect to the property.<br/>
<a id="pl.32.29"></a><var>32.29</var>    (7) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.32.30"></a><var>32.30</var>was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and <br/>
<a id="pl.32.31"></a><var>32.31</var>(d), apply to determinations of domicile under this chapter.<br/>
<a id="pl.32.32"></a><var>32.32</var>    (8) "Situs of property" means, with respect to:<br/>
<a id="pl.32.33"></a><var>32.33</var>    (i) real property, the state or country in which it is located;<br/>
<a id="pl.32.34"></a><var>32.34</var>    (ii) tangible personal property, the state or country in which it was normally kept
         <br/>
<a id="pl.32.35"></a><var>32.35</var>or located at the time of the decedent's death or for a gift of tangible personal
         property <br/>
<a id="pl.33.1"></a><var>33.1</var>within three years of death, the state or country in which it was normally kept or
         located <br/>
<a id="pl.33.2"></a><var>33.2</var>when the gift was executed;<br/>
<a id="pl.33.3"></a><var>33.3</var>    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
         <br/>
<a id="pl.33.4"></a><var>33.4</var>Code, owned by a nonresident decedent and that is normally kept or located in this
         state <br/>
<a id="pl.33.5"></a><var>33.5</var>because it is on loan to an organization, qualifying as exempt from taxation under
         section <br/>
<a id="pl.33.6"></a><var>33.6</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of
         the art is <br/>
<a id="pl.33.7"></a><var>33.7</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br/>
<a id="pl.33.8"></a><var>33.8</var>    (iv) intangible personal property, the state or country in which the decedent was
         <br/>
<a id="pl.33.9"></a><var>33.9</var>domiciled at death or for a gift of intangible personal property within three years
         of death, <br/>
<a id="pl.33.10"></a><var>33.10</var>the state or country in which the decedent was domiciled when the gift was executed.<br/>
<a id="pl.33.11"></a><var>33.11</var>    For a nonresident decedent with an ownership interest in a pass-through entity with
         <br/>
<a id="pl.33.12"></a><var>33.12</var>assets that include real or tangible personal property, situs of the real or tangible
         personal <br/>
<a id="pl.33.13"></a><var>33.13</var>property, including qualified works of art, is determined as if the pass-through entity
         does <br/>
<a id="pl.33.14"></a><var>33.14</var>not exist and the real or tangible personal property is personally owned by the decedent.
         <br/>
<a id="pl.33.15"></a><var>33.15</var>If the pass-through entity is owned by a person or persons in addition to the decedent,
         <br/>
<a id="pl.33.16"></a><var>33.16</var>ownership of the property is attributed to the decedent in proportion to the decedent's
         <br/>
<a id="pl.33.17"></a><var>33.17</var>capital ownership share of the pass-through entity.<br/>
<a id="pl.33.18"></a><var>33.18</var>(9) "Pass-through entity" includes the following:<br/>
<a id="pl.33.19"></a><var>33.19</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue
         <br/>
<a id="pl.33.20"></a><var>33.20</var>Code;<br/>
<a id="pl.33.21"></a><var>33.21</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br/>
<a id="pl.33.22"></a><var>33.22</var>(iii) a single-member limited liability company or similar entity, regardless of <br/>
<a id="pl.33.23"></a><var>33.23</var>whether it is taxed as an association or is disregarded for federal income tax purposes
         <br/>
<a id="pl.33.24"></a><var>33.24</var>under Code of Federal Regulations, title 26, section 301.7701-3; or<br/>
<a id="pl.33.25"></a><var>33.25</var>(iv) a trust to the extent the property is includible in the decedent's federal gross
         <br/>
<a id="pl.33.26"></a><var>33.26</var>estate; but excludes<br/>
<a id="pl.33.27"></a><var>33.27</var>    (v) an entity whose ownership interest securities are traded on an exchange regulated
         <br/>
<a id="pl.33.28"></a><var>33.28</var>by the Securities and Exchange Commission as a national securities exchange under
         <br/>
<a id="pl.33.29"></a><var>33.29</var>section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br/>
<a id="pl.33.30"></a><var>33.30</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.33.31"></a><var>33.31</var>December 31, 2014.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.33.32"></a><var>33.32</var>    Sec. 29. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.33.33"></a><var>33.33</var>to read:<br/>
<a id="pl.33.34"></a><var>33.34</var>    Subd. 12. <b>Certain dispositions to government entities.</b> Notwithstanding any <br/>
<a id="pl.33.35"></a><var>33.35</var>provision of this section, no taxpayer shall be disqualified for the subtraction provided
         <br/>
<a id="pl.34.1"></a><var>34.1</var>under section 291.016, subdivision 3, nor shall any taxpayer be liable for the recapture
         tax <br/>
<a id="pl.34.2"></a><var>34.2</var>provided in subdivision 11, solely because the state, any local government unit, or
         any <br/>
<a id="pl.34.3"></a><var>34.3</var>other entity that has the power of eminent domain acquires title or possession of
         the land <br/>
<a id="pl.34.4"></a><var>34.4</var>for a public purpose within the three-year holding period.<br/>
<a id="pl.34.5"></a><var>34.5</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.34.6"></a><var>34.6</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.34.7"></a><var>34.7</var>    Sec. 30. <b>REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL </b><br/>
<a id="pl.34.8"></a><var>34.8</var><b>INCOME TAX RETURNS.</b><br/>
<a id="pl.34.9"></a><var>34.9</var>(a) By March 16, 2016, the commissioner of revenue must provide a written <br/>
<a id="pl.34.10"></a><var>34.10</var>report to the chairs and ranking minority members of the legislative committees with
         <br/>
<a id="pl.34.11"></a><var>34.11</var>jurisdiction over taxes regarding free electronic filing options for individual income
         tax <br/>
<a id="pl.34.12"></a><var>34.12</var>filing, including a vendor-based solution.  The report must include responses from
         a <br/>
<a id="pl.34.13"></a><var>34.13</var>commissioner's request for information to consumer-based tax filing software vendors.
         <br/>
<a id="pl.34.14"></a><var>34.14</var>The request for information may include, but is not limited to, seeking information
         on <br/>
<a id="pl.34.15"></a><var>34.15</var>the following aspects of a free electronic filing solution:<br/>
<a id="pl.34.16"></a><var>34.16</var>(1) costs, on a per return basis, that would be charged to the state of Minnesota
         to <br/>
<a id="pl.34.17"></a><var>34.17</var>provide an electronic individual income tax return preparation, submission, and payment
         <br/>
<a id="pl.34.18"></a><var>34.18</var>remittance process;<br/>
<a id="pl.34.19"></a><var>34.19</var>(2) vendor capability to provide customer service and issue resolution to taxpayers
         <br/>
<a id="pl.34.20"></a><var>34.20</var>using the software;<br/>
<a id="pl.34.21"></a><var>34.21</var>(3) vendor capability to provide and maintain an appropriate link between the <br/>
<a id="pl.34.22"></a><var>34.22</var>Department of Revenue and the Internal Revenue Service Modernized Electronic Filing
         <br/>
<a id="pl.34.23"></a><var>34.23</var>Program;<br/>
<a id="pl.34.24"></a><var>34.24</var>(4) vendor security capabilities to ensure that taxpayer return information is <br/>
<a id="pl.34.25"></a><var>34.25</var>maintained and protected as required by Minnesota Statutes, chapters 13 and 270B,
         <br/>
<a id="pl.34.26"></a><var>34.26</var>Internal Revenue Service Publication 1075, and any other applicable requirements;<br/>
<a id="pl.34.27"></a><var>34.27</var>(5) products for the free filing and submitting of both Minnesota and federal returns
         <br/>
<a id="pl.34.28"></a><var>34.28</var>offered to customers and the thresholds for using those products; and<br/>
<a id="pl.34.29"></a><var>34.29</var>(6) add-on products offered to customers and their costs.<br/>
<a id="pl.34.30"></a><var>34.30</var>(b) The report must address the possibility of implementing free electronic filing
         <br/>
<a id="pl.34.31"></a><var>34.31</var>while maintaining annual preparation of the income tax sample required under Minnesota
         <br/>
<a id="pl.34.32"></a><var>34.32</var>Statutes, section 270C.12, and must include a report on how other states with income
         tax <br/>
<a id="pl.34.33"></a><var>34.33</var>samples manage federal data on federal income tax returns.<br/>
<a id="pl.34.34"></a><var>34.34</var>(c) The report required under paragraph (a) must comply with Minnesota Statutes, <br/>
<a id="pl.34.35"></a><var>34.35</var>sections 3.195 and 3.197. <br/>
<a id="pl.35.1"></a><var>35.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.35.2"></a><var>35.2</var>    Sec. 31. <b>VETERANS JOBS GRANT.</b><br/>
<a id="pl.35.3"></a><var>35.3</var>    Subdivision 1. <b>Establishment.</b> The commissioner of revenue shall establish a <br/>
<a id="pl.35.4"></a><var>35.4</var>program to award a grant to a qualified employer for hiring an unemployed veteran
         as <br/>
<a id="pl.35.5"></a><var>35.5</var>a qualified employee.  A qualified employer is eligible for a grant of $2,500 for
         each <br/>
<a id="pl.35.6"></a><var>35.6</var>qualified employee hired.<br/>
<a id="pl.35.7"></a><var>35.7</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.35.8"></a><var>35.8</var>the meanings given.<br/>
<a id="pl.35.9"></a><var>35.9</var>(b) "Local government" means statutory or home rule charter cities, counties, and
         <br/>
<a id="pl.35.10"></a><var>35.10</var>townships; special districts as defined under Minnesota Statutes, section 6.465; any
         <br/>
<a id="pl.35.11"></a><var>35.11</var>instrumentality of a statutory or home rule charter city, county, or township as defined
         in <br/>
<a id="pl.35.12"></a><var>35.12</var>Minnesota Statutes, section 471.59; and any joint powers board or organization created
         <br/>
<a id="pl.35.13"></a><var>35.13</var>under Minnesota Statutes, section 471.59.<br/>
<a id="pl.35.14"></a><var>35.14</var>(c) "Nonprofit organization" means an organization that has a current federal <br/>
<a id="pl.35.15"></a><var>35.15</var>determination letter stating that the nonprofit organization qualifies as an exempt
         <br/>
<a id="pl.35.16"></a><var>35.16</var>organization under section 501(c)(3) of the Internal Revenue Code and is exempt from
         tax <br/>
<a id="pl.35.17"></a><var>35.17</var>under section 501(a) of the Internal Revenue Code.<br/>
<a id="pl.35.18"></a><var>35.18</var>(d) "Qualified veteran employee" means any individual performing services within <br/>
<a id="pl.35.19"></a><var>35.19</var>the state of Minnesota for an employer that is a local government or nonprofit organization;
         <br/>
<a id="pl.35.20"></a><var>35.20</var>the performance of which services constitute, establish, and determine the relationship
         <br/>
<a id="pl.35.21"></a><var>35.21</var>between the parties as that of employer and employee; and who meets the following
         criteria:<br/>
<a id="pl.35.22"></a><var>35.22</var>(1) the employee is a resident of Minnesota on the date of hire;<br/>
<a id="pl.35.23"></a><var>35.23</var>(2) the employee is paid wages as defined in Minnesota Statutes, section 290.92, <br/>
<a id="pl.35.24"></a><var>35.24</var>subdivision 1;<br/>
<a id="pl.35.25"></a><var>35.25</var>(3) the employee's wages are attributable to Minnesota under Minnesota Statutes, <br/>
<a id="pl.35.26"></a><var>35.26</var>section 290.191, subdivision 12;<br/>
<a id="pl.35.27"></a><var>35.27</var>(4) the employee is employed for a period of at least 6 of the 12 months immediately
         <br/>
<a id="pl.35.28"></a><var>35.28</var>following the date of hire; and<br/>
<a id="pl.35.29"></a><var>35.29</var>(5) the employee is an unemployed veteran.<br/>
<a id="pl.35.30"></a><var>35.30</var>(e) "Qualified veteran employee" does not include any employee who, in the <br/>
<a id="pl.35.31"></a><var>35.31</var>preceding 12 months before the employee's date of hire was, and in the calendar year
         in <br/>
<a id="pl.35.32"></a><var>35.32</var>which the grant is paid, is:<br/>
<a id="pl.35.33"></a><var>35.33</var>(1) a member of the board of the nonprofit organization employer that hired the <br/>
<a id="pl.35.34"></a><var>35.34</var>qualified employee; or<br/>
<a id="pl.36.1"></a><var>36.1</var>(2) an elected or appointed official of the local government that hired the qualified
         <br/>
<a id="pl.36.2"></a><var>36.2</var>employee.<br/>
<a id="pl.36.3"></a><var>36.3</var>(f) "Qualified employer" means: (i) a local government or nonprofit organization <br/>
<a id="pl.36.4"></a><var>36.4</var>that hires a qualified employee; and (ii) an employer not eligible to receive the
         veterans <br/>
<a id="pl.36.5"></a><var>36.5</var>jobs credit under Minnesota Statutes, section 290.0894.<br/>
<a id="pl.36.6"></a><var>36.6</var>(g) "Unemployed veteran" is a veteran who was unemployed on the date of hire.<br/>
<a id="pl.36.7"></a><var>36.7</var>(h) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.<br/>
<a id="pl.36.8"></a><var>36.8</var>(i) "Date of hire" means the day that the qualified veteran employee begins <br/>
<a id="pl.36.9"></a><var>36.9</var>performing services as an employee of the qualified employer.<br/>
<a id="pl.36.10"></a><var>36.10</var>    Subd. 3. <b>Application.</b> The commissioner must develop forms and procedures for <br/>
<a id="pl.36.11"></a><var>36.11</var>soliciting and reviewing applications for grants under this section.  At a minimum:<br/>
<a id="pl.36.12"></a><var>36.12</var>(1) a local government must include a resolution of its governing body affirming the
         <br/>
<a id="pl.36.13"></a><var>36.13</var>number of qualified employees hired in the year for which the grant is applied; and<br/>
<a id="pl.36.14"></a><var>36.14</var>(2) a nonprofit organization must include a resolution of its board affirming the
         <br/>
<a id="pl.36.15"></a><var>36.15</var>number of qualified employees hired in the year for which the grant is applied.<br/>
<a id="pl.36.16"></a><var>36.16</var>    Subd. 4. <b>Aid payment and calculation.</b> The commissioner of revenue shall remit <br/>
<a id="pl.36.17"></a><var>36.17</var>grants to qualified employers.  The amount of the grant equals $2,500 multiplied by
         the <br/>
<a id="pl.36.18"></a><var>36.18</var>number of qualified veteran employees hired by the qualified employer.  A qualified
         <br/>
<a id="pl.36.19"></a><var>36.19</var>employer must not claim a grant for hiring an unemployed veteran as a qualified veteran
         <br/>
<a id="pl.36.20"></a><var>36.20</var>employee if the unemployed veteran is currently employed or was previously employed
         by <br/>
<a id="pl.36.21"></a><var>36.21</var>the qualified employer. The commissioner of revenue shall pay the aid to the treasurer
         or <br/>
<a id="pl.36.22"></a><var>36.22</var>designated treasurer of each qualified employer by July 15 of the calendar year following
         <br/>
<a id="pl.36.23"></a><var>36.23</var>the year in which the qualified veteran employee was hired.<br/>
<a id="pl.36.24"></a><var>36.24</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2016.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.36.25"></a><var>36.25</var>    Sec. 32. <b>APPROPRIATION.</b><br/>
<a id="pl.36.26"></a><var>36.26</var>$175,000 in fiscal year 2016 is appropriated from the general fund to the <br/>
<a id="pl.36.27"></a><var>36.27</var>commissioner of revenue for administering the free electronic filing study provided
         in <br/>
<a id="pl.36.28"></a><var>36.28</var>this article.<br/>
<a id="pl.36.29"></a><var>36.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.36.30"></a><var>36.30</var>    Sec. 33. <b>APPROPRIATION.</b><br/>
<a id="pl.36.31"></a><var>36.31</var>The following amounts are appropriated from the general fund to the commissioner <br/>
<a id="pl.36.32"></a><var>36.32</var>of revenue to make grants under the veteran jobs grant program provided in this article:<br/>
<a id="pl.36.33"></a><var>36.33</var>(1) $7,600,000 in fiscal year 2016;<br/>
<a id="pl.37.1"></a><var>37.1</var>(2) $7,200,000 in fiscal year 2017; and<br/>
<a id="pl.37.2"></a><var>37.2</var>(3) $6,900,000 in each fiscal year thereafter.<br/>
<a id="pl.37.3"></a><var>37.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.37.6"></a><var>37.6</var>    Section 1. <b>[103C.333] COUNTY LEVY AUTHORITY.</b><br/>
<a id="pl.37.7"></a><var>37.7</var>Notwithstanding any other law to the contrary, a county levying a tax under section
         <br/>
<a id="pl.37.8"></a><var>37.8</var>103C.331 shall not include any taxes levied under those authorities in the levy certified
         <br/>
<a id="pl.37.9"></a><var>37.9</var>under section 275.07, subdivision 1, paragraph (a). A county levying under section
         <br/>
<a id="pl.37.10"></a><var>37.10</var>103C.331 shall separately certify that amount, and the auditor shall extend that levy
         as a <br/>
<a id="pl.37.11"></a><var>37.11</var>special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph
         (b).<br/>
<a id="pl.37.12"></a><var>37.12</var><b>EFFECTIVE DATE.</b>This section is effective for certifications made in 2015 and <br/>
<a id="pl.37.13"></a><var>37.13</var>thereafter.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.37.14"></a><var>37.14</var>    Sec. 2. Minnesota Statutes 2014, section 126C.01, subdivision 3, is amended to read:<br/>
<a id="pl.37.15"></a><var>37.15</var>    Subd. 3. <b>Referendum market value.</b> "Referendum market value" means the market <br/>
<a id="pl.37.16"></a><var>37.16</var>value of all taxable property, excluding property classified as class 2, or 4c(4), or 4c(12) <br/>
<a id="pl.37.17"></a><var>37.17</var>under section 
         <statute_ref>273.13</statute_ref>. The portion of class 2a property consisting of the house, garage, and <br/>
<a id="pl.37.18"></a><var>37.18</var>surrounding one acre of land of an agricultural homestead is included in referendum
         market <br/>
<a id="pl.37.19"></a><var>37.19</var>value. For the purposes of this subdivision, in the case of class 1a, 1b, or 2a property,
         <br/>
<a id="pl.37.20"></a><var>37.20</var>"market value" means the value prior to the exclusion under section 
         <statute_ref>273.13, subdivision <br/>
<a id="pl.37.21"></a><var>37.21</var>35
         </statute_ref>. In the case of class 4c(12) property, "market value" means the market value exceeding
         <br/>
<a id="pl.37.22"></a><var>37.22</var>$300,000 for taxes payable in 2016 and thereafter. Any class of property, or any portion of <br/>
<a id="pl.37.23"></a><var>37.23</var>a class of property, that is included in the definition of referendum market value
         and that has <br/>
<a id="pl.37.24"></a><var>37.24</var>a classification rate of less than one percent under section 
         <statute_ref>273.13</statute_ref> shall have a referendum <br/>
<a id="pl.37.25"></a><var>37.25</var>market value equal to its market value times its classification rate, multiplied by
         100.<br/>
<a id="pl.37.26"></a><var>37.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2016 and <br/>
<a id="pl.37.27"></a><var>37.27</var>thereafter.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.37.28"></a><var>37.28</var>    Sec. 3. Minnesota Statutes 2014, section 138.053, is amended to read:<br/>
<a id="pl.37.29"></a><var>37.29</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br/>
<a id="pl.37.30"></a><var>37.30</var><b>TOWNS.</b><br/>
<a id="pl.38.1"></a><var>38.1</var>    The governing body of any home rule charter or statutory city or town may annually
         <br/>
<a id="pl.38.2"></a><var>38.2</var>appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
         <br/>
<a id="pl.38.3"></a><var>38.3</var>market value, derived from ad valorem taxes on property or other revenues, to be paid
         to <br/>
<a id="pl.38.4"></a><var>38.4</var>the historical society of its respective city, town, or county to be used for the promotion of <br/>
<a id="pl.38.5"></a><var>38.5</var>historical work and to aid in defraying the expenses of carrying on the historical
         work in the <br/>
<a id="pl.38.6"></a><var>38.6</var>county. No city or town may appropriate any funds for the benefit of any historical
         society <br/>
<a id="pl.38.7"></a><var>38.7</var>unless the society is affiliated with and approved by the Minnesota Historical Society.<br/>
<a id="pl.38.8"></a><var>38.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.38.9"></a><var>38.9</var>    Sec. 4. Minnesota Statutes 2014, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.38.10"></a><var>38.10</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural <br/>
<a id="pl.38.11"></a><var>38.11</var>land that is homesteaded, along with any class 2b rural vacant land that is contiguous
         to <br/>
<a id="pl.38.12"></a><var>38.12</var>the class 2a land under the same ownership. The market value of the house and garage
         <br/>
<a id="pl.38.13"></a><var>38.13</var>and immediately surrounding one acre of land has the same classification rates as
         class <br/>
<a id="pl.38.14"></a><var>38.14</var>1a or 1b property under subdivision 22. The value of the remaining land including
         <br/>
<a id="pl.38.15"></a><var>38.15</var>improvements up to the first tier valuation limit of agricultural homestead property
         has a <br/>
<a id="pl.38.16"></a><var>38.16</var>classification rate of 0.5 percent of market value. The remaining property over the
         first tier <br/>
<a id="pl.38.17"></a><var>38.17</var>has a classification rate of one percent of market value. For purposes of this subdivision,
         <br/>
<a id="pl.38.18"></a><var>38.18</var>the "first tier valuation limit of agricultural homestead property" and "first tier"
         means <br/>
<a id="pl.38.19"></a><var>38.19</var>the limit certified under section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.38.20"></a><var>38.20</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
         that <br/>
<a id="pl.38.21"></a><var>38.21</var>are agricultural land and buildings. Class 2a property has a classification rate of
         one percent <br/>
<a id="pl.38.22"></a><var>38.22</var>of market value, unless it is part of an agricultural homestead under paragraph (a).
         Class <br/>
<a id="pl.38.23"></a><var>38.23</var>2a property must also include any property that would otherwise be classified as 2b,
         but is <br/>
<a id="pl.38.24"></a><var>38.24</var>interspersed with class 2a property, including but not limited to sloughs, wooded
         wind <br/>
<a id="pl.38.25"></a><var>38.25</var>shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
         requirement, <br/>
<a id="pl.38.26"></a><var>38.26</var>and other similar land that is impractical for the assessor to value separately from
         the rest of <br/>
<a id="pl.38.27"></a><var>38.27</var>the property or that is unlikely to be able to be sold separately from the rest of
         the property.<br/>
<a id="pl.38.28"></a><var>38.28</var>    An assessor may classify the part of a parcel described in this subdivision that is
         used <br/>
<a id="pl.38.29"></a><var>38.29</var>for agricultural purposes as class 2a and the remainder in the class appropriate to
         its use.<br/>
<a id="pl.38.30"></a><var>38.30</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
         <br/>
<a id="pl.38.31"></a><var>38.31</var>that are unplatted real estate, rural in character and not used for agricultural purposes,
         <br/>
<a id="pl.38.32"></a><var>38.32</var>including land used for growing trees for timber, lumber, and wood and wood products,
         <br/>
<a id="pl.38.33"></a><var>38.33</var>that is not improved with a structure. The presence of a minor, ancillary nonresidential
         <br/>
<a id="pl.38.34"></a><var>38.34</var>structure as defined by the commissioner of revenue does not disqualify the property
         from <br/>
<a id="pl.38.35"></a><var>38.35</var>classification under this paragraph. Any parcel of 20 acres or more improved with
         a <br/>
<a id="pl.39.1"></a><var>39.1</var>structure that is not a minor, ancillary nonresidential structure must be split-classified,
         and <br/>
<a id="pl.39.2"></a><var>39.2</var>ten acres must be assigned to the split parcel containing the structure. Class 2b
         property <br/>
<a id="pl.39.3"></a><var>39.3</var>has a classification rate of one percent of market value unless it is part of an agricultural
         <br/>
<a id="pl.39.4"></a><var>39.4</var>homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.39.5"></a><var>39.5</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than <br/>
<a id="pl.39.6"></a><var>39.6</var>1,920 acres statewide per taxpayer that is being managed under a forest management
         <br/>
<a id="pl.39.7"></a><var>39.7</var>plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable
         <br/>
<a id="pl.39.8"></a><var>39.8</var>forest resource management incentive program. It has a classification rate of .65
         percent, <br/>
<a id="pl.39.9"></a><var>39.9</var>provided that the owner of the property must apply to the assessor in order for the
         <br/>
<a id="pl.39.10"></a><var>39.10</var>property to initially qualify for the reduced rate and provide the information required
         <br/>
<a id="pl.39.11"></a><var>39.11</var>by the assessor to verify that the property qualifies for the reduced rate. If the
         assessor <br/>
<a id="pl.39.12"></a><var>39.12</var>receives the application and information before May 1 in an assessment year, the property
         <br/>
<a id="pl.39.13"></a><var>39.13</var>qualifies beginning with that assessment year. If the assessor receives the application
         <br/>
<a id="pl.39.14"></a><var>39.14</var>and information after April 30 in an assessment year, the property may not qualify
         until <br/>
<a id="pl.39.15"></a><var>39.15</var>the next assessment year. The commissioner of natural resources must concur that the
         <br/>
<a id="pl.39.16"></a><var>39.16</var>land is qualified. The commissioner of natural resources shall annually provide county
         <br/>
<a id="pl.39.17"></a><var>39.17</var>assessors verification information on a timely basis. The presence of a minor, ancillary
         <br/>
<a id="pl.39.18"></a><var>39.18</var>nonresidential structure as defined by the commissioner of revenue does not disqualify
         the <br/>
<a id="pl.39.19"></a><var>39.19</var>property from classification under this paragraph.<br/>
<a id="pl.39.20"></a><var>39.20</var>    (e) Agricultural land as used in this section means:<br/>
<a id="pl.39.21"></a><var>39.21</var>    (1) contiguous acreage of ten acres or more, used during the preceding year for <br/>
<a id="pl.39.22"></a><var>39.22</var>agricultural purposes; or<br/>
<a id="pl.39.23"></a><var>39.23</var>    (2) contiguous acreage used during the preceding year for an intensive livestock or
         <br/>
<a id="pl.39.24"></a><var>39.24</var>poultry confinement operation, provided that land used only for pasturing or grazing
         <br/>
<a id="pl.39.25"></a><var>39.25</var>does not qualify under this clause.<br/>
<a id="pl.39.26"></a><var>39.26</var>    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
         <br/>
<a id="pl.39.27"></a><var>39.27</var>or storage of agricultural products for sale, or the storage of machinery or equipment
         used <br/>
<a id="pl.39.28"></a><var>39.28</var>in support of agricultural production by the same farm entity. For a property to be
         classified <br/>
<a id="pl.39.29"></a><var>39.29</var>as agricultural based only on the drying or storage of agricultural products, the
         products <br/>
<a id="pl.39.30"></a><var>39.30</var>being dried or stored must have been produced by the same farm entity as the entity
         <br/>
<a id="pl.39.31"></a><var>39.31</var>operating the drying or storage facility. "Agricultural purposes" also includes enrollment
         <br/>
<a id="pl.39.32"></a><var>39.32</var>in the Reinvest in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal <br/>
<a id="pl.39.33"></a><var>39.33</var>Conservation Reserve Program as contained in Public Law 99-198 or a similar state or <br/>
<a id="pl.39.34"></a><var>39.34</var>federal conservation program, excluding the federal Conservation Reserve Program, if <br/>
<a id="pl.39.35"></a><var>39.35</var>the property was classified as agricultural (i) under this subdivision for taxes payable
         in <br/>
<a id="pl.39.36"></a><var>39.36</var>2003 because of its enrollment in a qualifying program and the land remains enrolled
         or <br/>
<a id="pl.40.1"></a><var>40.1</var>(ii) in the year prior to its enrollment. Enrollment in the federal Conservation Reserve <br/>
<a id="pl.40.2"></a><var>40.2</var>Program, as contained in Public Law 98-198, shall be considered an agricultural purpose
         <br/>
<a id="pl.40.3"></a><var>40.3</var>under this section. Agricultural classification shall not be based upon the market value of <br/>
<a id="pl.40.4"></a><var>40.4</var>any residential structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.40.5"></a><var>40.5</var>    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
         <br/>
<a id="pl.40.6"></a><var>40.6</var>portion of, a tax parcel as described in section 
         <statute_ref>272.193</statute_ref>, or all of, or a contiguous portion <br/>
<a id="pl.40.7"></a><var>40.7</var>of, a set of contiguous tax parcels under that section that are owned by the same
         person.<br/>
<a id="pl.40.8"></a><var>40.8</var>    (f) Agricultural land under this section also includes:<br/>
<a id="pl.40.9"></a><var>40.9</var>    (1) contiguous acreage that is less than ten acres in size and exclusively used in
         the <br/>
<a id="pl.40.10"></a><var>40.10</var>preceding year for raising or cultivating agricultural products; or<br/>
<a id="pl.40.11"></a><var>40.11</var>    (2) contiguous acreage that contains a residence and is less than 11 acres in size,
         if <br/>
<a id="pl.40.12"></a><var>40.12</var>the contiguous acreage exclusive of the house, garage, and surrounding one acre of
         land <br/>
<a id="pl.40.13"></a><var>40.13</var>was used in the preceding year for one or more of the following three uses:<br/>
<a id="pl.40.14"></a><var>40.14</var>    (i) for an intensive grain drying or storage operation, or for intensive machinery
         or <br/>
<a id="pl.40.15"></a><var>40.15</var>equipment storage activities used to support agricultural activities on other parcels
         of <br/>
<a id="pl.40.16"></a><var>40.16</var>property operated by the same farming entity;<br/>
<a id="pl.40.17"></a><var>40.17</var>    (ii) as a nursery, provided that only those acres used intensively to produce nursery
         <br/>
<a id="pl.40.18"></a><var>40.18</var>stock are considered agricultural land; or<br/>
<a id="pl.40.19"></a><var>40.19</var>    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
         <br/>
<a id="pl.40.20"></a><var>40.20</var>means the cultivation of one or more fruits or vegetables or production of animal
         or other <br/>
<a id="pl.40.21"></a><var>40.21</var>agricultural products for sale to local markets by the farmer or an organization with
         which <br/>
<a id="pl.40.22"></a><var>40.22</var>the farmer is affiliated.<br/>
<a id="pl.40.23"></a><var>40.23</var>    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
         <br/>
<a id="pl.40.24"></a><var>40.24</var>described in section 
         <statute_ref>272.193</statute_ref>, or all of a set of contiguous tax parcels under that section <br/>
<a id="pl.40.25"></a><var>40.25</var>that are owned by the same person.<br/>
<a id="pl.40.26"></a><var>40.26</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
         <br/>
<a id="pl.40.27"></a><var>40.27</var>use of that property is the leasing to, or use by another person for agricultural
         purposes.<br/>
<a id="pl.40.28"></a><var>40.28</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.40.29"></a><var>40.29</var>section 
         <statute_ref>273.111</statute_ref>.<br/>
<a id="pl.40.30"></a><var>40.30</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.40.31"></a><var>40.31</var>purposes only, any locally administered agricultural policies or land use restrictions
         that <br/>
<a id="pl.40.32"></a><var>40.32</var>define minimum or maximum farm acreage.<br/>
<a id="pl.40.33"></a><var>40.33</var>    (i) The term "agricultural products" as used in this subdivision includes production
         <br/>
<a id="pl.40.34"></a><var>40.34</var>for sale of:<br/>
<a id="pl.41.1"></a><var>41.1</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
         <br/>
<a id="pl.41.2"></a><var>41.2</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage,
         grains, <br/>
<a id="pl.41.3"></a><var>41.3</var>bees, and apiary products by the owner;<br/>
<a id="pl.41.4"></a><var>41.4</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.41.5"></a><var>41.5</var>for agricultural use;<br/>
<a id="pl.41.6"></a><var>41.6</var>    (3) the commercial boarding of horses, which may include related horse training and
         <br/>
<a id="pl.41.7"></a><var>41.7</var>riding instruction, if the boarding is done on property that is also used for raising
         pasture <br/>
<a id="pl.41.8"></a><var>41.8</var>to graze horses or raising or cultivating other agricultural products as defined in
         clause (1);<br/>
<a id="pl.41.9"></a><var>41.9</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.41.10"></a><var>41.10</var>equestrian activities, excluding racing;<br/>
<a id="pl.41.11"></a><var>41.11</var>    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under <br/>
<a id="pl.41.12"></a><var>41.12</var>section 
         <statute_ref>97A.105</statute_ref>, provided that the annual licensing report to the Department of Natural <br/>
<a id="pl.41.13"></a><var>41.13</var>Resources, which must be submitted annually by March 30 to the assessor, indicates
         <br/>
<a id="pl.41.14"></a><var>41.14</var>that at least 500 birds were raised or used for breeding stock on the property during
         the <br/>
<a id="pl.41.15"></a><var>41.15</var>preceding year and that the owner provides a copy of the owner's most recent schedule
         F; <br/>
<a id="pl.41.16"></a><var>41.16</var>or (ii) for use on a shooting preserve licensed under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.41.17"></a><var>41.17</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.41.18"></a><var>41.18</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
         <br/>
<a id="pl.41.19"></a><var>41.19</var>sold for timber, lumber, wood, or wood products; and<br/>
<a id="pl.41.20"></a><var>41.20</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.41.21"></a><var>41.21</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.41.22"></a><var>41.22</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
         <br/>
<a id="pl.41.23"></a><var>41.23</var>purposes, including but not limited to:<br/>
<a id="pl.41.24"></a><var>41.24</var>    (1) wholesale and retail sales;<br/>
<a id="pl.41.25"></a><var>41.25</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.41.26"></a><var>41.26</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.41.27"></a><var>41.27</var>    (4) office facilities for the support of the activities enumerated in clauses (1),
         (2), <br/>
<a id="pl.41.28"></a><var>41.28</var>and (3),<br/>
<a id="pl.41.29"></a><var>41.29</var>the assessor shall classify the part of the parcel used for agricultural purposes
         as class <br/>
<a id="pl.41.30"></a><var>41.30</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate
         to its <br/>
<a id="pl.41.31"></a><var>41.31</var>use. The grading, sorting, and packaging of raw agricultural products for first sale
         is <br/>
<a id="pl.41.32"></a><var>41.32</var>considered an agricultural purpose. A greenhouse or other building where horticultural
         <br/>
<a id="pl.41.33"></a><var>41.33</var>or nursery products are grown that is also used for the conduct of retail sales must
         be <br/>
<a id="pl.41.34"></a><var>41.34</var>classified as agricultural if it is primarily used for the growing of horticultural
         or nursery <br/>
<a id="pl.41.35"></a><var>41.35</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail
         sale of <br/>
<a id="pl.42.1"></a><var>42.1</var>those products. Use of a greenhouse or building only for the display of already grown
         <br/>
<a id="pl.42.2"></a><var>42.2</var>horticultural or nursery products does not qualify as an agricultural purpose.<br/>
<a id="pl.42.3"></a><var>42.3</var>    (k) The assessor shall determine and list separately on the records the market value
         <br/>
<a id="pl.42.4"></a><var>42.4</var>of the homestead dwelling and the one acre of land on which that dwelling is located.
         If <br/>
<a id="pl.42.5"></a><var>42.5</var>any farm buildings or structures are located on this homesteaded acre of land, their
         market <br/>
<a id="pl.42.6"></a><var>42.6</var>value shall not be included in this separate determination.<br/>
<a id="pl.42.7"></a><var>42.7</var>    (l) Class 2d airport landing area consists of a landing area or public access area
         of a <br/>
<a id="pl.42.8"></a><var>42.8</var>privately owned public use airport. It has a classification rate of one percent of
         market <br/>
<a id="pl.42.9"></a><var>42.9</var>value. To qualify for classification under this paragraph, a privately owned public
         use <br/>
<a id="pl.42.10"></a><var>42.10</var>airport must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of <br/>
<a id="pl.42.11"></a><var>42.11</var>this paragraph, "landing area" means that part of a privately owned public use airport
         <br/>
<a id="pl.42.12"></a><var>42.12</var>properly cleared, regularly maintained, and made available to the public for use by
         aircraft <br/>
<a id="pl.42.13"></a><var>42.13</var>and includes runways, taxiways, aprons, and sites upon which are situated landing
         or <br/>
<a id="pl.42.14"></a><var>42.14</var>navigational aids. A landing area also includes land underlying both the primary surface
         <br/>
<a id="pl.42.15"></a><var>42.15</var>and the approach surfaces that comply with all of the following:<br/>
<a id="pl.42.16"></a><var>42.16</var>    (i) the land is properly cleared and regularly maintained for the primary purposes
         of <br/>
<a id="pl.42.17"></a><var>42.17</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that
         contains <br/>
<a id="pl.42.18"></a><var>42.18</var>facilities for servicing, repair, or maintenance of aircraft is not included as a
         landing area;<br/>
<a id="pl.42.19"></a><var>42.19</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.42.20"></a><var>42.20</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.42.21"></a><var>42.21</var>The land contained in a landing area under this paragraph must be described and certified
         <br/>
<a id="pl.42.22"></a><var>42.22</var>by the commissioner of transportation. The certification is effective until it is
         modified, <br/>
<a id="pl.42.23"></a><var>42.23</var>or until the airport or landing area no longer meets the requirements of this paragraph.
         <br/>
<a id="pl.42.24"></a><var>42.24</var>For purposes of this paragraph, "public access area" means property used as an aircraft
         <br/>
<a id="pl.42.25"></a><var>42.25</var>parking ramp, apron, or storage hangar, or an arrival and departure building in connection
         <br/>
<a id="pl.42.26"></a><var>42.26</var>with the airport.<br/>
<a id="pl.42.27"></a><var>42.27</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
         <br/>
<a id="pl.42.28"></a><var>42.28</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land
         is not <br/>
<a id="pl.42.29"></a><var>42.29</var>located in a county that has elected to opt-out of the aggregate preservation program
         as <br/>
<a id="pl.42.30"></a><var>42.30</var>provided in section 
         <statute_ref>273.1115, subdivision 6</statute_ref>. It has a classification rate of one percent of <br/>
<a id="pl.42.31"></a><var>42.31</var>market value. To qualify for classification under this paragraph, the property must
         be at <br/>
<a id="pl.42.32"></a><var>42.32</var>least ten contiguous acres in size and the owner of the property must record with
         the <br/>
<a id="pl.42.33"></a><var>42.33</var>county recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.42.34"></a><var>42.34</var>    (1) a legal description of the property;<br/>
<a id="pl.42.35"></a><var>42.35</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is
         not <br/>
<a id="pl.42.36"></a><var>42.36</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.43.1"></a><var>43.1</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.43.2"></a><var>43.2</var>ordinance of this property is for mining; and<br/>
<a id="pl.43.3"></a><var>43.3</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.43.4"></a><var>43.4</var>or the mining activity is allowed under local ordinance. The disclosure must include
         a <br/>
<a id="pl.43.5"></a><var>43.5</var>statement from a registered professional geologist, engineer, or soil scientist delineating
         <br/>
<a id="pl.43.6"></a><var>43.6</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.43.7"></a><var>43.7</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.43.8"></a><var>43.8</var>means a deposit that will yield crushed stone or sand and gravel that is suitable
         for use <br/>
<a id="pl.43.9"></a><var>43.9</var>as a construction aggregate; and "actively mined" means the removal of top soil and
         <br/>
<a id="pl.43.10"></a><var>43.10</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.43.11"></a><var>43.11</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins
         <br/>
<a id="pl.43.12"></a><var>43.12</var>to be actively mined, the owner must file a supplemental affidavit within 60 days
         from <br/>
<a id="pl.43.13"></a><var>43.13</var>the day any aggregate is removed stating the number of acres of the property that
         is <br/>
<a id="pl.43.14"></a><var>43.14</var>actively being mined. The acres actively being mined must be (1) valued and classified
         <br/>
<a id="pl.43.15"></a><var>43.15</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from
         the <br/>
<a id="pl.43.16"></a><var>43.16</var>aggregate resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the <br/>
<a id="pl.43.17"></a><var>43.17</var>land was enrolled in that program. Copies of the original affidavit and all supplemental
         <br/>
<a id="pl.43.18"></a><var>43.18</var>affidavits must be filed with the county assessor, the local zoning administrator,
         and the <br/>
<a id="pl.43.19"></a><var>43.19</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.43.20"></a><var>43.20</var>affidavit must be filed each time a subsequent portion of the property is actively
         mined, <br/>
<a id="pl.43.21"></a><var>43.21</var>provided that the minimum acreage change is five acres, even if the actual mining
         activity <br/>
<a id="pl.43.22"></a><var>43.22</var>constitutes less than five acres.<br/>
<a id="pl.43.23"></a><var>43.23</var>    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
         <br/>
<a id="pl.43.24"></a><var>43.24</var>not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
         <br/>
<a id="pl.43.25"></a><var>43.25</var>in section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.43.26"></a><var>43.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2016.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.43.27"></a><var>43.27</var>    Sec. 5. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:<br/>
<a id="pl.43.28"></a><var>43.28</var>    Subd. 24. <b>Class 3.</b>  Commercial and industrial property and utility real and personal <br/>
<a id="pl.43.29"></a><var>43.29</var>property is class 3a.<br/>
<a id="pl.43.30"></a><var>43.30</var>(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
         <br/>
<a id="pl.43.31"></a><var>43.31</var>real property has a classification rate of 1.5 1.55 percent of the first tier of market value, <br/>
<a id="pl.43.32"></a><var>43.32</var>and 2.0 2.1 percent of the remaining market value. In the case of contiguous parcels of <br/>
<a id="pl.43.33"></a><var>43.33</var>property owned by the same person or entity, only the value equal to the first-tier
         value of <br/>
<a id="pl.43.34"></a><var>43.34</var>the contiguous parcels qualifies for the reduced classification rate, except that
         contiguous <br/>
<a id="pl.43.35"></a><var>43.35</var>parcels owned by the same person or entity shall be eligible for the first-tier value
         <br/>
<a id="pl.44.1"></a><var>44.1</var>classification rate on each separate business operated by the owner of the property,
         provided <br/>
<a id="pl.44.2"></a><var>44.2</var>the business is housed in a separate structure. For the purposes of this subdivision,
         the first <br/>
<a id="pl.44.3"></a><var>44.3</var>tier means the first $150,000 of market value. Real property owned in fee by a utility
         for <br/>
<a id="pl.44.4"></a><var>44.4</var>transmission line right-of-way shall be classified at the classification rate for
         the higher tier.<br/>
<a id="pl.44.5"></a><var>44.5</var>For purposes of this subdivision, parcels are considered to be contiguous even if
         <br/>
<a id="pl.44.6"></a><var>44.6</var>they are separated from each other by a road, street, waterway, or other similar intervening
         <br/>
<a id="pl.44.7"></a><var>44.7</var>type of property. Connections between parcels that consist of power lines or pipelines
         do <br/>
<a id="pl.44.8"></a><var>44.8</var>not cause the parcels to be contiguous. Property owners who have contiguous parcels
         of <br/>
<a id="pl.44.9"></a><var>44.9</var>property that constitute separate businesses that may qualify for the first-tier classification
         <br/>
<a id="pl.44.10"></a><var>44.10</var>rate shall notify the assessor by July 1, for treatment beginning in the following
         taxes <br/>
<a id="pl.44.11"></a><var>44.11</var>payable year.<br/>
<a id="pl.44.12"></a><var>44.12</var>(2) All personal property that is: (i) part of an electric generation, transmission,
         or <br/>
<a id="pl.44.13"></a><var>44.13</var>distribution system; or (ii) part of a pipeline system transporting or distributing
         water, gas, <br/>
<a id="pl.44.14"></a><var>44.14</var>crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
         <br/>
<a id="pl.44.15"></a><var>44.15</var>operating property has a classification rate as provided under clause (1) for the
         first tier <br/>
<a id="pl.44.16"></a><var>44.16</var>of market value and the remaining market value. In the case of multiple parcels in
         one <br/>
<a id="pl.44.17"></a><var>44.17</var>county that are owned by one person or entity, only one first tier amount is eligible
         for the <br/>
<a id="pl.44.18"></a><var>44.18</var>reduced rate.<br/>
<a id="pl.44.19"></a><var>44.19</var>(3) The entire market value of personal property that is: (i) tools, implements, and
         <br/>
<a id="pl.44.20"></a><var>44.20</var>machinery of an electric generation, transmission, or distribution system; (ii) tools,
         <br/>
<a id="pl.44.21"></a><var>44.21</var>implements, and machinery of a pipeline system transporting or distributing water,
         gas, <br/>
<a id="pl.44.22"></a><var>44.22</var>crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution
         of <br/>
<a id="pl.44.23"></a><var>44.23</var>steam or hot or chilled water for heating or cooling buildings, has a classification
         rate as <br/>
<a id="pl.44.24"></a><var>44.24</var>provided under clause (1) for the remaining market value in excess of the first tier.<br/>
<a id="pl.44.25"></a><var>44.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2016 and <br/>
<a id="pl.44.26"></a><var>44.26</var>thereafter.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.44.27"></a><var>44.27</var>    Sec. 6. Minnesota Statutes 2014, section 273.1392, is amended to read:<br/>
<a id="pl.44.28"></a><var>44.28</var><b>273.1392 PAYMENT; SCHOOL DISTRICTS.</b><br/>
<a id="pl.44.29"></a><var>44.29</var>The amounts of bovine tuberculosis credit reimbursements under section 
         <statute_ref>273.113</statute_ref>; <br/>
<a id="pl.44.30"></a><var>44.30</var>conservation tax credits under section 
         <statute_ref>273.119</statute_ref>; disaster or emergency reimbursement <br/>
<a id="pl.44.31"></a><var>44.31</var>under sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; homestead and agricultural credits under section <br/>
<a id="pl.44.32"></a><var>44.32</var>sections
<statute_ref>273.1384</statute_ref> and 273.88; aids and credits under section 
         <statute_ref>273.1398</statute_ref>; enterprise zone <br/>
<a id="pl.44.33"></a><var>44.33</var>property credit payments under section 
         <statute_ref>469.171</statute_ref>; and metropolitan agricultural preserve <br/>
<a id="pl.44.34"></a><var>44.34</var>reduction under section 
         <statute_ref>473H.10</statute_ref> for school districts, shall be certified to the Department <br/>
<a id="pl.45.1"></a><var>45.1</var>of Education by the Department of Revenue. The amounts so certified shall be paid
         <br/>
<a id="pl.45.2"></a><var>45.2</var>according to section 
         <statute_ref>127A.45</statute_ref>, subdivisions 9 and 13.<br/>
<a id="pl.45.3"></a><var>45.3</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.45.4"></a><var>45.4</var>and thereafter.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.45.5"></a><var>45.5</var>    Sec. 7. Minnesota Statutes 2014, section 273.1393, is amended to read:<br/>
<a id="pl.45.6"></a><var>45.6</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.45.7"></a><var>45.7</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.45.8"></a><var>45.8</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.45.9"></a><var>45.9</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br/>
<a id="pl.45.10"></a><var>45.10</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.45.11"></a><var>45.11</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.45.12"></a><var>45.12</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.45.13"></a><var>45.13</var>    (5) disparity reduction credit;<br/>
<a id="pl.45.14"></a><var>45.14</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.45.15"></a><var>45.15</var>    (7) agricultural credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.45.16"></a><var>45.16</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.45.17"></a><var>45.17</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>; and<br/>
<a id="pl.45.18"></a><var>45.18</var>    (10) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113; and<br/>
</statute_ref><a id="pl.45.19"></a><var>45.19</var>    (11) the targeted agricultural land credit, as provided in section 273.88.<br/>
<a id="pl.45.20"></a><var>45.20</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.45.21"></a><var>45.21</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.45.22"></a><var>45.22</var>and thereafter.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.45.23"></a><var>45.23</var>    Sec. 8. <b>[273.88] TARGETED AGRICULTURAL LAND TAX CREDIT.</b><br/>
<a id="pl.45.24"></a><var>45.24</var>    Subdivision 1. <b>Eligibility; amount of credit.</b> (a) Property classified in whole or <br/>
<a id="pl.45.25"></a><var>45.25</var>in part as class 2a agricultural property under section 273.13, subdivision 23, paragraph
         <br/>
<a id="pl.45.26"></a><var>45.26</var>(b), in both the prior year and the current year, is eligible for a property tax credit
         if the <br/>
<a id="pl.45.27"></a><var>45.27</var>gross property taxes payable on that portion of the property classified as agricultural
         <br/>
<a id="pl.45.28"></a><var>45.28</var>increase by more than eight percent over the property taxes payable in the prior year
         on the <br/>
<a id="pl.45.29"></a><var>45.29</var>same property and the amount of that increase is $200 or more. The amount of the credit
         <br/>
<a id="pl.45.30"></a><var>45.30</var>shall equal the amount of the increase over the greater of eight percent of the prior
         year's <br/>
<a id="pl.45.31"></a><var>45.31</var>property taxes payable or $200. The maximum credit allowed under this section is $2,000.<br/>
<a id="pl.46.1"></a><var>46.1</var>(b) For purposes of this subdivision, "gross property taxes payable" means property
         <br/>
<a id="pl.46.2"></a><var>46.2</var>taxes payable excluding special assessments, penalties and interest, and assessed
         fees upon <br/>
<a id="pl.46.3"></a><var>46.3</var>the property determined without regard to the credit allowed under this section.<br/>
<a id="pl.46.4"></a><var>46.4</var>(c) Agricultural property shall not be eligible for the credit under this section
         if: (1) <br/>
<a id="pl.46.5"></a><var>46.5</var>the property's boundaries have changed in the current payable year; (2) an improvement
         <br/>
<a id="pl.46.6"></a><var>46.6</var>was constructed upon the property; (3) valuation increases occurred relating to an
         <br/>
<a id="pl.46.7"></a><var>46.7</var>incremental value increase due to a plat law provision or based upon the termination
         of an <br/>
<a id="pl.46.8"></a><var>46.8</var>exclusion under section 273.11, subdivision 14a, 14b, or 14c; or (4) in the prior
         payable <br/>
<a id="pl.46.9"></a><var>46.9</var>year, the property was enrolled under section 273.111, 273.113, or 273.114, or chapter
         <br/>
<a id="pl.46.10"></a><var>46.10</var>473H or 40A, and that enrollment was removed for the current payable year.<br/>
<a id="pl.46.11"></a><var>46.11</var>(d) If the amount of the credit exceeds the total of the net tax capacity-based gross
         <br/>
<a id="pl.46.12"></a><var>46.12</var>property taxes on that portion of the property eligible for a credit under subdivision
         (a), <br/>
<a id="pl.46.13"></a><var>46.13</var>the credit shall be limited to the net tax capacity-based gross property taxes payable
         on <br/>
<a id="pl.46.14"></a><var>46.14</var>that part of the property classified under section 273.13, subdivision 23, paragraph
         (b).<br/>
<a id="pl.46.15"></a><var>46.15</var>    Subd. 2. <b>Credit reimbursement.</b> The county auditor shall determine the tax <br/>
<a id="pl.46.16"></a><var>46.16</var>reductions allowed under subdivision 1 within the county for each taxes payable year
         and <br/>
<a id="pl.46.17"></a><var>46.17</var>certify that amount to the commissioner of revenue as part of the abstracts of tax
         listings <br/>
<a id="pl.46.18"></a><var>46.18</var>submitted by the county auditors under section 275.29. Any prior year adjustments
         <br/>
<a id="pl.46.19"></a><var>46.19</var>shall also be certified on the abstracts of tax lists. The commissioner shall review
         the <br/>
<a id="pl.46.20"></a><var>46.20</var>certifications for accuracy and make changes as necessary, or return the certification
         to the <br/>
<a id="pl.46.21"></a><var>46.21</var>county auditor for correction. The credit under this section must be used to proportionately
         <br/>
<a id="pl.46.22"></a><var>46.22</var>reduce the net tax capacity-based property tax payable to each local taxing jurisdiction
         <br/>
<a id="pl.46.23"></a><var>46.23</var>as provided in section 273.1393.<br/>
<a id="pl.46.24"></a><var>46.24</var>    Subd. 3. <b>Payment.</b> (a) The commissioner of revenue shall reimburse each local <br/>
<a id="pl.46.25"></a><var>46.25</var>taxing jurisdiction, other than school districts, for the tax reductions granted under
         <br/>
<a id="pl.46.26"></a><var>46.26</var>subdivision 1 in two equal installments on October 31 and December 26 of the taxes
         <br/>
<a id="pl.46.27"></a><var>46.27</var>payable year for which the reductions are granted, including in each payment the prior
         <br/>
<a id="pl.46.28"></a><var>46.28</var>year adjustments certified on the abstracts for that taxes payable year. The reimbursements
         <br/>
<a id="pl.46.29"></a><var>46.29</var>related to tax increments shall be issued in one installment each year on December
         26.<br/>
<a id="pl.46.30"></a><var>46.30</var>(b) The commissioner of revenue shall certify the total of the tax reductions <br/>
<a id="pl.46.31"></a><var>46.31</var>granted under subdivision 1 for each taxes payable year within each school district
         <br/>
<a id="pl.46.32"></a><var>46.32</var>to the commissioner of education, and the commissioner of education shall pay the
         <br/>
<a id="pl.46.33"></a><var>46.33</var>reimbursement amounts to each school district as provided in section 273.1392.<br/>
<a id="pl.46.34"></a><var>46.34</var>    Subd. 4. <b>Appropriation.</b> An amount sufficient to make the payments required by <br/>
<a id="pl.46.35"></a><var>46.35</var>this section to taxing jurisdictions other than school districts is annually appropriated
         <br/>
<a id="pl.46.36"></a><var>46.36</var>from the general fund to the commissioner of revenue. An amount sufficient to make
         the <br/>
<a id="pl.47.1"></a><var>47.1</var>payments required under this section for school districts is annually appropriated
         from the <br/>
<a id="pl.47.2"></a><var>47.2</var>general fund to the commissioner of education.<br/>
<a id="pl.47.3"></a><var>47.3</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.47.4"></a><var>47.4</var>and thereafter.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.47.5"></a><var>47.5</var>    Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.47.6"></a><var>47.6</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.47.7"></a><var>47.7</var>commercial-industrial property and seasonal residential recreational property, as
         defined <br/>
<a id="pl.47.8"></a><var>47.8</var>in this section. The state general levy base amount for commercial-industrial property is <br/>
<a id="pl.47.9"></a><var>47.9</var>$592,000,000 $767,092,100 for taxes payable in 2002 2016. The state general levy base <br/>
<a id="pl.47.10"></a><var>47.10</var>amount for seasonal residential recreational property is $34,057,500 for taxes payable
         in <br/>
<a id="pl.47.11"></a><var>47.11</var>2016. For taxes payable in subsequent years, the each levy base amount is increased each <br/>
<a id="pl.47.12"></a><var>47.12</var>year by multiplying the levy base amount for the prior year by the sum of one plus
         the rate <br/>
<a id="pl.47.13"></a><var>47.13</var>of increase, if any, in the implicit price deflator for government consumption expenditures
         <br/>
<a id="pl.47.14"></a><var>47.14</var>and gross investment for state and local governments prepared by the Bureau of Economic
         <br/>
<a id="pl.47.15"></a><var>47.15</var>Analysts of the United States Department of Commerce for the 12-month period ending
         <br/>
<a id="pl.47.16"></a><var>47.16</var>March 31 of the year prior to the year the taxes are payable. The tax under this section
         is <br/>
<a id="pl.47.17"></a><var>47.17</var>not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not the levy of a governmental <br/>
<a id="pl.47.18"></a><var>47.18</var>unit under chapters 276A and 473F.<br/>
<a id="pl.47.19"></a><var>47.19</var>The commissioner shall increase or decrease the preliminary or final rate for a year
         <br/>
<a id="pl.47.20"></a><var>47.20</var>as necessary to account for errors and tax base changes that affected a preliminary
         or final <br/>
<a id="pl.47.21"></a><var>47.21</var>rate for either of the two preceding years. Adjustments are allowed to the extent
         that the <br/>
<a id="pl.47.22"></a><var>47.22</var>necessary information is available to the commissioner at the time the rates for a
         year must <br/>
<a id="pl.47.23"></a><var>47.23</var>be certified, and for the following reasons:<br/>
<a id="pl.47.24"></a><var>47.24</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.47.25"></a><var>47.25</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.47.26"></a><var>47.26</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal
         <br/>
<a id="pl.47.27"></a><var>47.27</var>residential recreational property reported on the abstracts of tax lists submitted
         under <br/>
<a id="pl.47.28"></a><var>47.28</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.47.29"></a><var>47.29</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.47.30"></a><var>47.30</var>The commissioner may, but need not, make adjustments if the total difference in the
         tax <br/>
<a id="pl.47.31"></a><var>47.31</var>levied for the year would be less than $100,000.<br/>
<a id="pl.47.32"></a><var>47.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2016 and <br/>
<a id="pl.47.33"></a><var>47.33</var>thereafter.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.48.1"></a><var>48.1</var>    Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 3, is amended to read:<br/>
<a id="pl.48.2"></a><var>48.2</var>    Subd. 3. <b>Seasonal residential recreational tax capacity.</b> For the purposes of this <br/>
<a id="pl.48.3"></a><var>48.3</var>section, "seasonal residential recreational tax capacity" means the tax capacity of
         tier III of <br/>
<a id="pl.48.4"></a><var>48.4</var>class 1c under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and all class 4c(1), 4c(3)(ii), and 4c(12) <br/>
<a id="pl.48.5"></a><var>48.5</var>property under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, except that for each noncommercial class <br/>
<a id="pl.48.6"></a><var>48.6</var>4c(12) property: (i) the first $76,000 of market value of each noncommercial class 4c(12) <br/>
<a id="pl.48.7"></a><var>48.7</var>property has a tax capacity for this purpose equal to 40 percent of its tax capacity under
         <br/>
<a id="pl.48.8"></a><var>48.8</var>section 
         <statute_ref>273.13</statute_ref>; and (ii) the market value exceeding $300,000 shall be excluded for taxes <br/>
<a id="pl.48.9"></a><var>48.9</var>payable in 2016 and thereafter.<br/>
<a id="pl.48.10"></a><var>48.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2016 and <br/>
<a id="pl.48.11"></a><var>48.11</var>thereafter.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.48.12"></a><var>48.12</var>    Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.48.13"></a><var>48.13</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.48.14"></a><var>48.14</var>contrary, on or before September 30, each county and each, home rule charter or statutory <br/>
<a id="pl.48.15"></a><var>48.15</var>city, and special taxing district, excluding the metropolitan council and the metropolitan
         <br/>
<a id="pl.48.16"></a><var>48.16</var>mosquito control commission, shall certify to the county auditor the proposed property <br/>
<a id="pl.48.17"></a><var>48.17</var>tax levy for taxes payable in the following year. The proposed levy certification date for <br/>
<a id="pl.48.18"></a><var>48.18</var>the metropolitan council shall be as prescribed in sections 473.249 and 473.446. The
         <br/>
<a id="pl.48.19"></a><var>48.19</var>proposed levy certification date for the metropolitan mosquito control district shall
         be <br/>
<a id="pl.48.20"></a><var>48.20</var>as prescribed in section 473.711.<br/>
<a id="pl.48.21"></a><var>48.21</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         <br/>
<a id="pl.48.22"></a><var>48.22</var>each town and each special taxing district shall adopt and certify to the county auditor a <br/>
<a id="pl.48.23"></a><var>48.23</var>proposed property tax levy for taxes payable in the following year. For towns, the
         final <br/>
<a id="pl.48.24"></a><var>48.24</var>certified levy shall also be considered the proposed levy.<br/>
<a id="pl.48.25"></a><var>48.25</var>    (c) On or before September 30, each school district that has not mutually agreed <br/>
<a id="pl.48.26"></a><var>48.26</var>with its home county to extend this date shall certify to the county auditor the proposed
         <br/>
<a id="pl.48.27"></a><var>48.27</var>property tax levy for taxes payable in the following year. Each school district that
         has <br/>
<a id="pl.48.28"></a><var>48.28</var>agreed with its home county to delay the certification of its proposed property tax
         levy <br/>
<a id="pl.48.29"></a><var>48.29</var>must certify its proposed property tax levy for the following year no later than October
         <br/>
<a id="pl.48.30"></a><var>48.30</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.48.31"></a><var>48.31</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.48.32"></a><var>48.32</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.48.33"></a><var>48.33</var>and tax capacity levies; or<br/>
<a id="pl.48.34"></a><var>48.34</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.48.35"></a><var>48.35</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.49.1"></a><var>49.1</var>    (d) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.49.2"></a><var>49.2</var>maximum tax levies for taxing jurisdictions within a first class city certifies the
         maximum <br/>
<a id="pl.49.3"></a><var>49.3</var>property tax levies for funds under its jurisdiction by charter to the county auditor
         by the <br/>
<a id="pl.49.4"></a><var>49.4</var>date specified in paragraph (a), the city shall be deemed to have certified its levies
         for <br/>
<a id="pl.49.5"></a><var>49.5</var>those taxing jurisdictions.<br/>
<a id="pl.49.6"></a><var>49.6</var>    (e) For purposes of this section, "special taxing district" means a special taxing
         <br/>
<a id="pl.49.7"></a><var>49.7</var>district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax <br/>
<a id="pl.49.8"></a><var>49.8</var>under chapter 124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to <br/>
<statute_ref><a id="pl.49.9"></a><var>49.9</var>123A.446
         </statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are <br/>
<a id="pl.49.10"></a><var>49.10</var>also special taxing districts for purposes of this section.<br/>
<a id="pl.49.11"></a><var>49.11</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         <br/>
<a id="pl.49.12"></a><var>49.12</var>tax levy under this subdivision, the taxing authority shall announce the time and
         place <br/>
<a id="pl.49.13"></a><var>49.13</var>of its subsequent regularly scheduled meetings at which the budget and levy will be
         <br/>
<a id="pl.49.14"></a><var>49.14</var>discussed and at which the public will be allowed to speak. The time and place of
         those <br/>
<a id="pl.49.15"></a><var>49.15</var>meetings must be included in the proceedings or summary of proceedings published in
         the <br/>
<a id="pl.49.16"></a><var>49.16</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.49.17"></a><var>49.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with proposed levy <br/>
<a id="pl.49.18"></a><var>49.18</var>certifications for taxes payable in 2016.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.49.19"></a><var>49.19</var>    Sec. 12. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.49.20"></a><var>49.20</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.49.21"></a><var>49.21</var>and the county treasurer shall deliver after November 10 and on or before November
         24 <br/>
<a id="pl.49.22"></a><var>49.22</var>each year, by first class mail to each taxpayer at the address listed on the county's
         current <br/>
<a id="pl.49.23"></a><var>49.23</var>year's assessment roll, a notice of proposed property taxes. Upon written request
         by <br/>
<a id="pl.49.24"></a><var>49.24</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic
         mail <br/>
<a id="pl.49.25"></a><var>49.25</var>instead of on paper or by ordinary mail.<br/>
<a id="pl.49.26"></a><var>49.26</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.49.27"></a><var>49.27</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes
         <br/>
<a id="pl.49.28"></a><var>49.28</var>each taxing authority proposes to collect for taxes payable the following year. In
         the case of <br/>
<a id="pl.49.29"></a><var>49.29</var>a town, or in the case of the state general tax, the final tax amount will be its
         proposed tax. <br/>
<a id="pl.49.30"></a><var>49.30</var>The notice must clearly state for each city that has a population over 500, county,
         school <br/>
<a id="pl.49.31"></a><var>49.31</var>district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and metropolitan <br/>
<a id="pl.49.32"></a><var>49.32</var>taxing districts as defined in paragraph (i), the time and place of a meeting for
         each taxing <br/>
<a id="pl.49.33"></a><var>49.33</var>authority in which the budget and levy will be discussed and public input allowed,
         prior to <br/>
<a id="pl.49.34"></a><var>49.34</var>the final budget and levy determination. The taxing authorities must provide the county
         <br/>
<a id="pl.49.35"></a><var>49.35</var>auditor with the information to be included in the notice on or before the time it
         certifies <br/>
<a id="pl.50.1"></a><var>50.1</var>its proposed levy under subdivision 1. The public must be allowed to speak at that
         <br/>
<a id="pl.50.2"></a><var>50.2</var>meeting, which must occur after November 24 and must not be held before 6:00 p.m.
         It <br/>
<a id="pl.50.3"></a><var>50.3</var>must provide a telephone number for the taxing authority that taxpayers may call if
         they <br/>
<a id="pl.50.4"></a><var>50.4</var>have questions related to the notice and an address where comments will be received
         by <br/>
<a id="pl.50.5"></a><var>50.5</var>mail, except that no notice required under this section shall be interpreted as requiring
         the <br/>
<a id="pl.50.6"></a><var>50.6</var>printing of a personal telephone number or address as the contact information for
         a taxing <br/>
<a id="pl.50.7"></a><var>50.7</var>authority. If a taxing authority does not maintain public offices where telephone
         calls can <br/>
<a id="pl.50.8"></a><var>50.8</var>be received by the authority, the authority may inform the county of the lack of a
         public <br/>
<a id="pl.50.9"></a><var>50.9</var>telephone number and the county shall not list a telephone number for that taxing
         authority.<br/>
<a id="pl.50.10"></a><var>50.10</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.50.11"></a><var>50.11</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.50.12"></a><var>50.12</var>for computing property taxes payable in the following year and for taxes payable in
         the <br/>
<a id="pl.50.13"></a><var>50.13</var>current year as each appears in the records of the county assessor on November 1 of
         the <br/>
<a id="pl.50.14"></a><var>50.14</var>current year; and, in the case of residential property, whether the property is classified
         as <br/>
<a id="pl.50.15"></a><var>50.15</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
         <br/>
<a id="pl.50.16"></a><var>50.16</var>which the market values apply and that the values are final values;<br/>
<a id="pl.50.17"></a><var>50.17</var>    (2) the items listed below, shown separately by county, city or town, and state <br/>
<a id="pl.50.18"></a><var>50.18</var>general tax, agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, targeted agricultural <br/>
<a id="pl.50.19"></a><var>50.19</var>land credit under section 273.88, voter approved school levy, other local school levy, and <br/>
<a id="pl.50.20"></a><var>50.20</var>the sum of the special taxing districts, and as a total of all taxing authorities:<br/>
<a id="pl.50.21"></a><var>50.21</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.50.22"></a><var>50.22</var>    (ii) the proposed tax amount.<br/>
<a id="pl.50.23"></a><var>50.23</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.50.24"></a><var>50.24</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.50.25"></a><var>50.25</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.50.26"></a><var>50.26</var>    In the case of a town or the state general tax, the final tax shall also be its proposed
         <br/>
<a id="pl.50.27"></a><var>50.27</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.50.28"></a><var>50.28</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.50.29"></a><var>50.29</var>be held in the school district at the November general election, the county auditor
         must <br/>
<a id="pl.50.30"></a><var>50.30</var>note next to the school district's proposed amount that a referendum is pending and
         that, if <br/>
<a id="pl.50.31"></a><var>50.31</var>approved by the voters, the tax amount may be higher than shown on the notice. In
         the <br/>
<a id="pl.50.32"></a><var>50.32</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall
         be <br/>
<a id="pl.50.33"></a><var>50.33</var>listed separately from the remaining amount of the city's levy. In the case of the
         city of <br/>
<a id="pl.50.34"></a><var>50.34</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from
         the <br/>
<a id="pl.50.35"></a><var>50.35</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied
         <br/>
<a id="pl.50.36"></a><var>50.36</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.51.1"></a><var>51.1</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide
         tax <br/>
<a id="pl.51.2"></a><var>51.2</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or
         the <br/>
<a id="pl.51.3"></a><var>51.3</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated
         <br/>
<a id="pl.51.4"></a><var>51.4</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.51.5"></a><var>51.5</var>    (3) the increase or decrease between the total taxes payable in the current year and
         <br/>
<a id="pl.51.6"></a><var>51.6</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.51.7"></a><var>51.7</var>    For purposes of this section, the amount of the tax on homesteads qualifying under
         <br/>
<a id="pl.51.8"></a><var>51.8</var>the senior citizens' property tax deferral program under chapter 290B is the total
         amount <br/>
<a id="pl.51.9"></a><var>51.9</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.51.10"></a><var>51.10</var>    (e) The notice must clearly state that the proposed or final taxes do not include
         <br/>
<a id="pl.51.11"></a><var>51.11</var>the following:<br/>
<a id="pl.51.12"></a><var>51.12</var>    (1) special assessments;<br/>
<a id="pl.51.13"></a><var>51.13</var>    (2) levies approved by the voters after the date the proposed taxes are certified,
         <br/>
<a id="pl.51.14"></a><var>51.14</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.51.15"></a><var>51.15</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         <br/>
<a id="pl.51.16"></a><var>51.16</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.51.17"></a><var>51.17</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.51.18"></a><var>51.18</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.51.19"></a><var>51.19</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become
         <br/>
<a id="pl.51.20"></a><var>51.20</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.51.21"></a><var>51.21</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.51.22"></a><var>51.22</var>reductions for contamination.<br/>
<a id="pl.51.23"></a><var>51.23</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or <br/>
<a id="pl.51.24"></a><var>51.24</var>the county treasurer to deliver the notice as required in this section does not invalidate
         the <br/>
<a id="pl.51.25"></a><var>51.25</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.51.26"></a><var>51.26</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.51.27"></a><var>51.27</var>nonhomestead, and satisfactory documentation is provided to the county assessor by
         the <br/>
<a id="pl.51.28"></a><var>51.28</var>applicable deadline, and the property qualifies for the homestead classification in
         that <br/>
<a id="pl.51.29"></a><var>51.29</var>assessment year, the assessor shall reclassify the property to homestead for taxes
         payable <br/>
<a id="pl.51.30"></a><var>51.30</var>in the following year.<br/>
<a id="pl.51.31"></a><var>51.31</var>    (h) In the case of class 4 residential property used as a residence for lease or rental
         <br/>
<a id="pl.51.32"></a><var>51.32</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.51.33"></a><var>51.33</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         <br/>
<a id="pl.51.34"></a><var>51.34</var>renter, or lessee; or<br/>
<a id="pl.51.35"></a><var>51.35</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.52.1"></a><var>52.1</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.52.2"></a><var>52.2</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the
         county <br/>
<a id="pl.52.3"></a><var>52.3</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises
         to <br/>
<a id="pl.52.4"></a><var>52.4</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.52.5"></a><var>52.5</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         <br/>
<a id="pl.52.6"></a><var>52.6</var>districts" means the following taxing districts in the seven-county metropolitan area
         that <br/>
<a id="pl.52.7"></a><var>52.7</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.52.8"></a><var>52.8</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.52.9"></a><var>52.9</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.52.10"></a><var>52.10</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.52.11"></a><var>52.11</var>and<br/>
<a id="pl.52.12"></a><var>52.12</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.52.13"></a><var>52.13</var>    For purposes of this section, any levies made by the regional rail authorities in
         the <br/>
<a id="pl.52.14"></a><var>52.14</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
         <br/>
<a id="pl.52.15"></a><var>52.15</var>398A shall be included with the appropriate county's levy.<br/>
<a id="pl.52.16"></a><var>52.16</var>    (j) The governing body of a county, city, or school district may, with the consent
         <br/>
<a id="pl.52.17"></a><var>52.17</var>of the county board, include supplemental information with the statement of proposed
         <br/>
<a id="pl.52.18"></a><var>52.18</var>property taxes about the impact of state aid increases or decreases on property tax
         <br/>
<a id="pl.52.19"></a><var>52.19</var>increases or decreases and on the level of services provided in the affected jurisdiction.
         <br/>
<a id="pl.52.20"></a><var>52.20</var>This supplemental information may include information for the following year, the
         current <br/>
<a id="pl.52.21"></a><var>52.21</var>year, and for as many consecutive preceding years as deemed appropriate by the governing
         <br/>
<a id="pl.52.22"></a><var>52.22</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.52.23"></a><var>52.23</var>    (1) the impact of inflation as measured by the implicit price deflator for state and
         <br/>
<a id="pl.52.24"></a><var>52.24</var>local government purchases;<br/>
<a id="pl.52.25"></a><var>52.25</var>    (2) population growth and decline;<br/>
<a id="pl.52.26"></a><var>52.26</var>    (3) state or federal government action; and<br/>
<a id="pl.52.27"></a><var>52.27</var>    (4) other financial factors that affect the level of property taxation and local services
         <br/>
<a id="pl.52.28"></a><var>52.28</var>that the governing body of the county, city, or school district may deem appropriate
         to <br/>
<a id="pl.52.29"></a><var>52.29</var>include.<br/>
<a id="pl.52.30"></a><var>52.30</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.52.31"></a><var>52.31</var>representations and may contain instruction toward further sources of information
         or <br/>
<a id="pl.52.32"></a><var>52.32</var>opportunity for comment.<br/>
<a id="pl.52.33"></a><var>52.33</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.52.34"></a><var>52.34</var>and thereafter.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.53.1"></a><var>53.1</var>    Sec. 13. Minnesota Statutes 2014, section 275.066, is amended to read:<br/>
<a id="pl.53.2"></a><var>53.2</var><b>275.066 SPECIAL TAXING DISTRICTS; DEFINITION.</b><br/>
<a id="pl.53.3"></a><var>53.3</var>    For the purposes of property taxation and property tax state aids, the term "special
         <br/>
<a id="pl.53.4"></a><var>53.4</var>taxing districts" includes the following entities:<br/>
<a id="pl.53.5"></a><var>53.5</var>    (1) watershed districts under chapter 103D;<br/>
<a id="pl.53.6"></a><var>53.6</var>    (2) sanitary districts under sections 
         <statute_ref>442A.01</statute_ref> to 
         <statute_ref>442A.29</statute_ref>;<br/>
<a id="pl.53.7"></a><var>53.7</var>    (3) regional sanitary sewer districts under sections 
         <statute_ref>115.61</statute_ref> to 
         <statute_ref>115.67</statute_ref>;<br/>
<a id="pl.53.8"></a><var>53.8</var>    (4) regional public library districts under section 
         <statute_ref>134.201</statute_ref>;<br/>
<a id="pl.53.9"></a><var>53.9</var>    (5) park districts under chapter 398;<br/>
<a id="pl.53.10"></a><var>53.10</var>    (6) regional railroad authorities under chapter 398A;<br/>
<a id="pl.53.11"></a><var>53.11</var>    (7) hospital districts under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.38</statute_ref>;<br/>
<a id="pl.53.12"></a><var>53.12</var>    (8) St. Cloud Metropolitan Transit Commission under sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>;<br/>
<a id="pl.53.13"></a><var>53.13</var>    (9) Duluth Transit Authority under sections 
         <statute_ref>458A.21</statute_ref> to 
         <statute_ref>458A.37</statute_ref>;<br/>
<a id="pl.53.14"></a><var>53.14</var>    (10) regional development commissions under sections 
         <statute_ref>462.381</statute_ref> to 
         <statute_ref>462.398</statute_ref>;<br/>
<a id="pl.53.15"></a><var>53.15</var>    (11) housing and redevelopment authorities under sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>;<br/>
<a id="pl.53.16"></a><var>53.16</var>    (12) port authorities under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>;<br/>
<a id="pl.53.17"></a><var>53.17</var>    (13) economic development authorities under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.1081</statute_ref>;<br/>
<a id="pl.53.18"></a><var>53.18</var>    (14) Metropolitan Council under sections 
         <statute_ref>473.123</statute_ref> to 
         <statute_ref>473.549</statute_ref>;<br/>
<a id="pl.53.19"></a><var>53.19</var>    (15) Metropolitan Airports Commission under sections 
         <statute_ref>473.601</statute_ref> to 
         <statute_ref>473.679</statute_ref>;<br/>
<a id="pl.53.20"></a><var>53.20</var>    (16) Metropolitan Mosquito Control Commission under sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref>;<br/>
<a id="pl.53.21"></a><var>53.21</var>    (17) Morrison County Rural Development Financing Authority under Laws 1982, <br/>
<a id="pl.53.22"></a><var>53.22</var>chapter 437, section 1;<br/>
<a id="pl.53.23"></a><var>53.23</var>    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section
         6;<br/>
<a id="pl.53.24"></a><var>53.24</var>    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, <br/>
<a id="pl.53.25"></a><var>53.25</var>sections 1 to 6;<br/>
<a id="pl.53.26"></a><var>53.26</var>    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article <br/>
<a id="pl.53.27"></a><var>53.27</var>5, section 39;<br/>
<a id="pl.53.28"></a><var>53.28</var>    (21) Middle Mississippi River Watershed Management Organization under sections <br/>
<statute_ref><a id="pl.53.29"></a><var>53.29</var>103B.211
         </statute_ref> and 
         <statute_ref>103B.241</statute_ref>;<br/>
<a id="pl.53.30"></a><var>53.30</var>    (22) emergency medical services special taxing districts under section 144F.01;<br/>
<a id="pl.53.31"></a><var>53.31</var>    (23) a county levying under the authority of section 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, or <br/>
<a id="pl.53.32"></a><var>53.32</var><statute_ref>103B.251, or 103C.331</statute_ref>;<br/>
<a id="pl.53.33"></a><var>53.33</var>    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
         <br/>
<a id="pl.53.34"></a><var>53.34</var>under Laws 2003, First Special Session chapter 21, article 4, section 12;<br/>
<a id="pl.53.35"></a><var>53.35</var>    (25) an airport authority created under section 
         <statute_ref>360.0426</statute_ref>; and<br/>
<a id="pl.54.1"></a><var>54.1</var>    (26) any other political subdivision of the state of Minnesota, excluding counties,
         <br/>
<a id="pl.54.2"></a><var>54.2</var>school districts, cities, and towns, that has the power to adopt and certify a property
         tax <br/>
<a id="pl.54.3"></a><var>54.3</var>levy to the county auditor, as determined by the commissioner of revenue.<br/>
<a id="pl.54.4"></a><var>54.4</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.54.5"></a><var>54.5</var>    Sec. 14. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:<br/>
<a id="pl.54.6"></a><var>54.6</var>    Subdivision 1. <b>Certification of levy.</b> (a) Except as provided under paragraph (b), <br/>
<a id="pl.54.7"></a><var>54.7</var>the taxes voted by cities, counties, school districts, and special districts shall
         be certified <br/>
<a id="pl.54.8"></a><var>54.8</var>by the proper authorities to the county auditor on or before five working days after
         <br/>
<a id="pl.54.9"></a><var>54.9</var>December 20 in each year. A town must certify the levy adopted by the town board to
         <br/>
<a id="pl.54.10"></a><var>54.10</var>the county auditor by September 15 each year. If the town board modifies the levy
         at a <br/>
<a id="pl.54.11"></a><var>54.11</var>special town meeting after September 15, the town board must recertify its levy to
         the <br/>
<a id="pl.54.12"></a><var>54.12</var>county auditor on or before five working days after December 20. If a city, town,
         county, <br/>
<a id="pl.54.13"></a><var>54.13</var>school district, or special district fails to certify its levy by that date, its levy
         shall be the <br/>
<a id="pl.54.14"></a><var>54.14</var>amount levied by it for the preceding year.<br/>
<a id="pl.54.15"></a><var>54.15</var>(b)(i) The taxes voted by counties under sections 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, and <br/>
<a id="pl.54.16"></a><var>54.16</var><statute_ref>103B.251</statute_ref>, and 103C.331 shall be separately certified by the county to the county auditor <br/>
<a id="pl.54.17"></a><var>54.17</var>on or before five working days after December 20 in each year. The taxes certified
         <br/>
<a id="pl.54.18"></a><var>54.18</var>shall not be reduced by the county auditor by the aid received under section 
         <statute_ref>273.1398, <br/>
<a id="pl.54.19"></a><var>54.19</var>subdivision 3
         </statute_ref>. If a county fails to certify its levy by that date, its levy shall be the amount
         <br/>
<a id="pl.54.20"></a><var>54.20</var>levied by it for the preceding year.<br/>
<a id="pl.54.21"></a><var>54.21</var>(ii) For purposes of the proposed property tax notice under section 
         <statute_ref>275.065</statute_ref> and <br/>
<a id="pl.54.22"></a><var>54.22</var>the property tax statement under section 
         <statute_ref>276.04</statute_ref>, for the first year in which the county <br/>
<a id="pl.54.23"></a><var>54.23</var>implements the provisions of this paragraph, the county auditor shall reduce the county's
         <br/>
<a id="pl.54.24"></a><var>54.24</var>levy for the preceding year to reflect any amount levied for water management purposes
         <br/>
<a id="pl.54.25"></a><var>54.25</var>under clause (i) included in the county's levy.<br/>
<a id="pl.54.26"></a><var>54.26</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.54.27"></a><var>54.27</var>    Sec. 15. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.54.28"></a><var>54.28</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing <br/>
<a id="pl.54.29"></a><var>54.29</var>of the tax statements. The commissioner of revenue shall prescribe the form of the
         property <br/>
<a id="pl.54.30"></a><var>54.30</var>tax statement and its contents. The tax statement must not state or imply that property
         tax <br/>
<a id="pl.54.31"></a><var>54.31</var>credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement <br/>
<a id="pl.54.32"></a><var>54.32</var>of the dollar amount due to each taxing authority and the amount of the state tax
         from the <br/>
<a id="pl.54.33"></a><var>54.33</var>parcel of real property for which a particular tax statement is prepared. The dollar
         amounts <br/>
<a id="pl.55.1"></a><var>55.1</var>attributable to the county, the state tax, the voter approved school tax, the other
         local school <br/>
<a id="pl.55.2"></a><var>55.2</var>tax, the township or municipality, and the total of the metropolitan special taxing
         districts <br/>
<a id="pl.55.3"></a><var>55.3</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. <br/>
<a id="pl.55.4"></a><var>55.4</var>The amounts due all other special taxing districts, if any, may be aggregated except
         that <br/>
<a id="pl.55.5"></a><var>55.5</var>any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         <br/>
<a id="pl.55.6"></a><var>55.6</var>Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
         <br/>
<a id="pl.55.7"></a><var>55.7</var>line directly under the appropriate county's levy. If the county levy under this paragraph
         <br/>
<a id="pl.55.8"></a><var>55.8</var>includes an amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501 <br/>
</statute_ref><a id="pl.55.9"></a><var>55.9</var>to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be separately stated from the <br/>
<a id="pl.55.10"></a><var>55.10</var>remaining county levy amount. In the case of Ramsey County, if the county levy under
         this <br/>
<a id="pl.55.11"></a><var>55.11</var>paragraph includes an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount <br/>
<a id="pl.55.12"></a><var>55.12</var>attributable for that purpose may be separated from the remaining county levy amount.
         <br/>
<a id="pl.55.13"></a><var>55.13</var>The amount of the tax on homesteads qualifying under the senior citizens' property
         tax <br/>
<a id="pl.55.14"></a><var>55.14</var>deferral program under chapter 290B is the total amount of property tax before subtraction
         <br/>
<a id="pl.55.15"></a><var>55.15</var>of the deferred property tax amount. The amount of the tax on contamination value
         <br/>
<a id="pl.55.16"></a><var>55.16</var>imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar <br/>
<a id="pl.55.17"></a><var>55.17</var>amounts, including the dollar amount of any special assessments, may be rounded to
         the <br/>
<a id="pl.55.18"></a><var>55.18</var>nearest even whole dollar. For purposes of this section whole odd-numbered dollars
         may <br/>
<a id="pl.55.19"></a><var>55.19</var>be adjusted to the next higher even-numbered dollar. The amount of market value excluded
         <br/>
<a id="pl.55.20"></a><var>55.20</var>under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must also be listed on the tax statement.<br/>
<a id="pl.55.21"></a><var>55.21</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.55.22"></a><var>55.22</var>taxed as personal property shall contain the same information that is required on
         the <br/>
<a id="pl.55.23"></a><var>55.23</var>tax statements for real property.<br/>
<a id="pl.55.24"></a><var>55.24</var>    (c) Real and personal property tax statements must contain the following information
         <br/>
<a id="pl.55.25"></a><var>55.25</var>in the order given in this paragraph. The information must contain the current year
         tax <br/>
<a id="pl.55.26"></a><var>55.26</var>information in the right column with the corresponding information for the previous
         year <br/>
<a id="pl.55.27"></a><var>55.27</var>in a column on the left:<br/>
<a id="pl.55.28"></a><var>55.28</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.55.29"></a><var>55.29</var>    (2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.55.30"></a><var>55.30</var>subdivision 35;<br/>
<a id="pl.55.31"></a><var>55.31</var>    (3) the property's taxable market value under section 
         <statute_ref>272.03, subdivision 15</statute_ref>;<br/>
<a id="pl.55.32"></a><var>55.32</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.55.33"></a><var>55.33</var>(5) for agricultural properties, the credit under section 273.88;<br/>
<a id="pl.55.34"></a><var>55.34</var>    (5) (6) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.55.35"></a><var>55.35</var>    (6) (7) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.55.36"></a><var>55.36</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.56.1"></a><var>56.1</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.56.2"></a><var>56.2</var>tax relief"; and<br/>
<a id="pl.56.3"></a><var>56.3</var>    (7) (8) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.56.4"></a><var>56.4</var>    (d) If the county uses envelopes for mailing property tax statements and if the county
         <br/>
<a id="pl.56.5"></a><var>56.5</var>agrees, a taxing district may include a notice with the property tax statement notifying
         <br/>
<a id="pl.56.6"></a><var>56.6</var>taxpayers when the taxing district will begin its budget deliberations for the current
         <br/>
<a id="pl.56.7"></a><var>56.7</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices
         to <br/>
<a id="pl.56.8"></a><var>56.8</var>be included in the envelope containing the property tax statement, and if more than
         <br/>
<a id="pl.56.9"></a><var>56.9</var>one taxing district relative to a given property decides to include a notice with
         the tax <br/>
<a id="pl.56.10"></a><var>56.10</var>statement, the county treasurer or auditor must coordinate the process and may combine
         <br/>
<a id="pl.56.11"></a><var>56.11</var>the information on a single announcement.<br/>
<a id="pl.56.12"></a><var>56.12</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.56.13"></a><var>56.13</var>and thereafter.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.56.14"></a><var>56.14</var>    Sec. 16. Minnesota Statutes 2014, section 276A.06, subdivision 3, is amended to read:<br/>
<a id="pl.56.15"></a><var>56.15</var>    Subd. 3. <b>Apportionment of levy.</b> The county auditor shall apportion the levy of <br/>
<a id="pl.56.16"></a><var>56.16</var>each governmental unit in the county in the manner prescribed by this subdivision.
         The <br/>
<a id="pl.56.17"></a><var>56.17</var>auditor shall:<br/>
<a id="pl.56.18"></a><var>56.18</var>(1) by August 20 of 2014 and each subsequent year, determine the preliminary <br/>
<a id="pl.56.19"></a><var>56.19</var>areawide portion of the levy for each governmental unit by multiplying the local tax
         <br/>
<a id="pl.56.20"></a><var>56.20</var>rate of the governmental unit for the preceding levy year times the distribution value
         set <br/>
<a id="pl.56.21"></a><var>56.21</var>forth in subdivision 2, clause (2);<br/>
<a id="pl.56.22"></a><var>56.22</var>(2) by September 5 of each year, adjust the preliminary areawide portion of the <br/>
<a id="pl.56.23"></a><var>56.23</var>levy for each governmental unit by the adjustment percentage, if any, determined under
         <br/>
<a id="pl.56.24"></a><var>56.24</var>subdivision 5, paragraph (b);<br/>
<a id="pl.56.25"></a><var>56.25</var>(2) (3) by September 5 of 2014 and each subsequent year, determine the areawide <br/>
<a id="pl.56.26"></a><var>56.26</var>portion of the levy for each governmental unit by multiplying the adjusted preliminary <br/>
<a id="pl.56.27"></a><var>56.27</var>areawide portion of the levy for each governmental unit times a fraction, the numerator
         of <br/>
<a id="pl.56.28"></a><var>56.28</var>which is the difference between the sum of the adjusted preliminary areawide levies for all <br/>
<a id="pl.56.29"></a><var>56.29</var>governmental units in the area minus the school fund allocation and the denominator
         is the <br/>
<a id="pl.56.30"></a><var>56.30</var>sum of the adjusted preliminary areawide levy for all governmental units in the area; and<br/>
<a id="pl.56.31"></a><var>56.31</var>(3) (4) by September 5 of 2014 and each subsequent year, determine the local <br/>
<a id="pl.56.32"></a><var>56.32</var>portion of the current year's levy by subtracting the resulting amount from clause
         (1) (2) <br/>
<a id="pl.56.33"></a><var>56.33</var>from the governmental unit's current year's levy.<br/>
<a id="pl.56.34"></a><var>56.34</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.57.1"></a><var>57.1</var>    Sec. 17. Minnesota Statutes 2014, section 276A.06, subdivision 5, is amended to read:<br/>
<a id="pl.57.2"></a><var>57.2</var>    Subd. 5. <b>Areawide tax rate.</b> (a) On or before August 25, 1997, and of each <br/>
<a id="pl.57.3"></a><var>57.3</var>subsequent year, the county auditor shall certify to the administrative auditor the <br/>
<a id="pl.57.4"></a><var>57.4</var>preliminary portion of the levy of each governmental unit determined pursuant to <br/>
<a id="pl.57.5"></a><var>57.5</var>subdivision 3, clause (1). The administrative auditor shall then determine the areawide
         <br/>
<a id="pl.57.6"></a><var>57.6</var>tax rate sufficient to yield an amount equal to the sum of the levies from the preliminary
         <br/>
<a id="pl.57.7"></a><var>57.7</var>areawide net tax capacity. <br/>
<a id="pl.57.8"></a><var>57.8</var>(b) The areawide tax rate may not deviate from the previous year's areawide rate by
         <br/>
<a id="pl.57.9"></a><var>57.9</var>more than five percentage points. If the areawide tax rate determined under paragraph
         <br/>
<a id="pl.57.10"></a><var>57.10</var>(a) does not fall within that range, the auditor must determine the percentage increase
         or <br/>
<a id="pl.57.11"></a><var>57.11</var>reduction to each jurisdiction's distribution levy necessary so that the areawide
         rate falls <br/>
<a id="pl.57.12"></a><var>57.12</var>within the range and recalculate the areawide rate accordingly. <br/>
<a id="pl.57.13"></a><var>57.13</var>(c) On or before September 1, the administrative auditor shall certify the areawide <br/>
<a id="pl.57.14"></a><var>57.14</var>tax rate to each of the county auditors.<br/>
<a id="pl.57.15"></a><var>57.15</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.57.16"></a><var>57.16</var>    Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:<br/>
<a id="pl.57.17"></a><var>57.17</var>    Subdivision 1. <b>Due dates; penalties.</b> (a) Except as provided in subdivisions 3 to 5, <br/>
<a id="pl.57.18"></a><var>57.18</var>on May 16 or 21 days after the postmark date on the envelope containing the property
         tax <br/>
<a id="pl.57.19"></a><var>57.19</var>statement, whichever is later, a penalty accrues and thereafter is charged upon all
         unpaid <br/>
<a id="pl.57.20"></a><var>57.20</var>taxes on real estate on the current lists in the hands of the county treasurer. The
         penalty is <br/>
<a id="pl.57.21"></a><var>57.21</var>at a rate of two percent on homestead property until May 31 and four percent on June
         1. <br/>
<a id="pl.57.22"></a><var>57.22</var>The penalty on nonhomestead property is at a rate of four percent until May 31 and
         eight <br/>
<a id="pl.57.23"></a><var>57.23</var>percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
         after <br/>
<a id="pl.57.24"></a><var>57.24</var>the postmark date on the envelope containing the property tax statements, whichever
         is <br/>
<a id="pl.57.25"></a><var>57.25</var>later, on commercial use real property used for seasonal residential recreational
         purposes <br/>
<a id="pl.57.26"></a><var>57.26</var>and classified as class 1c or 4c, and on other commercial use real property classified
         as <br/>
<a id="pl.57.27"></a><var>57.27</var>class 3a, provided that over 60 percent of the gross income earned by the enterprise
         on the <br/>
<a id="pl.57.28"></a><var>57.28</var>class 3a property is earned during the months of May, June, July, and August. In order
         for <br/>
<a id="pl.57.29"></a><var>57.29</var>the first half of the tax due on class 3a property to be paid after May 15 and before
         June 1, <br/>
<a id="pl.57.30"></a><var>57.30</var>or 21 days after the postmark date on the envelope containing the property tax statement,
         <br/>
<a id="pl.57.31"></a><var>57.31</var>whichever is later, without penalty, the owner of the property must attach an affidavit
         <br/>
<a id="pl.57.32"></a><var>57.32</var>to the payment attesting to compliance with the income provision of this subdivision.
         <br/>
<a id="pl.57.33"></a><var>57.33</var>Thereafter, for both homestead and nonhomestead property, on the first day of each
         month <br/>
<a id="pl.57.34"></a><var>57.34</var>beginning July 1, up to and including October 1 following, an additional penalty of
         one <br/>
<a id="pl.57.35"></a><var>57.35</var>percent for each month accrues and is charged on all such unpaid taxes provided that
         if the <br/>
<a id="pl.58.1"></a><var>58.1</var>due date was extended beyond May 15 as the result of any delay in mailing property
         tax <br/>
<a id="pl.58.2"></a><var>58.2</var>statements no additional penalty shall accrue if the tax is paid by the extended due
         date. If <br/>
<a id="pl.58.3"></a><var>58.3</var>the tax is not paid by the extended due date, then all penalties that would have accrued
         if <br/>
<a id="pl.58.4"></a><var>58.4</var>the due date had been May 15 shall be charged. When the taxes against any tract or
         lot <br/>
<a id="pl.58.5"></a><var>58.5</var>exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
         <br/>
<a id="pl.58.6"></a><var>58.6</var>date on the envelope containing the property tax statement, whichever is later; and,
         if so <br/>
<a id="pl.58.7"></a><var>58.7</var>paid, no penalty attaches; the remaining one-half may be paid at any time prior to
         October <br/>
<a id="pl.58.8"></a><var>58.8</var>16 following, without penalty; but, if not so paid, then a penalty of two percent
         accrues <br/>
<a id="pl.58.9"></a><var>58.9</var>thereon for homestead property and a penalty of four percent on nonhomestead property.
         <br/>
<a id="pl.58.10"></a><var>58.10</var>Thereafter, for homestead property, on the first day of November an additional penalty
         of <br/>
<a id="pl.58.11"></a><var>58.11</var>four percent accrues and on the first day of December following, an additional penalty
         of <br/>
<a id="pl.58.12"></a><var>58.12</var>two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
         <br/>
<a id="pl.58.13"></a><var>58.13</var>property, on the first day of November and December following, an additional penalty
         of <br/>
<a id="pl.58.14"></a><var>58.14</var>four percent for each month accrues and is charged on all such unpaid taxes. If one-half
         of <br/>
<a id="pl.58.15"></a><var>58.15</var>such taxes are not paid prior to May 16 or 21 days after the postmark date on the
         envelope <br/>
<a id="pl.58.16"></a><var>58.16</var>containing the property tax statement, whichever is later, the same may be paid at
         any time <br/>
<a id="pl.58.17"></a><var>58.17</var>prior to October 16, with accrued penalties to the date of payment added, and thereupon
         <br/>
<a id="pl.58.18"></a><var>58.18</var>no penalty attaches to the remaining one-half until October 16 following.<br/>
<a id="pl.58.19"></a><var>58.19</var>    (b) This section applies to payment of personal property taxes assessed against <br/>
<a id="pl.58.20"></a><var>58.20</var>improvements to leased property, except as provided by section 
         <statute_ref>277.01, subdivision 3</statute_ref>.<br/>
<a id="pl.58.21"></a><var>58.21</var>    (c) A county may provide by resolution that in the case of a property owner that has <br/>
<a id="pl.58.22"></a><var>58.22</var>multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made
         in <br/>
<a id="pl.58.23"></a><var>58.23</var>installments as provided in this subdivision.<br/>
<a id="pl.58.24"></a><var>58.24</var>    (d) The county treasurer may accept payments of more or less than the exact amount <br/>
<a id="pl.58.25"></a><var>58.25</var>of a tax installment due. Payments must be applied first to the oldest installment
         that is due <br/>
<a id="pl.58.26"></a><var>58.26</var>but which has not been fully paid. If the accepted payment is less than the amount
         due, <br/>
<a id="pl.58.27"></a><var>58.27</var>payments must be applied first to the penalty accrued for the year or the installment
         being <br/>
<a id="pl.58.28"></a><var>58.28</var>paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
         <br/>
<a id="pl.58.29"></a><var>58.29</var>payment required as a condition for filing an appeal under section 
         <statute_ref>278.03</statute_ref> or any other law, <br/>
<a id="pl.58.30"></a><var>58.30</var>nor does it affect the order of payment of delinquent taxes under section 
         <statute_ref>280.39</statute_ref>.<br/>
<a id="pl.58.31"></a><var>58.31</var>(e) No penalty under this section shall accrue if the property tax payment is delivered
         <br/>
<a id="pl.58.32"></a><var>58.32</var>by mail to the county treasurer and the envelope containing the payment is postmarked
         <br/>
<a id="pl.58.33"></a><var>58.33</var>within two business days of the due date prescribed under this section.<br/>
<a id="pl.58.34"></a><var>58.34</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2016 <br/>
<a id="pl.58.35"></a><var>58.35</var>and thereafter.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.59.1"></a><var>59.1</var>    Sec. 19. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:<br/>
<a id="pl.59.2"></a><var>59.2</var>    Subd. 2. <b>Installment payments.</b> (a) The owner of any such parcel, or any person to <br/>
<a id="pl.59.3"></a><var>59.3</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement,
         may <br/>
<a id="pl.59.4"></a><var>59.4</var>make and file with the county auditor of the county in which the parcel is located
         a written <br/>
<a id="pl.59.5"></a><var>59.5</var>offer to pay the current taxes each year before they become delinquent, or to contest
         <br/>
<a id="pl.59.6"></a><var>59.6</var>the taxes under chapter 278 and agree to confess judgment for the amount provided,
         as <br/>
<a id="pl.59.7"></a><var>59.7</var>determined by the county auditor. By filing the offer, the owner waives all irregularities
         <br/>
<a id="pl.59.8"></a><var>59.8</var>in connection with the tax proceedings affecting the parcel and any defense or objection
         <br/>
<a id="pl.59.9"></a><var>59.9</var>which the owner may have to the proceedings, and also waives the requirements of any
         <br/>
<a id="pl.59.10"></a><var>59.10</var>notice of default in the payment of any installment or interest to become due pursuant
         to <br/>
<a id="pl.59.11"></a><var>59.11</var>the composite judgment to be so entered. Unless the property is subject to subdivision
         1a, <br/>
<a id="pl.59.12"></a><var>59.12</var>with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent
         taxes, <br/>
<a id="pl.59.13"></a><var>59.13</var>costs, penalty, and interest, and (ii) tender all current year taxes and penalty due
         at the <br/>
<a id="pl.59.14"></a><var>59.14</var>time the confession of judgment is entered. In the offer, the owner shall agree to
         pay the <br/>
<a id="pl.59.15"></a><var>59.15</var>balance in nine equal installments, with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable <br/>
<a id="pl.59.16"></a><var>59.16</var>annually on installments remaining unpaid from time to time, on or before December
         31 <br/>
<a id="pl.59.17"></a><var>59.17</var>of each year following the year in which judgment was confessed.<br/>
<a id="pl.59.18"></a><var>59.18</var>(b) For property which qualifies under section 
         <statute_ref>279.03, subdivision 2</statute_ref>, paragraph (b), <br/>
<a id="pl.59.19"></a><var>59.19</var>each year the commissioner shall set the interest rate for offers made under paragraph
         (a) <br/>
<a id="pl.59.20"></a><var>59.20</var>at the greater of five percent or two percent above the prime rate charged by banks
         during <br/>
<a id="pl.59.21"></a><var>59.21</var>the six-month period ending on September 30 of that year, rounded to the nearest full
         <br/>
<a id="pl.59.22"></a><var>59.22</var>percent, provided that the rate must not exceed the maximum annum rate specified under
         <br/>
<a id="pl.59.23"></a><var>59.23</var>section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The rate of interest becomes effective on January 1 of the <br/>
<a id="pl.59.24"></a><var>59.24</var>immediately succeeding year. The commissioner's determination under this subdivision
         is <br/>
<a id="pl.59.25"></a><var>59.25</var>not a rule subject to the Administrative Procedure Act in chapter 14, including section
         <br/>
<statute_ref><a id="pl.59.26"></a><var>59.26</var>14.386
         </statute_ref>. If a default occurs in the payments under any confessed judgment entered under <br/>
<a id="pl.59.27"></a><var>59.27</var>this paragraph, the taxes and penalties due are subject to the interest rate specified
         in <br/>
<a id="pl.59.28"></a><var>59.28</var>section 
         <statute_ref>279.03</statute_ref>.<br/>
<a id="pl.59.29"></a><var>59.29</var>For the purposes of this subdivision:<br/>
<a id="pl.59.30"></a><var>59.30</var>(1) the term "prime rate charged by banks" means the average predominant prime <br/>
<a id="pl.59.31"></a><var>59.31</var>rate quoted by commercial banks to large businesses, as determined by the Board of
         <br/>
<a id="pl.59.32"></a><var>59.32</var>Governors of the Federal Reserve System; and<br/>
<a id="pl.59.33"></a><var>59.33</var>(2) "default" means the cancellation of the confession of judgment due to <br/>
<a id="pl.59.34"></a><var>59.34</var>nonpayment of the current year tax or failure to make any installment payment required
         by <br/>
<a id="pl.59.35"></a><var>59.35</var>this confessed judgment within 60 days from the date on which payment was due.<br/>
<a id="pl.60.1"></a><var>60.1</var>(c) The interest rate established at the time judgment is confessed is fixed for the
         <br/>
<a id="pl.60.2"></a><var>60.2</var>duration of the judgment. By October 15 of each year, the commissioner of revenue
         must <br/>
<a id="pl.60.3"></a><var>60.3</var>determine the rate of interest as provided under paragraph (b) and, by November 1
         of each <br/>
<a id="pl.60.4"></a><var>60.4</var>year, must certify the rate to the county auditor.<br/>
<a id="pl.60.5"></a><var>60.5</var>(d) A qualified property owner eligible to enter into a second confession of judgment
         <br/>
<a id="pl.60.6"></a><var>60.6</var>may do so at the interest rate provided in paragraph (b).<br/>
<a id="pl.60.7"></a><var>60.7</var>(e) Repurchase agreements or contracts for repurchase for properties being <br/>
<a id="pl.60.8"></a><var>60.8</var>repurchased under section 
<statute_ref>282.261</statute_ref> are not eligible to receive the interest rate under <br/>
<a id="pl.60.9"></a><var>60.9</var>paragraph (b).<br/>
<a id="pl.60.10"></a><var>60.10</var>(f) (e) The offer must be substantially as follows:<br/>
<a id="pl.60.11"></a><var>60.11</var>"To the court administrator of the district court of ........... county, I, .....................,
         <br/>
<a id="pl.60.12"></a><var>60.12</var>am the owner of the following described parcel of real estate located in ....................
         <br/>
<a id="pl.60.13"></a><var>60.13</var>county, Minnesota:<br/>
<a id="pl.60.14"></a><var>60.14</var>.............................. Upon that real estate there are delinquent taxes for
         the year ........., and <br/>
<a id="pl.60.15"></a><var>60.15</var>prior years, as follows: (here insert year of delinquency and the total amount of
         delinquent <br/>
<a id="pl.60.16"></a><var>60.16</var>taxes, costs, interest, and penalty). By signing this document I offer to confess
         judgment <br/>
<a id="pl.60.17"></a><var>60.17</var>in the sum of $...... and waive all irregularities in the tax proceedings affecting
         these <br/>
<a id="pl.60.18"></a><var>60.18</var>taxes and any defense or objection which I may have to them, and direct judgment to
         be <br/>
<a id="pl.60.19"></a><var>60.19</var>entered for the amount stated above, minus the sum of $............, to be paid with
         this <br/>
<a id="pl.60.20"></a><var>60.20</var>document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty,
         and <br/>
<a id="pl.60.21"></a><var>60.21</var>interest stated above. I agree to pay the balance of the judgment in nine or four
         equal, <br/>
<a id="pl.60.22"></a><var>60.22</var>annual installments, with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the <br/>
<a id="pl.60.23"></a><var>60.23</var>installments remaining unpaid. I agree to pay the installments and interest on or
         before <br/>
<a id="pl.60.24"></a><var>60.24</var>December 31 of each year following the year in which this judgment is confessed and
         <br/>
<a id="pl.60.25"></a><var>60.25</var>current taxes each year before they become delinquent, or within 30 days after the
         entry of <br/>
<a id="pl.60.26"></a><var>60.26</var>final judgment in proceedings to contest the taxes under chapter 278.<br/>
<a id="pl.60.27"></a><var>60.27</var>Dated .............., ......."<br/>
<a id="pl.60.28"></a><var>60.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and repurchases occurring <br/>
<a id="pl.60.29"></a><var>60.29</var>after June 30, 2015.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.60.30"></a><var>60.30</var>    Sec. 20. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:<br/>
<a id="pl.60.31"></a><var>60.31</var>    Subd. 4. <b>Sale: method, requirements, effects.</b> The sale authorized under <br/>
<a id="pl.60.32"></a><var>60.32</var>subdivision 3 must be conducted by the county auditor at the county seat of the county
         in <br/>
<a id="pl.60.33"></a><var>60.33</var>which the parcels lie, except that in St. Louis and Koochiching Counties, the sale
         may <br/>
<a id="pl.60.34"></a><var>60.34</var>be conducted in any county facility within the county. The sale must not be for less
         than <br/>
<a id="pl.61.1"></a><var>61.1</var>the appraised value except as provided in subdivision 7a. The parcels must be sold
         for <br/>
<a id="pl.61.2"></a><var>61.2</var>cash only, unless the county board of the county has adopted a resolution providing
         for <br/>
<a id="pl.61.3"></a><var>61.3</var>their sale on terms, in which event the resolution controls with respect to the sale.
         When <br/>
<a id="pl.61.4"></a><var>61.4</var>the sale is made on terms other than for cash only (1) a payment of at least ten percent
         <br/>
<a id="pl.61.5"></a><var>61.5</var>of the purchase price must be made at the time of purchase, and the balance must be
         <br/>
<a id="pl.61.6"></a><var>61.6</var>paid in no more than ten equal annual installments, or (2) the payments must be made
         <br/>
<a id="pl.61.7"></a><var>61.7</var>in accordance with county board policy, but in no event may the board require more
         <br/>
<a id="pl.61.8"></a><var>61.8</var>than 12 installments annually, and the contract term must not be for more than ten
         years. <br/>
<a id="pl.61.9"></a><var>61.9</var>Standing timber or timber products must not be removed from these lands until an amount
         <br/>
<a id="pl.61.10"></a><var>61.10</var>equal to the appraised value of all standing timber or timber products on the lands
         at the <br/>
<a id="pl.61.11"></a><var>61.11</var>time of purchase has been paid by the purchaser. If a parcel of land bearing standing
         <br/>
<a id="pl.61.12"></a><var>61.12</var>timber or timber products is sold at public auction for more than the appraised value,
         the <br/>
<a id="pl.61.13"></a><var>61.13</var>amount bid in excess of the appraised value must be allocated between the land and
         the <br/>
<a id="pl.61.14"></a><var>61.14</var>timber in proportion to their respective appraised values. In that case, standing
         timber or <br/>
<a id="pl.61.15"></a><var>61.15</var>timber products must not be removed from the land until the amount of the excess bid
         <br/>
<a id="pl.61.16"></a><var>61.16</var>allocated to timber or timber products has been paid in addition to the appraised
         value of <br/>
<a id="pl.61.17"></a><var>61.17</var>the land. The purchaser is entitled to immediate possession, subject to the provisions
         of <br/>
<a id="pl.61.18"></a><var>61.18</var>any existing valid lease made in behalf of the state.<br/>
<a id="pl.61.19"></a><var>61.19</var>For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
         <br/>
<a id="pl.61.20"></a><var>61.20</var>is subject to interest at the rate determined pursuant to section 
<statute_ref>549.09</statute_ref>. The unpaid balance <br/>
<a id="pl.61.21"></a><var>61.21</var>of the purchase price for sales occurring after December 31, 1990, is subject to interest <br/>
<a id="pl.61.22"></a><var>61.22</var>at the same rate as installment payments on confession of judgment for delinquent taxes <br/>
<a id="pl.61.23"></a><var>61.23</var>determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref> 279.37, subdivision 2, paragraph (b). The <br/>
<a id="pl.61.24"></a><var>61.24</var>interest rate is subject to change each year on the unpaid balance in the manner provided
         <br/>
<a id="pl.61.25"></a><var>61.25</var>for rate changes in section 
<statute_ref>549.09</statute_ref> or 
<statute_ref>279.03, subdivision 1a</statute_ref>, whichever, is applicable. <br/>
<a id="pl.61.26"></a><var>61.26</var>Interest on the unpaid contract balance on sales occurring before July 1, 1982, is
         payable <br/>
<a id="pl.61.27"></a><var>61.27</var>at the rate applicable to the sale at the time that the sale occurred.<br/>
<a id="pl.61.28"></a><var>61.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales occurring after June 30, 2015.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.61.29"></a><var>61.29</var>    Sec. 21. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:<br/>
<a id="pl.61.30"></a><var>61.30</var>    Subd. 2. <b>Interest rate.</b> The unpaid balance on any repurchase contract approved <br/>
<a id="pl.61.31"></a><var>61.31</var>by the county board is subject to interest at the same rate as installment payments on <br/>
<a id="pl.61.32"></a><var>61.32</var>confession of judgment for delinquent taxes determined in section 
         <statute_ref>279.03, subdivision 1a <br/>
<a id="pl.61.33"></a><var>61.33</var></statute_ref>279.37, subdivision 2, paragraph (b). The interest rate is subject to change each year on the <br/>
<a id="pl.61.34"></a><var>61.34</var>unpaid balance in the manner provided for rate changes in section 
<statute_ref>279.03, subdivision 1a</statute_ref>.<br/>
<a id="pl.62.1"></a><var>62.1</var><b>EFFECTIVE DATE.</b>This section is effective for repurchases occurring after June <br/>
<a id="pl.62.2"></a><var>62.2</var>30, 2015.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.62.3"></a><var>62.3</var>    Sec. 22. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.62.4"></a><var>62.4</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.62.5"></a><var>62.5</var>exclusive of special assessments, penalties, and interest payable on a claimant's
         homestead <br/>
<a id="pl.62.6"></a><var>62.6</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.62.7"></a><var>62.7</var>and any other state paid property tax credits in any calendar year, and after any
         refund <br/>
<a id="pl.62.8"></a><var>62.8</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.62.9"></a><var>62.9</var>the year that the property tax is payable. In the case of a claimant who makes ground
         <br/>
<a id="pl.62.10"></a><var>62.10</var>lease payments, "property taxes payable" includes the amount of the payments directly
         <br/>
<a id="pl.62.11"></a><var>62.11</var>attributable to the property taxes assessed against the parcel on which the house
         is located. <br/>
<a id="pl.62.12"></a><var>62.12</var>No apportionment or reduction of the "property taxes payable" shall be required for
         the <br/>
<a id="pl.62.13"></a><var>62.13</var>use of a portion of the claimant's homestead for a business purpose if the claimant
         does not <br/>
<a id="pl.62.14"></a><var>62.14</var>deduct any business depreciation expenses for the use of a portion of the homestead, or <br/>
<a id="pl.62.15"></a><var>62.15</var>elects to deduct expenses under section 280A of the Internal Revenue Code for a business
         <br/>
<a id="pl.62.16"></a><var>62.16</var>operated in a home, in the determination of federal adjusted gross income. For homesteads <br/>
<a id="pl.62.17"></a><var>62.17</var>which are manufactured homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for <br/>
<a id="pl.62.18"></a><var>62.18</var>homesteads which are park trailers taxed as manufactured homes under section 
         <statute_ref>168.012, <br/>
<a id="pl.62.19"></a><var>62.19</var>subdivision 9
         </statute_ref>, "property taxes payable" shall also include 17 percent of the gross rent paid <br/>
<a id="pl.62.20"></a><var>62.20</var>in the preceding year for the site on which the homestead is located. When a homestead
         <br/>
<a id="pl.62.21"></a><var>62.21</var>is owned by two or more persons as joint tenants or tenants in common, such tenants
         <br/>
<a id="pl.62.22"></a><var>62.22</var>shall determine between them which tenant may claim the property taxes payable on
         the <br/>
<a id="pl.62.23"></a><var>62.23</var>homestead. If they are unable to agree, the matter shall be referred to the commissioner
         of <br/>
<a id="pl.62.24"></a><var>62.24</var>revenue whose decision shall be final. Property taxes are considered payable in the
         year <br/>
<a id="pl.62.25"></a><var>62.25</var>prescribed by law for payment of the taxes.<br/>
<a id="pl.62.26"></a><var>62.26</var>In the case of a claim relating to "property taxes payable," the claimant must have
         <br/>
<a id="pl.62.27"></a><var>62.27</var>owned and occupied the homestead on January 2 of the year in which the tax is payable
         <br/>
<a id="pl.62.28"></a><var>62.28</var>and (i) the property must have been classified as homestead property pursuant to section
         <br/>
<statute_ref><a id="pl.62.29"></a><var>62.29</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.62.30"></a><var>62.30</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor
         <br/>
<a id="pl.62.31"></a><var>62.31</var>that application for homestead classification has been made on or before December
         15 <br/>
<a id="pl.62.32"></a><var>62.32</var>of the year in which the "property taxes payable" were payable and that the assessor
         has <br/>
<a id="pl.62.33"></a><var>62.33</var>approved the application.<br/>
<a id="pl.62.34"></a><var>62.34</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid after <br/>
<a id="pl.62.35"></a><var>62.35</var>December 31, 2013, and property taxes payable after December 31, 2014.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 23. Minnesota Statutes 2014, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.63.2"></a><var>63.2</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a homestead <br/>
<a id="pl.63.3"></a><var>63.3</var>increase more than 12 ten percent over the property taxes payable in the prior year on the <br/>
<a id="pl.63.4"></a><var>63.4</var>same property that is owned and occupied by the same owner on January 2 of both years,
         <br/>
<a id="pl.63.5"></a><var>63.5</var>and the amount of that increase is $100 or more, a claimant who is a homeowner shall
         <br/>
<a id="pl.63.6"></a><var>63.6</var>be allowed an additional refund equal to 60 percent of the amount of the increase
         over <br/>
<a id="pl.63.7"></a><var>63.7</var>the greater of 12 ten percent of the prior year's property taxes payable or $100. This <br/>
<a id="pl.63.8"></a><var>63.8</var>subdivision shall not apply to any increase in the gross property taxes payable attributable
         <br/>
<a id="pl.63.9"></a><var>63.9</var>to improvements made to the homestead after the assessment date for the prior year's
         <br/>
<a id="pl.63.10"></a><var>63.10</var>taxes. This subdivision shall not apply to any increase in the gross property taxes
         payable <br/>
<a id="pl.63.11"></a><var>63.11</var>attributable to the termination of valuation exclusions under section 
         <statute_ref>273.11, subdivision 16</statute_ref>.<br/>
<a id="pl.63.12"></a><var>63.12</var>The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.63.13"></a><var>63.13</var>(b) For purposes of this subdivision "gross property taxes payable" means property
         <br/>
<a id="pl.63.14"></a><var>63.14</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.63.15"></a><var>63.15</var>(c) In addition to the other proofs required by this chapter, each claimant under
         this <br/>
<a id="pl.63.16"></a><var>63.16</var>subdivision shall file with the property tax refund return a copy of the property
         tax statement <br/>
<a id="pl.63.17"></a><var>63.17</var>for taxes payable in the preceding year or other documents required by the commissioner.<br/>
<a id="pl.63.18"></a><var>63.18</var>(d) Upon request, the appropriate county official shall make available the names and
         <br/>
<a id="pl.63.19"></a><var>63.19</var>addresses of the property taxpayers who may be eligible for the additional property
         tax <br/>
<a id="pl.63.20"></a><var>63.20</var>refund under this section. The information shall be provided on a magnetic computer
         <br/>
<a id="pl.63.21"></a><var>63.21</var>disk. The county may recover its costs by charging the person requesting the information
         <br/>
<a id="pl.63.22"></a><var>63.22</var>the reasonable cost for preparing the data. The information may not be used for any
         <br/>
<a id="pl.63.23"></a><var>63.23</var>purpose other than for notifying the homeowner of potential eligibility and assisting
         the <br/>
<a id="pl.63.24"></a><var>63.24</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.63.25"></a><var>63.25</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on taxes <br/>
<a id="pl.63.26"></a><var>63.26</var>payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.63.27"></a><var>63.27</var>    Sec. 24. Minnesota Statutes 2014, section 290B.03, subdivision 1, is amended to read:<br/>
<a id="pl.63.28"></a><var>63.28</var>    Subdivision 1. <b>Program qualifications.</b> The qualifications for the senior citizens' <br/>
<a id="pl.63.29"></a><var>63.29</var>property tax deferral program are as follows:<br/>
<a id="pl.63.30"></a><var>63.30</var>(1) the property must be owned and occupied as a homestead by a person 65 years of
         <br/>
<a id="pl.63.31"></a><var>63.31</var>age or older. In the case of a married couple, at least one of the spouses must be
         at least 65 <br/>
<a id="pl.63.32"></a><var>63.32</var>years old at the time the first property tax deferral is granted, regardless of whether
         the <br/>
<a id="pl.63.33"></a><var>63.33</var>property is titled in the name of one spouse or both spouses, or titled in another
         way that <br/>
<a id="pl.63.34"></a><var>63.34</var>permits the property to have homestead status, and the other spouse must be at least
         62 <br/>
<a id="pl.63.35"></a><var>63.35</var>years of age;<br/>
<a id="pl.64.1"></a><var>64.1</var>(2) the total household income of the qualifying homeowners, as defined in section
         <br/>
<statute_ref><a id="pl.64.2"></a><var>64.2</var>290A.03, subdivision 5
         </statute_ref>, for the calendar year preceding the year of the initial application <br/>
<a id="pl.64.3"></a><var>64.3</var>may not exceed $60,000;<br/>
<a id="pl.64.4"></a><var>64.4</var>(3) the homestead must have been owned and occupied as the homestead of at least <br/>
<a id="pl.64.5"></a><var>64.5</var>one of the qualifying homeowners for at least 15 five years prior to the year the initial <br/>
<a id="pl.64.6"></a><var>64.6</var>application is filed;<br/>
<a id="pl.64.7"></a><var>64.7</var>(4) there are no state or federal tax liens or judgment liens on the homesteaded <br/>
<a id="pl.64.8"></a><var>64.8</var>property;<br/>
<a id="pl.64.9"></a><var>64.9</var>(5) there are no mortgages or other liens on the property that secure future advances,
         <br/>
<a id="pl.64.10"></a><var>64.10</var>except for those subject to credit limits that result in compliance with clause (6);
         and<br/>
<a id="pl.64.11"></a><var>64.11</var>(6) the total unpaid balances of debts secured by mortgages and other liens on the
         <br/>
<a id="pl.64.12"></a><var>64.12</var>property, including unpaid and delinquent special assessments and interest and any
         <br/>
<a id="pl.64.13"></a><var>64.13</var>delinquent property taxes, penalties, and interest, but not including property taxes
         payable <br/>
<a id="pl.64.14"></a><var>64.14</var>during the year, does not exceed 75 percent of the assessor's estimated market value
         for <br/>
<a id="pl.64.15"></a><var>64.15</var>the year.<br/>
<a id="pl.64.16"></a><var>64.16</var><b>EFFECTIVE DATE.</b>This section is effective for applications for deferral of taxes <br/>
<a id="pl.64.17"></a><var>64.17</var>payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.64.18"></a><var>64.18</var>    Sec. 25. Minnesota Statutes 2014, section 290B.04, subdivision 1, is amended to read:<br/>
<a id="pl.64.19"></a><var>64.19</var>    Subdivision 1. <b>Initial application.</b> (a) A taxpayer meeting the program <br/>
<a id="pl.64.20"></a><var>64.20</var>qualifications under section 
         <statute_ref>290B.03</statute_ref> may apply to the commissioner of revenue for the <br/>
<a id="pl.64.21"></a><var>64.21</var>deferral of taxes. Applications are due on or before July November 1 for deferral of any <br/>
<a id="pl.64.22"></a><var>64.22</var>of the following year's property taxes. A taxpayer may apply in the year in which
         the <br/>
<a id="pl.64.23"></a><var>64.23</var>taxpayer becomes 65 years old, provided that no deferral of property taxes will be
         made <br/>
<a id="pl.64.24"></a><var>64.24</var>until the calendar year after the taxpayer becomes 65 years old. The application,
         which <br/>
<a id="pl.64.25"></a><var>64.25</var>shall be prescribed by the commissioner of revenue, shall include the following items
         and <br/>
<a id="pl.64.26"></a><var>64.26</var>any other information which the commissioner deems necessary:<br/>
<a id="pl.64.27"></a><var>64.27</var>    (1) the name, address, and Social Security number of the owner or owners;<br/>
<a id="pl.64.28"></a><var>64.28</var>    (2) a copy of the property tax statement for the current payable year for the <br/>
<a id="pl.64.29"></a><var>64.29</var>homesteaded property;<br/>
<a id="pl.64.30"></a><var>64.30</var>    (3) the initial year of ownership and occupancy as a homestead;<br/>
<a id="pl.64.31"></a><var>64.31</var>    (4) the owner's household income for the previous calendar year; and<br/>
<a id="pl.64.32"></a><var>64.32</var>    (5) information on any mortgage loans or other amounts secured by mortgages or <br/>
<a id="pl.64.33"></a><var>64.33</var>other liens against the property, for which purpose the commissioner may require the
         <br/>
<a id="pl.64.34"></a><var>64.34</var>applicant to provide a copy of the mortgage note, the mortgage, or a statement of
         the <br/>
<a id="pl.64.35"></a><var>64.35</var>balance owing on the mortgage loan provided by the mortgage holder. The commissioner
         <br/>
<a id="pl.65.1"></a><var>65.1</var>may require the appropriate documents in connection with obtaining and confirming
         <br/>
<a id="pl.65.2"></a><var>65.2</var>information on unpaid amounts secured by other liens.<br/>
<a id="pl.65.3"></a><var>65.3</var>    The application must state that program participation is voluntary. The application
         <br/>
<a id="pl.65.4"></a><var>65.4</var>must also state that the deferred amount depends directly on the applicant's household
         <br/>
<a id="pl.65.5"></a><var>65.5</var>income, and that program participation includes authorization for the annual deferred
         <br/>
<a id="pl.65.6"></a><var>65.6</var>amount, the cumulative deferral and interest that appear on each year's notice prepared
         by <br/>
<a id="pl.65.7"></a><var>65.7</var>the county under subdivision 6, is public data.<br/>
<a id="pl.65.8"></a><var>65.8</var>    The application must state that program participants may claim the property tax <br/>
<a id="pl.65.9"></a><var>65.9</var>refund based on the full amount of property taxes eligible for the refund, including
         any <br/>
<a id="pl.65.10"></a><var>65.10</var>deferred amounts. The application must also state that property tax refunds will be
         used to <br/>
<a id="pl.65.11"></a><var>65.11</var>offset any deferral and interest under this program, and that any other amounts subject
         to <br/>
<a id="pl.65.12"></a><var>65.12</var>revenue recapture under section 
         <statute_ref>270A.03, subdivision 7</statute_ref>, will also be used to offset any <br/>
<a id="pl.65.13"></a><var>65.13</var>deferral and interest under this program.<br/>
<a id="pl.65.14"></a><var>65.14</var>    (b) As part of the initial application process, the commissioner may require the <br/>
<a id="pl.65.15"></a><var>65.15</var>applicant to obtain at the applicant's own cost and submit:<br/>
<a id="pl.65.16"></a><var>65.16</var>    (1) if the property is registered property under chapter 508 or 508A, a copy of the
         <br/>
<a id="pl.65.17"></a><var>65.17</var>original certificate of title in the possession of the county registrar of titles
         (sometimes <br/>
<a id="pl.65.18"></a><var>65.18</var>referred to as "condition of register"); or<br/>
<a id="pl.65.19"></a><var>65.19</var>    (2) if the property is abstract property, a report prepared by a licensed abstracter
         <br/>
<a id="pl.65.20"></a><var>65.20</var>showing the last deed and any unsatisfied mortgages, liens, judgments, and state and
         <br/>
<a id="pl.65.21"></a><var>65.21</var>federal tax lien notices which were recorded on or after the date of that last deed
         with <br/>
<a id="pl.65.22"></a><var>65.22</var>respect to the property or to the applicant.<br/>
<a id="pl.65.23"></a><var>65.23</var>    The certificate or report under clauses (1) and (2) need not include references to
         <br/>
<a id="pl.65.24"></a><var>65.24</var>any documents filed or recorded more than 40 years prior to the date of the certification
         <br/>
<a id="pl.65.25"></a><var>65.25</var>or report. The certification or report must be as of a date not more than 30 days
         prior <br/>
<a id="pl.65.26"></a><var>65.26</var>to submission of the application.<br/>
<a id="pl.65.27"></a><var>65.27</var>    The commissioner may also require the county recorder or county registrar of the <br/>
<a id="pl.65.28"></a><var>65.28</var>county where the property is located to provide copies of recorded documents related
         to <br/>
<a id="pl.65.29"></a><var>65.29</var>the applicant or the property, for which the recorder or registrar shall not charge
         a fee. The <br/>
<a id="pl.65.30"></a><var>65.30</var>commissioner may use any information available to determine or verify eligibility
         under <br/>
<a id="pl.65.31"></a><var>65.31</var>this section. The household income from the application is private data on individuals
         as <br/>
<a id="pl.65.32"></a><var>65.32</var>defined in section 
         <statute_ref>13.02, subdivision 12</statute_ref>.<br/>
<a id="pl.65.33"></a><var>65.33</var><b>EFFECTIVE DATE.</b>This section is effective for applications for deferral of taxes <br/>
<a id="pl.65.34"></a><var>65.34</var>payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.65.35"></a><var>65.35</var>    Sec. 26. Minnesota Statutes 2014, section 469.194, subdivision 1, is amended to read:<br/>
<a id="pl.66.1"></a><var>66.1</var>    Subdivision 1. <b>Authority; </b><b>aggregate</b><b> limit.</b> (a) The governing body of a <br/>
<a id="pl.66.2"></a><var>66.2</var>municipality the city of Worthington may, by resolution, issue obligations under chapter <br/>
<a id="pl.66.3"></a><var>66.3</var>475 to acquire land or interests in land for, and to design, engineer, and construct
         pipeline <br/>
<a id="pl.66.4"></a><var>66.4</var>and other facilities and infrastructure necessary to complete the Lewis and Clark
         Regional <br/>
<a id="pl.66.5"></a><var>66.5</var>Water System Project.<br/>
<a id="pl.66.6"></a><var>66.6</var>(b) The maximum amount of bonds that may be issued under this section is limited to
         <br/>
<a id="pl.66.7"></a><var>66.7</var>an aggregate a principal amount of $45,000,000 $50,000,000, plus any costs of issuance and <br/>
<a id="pl.66.8"></a><var>66.8</var>amounts to be deposited into a debt service or reserve account. The Lewis and Clark Joint <br/>
<a id="pl.66.9"></a><var>66.9</var>Powers Board shall allocate the limit among the municipalities designated in subdivision
         2.<br/>
<a id="pl.66.10"></a><var>66.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.66.11"></a><var>66.11</var>without local approval under the provisions of Minnesota Statutes, section 645.023.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.66.12"></a><var>66.12</var>    Sec. 27. Minnesota Statutes 2014, section 473H.09, is amended to read:<br/>
<a id="pl.66.13"></a><var>66.13</var><b>473H.09 EARLY TERMINATION.</b><br/>
<a id="pl.66.14"></a><var>66.14</var>    Subdivision 1. <b>Public emergency.</b> Termination of an agricultural preserve earlier <br/>
<a id="pl.66.15"></a><var>66.15</var>than a date derived through application of section 
         <statute_ref>473H.08</statute_ref> may be permitted only in the <br/>
<a id="pl.66.16"></a><var>66.16</var>event of a public emergency upon petition from the owner or authority to the governor.
         <br/>
<a id="pl.66.17"></a><var>66.17</var>The determination of a public emergency shall be by the governor through executive
         order <br/>
<a id="pl.66.18"></a><var>66.18</var>pursuant to sections 
         <statute_ref>4.035</statute_ref> and 
         <statute_ref>12.01</statute_ref> to 
         <statute_ref>12.46</statute_ref>. The executive order shall identify the <br/>
<a id="pl.66.19"></a><var>66.19</var>preserve, the reasons requiring the action and the date of termination.<br/>
<a id="pl.66.20"></a><var>66.20</var>    Subd. 2. <b>Death of owner.</b> (a) Within 180 days of the death of an owner, an owner's <br/>
<a id="pl.66.21"></a><var>66.21</var>spouse, or other qualifying person, the surviving owner may elect to terminate the
         <br/>
<a id="pl.66.22"></a><var>66.22</var>agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
         <br/>
<a id="pl.66.23"></a><var>66.23</var>preserve by notifying the authority on a form provided by the commissioner of agriculture.
         <br/>
<a id="pl.66.24"></a><var>66.24</var>Termination of a covenant under this subdivision must be executed and acknowledged
         in <br/>
<a id="pl.66.25"></a><var>66.25</var>the manner required by law to execute and acknowledge a deed.<br/>
<a id="pl.66.26"></a><var>66.26</var>(b) For purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.66.27"></a><var>66.27</var>(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the <br/>
<a id="pl.66.28"></a><var>66.28</var>decedent was the settlor or a beneficiary of, or member of an entity permitted to
         own <br/>
<a id="pl.66.29"></a><var>66.29</var>agricultural land and engage in farming under section 500.24 that owned the agricultural
         <br/>
<a id="pl.66.30"></a><var>66.30</var>preserve; and <br/>
<a id="pl.66.31"></a><var>66.31</var>(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a <br/>
<a id="pl.66.32"></a><var>66.32</var>trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm <br/>
<a id="pl.66.33"></a><var>66.33</var>land under section 500.24 of which the decedent was a partner, shareholder, or member.<br/>
<a id="pl.67.1"></a><var>67.1</var>(c) When an agricultural preserve is terminated under this subdivision, the property
         <br/>
<a id="pl.67.2"></a><var>67.2</var>is subject to additional taxes in an amount equal to 50 percent of the taxes actually
         <br/>
<a id="pl.67.3"></a><var>67.3</var>levied against the property for the current taxes payable year. The additional taxes
         are <br/>
<a id="pl.67.4"></a><var>67.4</var>extended against the property on the tax list for taxes payable in the current year.
         The <br/>
<a id="pl.67.5"></a><var>67.5</var>additional taxes must be distributed among the jurisdictions levying taxes on the
         property <br/>
<a id="pl.67.6"></a><var>67.6</var>in proportion to the current year's taxes.<br/>
<a id="pl.67.7"></a><var>67.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2015.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.67.8"></a><var>67.8</var>    Sec. 28. Laws 1996, chapter 471, article 3, section 51, is amended to read:<br/>
<a id="pl.67.9"></a><var>67.9</var>    Sec. 51. <b>RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.</b><br/>
<a id="pl.67.10"></a><var>67.10</var>    Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the <br/>
<a id="pl.67.11"></a><var>67.11</var>Carlton county board of commissioners may levy in and for the unorganized township
         of <br/>
<a id="pl.67.12"></a><var>67.12</var>Sawyer an amount up to $1,500 $2,000 annually for recreational purposes, beginning with <br/>
<a id="pl.67.13"></a><var>67.13</var>taxes payable in 1997 and ending with taxes payable in 2006.<br/>
<a id="pl.67.14"></a><var>67.14</var>    Subd. 2. <b>Effective date.</b> This section is effective June 1, 1996, without local <br/>
<a id="pl.67.15"></a><var>67.15</var>approval applies to taxes payable in 2015 and thereafter, and is effective the day after the
         <br/>
<a id="pl.67.16"></a><var>67.16</var>Carlton County Board of Commissioners and its chief clerical officer timely complete
         <br/>
<a id="pl.67.17"></a><var>67.17</var>their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.67.18"></a><var>67.18</var>    Sec. 29. <b>BOARD OF APPEALS AND EQUALIZATION IN-PERSON </b><br/>
<a id="pl.67.19"></a><var>67.19</var><b>TRAINING.</b><br/>
<a id="pl.67.20"></a><var>67.20</var>Notwithstanding any other law to the contrary, the commissioner of revenue, in <br/>
<a id="pl.67.21"></a><var>67.21</var>consultation with the Minnesota Association of Townships, shall offer not less than
         12 <br/>
<a id="pl.67.22"></a><var>67.22</var>in-person board of appeals and equalization course trainings in 2015 and in 2016.<br/>
<a id="pl.67.23"></a><var>67.23</var><b>EFFECTIVE DATE.</b>This section is effective June 1, 2015.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.67.24"></a><var>67.24</var>    Sec. 30. <b>OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN </b><br/>
<a id="pl.67.25"></a><var>67.25</var><b>BUILDINGS; ST. LOUIS COUNTY.</b><br/>
<a id="pl.67.26"></a><var>67.26</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.67.27"></a><var>67.27</var>have the meanings given.<br/>
<a id="pl.67.28"></a><var>67.28</var>(b) "Building PIN" means a parcel identification number that is assigned to a <br/>
<a id="pl.67.29"></a><var>67.29</var>building and does not include the land upon which the building is located; and<br/>
<a id="pl.67.30"></a><var>67.30</var>(c) "Land PIN" means a parcel identification number that is assigned to land upon
         <br/>
<a id="pl.67.31"></a><var>67.31</var>which a building associated with a building PIN is located.<br/>
<a id="pl.68.1"></a><var>68.1</var>    Subd. 2. <b>Optional cancellation of tax forfeiture for buildings with building PINs.</b><br/>
<a id="pl.68.2"></a><var>68.2</var>Notwithstanding any law to the contrary, if any building associated with a building
         PIN <br/>
<a id="pl.68.3"></a><var>68.3</var>and located in St. Louis County forfeits or has forfeited to the state of Minnesota
         before, <br/>
<a id="pl.68.4"></a><var>68.4</var>on, or after the date of enactment of this section because of nonpayment of delinquent
         <br/>
<a id="pl.68.5"></a><var>68.5</var>property taxes, special assessments, penalties, interest, or costs, the county auditor
         of St. <br/>
<a id="pl.68.6"></a><var>68.6</var>Louis County may, with approval from the county board and the commissioner of revenue:<br/>
<a id="pl.68.7"></a><var>68.7</var>(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
         <br/>
<a id="pl.68.8"></a><var>68.8</var>the unpaid property taxes, special assessments, penalties, interest, or costs; and<br/>
<a id="pl.68.9"></a><var>68.9</var>(2) combine the building PIN with its associated land PIN. When this occurs, the <br/>
<a id="pl.68.10"></a><var>68.10</var>land PIN is the only surviving parcel identification number, and includes both the
         building <br/>
<a id="pl.68.11"></a><var>68.11</var>and the land upon which the building is located.<br/>
<a id="pl.68.12"></a><var>68.12</var>    Subd. 3. <b>Cancellation of tax forfeiture; taxation through date of cancellation.</b><br/>
<a id="pl.68.13"></a><var>68.13</var>Notwithstanding any law to the contrary, if the county auditor of St. Louis County
         cancels <br/>
<a id="pl.68.14"></a><var>68.14</var>a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision
         2, <br/>
<a id="pl.68.15"></a><var>68.15</var>the affected building is not subject to taxation from the date of forfeiture through
         the <br/>
<a id="pl.68.16"></a><var>68.16</var>date of cancellation.<br/>
<a id="pl.68.17"></a><var>68.17</var>    Subd. 4. <b>Appropriation.</b> $1,000,000 in fiscal year 2016 only is appropriated from <br/>
<a id="pl.68.18"></a><var>68.18</var>the general fund to the commissioner of revenue for a grant to St. Louis County that
         shall <br/>
<a id="pl.68.19"></a><var>68.19</var>be paid on July 1, 2015. The county may only use the grant to remove any building,
         <br/>
<a id="pl.68.20"></a><var>68.20</var>upon the request of the landowner, after the county has complied with the provisions
         of <br/>
<a id="pl.68.21"></a><var>68.21</var>subdivision 2.<br/>
<a id="pl.68.22"></a><var>68.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.68.23"></a><var>68.23</var>    Sec. 31. <b>STUDY AND REPORT OF PRODUCTION BASED VALUATION OF </b><br/>
<a id="pl.68.24"></a><var>68.24</var><b>AGRICULTURAL LAND.</b><br/>
<a id="pl.68.25"></a><var>68.25</var>(a) The commissioner of agriculture and the commissioner of revenue shall conduct
         <br/>
<a id="pl.68.26"></a><var>68.26</var>a study and prepare a report on the possibility of valuing agricultural land in the
         state for <br/>
<a id="pl.68.27"></a><var>68.27</var>property tax purposes based on the value of agricultural commodities produced minus
         the <br/>
<a id="pl.68.28"></a><var>68.28</var>cost of agricultural production.<br/>
<a id="pl.68.29"></a><var>68.29</var>(b) The study must, to the extent practicable under the appropriation and the time
         <br/>
<a id="pl.68.30"></a><var>68.30</var>available:<br/>
<a id="pl.68.31"></a><var>68.31</var>(1) assess the availability and accuracy of data sources necessary to determine the
         <br/>
<a id="pl.68.32"></a><var>68.32</var>productivity of agricultural land, the prices of agricultural commodities, and the
         costs of <br/>
<a id="pl.68.33"></a><var>68.33</var>production, for all agricultural land across the state;<br/>
<a id="pl.69.1"></a><var>69.1</var>(2) analyze the potential impacts on other types of properties and on local <br/>
<a id="pl.69.2"></a><var>69.2</var>governments if the state were to adopt a system valuing agricultural land based on
         <br/>
<a id="pl.69.3"></a><var>69.3</var>production value, including the impacts of any changes in state aids;<br/>
<a id="pl.69.4"></a><var>69.4</var>(3) identify types of agricultural properties that are not directly used in agricultural
         <br/>
<a id="pl.69.5"></a><var>69.5</var>production, and propose approaches for valuing those properties within a production
         <br/>
<a id="pl.69.6"></a><var>69.6</var>value based system;<br/>
<a id="pl.69.7"></a><var>69.7</var>(4) assign values to agricultural land based on the best currently available data,
         and <br/>
<a id="pl.69.8"></a><var>69.8</var>compare the resulting values to valuations currently used for property tax purposes;
         to the <br/>
<a id="pl.69.9"></a><var>69.9</var>extent possible, analyze what that relationship would be in years other than the study
         year;<br/>
<a id="pl.69.10"></a><var>69.10</var>(5) analyze the potential volatility of land values under a production value based
         <br/>
<a id="pl.69.11"></a><var>69.11</var>system and propose approaches for reducing the effects of agricultural land value
         volatility <br/>
<a id="pl.69.12"></a><var>69.12</var>on other types of properties;<br/>
<a id="pl.69.13"></a><var>69.13</var>(6) analyze the potential tax shifts between different types of agricultural properties
         <br/>
<a id="pl.69.14"></a><var>69.14</var>under a production value based system;<br/>
<a id="pl.69.15"></a><var>69.15</var>(7) analyze and make recommendations for how a production value based system <br/>
<a id="pl.69.16"></a><var>69.16</var>would be administered in terms of the role of the Department of Revenue, county and
         <br/>
<a id="pl.69.17"></a><var>69.17</var>local assessors, and other agencies; <br/>
<a id="pl.69.18"></a><var>69.18</var>(8) analyze how appeals of assessments by property owners would be handled <br/>
<a id="pl.69.19"></a><var>69.19</var>under a production value based system;<br/>
<a id="pl.69.20"></a><var>69.20</var>(9) analyze how a production value based system would affect the green acres and <br/>
<a id="pl.69.21"></a><var>69.21</var>metropolitan agricultural preserves programs;<br/>
<a id="pl.69.22"></a><var>69.22</var>(10) identify other states that have adopted production based valuation systems and
         <br/>
<a id="pl.69.23"></a><var>69.23</var>describe how they have been implemented, with special emphasis upon neighboring <br/>
<a id="pl.69.24"></a><var>69.24</var>states; and<br/>
<a id="pl.69.25"></a><var>69.25</var>(11) identify possible alternative methods of valuing agricultural land in addition
         to <br/>
<a id="pl.69.26"></a><var>69.26</var>market value and production based agricultural land valuation. <br/>
<a id="pl.69.27"></a><var>69.27</var>(c) The commissioners must seek input from the dean of the University of <br/>
<a id="pl.69.28"></a><var>69.28</var>Minnesota College of Food, Agricultural, and Natural Resource Sciences in the design
         <br/>
<a id="pl.69.29"></a><var>69.29</var>and implementation of the study.<br/>
<a id="pl.69.30"></a><var>69.30</var>(d) The commissioners must request the involvement and participation of <br/>
<a id="pl.69.31"></a><var>69.31</var>stakeholders including groups representing assessors and groups representing agricultural
         <br/>
<a id="pl.69.32"></a><var>69.32</var>property owners.<br/>
<a id="pl.69.33"></a><var>69.33</var>(e) The commissioners shall report the findings of the study to the committees of
         the <br/>
<a id="pl.69.34"></a><var>69.34</var>house of representatives and senate having jurisdiction over taxes by February 1,
         2017, <br/>
<a id="pl.69.35"></a><var>69.35</var>and file the report as required by Minnesota Statutes, section 3.195.<br/>
<a id="pl.70.1"></a><var>70.1</var>(f) $200,000 in fiscal year 2016 is appropriated from the general fund to the <br/>
<a id="pl.70.2"></a><var>70.2</var>commissioner of revenue for purposes of preparing the report under this section. This
         is a <br/>
<a id="pl.70.3"></a><var>70.3</var>onetime appropriation and is not added to the base.<br/>
<a id="pl.70.4"></a><var>70.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.70.5"></a><var>70.5</var>    Sec. 32. <b>TOWN OF TOFTE; MUNICIPAL HOUSING.</b><br/>
<a id="pl.70.6"></a><var>70.6</var>(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, <br/>
<a id="pl.70.7"></a><var>70.7</var>chapter 719, article 19, section 27, the town of Tofte may own and operate within
         its <br/>
<a id="pl.70.8"></a><var>70.8</var>boundary up to 12 units of housing for individuals over 55 years of age or families
         with <br/>
<a id="pl.70.9"></a><var>70.9</var>one member of the household that is over 55 year of age.<br/>
<a id="pl.70.10"></a><var>70.10</var>(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, <br/>
<a id="pl.70.11"></a><var>70.11</var>chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
         <br/>
<a id="pl.70.12"></a><var>70.12</var>to 469.047, with respect to this section. Upon the approval of the town board, the
         town of <br/>
<a id="pl.70.13"></a><var>70.13</var>Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision
         6.<br/>
<a id="pl.70.14"></a><var>70.14</var>(c) Nothing in this section shall limit the power of the Cook County/Grand Marais
         <br/>
<a id="pl.70.15"></a><var>70.15</var>Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
         <br/>
<a id="pl.70.16"></a><var>70.16</var>The authority to undertake new projects under this section shall expire on June 30,
         2016.<br/>
<a id="pl.70.17"></a><var>70.17</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by <br/>
<a id="pl.70.18"></a><var>70.18</var>the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.70.19"></a><var>70.19</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.70.20"></a><var>70.20</var>    Sec. 33. <b>APPROPRIATION.</b><br/>
<a id="pl.70.21"></a><var>70.21</var>$1,130,000 in fiscal year 2016 only is appropriated from the general fund to the <br/>
<a id="pl.70.22"></a><var>70.22</var>commissioner of revenue for a grant to Hennepin County. Of this amount, $880,000 must
         <br/>
<a id="pl.70.23"></a><var>70.23</var>be used for the North Branch Library EMERGE Career and Technology Center, and <br/>
<a id="pl.70.24"></a><var>70.24</var>$250,000 must be used for the Cedar Riverside Opportunity Center.<br/>
<br/>
<a id="bill.2.34.0"></a><a id="pl.70.25"></a><var>70.25</var>    Sec. 34. <b> REPEALER.</b><br/>
<a id="pl.70.26"></a><var>70.26</var>(a) Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.<br/>
<a id="pl.70.27"></a><var>70.27</var>(b) Minnesota Statutes 2014, section 275.025, subdivision 4, is repealed.<br/>
<a id="pl.70.28"></a><var>70.28</var>(c) Minnesota Statutes 2014, section 469.194, subdivisions 2 and 4, are repealed.<br/>
<a id="pl.70.29"></a><var>70.29</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxes payable in 2015. <br/>
<a id="pl.70.30"></a><var>70.30</var>Paragraph (b) is effective for taxes payable in 2016 and thereafter. Paragraph (c)
         is <br/>
<a id="pl.70.31"></a><var>70.31</var>effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.71.3"></a><var>71.3</var>    Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:<br/>
<a id="pl.71.4"></a><var>71.4</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.71.5"></a><var>71.5</var>have the meanings given.<br/>
<a id="pl.71.6"></a><var>71.6</var>(b) "Activities" means acquisition of property, clearing of land, site preparation,
         soils <br/>
<a id="pl.71.7"></a><var>71.7</var>correction, removal of hazardous waste or pollution, installation of utilities, construction
         <br/>
<a id="pl.71.8"></a><var>71.8</var>of public or private improvements, and other similar activities, but only to the extent
         that <br/>
<a id="pl.71.9"></a><var>71.9</var>tax increment revenues may be spent for such purposes under other law.<br/>
<a id="pl.71.10"></a><var>71.10</var>(c) "Third party" means an entity other than (1) the person receiving the benefit
         <br/>
<a id="pl.71.11"></a><var>71.11</var>of assistance financed with tax increments, or (2) the municipality or the development
         <br/>
<a id="pl.71.12"></a><var>71.12</var>authority or other person substantially under the control of the municipality.<br/>
<a id="pl.71.13"></a><var>71.13</var>(d) "Revenues derived from tax increments paid by properties in the district" means
         <br/>
<a id="pl.71.14"></a><var>71.14</var>only tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clause (1), and does <br/>
<a id="pl.71.15"></a><var>71.15</var>not include tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clauses (2), <br/>
<a id="pl.71.16"></a><var>71.16</var>(3), and (4) to (5).<br/>
<a id="pl.71.17"></a><var>71.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.71.18"></a><var>71.18</var>    Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:<br/>
<a id="pl.71.19"></a><var>71.19</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.71.20"></a><var>71.20</var>district, an amount equal to at least 75 percent of the total revenue derived from
         tax <br/>
<a id="pl.71.21"></a><var>71.21</var>increments paid by properties in the district must be expended on activities in the
         district <br/>
<a id="pl.71.22"></a><var>71.22</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance
         activities <br/>
<a id="pl.71.23"></a><var>71.23</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
         <br/>
<a id="pl.71.24"></a><var>71.24</var>For districts, other than redevelopment districts for which the request for certification
         <br/>
<a id="pl.71.25"></a><var>71.25</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding
         <br/>
<a id="pl.71.26"></a><var>71.26</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from
         tax <br/>
<a id="pl.71.27"></a><var>71.27</var>increments paid by properties in the district may be expended, through a development
         fund <br/>
<a id="pl.71.28"></a><var>71.28</var>or otherwise, on activities outside of the district but within the defined geographic
         area of <br/>
<a id="pl.71.29"></a><var>71.29</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds.
         <br/>
<a id="pl.71.30"></a><var>71.30</var>For districts, other than redevelopment districts for which the request for certification
         was <br/>
<a id="pl.71.31"></a><var>71.31</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence
         is <br/>
<a id="pl.71.32"></a><var>71.32</var>20 percent. The revenue revenues derived from tax increments for paid by properties in <br/>
<a id="pl.71.33"></a><var>71.33</var>the district that are expended on costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph <br/>
<a id="pl.72.1"></a><var>72.1</var>(b), may be deducted first before calculating the percentages that must be expended
         within <br/>
<a id="pl.72.2"></a><var>72.2</var>and without the district.<br/>
<a id="pl.72.3"></a><var>72.3</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.72.4"></a><var>72.4</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.72.5"></a><var>72.5</var>    (c) All administrative expenses are for activities outside of the district, except
         that <br/>
<a id="pl.72.6"></a><var>72.6</var>if the only expenses for activities outside of the district under this subdivision
         are for <br/>
<a id="pl.72.7"></a><var>72.7</var>the purposes described in paragraph (d), administrative expenses will be considered
         as <br/>
<a id="pl.72.8"></a><var>72.8</var>expenditures for activities in the district.<br/>
<a id="pl.72.9"></a><var>72.9</var>    (d) The authority may elect, in the tax increment financing plan for the district,
         <br/>
<a id="pl.72.10"></a><var>72.10</var>to increase by up to ten percentage points the permitted amount of expenditures for
         <br/>
<a id="pl.72.11"></a><var>72.11</var>activities located outside the geographic area of the district under paragraph (a).
         As <br/>
<a id="pl.72.12"></a><var>72.12</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.72.13"></a><var>72.13</var>expenditures under paragraph (a), need not be made within the geographic area of the
         <br/>
<a id="pl.72.14"></a><var>72.14</var>project. Expenditures that meet the requirements of this paragraph are legally permitted
         <br/>
<a id="pl.72.15"></a><var>72.15</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br/>
<a id="pl.72.16"></a><var>72.16</var>To qualify for the increase under this paragraph, the expenditures must:<br/>
<a id="pl.72.17"></a><var>72.17</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified
         <br/>
<a id="pl.72.18"></a><var>72.18</var>low-income building, as that term is used in section 42 of the Internal Revenue Code;
         and<br/>
<a id="pl.72.19"></a><var>72.19</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c)
         of <br/>
<a id="pl.72.20"></a><var>72.20</var>the Internal Revenue Code, less the amount of any credit allowed under section 42
         of <br/>
<a id="pl.72.21"></a><var>72.21</var>the Internal Revenue Code; and<br/>
<a id="pl.72.22"></a><var>72.22</var>    (3) be used to:<br/>
<a id="pl.72.23"></a><var>72.23</var>    (i) acquire and prepare the site of the housing;<br/>
<a id="pl.72.24"></a><var>72.24</var>    (ii) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.72.25"></a><var>72.25</var>    (iii) make public improvements directly related to the housing; or<br/>
<a id="pl.72.26"></a><var>72.26</var>(4) be used to develop housing:<br/>
<a id="pl.72.27"></a><var>72.27</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.72.28"></a><var>72.28</var>(A) 150 percent of the average market value of single-family homes in that <br/>
<a id="pl.72.29"></a><var>72.29</var>municipality; or<br/>
<a id="pl.72.30"></a><var>72.30</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.72.31"></a><var>72.31</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.72.32"></a><var>72.32</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
         <br/>
<a id="pl.72.33"></a><var>72.33</var>demolition of existing structures, site preparation, and pollution abatement on one
         or <br/>
<a id="pl.72.34"></a><var>72.34</var>more parcels, if the parcel contains a residence containing one to four family dwelling
         <br/>
<a id="pl.72.35"></a><var>72.35</var>units that has been vacant for six or more months and is in foreclosure as defined
         in <br/>
<a id="pl.73.1"></a><var>73.1</var>section 
         <statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to whether the residence is the owner's <br/>
<a id="pl.73.2"></a><var>73.2</var>principal residence, and only after the redemption period has expired.<br/>
<a id="pl.73.3"></a><var>73.3</var>    (e) For a district created within a biotechnology and health sciences industry zone
         <br/>
<a id="pl.73.4"></a><var>73.4</var>as defined in Minnesota Statutes 2012, section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing <br/>
<a id="pl.73.5"></a><var>73.5</var>district located within such a zone, tax increment derived from such a district may
         be <br/>
<a id="pl.73.6"></a><var>73.6</var>expended outside of the district but within the zone only for expenditures required
         for the <br/>
<a id="pl.73.7"></a><var>73.7</var>construction of public infrastructure necessary to support the activities of the zone,
         land <br/>
<a id="pl.73.8"></a><var>73.8</var>acquisition, and other redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. <br/>
<a id="pl.73.9"></a><var>73.9</var>These expenditures are considered as expenditures for activities within the district.
         The <br/>
<a id="pl.73.10"></a><var>73.10</var>authority provided by this paragraph expires for expenditures made after the later
         of (1) <br/>
<a id="pl.73.11"></a><var>73.11</var>December 31, 2015, or (2) the end of the five-year period beginning on the date the
         district <br/>
<a id="pl.73.12"></a><var>73.12</var>was certified, provided that date was before January 1, 2016.<br/>
<a id="pl.73.13"></a><var>73.13</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.73.14"></a><var>73.14</var>Increments may continue to be expended under this authority after that date, if they
         are <br/>
<a id="pl.73.15"></a><var>73.15</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
         <br/>
<a id="pl.73.16"></a><var>73.16</var>(a), if December 31, 2016, is considered to be the last date of the five-year period
         after <br/>
<a id="pl.73.17"></a><var>73.17</var>certification under that provision.<br/>
<a id="pl.73.18"></a><var>73.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.73.19"></a><var>73.19</var>    Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.73.20"></a><var>73.20</var>    Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments paid by <br/>
<a id="pl.73.21"></a><var>73.21</var>properties in the district are considered to have been expended on an activity within the <br/>
<a id="pl.73.22"></a><var>73.22</var>district under subdivision 2 only if one of the following occurs:<br/>
<a id="pl.73.23"></a><var>73.23</var>(1) before or within five years after certification of the district, the revenues
         are <br/>
<a id="pl.73.24"></a><var>73.24</var>actually paid to a third party with respect to the activity;<br/>
<a id="pl.73.25"></a><var>73.25</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued
         and <br/>
<a id="pl.73.26"></a><var>73.26</var>sold to a third party before or within five years after certification, the revenues
         are spent <br/>
<a id="pl.73.27"></a><var>73.27</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
         <br/>
<a id="pl.73.28"></a><var>73.28</var>reasonably expected to be spent before the end of the later of (i) the five-year period,
         or <br/>
<a id="pl.73.29"></a><var>73.29</var>(ii) a reasonable temporary period within the meaning of the use of that term under
         section <br/>
<a id="pl.73.30"></a><var>73.30</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required
         reserve <br/>
<a id="pl.73.31"></a><var>73.31</var>or replacement fund;<br/>
<a id="pl.73.32"></a><var>73.32</var>(3) binding contracts with a third party are entered into for performance of the <br/>
<a id="pl.73.33"></a><var>73.33</var>activity before or within five years after certification of the district and the revenues
         are <br/>
<a id="pl.73.34"></a><var>73.34</var>spent under the contractual obligation;<br/>
<a id="pl.74.1"></a><var>74.1</var>(4) costs with respect to the activity are paid before or within five years after
         <br/>
<a id="pl.74.2"></a><var>74.2</var>certification of the district and the revenues are spent to reimburse a party for
         payment <br/>
<a id="pl.74.3"></a><var>74.3</var>of the costs, including interest on unreimbursed costs; or<br/>
<a id="pl.74.4"></a><var>74.4</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br/>
<a id="pl.74.5"></a><var>74.5</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
         <br/>
<a id="pl.74.6"></a><var>74.6</var>by subdivision 2, paragraph (e).<br/>
<a id="pl.74.7"></a><var>74.7</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
         <br/>
<a id="pl.74.8"></a><var>74.8</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.74.9"></a><var>74.9</var>(c) For a redevelopment district or a renewal and renovation district certified after
         <br/>
<a id="pl.74.10"></a><var>74.10</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph
         (a) <br/>
<a id="pl.74.11"></a><var>74.11</var>are extended to ten years after certification of the district. For a redevelopment
         district <br/>
<a id="pl.74.12"></a><var>74.12</var>certified after April 20, 2009, and before June 30, 2012, the five-year periods described
         in <br/>
<a id="pl.74.13"></a><var>74.13</var>paragraph (a) are extended to eight years after certification of the district. This
         extension is <br/>
<a id="pl.74.14"></a><var>74.14</var>provided primarily to accommodate delays in development activities due to unanticipated
         <br/>
<a id="pl.74.15"></a><var>74.15</var>economic circumstances.<br/>
<a id="pl.74.16"></a><var>74.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.74.17"></a><var>74.17</var>    Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:<br/>
<a id="pl.74.18"></a><var>74.18</var>    Subd. 7. <b>Interfund loans.</b> (a) The authority or municipality may advance or loan <br/>
<a id="pl.74.19"></a><var>74.19</var>money to finance expenditures under section 
         <statute_ref>469.176, subdivision 4</statute_ref>, from its general fund <br/>
<a id="pl.74.20"></a><var>74.20</var>or any other fund under which it has legal authority to do so.<br/>
<a id="pl.74.21"></a><var>74.21</var>    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         <br/>
<a id="pl.74.22"></a><var>74.22</var>is earliest, the loan or advance must be authorized, by resolution of the governing body or <br/>
<a id="pl.74.23"></a><var>74.23</var>of the authority, whichever has jurisdiction over the fund from which the advance
         or loan <br/>
<a id="pl.74.24"></a><var>74.24</var>is authorized, before money is transferred, advanced, or spent, whichever is earliest.<br/>
<a id="pl.74.25"></a><var>74.25</var>    (c) The resolution may generally grant to the municipality or the authority the power <br/>
<a id="pl.74.26"></a><var>74.26</var>to make interfund loans under one or more tax increment financing plans or for one
         or <br/>
<a id="pl.74.27"></a><var>74.27</var>more districts. The resolution may be adopted before or after the adoption of the tax <br/>
<a id="pl.74.28"></a><var>74.28</var>increment financing plan or the creation of the tax increment financing district from
         which <br/>
<a id="pl.74.29"></a><var>74.29</var>the advance or loan is to be repaid.<br/>
<a id="pl.74.30"></a><var>74.30</var>    (d)  The terms and conditions for repayment of the loan must be provided in <br/>
<a id="pl.74.31"></a><var>74.31</var>writing and. The written terms and conditions may be in any form, but must include, at <br/>
<a id="pl.74.32"></a><var>74.32</var>a minimum, the principal amount, the interest rate, and maximum term. Written terms <br/>
<a id="pl.74.33"></a><var>74.33</var>may be modified or amended in writing by the municipality or the authority before
         the <br/>
<a id="pl.74.34"></a><var>74.34</var>latest decertification of the tax increment financing district from which the interfund
         loan <br/>
<a id="pl.74.35"></a><var>74.35</var>will be paid. The maximum rate of interest permitted to be charged is limited to the <br/>
<a id="pl.75.1"></a><var>75.1</var>greater of the rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>as of the date the loan or <br/>
<a id="pl.75.2"></a><var>75.2</var>advance is authorized, unless the written agreement states that the maximum interest
         rate <br/>
<a id="pl.75.3"></a><var>75.3</var>will fluctuate as the interest rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>are from time <br/>
<a id="pl.75.4"></a><var>75.4</var>to time adjusted. Loans or advances may be structured as draw-down or line-of-credit <br/>
<a id="pl.75.5"></a><var>75.5</var>obligations of the lending fund.<br/>
<a id="pl.75.6"></a><var>75.6</var>    (e) The authority shall report in the annual report submitted pursuant to section
         <br/>
<a id="pl.75.7"></a><var>75.7</var>469.175, subdivision 6:<br/>
<a id="pl.75.8"></a><var>75.8</var>    (1) the amount of any interfund loan or advance made in a calendar year; and<br/>
<a id="pl.75.9"></a><var>75.9</var>    (2) any amendment of an interfund loan or advance made in a calendar year.<br/>
<a id="pl.75.10"></a><var>75.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.75.11"></a><var>75.11</var>and applies to all districts, regardless of when the request for certification was
         made.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.75.12"></a><var>75.12</var>    Sec. 5. <b>CITY OF COON RAPIDS; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.75.13"></a><var>75.13</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         <br/>
<a id="pl.75.14"></a><var>75.14</var>1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
         <br/>
<a id="pl.75.15"></a><var>75.15</var>from District 6-1 Port Riverwalk through December 31, 2038.<br/>
<a id="pl.75.16"></a><var>75.16</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.75.17"></a><var>75.17</var>bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
         <br/>
<a id="pl.75.18"></a><var>75.18</var>11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2,
         and <br/>
<a id="pl.75.19"></a><var>75.19</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.75.20"></a><var>75.20</var>    Sec. 6. <b>CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.75.21"></a><var>75.21</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that <br/>
<a id="pl.75.22"></a><var>75.22</var>activities must be undertaken within a five-year period from the date of certification
         of a <br/>
<a id="pl.75.23"></a><var>75.23</var>tax increment financing district, are considered to be met for Tax Increment Financing
         <br/>
<a id="pl.75.24"></a><var>75.24</var>District No. 1-12 (Gateway North), administered by the Cottage Grove Economic <br/>
<a id="pl.75.25"></a><var>75.25</var>Development Authority, if the activities are undertaken prior to January 1, 2017.<br/>
<a id="pl.75.26"></a><var>75.26</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the chief clerical <br/>
<a id="pl.75.27"></a><var>75.27</var>officer of the governing body of the city of Cottage Grove with the requirements of
         <br/>
<a id="pl.75.28"></a><var>75.28</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.75.29"></a><var>75.29</var>    Sec. 7. <b>CITY OF RICHFIELD; EXTENSION OF DISTRICT.</b><br/>
<a id="pl.75.30"></a><var>75.30</var>Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         <br/>
<a id="pl.75.31"></a><var>75.31</var>law to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in <br/>
<a id="pl.75.32"></a><var>75.32</var>and for the city of Richfield may elect to extend the duration limit of the redevelopment
         <br/>
<a id="pl.76.1"></a><var>76.1</var>tax increment financing district known as the Cedar Avenue Tax Increment Financing
         <br/>
<a id="pl.76.2"></a><var>76.2</var>District established by Laws 2005, chapter 152, article 2, section 25, by ten years.<br/>
<a id="pl.76.3"></a><var>76.3</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city <br/>
<a id="pl.76.4"></a><var>76.4</var>of Richfield, Hennepin County, and Independent School District No. 280 with the <br/>
<a id="pl.76.5"></a><var>76.5</var>requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         <br/>
<a id="pl.76.6"></a><var>76.6</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.76.7"></a><var>76.7</var>    Sec. 8. <b>CITY OF ST. PAUL; TIF AUTHORITY.</b><br/>
<a id="pl.76.8"></a><var>76.8</var>    Subdivision 1. <b>Establishment.</b> Under the special rules in subdivision 2, the <br/>
<a id="pl.76.9"></a><var>76.9</var>housing and redevelopment authority of the city of St. Paul may establish one or <br/>
<a id="pl.76.10"></a><var>76.10</var>more redevelopment tax increment financing districts located wholly within the area
         <br/>
<a id="pl.76.11"></a><var>76.11</var>of the former Ford Motor Company plant properties, consisting of two tax parcels,
         <br/>
<a id="pl.76.12"></a><var>76.12</var>17-28-23-31-0001 and 17-28-23-13-0002, and adjacent roads and rights-of-way.<br/>
<a id="pl.76.13"></a><var>76.13</var>    Subd. 2. <b>Special rules.</b> (a) If the authority establishes any tax increment district <br/>
<a id="pl.76.14"></a><var>76.14</var>under this section, the following special rules apply:<br/>
<a id="pl.76.15"></a><var>76.15</var>(1) the districts are deemed to meet all the requirements of Minnesota Statutes, <br/>
<a id="pl.76.16"></a><var>76.16</var>section 469.174, subdivision 10; <br/>
<a id="pl.76.17"></a><var>76.17</var>(2) any expenditure for, or payment of bonds issued to finance, activities within
         the <br/>
<a id="pl.76.18"></a><var>76.18</var>area described in subdivision 1 is not subject to the restrictions under Minnesota
         Statutes, <br/>
<a id="pl.76.19"></a><var>76.19</var>section 469.1763, for any district established under this section, except that expenditures
         <br/>
<a id="pl.76.20"></a><var>76.20</var>for activities outside the area defined in subdivision 1 are subject to the percentage
         limits <br/>
<a id="pl.76.21"></a><var>76.21</var>under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a); and<br/>
<a id="pl.76.22"></a><var>76.22</var>(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply.<br/>
<a id="pl.76.23"></a><var>76.23</var>(b) Except as otherwise provided in paragraph (a), the provisions of Minnesota <br/>
<a id="pl.76.24"></a><var>76.24</var>Statutes, sections 469.174 to 469.1794, apply to districts established under this
         section.<br/>
<a id="pl.76.25"></a><var>76.25</var>    Subd. 3. <b>Expiration.</b> The authority to request certification of districts under this <br/>
<a id="pl.76.26"></a><var>76.26</var>section expires June 30, 2020, unless the city has requested certification of at least
         one <br/>
<a id="pl.76.27"></a><var>76.27</var>district by that date. The authority to request certification of any district under
         this section <br/>
<a id="pl.76.28"></a><var>76.28</var>expires June 30, 2030.<br/>
<a id="pl.76.29"></a><var>76.29</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.76.30"></a><var>76.30</var>body of the city of St. Paul and compliance with the requirements of Minnesota Statutes,
         <br/>
<a id="pl.76.31"></a><var>76.31</var>section 645.021.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.77.3"></a><var>77.3</var>    Section 1. Minnesota Statutes 2014, section 289A.20, subdivision 4, is amended to read:<br/>
<a id="pl.77.4"></a><var>77.4</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.77.5"></a><var>77.5</var>payable to the commissioner monthly on or before the 20th day of the month following
         the <br/>
<a id="pl.77.6"></a><var>77.6</var>month in which the taxable event occurred, or following another reporting period as
         the <br/>
<a id="pl.77.7"></a><var>77.7</var>commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, paragraph <br/>
<a id="pl.77.8"></a><var>77.8</var>(f) or (g), except that use taxes due on an annual use tax return as provided under
         section <br/>
<statute_ref><a id="pl.77.9"></a><var>77.9</var>289A.11, subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year.<br/>
<a id="pl.77.10"></a><var>77.10</var>    (b) A vendor having a liability of $250,000 or more during a fiscal year ending June
         <br/>
<a id="pl.77.11"></a><var>77.11</var>30 must remit the June liability for the next year in the following manner:<br/>
<a id="pl.77.12"></a><var>77.12</var>    (1) Two business days before June 30 of the year, the vendor must remit 81.4 80 <br/>
<a id="pl.77.13"></a><var>77.13</var>percent of the estimated June liability to the commissioner.<br/>
<a id="pl.77.14"></a><var>77.14</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount
         <br/>
<a id="pl.77.15"></a><var>77.15</var>of tax not remitted in June.<br/>
<a id="pl.77.16"></a><var>77.16</var>    (c) A vendor having a liability of:<br/>
<a id="pl.77.17"></a><var>77.17</var>    (1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, <br/>
<a id="pl.77.18"></a><var>77.18</var>2013, and fiscal years thereafter, must remit by electronic means all liabilities
         on returns <br/>
<a id="pl.77.19"></a><var>77.19</var>due for periods beginning in all subsequent calendar years on or before the 20th day
         of <br/>
<a id="pl.77.20"></a><var>77.20</var>the month following the month in which the taxable event occurred, or on or before
         the <br/>
<a id="pl.77.21"></a><var>77.21</var>20th day of the month following the month in which the sale is reported under section
         <br/>
<statute_ref><a id="pl.77.22"></a><var>77.22</var>289A.18, subdivision 4
         </statute_ref>; or<br/>
<a id="pl.77.23"></a><var>77.23</var>(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
         <br/>
<a id="pl.77.24"></a><var>77.24</var>thereafter, must remit by electronic means all liabilities in the manner provided
         in <br/>
<a id="pl.77.25"></a><var>77.25</var>paragraph (a) on returns due for periods beginning in the subsequent calendar year,
         except <br/>
<a id="pl.77.26"></a><var>77.26</var>for 81.4 80 percent of the estimated June liability, which is due two business days before <br/>
<a id="pl.77.27"></a><var>77.27</var>June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.77.28"></a><var>77.28</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.77.29"></a><var>77.29</var>religious beliefs from paying electronically shall be allowed to remit the payment
         by mail. <br/>
<a id="pl.77.30"></a><var>77.30</var>The filer must notify the commissioner of revenue of the intent to pay by mail before
         <br/>
<a id="pl.77.31"></a><var>77.31</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to
         a <br/>
<a id="pl.77.32"></a><var>77.32</var>person making payment by mail under this paragraph. The payment must be postmarked
         <br/>
<a id="pl.77.33"></a><var>77.33</var>at least two business days before the due date for making the payment in order to
         be <br/>
<a id="pl.77.34"></a><var>77.34</var>considered paid on a timely basis.<br/>
<a id="pl.78.1"></a><var>78.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.78.2"></a><var>78.2</var>July 1, 2015.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.78.3"></a><var>78.3</var>    Sec. 2. Minnesota Statutes 2014, section 289A.60, subdivision 15, is amended to read:<br/>
<a id="pl.78.4"></a><var>78.4</var>    Subd. 15. <b>Accelerated payment of June sales tax liability; penalty for </b><br/>
<a id="pl.78.5"></a><var>78.5</var><b>underpayment.</b> For payments made after December 31, 2013, if a vendor is required by <br/>
<a id="pl.78.6"></a><var>78.6</var>law to submit an estimation of June sales tax liabilities and 81.4 80 percent payment by a <br/>
<a id="pl.78.7"></a><var>78.7</var>certain date, the vendor shall pay a penalty equal to ten percent of the amount of
         actual <br/>
<a id="pl.78.8"></a><var>78.8</var>June liability required to be paid in June less the amount remitted in June. The penalty
         <br/>
<a id="pl.78.9"></a><var>78.9</var>must not be imposed, however, if the amount remitted in June equals the lesser of
         81.4 <br/>
<a id="pl.78.10"></a><var>78.10</var>80 percent of the preceding May's liability or 81.4  80 percent of the average monthly <br/>
<a id="pl.78.11"></a><var>78.11</var>liability for the previous calendar year.<br/>
<a id="pl.78.12"></a><var>78.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.78.13"></a><var>78.13</var>July 1, 2015.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.78.14"></a><var>78.14</var>    Sec. 3. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:<br/>
<a id="pl.78.15"></a><var>78.15</var>    Subd. 3. <b>Manufactured housing and park trailers</b><b>; modular housing</b><b>.</b> (a) For <br/>
<a id="pl.78.16"></a><var>78.16</var>retail sales of manufactured homes as defined in section 
         <statute_ref>327.31, subdivision 6</statute_ref>, for <br/>
<a id="pl.78.17"></a><var>78.17</var>residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent
         of the <br/>
<a id="pl.78.18"></a><var>78.18</var>dealer's cost of the manufactured home. For retail sales of new or used park trailers,
         as <br/>
<a id="pl.78.19"></a><var>78.19</var>defined in section 
         <statute_ref>168.002, subdivision 23</statute_ref>, the sales tax under subdivisions 1 and 1a is <br/>
<a id="pl.78.20"></a><var>78.20</var>imposed on 65 percent of the sales price of the park trailer.<br/>
<a id="pl.78.21"></a><var>78.21</var>(b) For retail sales of a modular home, as defined in section 297A.668, subdivision
         <br/>
<a id="pl.78.22"></a><var>78.22</var>8, paragraph (b), for residential use, the sales tax under subdivisions 1 and 1a is
         imposed <br/>
<a id="pl.78.23"></a><var>78.23</var>on 65 percent of the dealer's cost of the modular home.<br/>
<a id="pl.78.24"></a><var>78.24</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.78.25"></a><var>78.25</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.78.26"></a><var>78.26</var>    Sec. 4. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:<br/>
<a id="pl.78.27"></a><var>78.27</var>    Subd. 7a. <b>Accessories and supplies.</b> Accessories and supplies required for the <br/>
<a id="pl.78.28"></a><var>78.28</var>effective use of durable medical equipment for home use only or purchased in a transaction
         <br/>
<a id="pl.78.29"></a><var>78.29</var>covered by Medicare or, Medicaid, or other health insurance plan, that are not already <br/>
<a id="pl.78.30"></a><var>78.30</var>exempt under subdivision 7, are exempt. Accessories and supplies for the effective
         use <br/>
<a id="pl.78.31"></a><var>78.31</var>of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
         <br/>
<a id="pl.78.32"></a><var>78.32</var>For purposes of this subdivision "durable medical equipment," "prosthetic device,"
         <br/>
<a id="pl.79.1"></a><var>79.1</var>"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health <br/>
<a id="pl.79.2"></a><var>79.2</var>insurance plan" means a health plan defined in section 62A.011, subdivision 3, or
         62V.02, <br/>
<a id="pl.79.3"></a><var>79.3</var>subdivision 4, or a qualified health plan defined in section 62A.011, subdivision
         7.<br/>
<a id="pl.79.4"></a><var>79.4</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.79.5"></a><var>79.5</var>made after April 1, 2009. Any vendor who paid sales or use tax on accessories and
         <br/>
<a id="pl.79.6"></a><var>79.6</var>supplies purchased in a transaction covered by a health insurance plan defined in
         <br/>
<a id="pl.79.7"></a><var>79.7</var>Minnesota Statutes, section 62A.011, subdivision 3, or 62V.02, subdivision 4, or a
         <br/>
<a id="pl.79.8"></a><var>79.8</var>qualified health plan defined in Minnesota Statutes, section 62A.011, subdivision
         7, that <br/>
<a id="pl.79.9"></a><var>79.9</var>are not already exempt under Minnesota Statutes, section 297A.67, subdivision 7, and
         <br/>
<a id="pl.79.10"></a><var>79.10</var>that were sold after April 1, 2009, and before July 1, 2015, may apply for a refund
         of the <br/>
<a id="pl.79.11"></a><var>79.11</var>sales or use tax paid in the manner provided in Minnesota Statutes, section 289A.50,
         <br/>
<a id="pl.79.12"></a><var>79.12</var>subdivision 1, but only if the vendor did not collect and remit sales tax on the accessories
         <br/>
<a id="pl.79.13"></a><var>79.13</var>and supplies for which a refund is claimed. Interest on the refund shall be paid at
         the rate <br/>
<a id="pl.79.14"></a><var>79.14</var>in Minnesota Statutes, section 270C.405, from 90 days after the refund claim is filed
         with <br/>
<a id="pl.79.15"></a><var>79.15</var>the commissioner of revenue. The amount to make the refunds is annually appropriated
         <br/>
<a id="pl.79.16"></a><var>79.16</var>to the commissioner of revenue from the general fund. Refunds must not be filed until
         <br/>
<a id="pl.79.17"></a><var>79.17</var>after June 30, 2015. Notwithstanding limitations on claims for refunds under Minnesota
         <br/>
<a id="pl.79.18"></a><var>79.18</var>Statutes, section 289A.40, claims may be filed with the commissioner until June 30,
         2016.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.79.19"></a><var>79.19</var>    Sec. 5. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.79.20"></a><var>79.20</var>to read:<br/>
<a id="pl.79.21"></a><var>79.21</var>    Subd. 34. <b>Precious metal bullion.</b> (a) Sales of precious metal bullion by registered <br/>
<a id="pl.79.22"></a><var>79.22</var>dealers under section 80G.02 that are required to be reported under Internal Revenue
         <br/>
<a id="pl.79.23"></a><var>79.23</var>Service revenue procedure 92-103 are exempt. For purposes of this subdivision, "precious
         <br/>
<a id="pl.79.24"></a><var>79.24</var>metal bullion" means bullion that would qualify for the exception for certain coins
         and <br/>
<a id="pl.79.25"></a><var>79.25</var>bullion under section 408(m)(3) of the Internal Revenue Code of 1986 as amended <br/>
<a id="pl.79.26"></a><var>79.26</var>through December 31, 2014. "Precious metal bullion" does not include jewelry, certified
         <br/>
<a id="pl.79.27"></a><var>79.27</var>or graded coins, numismatic coins, or works of art.<br/>
<a id="pl.79.28"></a><var>79.28</var>(b) The intent of this subdivision is to afford the sale of precious metal bullion
         <br/>
<a id="pl.79.29"></a><var>79.29</var>similar treatment as afforded the sale of stock, bullion exchange traded funds, bonds,
         <br/>
<a id="pl.79.30"></a><var>79.30</var>and other investment instruments.<br/>
<a id="pl.79.31"></a><var>79.31</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.79.32"></a><var>79.32</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 6. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.80.2"></a><var>80.2</var>to read:<br/>
<a id="pl.80.3"></a><var>80.3</var>    Subd. 35. <b>Car seats.</b> The sale of an infant or child car seat, including a booster seat, <br/>
<a id="pl.80.4"></a><var>80.4</var>that meets the requirements of a child passenger restraint system under motor vehicle
         <br/>
<a id="pl.80.5"></a><var>80.5</var>safety standards established by the United States Department of Transportation is
         exempt.<br/>
<a id="pl.80.6"></a><var>80.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.80.7"></a><var>80.7</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.80.8"></a><var>80.8</var>    Sec. 7. Minnesota Statutes 2014, section 297A.68, subdivision 5, is amended to read:<br/>
<a id="pl.80.9"></a><var>80.9</var>    Subd. 5. <b>Capital equipment.</b> (a) Capital equipment is exempt. The tax must be <br/>
<a id="pl.80.10"></a><var>80.10</var>imposed and collected as if the rate under section 297A.62, subdivision 1, applied,
         and <br/>
<a id="pl.80.11"></a><var>80.11</var>then refunded in the manner provided in section 297A.75.<br/>
<a id="pl.80.12"></a><var>80.12</var>"Capital equipment" means machinery and equipment purchased or leased, and used <br/>
<a id="pl.80.13"></a><var>80.13</var>in this state by the purchaser or lessee primarily for manufacturing, fabricating,
         mining, <br/>
<a id="pl.80.14"></a><var>80.14</var>or refining tangible personal property to be sold ultimately at retail if the machinery
         and <br/>
<a id="pl.80.15"></a><var>80.15</var>equipment are essential to the integrated production process of manufacturing, fabricating,
         <br/>
<a id="pl.80.16"></a><var>80.16</var>mining, or refining. Capital equipment also includes machinery and equipment <br/>
<a id="pl.80.17"></a><var>80.17</var>used primarily to electronically transmit results retrieved by a customer of an online
         <br/>
<a id="pl.80.18"></a><var>80.18</var>computerized data retrieval system.<br/>
<a id="pl.80.19"></a><var>80.19</var>(b) Capital equipment includes, but is not limited to:<br/>
<a id="pl.80.20"></a><var>80.20</var>(1) machinery and equipment used to operate, control, or regulate the production <br/>
<a id="pl.80.21"></a><var>80.21</var>equipment;<br/>
<a id="pl.80.22"></a><var>80.22</var>(2) machinery and equipment used for research and development, design, quality <br/>
<a id="pl.80.23"></a><var>80.23</var>control, and testing activities;<br/>
<a id="pl.80.24"></a><var>80.24</var>(3) environmental control devices that are used to maintain conditions such as <br/>
<a id="pl.80.25"></a><var>80.25</var>temperature, humidity, light, or air pressure when those conditions are essential
         to and are <br/>
<a id="pl.80.26"></a><var>80.26</var>part of the production process;<br/>
<a id="pl.80.27"></a><var>80.27</var>(4) materials and supplies used to construct and install machinery or equipment;<br/>
<a id="pl.80.28"></a><var>80.28</var>(5) repair and replacement parts, including accessories, whether purchased as spare
         <br/>
<a id="pl.80.29"></a><var>80.29</var>parts, repair parts, or as upgrades or modifications to machinery or equipment;<br/>
<a id="pl.80.30"></a><var>80.30</var>(6) materials used for foundations that support machinery or equipment;<br/>
<a id="pl.80.31"></a><var>80.31</var>(7) materials used to construct and install special purpose buildings used in the
         <br/>
<a id="pl.80.32"></a><var>80.32</var>production process;<br/>
<a id="pl.80.33"></a><var>80.33</var>(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed <br/>
<a id="pl.80.34"></a><var>80.34</var>as part of the delivery process regardless if mounted on a chassis, repair parts for
         <br/>
<a id="pl.80.35"></a><var>80.35</var>ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and<br/>
<a id="pl.81.1"></a><var>81.1</var>(9) machinery or equipment used for research, development, design, or production <br/>
<a id="pl.81.2"></a><var>81.2</var>of computer software.<br/>
<a id="pl.81.3"></a><var>81.3</var>(c) Capital equipment does not include the following:<br/>
<a id="pl.81.4"></a><var>81.4</var>(1) motor vehicles taxed under chapter 297B;<br/>
<a id="pl.81.5"></a><var>81.5</var>(2) machinery or equipment used to receive or store raw materials;<br/>
<a id="pl.81.6"></a><var>81.6</var>(3) building materials, except for materials included in paragraph (b), clauses (6)
         <br/>
<a id="pl.81.7"></a><var>81.7</var>and (7);<br/>
<a id="pl.81.8"></a><var>81.8</var>(4) machinery or equipment used for nonproduction purposes, including, but not <br/>
<a id="pl.81.9"></a><var>81.9</var>limited to, the following: plant security, fire prevention, first aid, and hospital
         stations; <br/>
<a id="pl.81.10"></a><var>81.10</var>support operations or administration; pollution control; and plant cleaning, disposal
         of <br/>
<a id="pl.81.11"></a><var>81.11</var>scrap and waste, plant communications, space heating, cooling, lighting, or safety;<br/>
<a id="pl.81.12"></a><var>81.12</var>(5) farm machinery and aquaculture production equipment as defined by section <br/>
<statute_ref><a id="pl.81.13"></a><var>81.13</var>297A.61
         </statute_ref>, subdivisions 12 and 13;<br/>
<a id="pl.81.14"></a><var>81.14</var>(6) machinery or equipment purchased and installed by a contractor as part of an <br/>
<a id="pl.81.15"></a><var>81.15</var>improvement to real property;<br/>
<a id="pl.81.16"></a><var>81.16</var>(7) machinery and equipment used by restaurants in the furnishing, preparing, or <br/>
<a id="pl.81.17"></a><var>81.17</var>serving of prepared foods as defined in section 
         <statute_ref>297A.61, subdivision 31</statute_ref>;<br/>
<a id="pl.81.18"></a><var>81.18</var>(8) machinery and equipment used to furnish the services listed in section 
         <statute_ref>297A.61, <br/>
<a id="pl.81.19"></a><var>81.19</var>subdivision 3
         </statute_ref>, paragraph (g), clause (6), items (i) to (vi) and (viii);<br/>
<a id="pl.81.20"></a><var>81.20</var>(9) machinery or equipment used in the transportation, transmission, or distribution
         <br/>
<a id="pl.81.21"></a><var>81.21</var>of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes,
         lines, <br/>
<a id="pl.81.22"></a><var>81.22</var>tanks, mains, or other means of transporting those products. This clause does not
         apply to <br/>
<a id="pl.81.23"></a><var>81.23</var>machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
         <br/>
<statute_ref><a id="pl.81.24"></a><var>81.24</var>239.77
         </statute_ref>; or<br/>
<a id="pl.81.25"></a><var>81.25</var>(10) any other item that is not essential to the integrated process of manufacturing,
         <br/>
<a id="pl.81.26"></a><var>81.26</var>fabricating, mining, or refining.<br/>
<a id="pl.81.27"></a><var>81.27</var>(d) For purposes of this subdivision:<br/>
<a id="pl.81.28"></a><var>81.28</var>(1) "Equipment" means independent devices or tools separate from machinery but <br/>
<a id="pl.81.29"></a><var>81.29</var>essential to an integrated production process, including computers and computer software,
         <br/>
<a id="pl.81.30"></a><var>81.30</var>used in operating, controlling, or regulating machinery and equipment; and any subunit
         or <br/>
<a id="pl.81.31"></a><var>81.31</var>assembly comprising a component of any machinery or accessory or attachment parts
         of <br/>
<a id="pl.81.32"></a><var>81.32</var>machinery, such as tools, dies, jigs, patterns, and molds.<br/>
<a id="pl.81.33"></a><var>81.33</var>(2) "Fabricating" means to make, build, create, produce, or assemble components or
         <br/>
<a id="pl.81.34"></a><var>81.34</var>property to work in a new or different manner.<br/>
<a id="pl.81.35"></a><var>81.35</var>(3) "Integrated production process" means a process or series of operations through
         <br/>
<a id="pl.81.36"></a><var>81.36</var>which tangible personal property is manufactured, fabricated, mined, or refined. For
         <br/>
<a id="pl.82.1"></a><var>82.1</var>purposes of this clause, (i) manufacturing begins with the removal of raw materials
         <br/>
<a id="pl.82.2"></a><var>82.2</var>from inventory and ends when the last process prior to loading for shipment has been
         <br/>
<a id="pl.82.3"></a><var>82.3</var>completed; (ii) fabricating begins with the removal from storage or inventory of the
         <br/>
<a id="pl.82.4"></a><var>82.4</var>property to be assembled, processed, altered, or modified and ends with the creation
         <br/>
<a id="pl.82.5"></a><var>82.5</var>or production of the new or changed product; (iii) mining begins with the removal
         of <br/>
<a id="pl.82.6"></a><var>82.6</var>overburden from the site of the ores, minerals, stone, peat deposit, or surface materials
         and <br/>
<a id="pl.82.7"></a><var>82.7</var>ends when the last process before stockpiling is completed; and (iv) refining begins
         with <br/>
<a id="pl.82.8"></a><var>82.8</var>the removal from inventory or storage of a natural resource and ends with the conversion
         <br/>
<a id="pl.82.9"></a><var>82.9</var>of the item to its completed form.<br/>
<a id="pl.82.10"></a><var>82.10</var>(4) "Machinery" means mechanical, electronic, or electrical devices, including <br/>
<a id="pl.82.11"></a><var>82.11</var>computers and computer software, that are purchased or constructed to be used for
         the <br/>
<a id="pl.82.12"></a><var>82.12</var>activities set forth in paragraph (a), beginning with the removal of raw materials
         from <br/>
<a id="pl.82.13"></a><var>82.13</var>inventory through completion of the product, including packaging of the product.<br/>
<a id="pl.82.14"></a><var>82.14</var>(5) "Machinery and equipment used for pollution control" means machinery and <br/>
<a id="pl.82.15"></a><var>82.15</var>equipment used solely to eliminate, prevent, or reduce pollution resulting from an
         activity <br/>
<a id="pl.82.16"></a><var>82.16</var>described in paragraph (a).<br/>
<a id="pl.82.17"></a><var>82.17</var>(6) "Manufacturing" means an operation or series of operations where raw materials
         <br/>
<a id="pl.82.18"></a><var>82.18</var>are changed in form, composition, or condition by machinery and equipment and which
         <br/>
<a id="pl.82.19"></a><var>82.19</var>results in the production of a new article of tangible personal property. For purposes
         of <br/>
<a id="pl.82.20"></a><var>82.20</var>this subdivision, "manufacturing" includes the generation of electricity or steam
         to be <br/>
<a id="pl.82.21"></a><var>82.21</var>sold at retail.<br/>
<a id="pl.82.22"></a><var>82.22</var>(7) "Mining" means the extraction of minerals, ores, stone, or peat.<br/>
<a id="pl.82.23"></a><var>82.23</var>(8) "Online data retrieval system" means a system whose cumulation of information
         <br/>
<a id="pl.82.24"></a><var>82.24</var>is equally available and accessible to all its customers.<br/>
<a id="pl.82.25"></a><var>82.25</var>(9) "Primarily" means machinery and equipment used 50 percent or more of the time
         <br/>
<a id="pl.82.26"></a><var>82.26</var>in an activity described in paragraph (a).<br/>
<a id="pl.82.27"></a><var>82.27</var>(10) "Refining" means the process of converting a natural resource to an intermediate
         <br/>
<a id="pl.82.28"></a><var>82.28</var>or finished product, including the treatment of water to be sold at retail.<br/>
<a id="pl.82.29"></a><var>82.29</var>(11) This subdivision does not apply to telecommunications equipment as provided <br/>
<a id="pl.82.30"></a><var>82.30</var>in subdivision 35a, and does not apply to wire, cable, fiber, or poles, or conduit for <br/>
<a id="pl.82.31"></a><var>82.31</var>telecommunications services.<br/>
<a id="pl.82.32"></a><var>82.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.82.33"></a><var>82.33</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.82.34"></a><var>82.34</var>    Sec. 8. Minnesota Statutes 2014, section 297A.68, subdivision 35a, is amended to read:<br/>
<a id="pl.83.1"></a><var>83.1</var>    Subd. 35a. <b>Telecommunications or pay television services machinery and </b><br/>
<a id="pl.83.2"></a><var>83.2</var><b>equipment.</b> (a) Telecommunications or pay television services machinery and equipment <br/>
<a id="pl.83.3"></a><var>83.3</var>purchased or leased for use directly by a telecommunications or pay television services
         <br/>
<a id="pl.83.4"></a><var>83.4</var>provider primarily in the provision of telecommunications or pay television services
         <br/>
<a id="pl.83.5"></a><var>83.5</var>that are ultimately to be sold at retail are exempt, regardless of whether purchased
         by <br/>
<a id="pl.83.6"></a><var>83.6</var>the owner, a contractor, or a subcontractor.<br/>
<a id="pl.83.7"></a><var>83.7</var>(b) For purposes of this subdivision, "telecommunications or pay television <br/>
<a id="pl.83.8"></a><var>83.8</var>machinery and equipment" includes, but is not limited to:<br/>
<a id="pl.83.9"></a><var>83.9</var>(1) machinery, equipment, and fixtures utilized in receiving, initiating, <br/>
<a id="pl.83.10"></a><var>83.10</var>amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
         <br/>
<a id="pl.83.11"></a><var>83.11</var>telecommunications or pay television services, such as computers, transformers, amplifiers,
         <br/>
<a id="pl.83.12"></a><var>83.12</var>routers, bridges, repeaters, multiplexers, and other items performing comparable functions;<br/>
<a id="pl.83.13"></a><var>83.13</var>(2) machinery, equipment, and fixtures used in the transportation of <br/>
<a id="pl.83.14"></a><var>83.14</var>telecommunications or pay television services, such as radio transmitters and receivers,
         <br/>
<a id="pl.83.15"></a><var>83.15</var>satellite equipment, microwave equipment, and other transporting media, but not wire, <br/>
<a id="pl.83.16"></a><var>83.16</var>cable, including fiber, poles, or and conduit, but not including wire, cable, or poles;<br/>
<a id="pl.83.17"></a><var>83.17</var>(3) ancillary machinery, equipment, and fixtures that regulate, control, protect,
         or <br/>
<a id="pl.83.18"></a><var>83.18</var>enable the machinery in clauses (1) and (2) to accomplish its intended function, such
         as <br/>
<a id="pl.83.19"></a><var>83.19</var>auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
         <br/>
<a id="pl.83.20"></a><var>83.20</var>equipment necessary to the operation of the telecommunications or pay television <br/>
<a id="pl.83.21"></a><var>83.21</var>equipment; and software necessary to the operation of the telecommunications or pay
         <br/>
<a id="pl.83.22"></a><var>83.22</var>television equipment; and<br/>
<a id="pl.83.23"></a><var>83.23</var>(4) repair and replacement parts, including accessories, whether purchased as spare
         <br/>
<a id="pl.83.24"></a><var>83.24</var>parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.<br/>
<a id="pl.83.25"></a><var>83.25</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.83.26"></a><var>83.26</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.83.27"></a><var>83.27</var>    Sec. 9. Minnesota Statutes 2014, section 297A.70, subdivision 4, is amended to read:<br/>
<a id="pl.83.28"></a><var>83.28</var>    Subd. 4. <b>Sales to nonprofit groups.</b> (a) All sales, except those listed in paragraph <br/>
<a id="pl.83.29"></a><var>83.29</var>(b) (c), to the following "nonprofit organizations" are exempt if the item purchased is <br/>
<a id="pl.83.30"></a><var>83.30</var>used in the performance of their exempt function. The exemptions under this paragraph
         <br/>
<a id="pl.83.31"></a><var>83.31</var>do not apply to:<br/>
<a id="pl.83.32"></a><var>83.32</var>(1) a corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.83.33"></a><var>83.33</var>operated exclusively for charitable, religious, or educational purposes if the item
         <br/>
<a id="pl.83.34"></a><var>83.34</var>purchased is used in the performance of charitable, religious, or educational functions;
         <br/>
<a id="pl.83.35"></a><var>83.35</var>and veterans groups under subdivision 5;<br/>
<a id="pl.84.1"></a><var>84.1</var>(2) any senior citizen group or association of groups that: hospitals, outpatient <br/>
<a id="pl.84.2"></a><var>84.2</var>surgical centers, and critical access dental providers under subdivision 7, paragraphs
         (a) <br/>
<a id="pl.84.3"></a><var>84.3</var>to (c), (e), and (f);<br/>
<a id="pl.84.4"></a><var>84.4</var>(i) in general limits membership to persons who are either age 55 or older, or <br/>
<a id="pl.84.5"></a><var>84.5</var>physically disabled;<br/>
<a id="pl.84.6"></a><var>84.6</var>(ii) is organized and operated exclusively for pleasure, recreation, and other <br/>
<a id="pl.84.7"></a><var>84.7</var>nonprofit purposes, not including housing, no part of the net earnings of which inures
         to <br/>
<a id="pl.84.8"></a><var>84.8</var>the benefit of any private shareholders; and<br/>
<a id="pl.84.9"></a><var>84.9</var>(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br/>
<a id="pl.84.10"></a><var>84.10</var>(3) products and services under subdivision 7, paragraph (d); <br/>
<a id="pl.84.11"></a><var>84.11</var>(4) nursing homes and boarding care homes under subdivision 18; or<br/>
<a id="pl.84.12"></a><var>84.12</var>(5) a nonprofit organization authorized under section 465.717.<br/>
<a id="pl.84.13"></a><var>84.13</var>    (b) For purposes of this subdivision, charitable purpose includes the maintenance of <br/>
<a id="pl.84.14"></a><var>84.14</var>a cemetery owned by a religious organization. "nonprofit organization" means:<br/>
<a id="pl.84.15"></a><var>84.15</var>    (1) an organization that has a current federal determination letter stating that the
         <br/>
<a id="pl.84.16"></a><var>84.16</var>nonprofit organization qualifies as an exempt organization under section 501(c)(3)
         of the <br/>
<a id="pl.84.17"></a><var>84.17</var>Internal Revenue Code and has obtained a Minnesota tax identification number from
         the <br/>
<a id="pl.84.18"></a><var>84.18</var>Department of Revenue under section 297A.83; or<br/>
<a id="pl.84.19"></a><var>84.19</var>    (2) any senior citizen group or association of groups that:<br/>
<a id="pl.84.20"></a><var>84.20</var>    (i) in general, limits membership to persons who are either age 55 or older or <br/>
<a id="pl.84.21"></a><var>84.21</var>physically disabled;<br/>
<a id="pl.84.22"></a><var>84.22</var>    (ii) is organized and operated exclusively for pleasure, recreation, and other <br/>
<a id="pl.84.23"></a><var>84.23</var>nonprofit purposes, not including housing, no part of the net earnings of which inures
         to <br/>
<a id="pl.84.24"></a><var>84.24</var>the benefit of any private shareholders; and<br/>
<a id="pl.84.25"></a><var>84.25</var>    (iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br/>
<a id="pl.84.26"></a><var>84.26</var>(b) (c) This exemption does not apply to the following sales:<br/>
<a id="pl.84.27"></a><var>84.27</var>(1) building, construction, or reconstruction materials purchased by a contractor
         <br/>
<a id="pl.84.28"></a><var>84.28</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with
         a <br/>
<a id="pl.84.29"></a><var>84.29</var>guaranteed maximum price covering both labor and materials for use in the construction,
         <br/>
<a id="pl.84.30"></a><var>84.30</var>alteration, or repair of a building or facility;<br/>
<a id="pl.84.31"></a><var>84.31</var>(2) construction materials purchased by tax-exempt entities or their contractors to
         <br/>
<a id="pl.84.32"></a><var>84.32</var>be used in constructing buildings or facilities that will not be used principally
         by the <br/>
<a id="pl.84.33"></a><var>84.33</var>tax-exempt entities;<br/>
<a id="pl.84.34"></a><var>84.34</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.84.35"></a><var>84.35</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
         section <br/>
<statute_ref><a id="pl.85.1"></a><var>85.1</var>297A.67, subdivision 2
         </statute_ref>, except wine purchased by an established religious organization <br/>
<a id="pl.85.2"></a><var>85.2</var>for sacramental purposes or as allowed under subdivision 9a; and<br/>
<a id="pl.85.3"></a><var>85.3</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.85.4"></a><var>85.4</var>as provided in paragraph (c) (d).<br/>
<a id="pl.85.5"></a><var>85.5</var>(c) (d) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<statute_ref><a id="pl.85.6"></a><var>85.6</var>297B.01, subdivision 11
         </statute_ref>, only if the vehicle is:<br/>
<a id="pl.85.7"></a><var>85.7</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br/>
<a id="pl.85.8"></a><var>85.8</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.85.9"></a><var>85.9</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.85.10"></a><var>85.10</var>(2) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.85.11"></a><var>85.11</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.85.12"></a><var>85.12</var>performing its charitable, religious, or educational purpose.<br/>
<a id="pl.85.13"></a><var>85.13</var>(d) (e) A limited liability company also qualifies for exemption under this <br/>
<a id="pl.85.14"></a><var>85.14</var>subdivision if (1) it consists of a sole member that would qualify for the exemption,
         and <br/>
<a id="pl.85.15"></a><var>85.15</var>(2) the items purchased qualify for the exemption.<br/>
<a id="pl.85.16"></a><var>85.16</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.85.17"></a><var>85.17</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.85.18"></a><var>85.18</var>    Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:<br/>
<a id="pl.85.19"></a><var>85.19</var>    Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of <br/>
<a id="pl.85.20"></a><var>85.20</var>tangible personal property or services at, and admission charges for fund-raising
         events <br/>
<a id="pl.85.21"></a><var>85.21</var>sponsored by, a nonprofit organization are exempt if:<br/>
<a id="pl.85.22"></a><var>85.22</var>(1) all gross receipts are recorded as such, in accordance with generally accepted
         <br/>
<a id="pl.85.23"></a><var>85.23</var>accounting practices, on the books of the nonprofit organization; and<br/>
<a id="pl.85.24"></a><var>85.24</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely
         <br/>
<a id="pl.85.25"></a><var>85.25</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include
         <br/>
<a id="pl.85.26"></a><var>85.26</var>the sale of prepared food, candy, and soft drinks at the fund-raising event.<br/>
<a id="pl.85.27"></a><var>85.27</var>(b) This exemption is limited in the following manner:<br/>
<a id="pl.85.28"></a><var>85.28</var>(1) it does not apply to admission charges for events involving bingo or other <br/>
<a id="pl.85.29"></a><var>85.29</var>gambling activities or to charges for use of amusement devices involving bingo or
         other <br/>
<a id="pl.85.30"></a><var>85.30</var>gambling activities;<br/>
<a id="pl.85.31"></a><var>85.31</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively
         for <br/>
<a id="pl.85.32"></a><var>85.32</var>charitable, religious, or educational purposes;<br/>
<a id="pl.85.33"></a><var>85.33</var>(3) it does not apply unless the organization keeps a separate accounting record,
         <br/>
<a id="pl.85.34"></a><var>85.34</var>including receipts and disbursements from each fund-raising event that documents all
         <br/>
<a id="pl.85.35"></a><var>85.35</var>deductions from gross receipts with receipts and other records;<br/>
<a id="pl.86.1"></a><var>86.1</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation
         as <br/>
<a id="pl.86.2"></a><var>86.2</var>the active or passive agent of a person that is not a nonprofit corporation;<br/>
<a id="pl.86.3"></a><var>86.3</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;<br/>
<a id="pl.86.4"></a><var>86.4</var>(6) it does not apply to fund-raising events conducted on premises leased for more
         <br/>
<a id="pl.86.5"></a><var>86.5</var>than five ten days but less than 30 days; and<br/>
<a id="pl.86.6"></a><var>86.6</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization
         <br/>
<a id="pl.86.7"></a><var>86.7</var>and the benefit to the nonprofit organization is less than the total amount of the
         state and <br/>
<a id="pl.86.8"></a><var>86.8</var>local tax revenues forgone by this exemption.<br/>
<a id="pl.86.9"></a><var>86.9</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
         <br/>
<a id="pl.86.10"></a><var>86.10</var>government, corporation, society, association, foundation, or institution organized
         and <br/>
<a id="pl.86.11"></a><var>86.11</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens'
         or <br/>
<a id="pl.86.12"></a><var>86.12</var>veterans' purposes, no part of the net earnings of which inures to the benefit of
         a private <br/>
<a id="pl.86.13"></a><var>86.13</var>individual.<br/>
<a id="pl.86.14"></a><var>86.14</var>(d) For purposes of this subdivision, "fund-raising events" means activities of <br/>
<a id="pl.86.15"></a><var>86.15</var>limited duration, not regularly carried out in the normal course of business, that
         attract <br/>
<a id="pl.86.16"></a><var>86.16</var>patrons for community, social, and entertainment purposes, such as auctions, bake
         sales, <br/>
<a id="pl.86.17"></a><var>86.17</var>ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
         <br/>
<a id="pl.86.18"></a><var>86.18</var>craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
         <br/>
<a id="pl.86.19"></a><var>86.19</var>shows, festivals, galas, special event workshops, sporting activities such as marathons
         and <br/>
<a id="pl.86.20"></a><var>86.20</var>tournaments, and similar events. Fund-raising events do not include the operation
         of a <br/>
<a id="pl.86.21"></a><var>86.21</var>regular place of business in which services are provided or sales are made during
         regular <br/>
<a id="pl.86.22"></a><var>86.22</var>hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet
         sales, <br/>
<a id="pl.86.23"></a><var>86.23</var>regularly scheduled classes, or other activities carried out in the normal course
         of business.<br/>
<a id="pl.86.24"></a><var>86.24</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.86.25"></a><var>86.25</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.86.26"></a><var>86.26</var>    Sec. 11. Minnesota Statutes 2014, section 297A.70, is amended by adding a <br/>
<a id="pl.86.27"></a><var>86.27</var>subdivision to read:<br/>
<a id="pl.86.28"></a><var>86.28</var>    Subd. 20. <b>Animal shelters.</b> Sales of animals by a nonprofit animal shelter are <br/>
<a id="pl.86.29"></a><var>86.29</var>exempt. For purposes of this subdivision, the term "nonprofit animal shelter" means
         <br/>
<a id="pl.86.30"></a><var>86.30</var>a nonprofit organization that is exempt under section 297A.70, subdivision 4, and
         is <br/>
<a id="pl.86.31"></a><var>86.31</var>engaged in the business of rescuing, sheltering, and finding homes for unwanted animals.<br/>
<a id="pl.86.32"></a><var>86.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.86.33"></a><var>86.33</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.87.1"></a><var>87.1</var>    Sec. 12. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:<br/>
<a id="pl.87.2"></a><var>87.2</var>    Subd. 3. <b>Rates; tobacco products.</b> (a) Except as provided in paragraphs (b) and (c) <br/>
<a id="pl.87.3"></a><var>87.3</var>and subdivision 3a, a tax is imposed upon all tobacco products in this state and upon
         any <br/>
<a id="pl.87.4"></a><var>87.4</var>person engaged in business as a distributor, at the rate of 95 percent of the wholesale
         sales <br/>
<a id="pl.87.5"></a><var>87.5</var>price of the tobacco products. The tax is imposed at the time the distributor:<br/>
<a id="pl.87.6"></a><var>87.6</var>(1) brings, or causes to be brought, into this state from outside the state tobacco
         <br/>
<a id="pl.87.7"></a><var>87.7</var>products for sale;<br/>
<a id="pl.87.8"></a><var>87.8</var>(2) makes, manufactures, or fabricates tobacco products in this state for sale in
         <br/>
<a id="pl.87.9"></a><var>87.9</var>this state; or<br/>
<a id="pl.87.10"></a><var>87.10</var>(3) ships or transports tobacco products to retailers in this state, to be sold by
         those <br/>
<a id="pl.87.11"></a><var>87.11</var>retailers.<br/>
<a id="pl.87.12"></a><var>87.12</var>(b) Notwithstanding paragraph (a), A minimum tax equal to the greater of the tax <br/>
<a id="pl.87.13"></a><var>87.13</var>imposed under paragraph (a) or a minimum tax equal to the rate imposed on a pack of <br/>
<a id="pl.87.14"></a><var>87.14</var>20 cigarettes weighing not more than three pounds per thousand, as established under
         <br/>
<a id="pl.87.15"></a><var>87.15</var>subdivision 1, is imposed on each container of moist snuff weighing not more than 1.2 <br/>
<a id="pl.87.16"></a><var>87.16</var>ounces.  When more than one container subject to tax under this clause is packaged
         <br/>
<a id="pl.87.17"></a><var>87.17</var>together, each container is subject to the minimum tax.<br/>
<a id="pl.87.18"></a><var>87.18</var>(c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed
         <br/>
<a id="pl.87.19"></a><var>87.19</var>under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
         <br/>
<a id="pl.87.20"></a><var>87.20</var>weighing not more than three pounds per thousand, as established under subdivision
         1, <br/>
<a id="pl.87.21"></a><var>87.21</var>times the number of ounces of moist snuff in the container, divided by 1.2, is imposed
         on <br/>
<a id="pl.87.22"></a><var>87.22</var>each container of moist snuff weighing more than 1.2 ounces.<br/>
<a id="pl.87.23"></a><var>87.23</var>For purposes of this subdivision, a "container" means the smallest a consumer-size can, <br/>
<a id="pl.87.24"></a><var>87.24</var>package, or other container that is marketed or packaged by the manufacturer, distributor, <br/>
<a id="pl.87.25"></a><var>87.25</var>or retailer for separate sale to a retail purchaser. When more than one container is <br/>
<a id="pl.87.26"></a><var>87.26</var>packaged together, each container is subject to tax.<br/>
<a id="pl.87.27"></a><var>87.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2015.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.87.28"></a><var>87.28</var>    Sec. 13. Minnesota Statutes 2014, section 297F.09, subdivision 10, is amended to read:<br/>
<a id="pl.87.29"></a><var>87.29</var>    Subd. 10. <b>Accelerated tax payment; cigarette or tobacco products distributor.</b><br/>
<a id="pl.87.30"></a><var>87.30</var>    A cigarette or tobacco products distributor having a liability of $250,000 or more
         during a <br/>
<a id="pl.87.31"></a><var>87.31</var>fiscal year ending June 30, shall remit the June liability for the next year in the
         following <br/>
<a id="pl.87.32"></a><var>87.32</var>manner:<br/>
<a id="pl.88.1"></a><var>88.1</var>    (a) Two business days before June 30 of the year, the distributor shall remit the
         <br/>
<a id="pl.88.2"></a><var>88.2</var>actual May liability and 81.4 80 percent of the estimated June liability to the commissioner <br/>
<a id="pl.88.3"></a><var>88.3</var>and file the return in the form and manner prescribed by the commissioner.<br/>
<a id="pl.88.4"></a><var>88.4</var>    (b) On or before August 18 of the year, the distributor shall submit a return showing
         <br/>
<a id="pl.88.5"></a><var>88.5</var>the actual June liability and pay any additional amount of tax not remitted in June.
         A <br/>
<a id="pl.88.6"></a><var>88.6</var>penalty is imposed equal to ten percent of the amount of June liability required to
         be paid <br/>
<a id="pl.88.7"></a><var>88.7</var>in June, less the amount remitted in June. However, the penalty is not imposed if
         the <br/>
<a id="pl.88.8"></a><var>88.8</var>amount remitted in June equals the lesser of:<br/>
<a id="pl.88.9"></a><var>88.9</var>    (1) 81.4 80 percent of the actual June liability; or<br/>
<a id="pl.88.10"></a><var>88.10</var>    (2) 81.4 80 percent of the preceding May liability.<br/>
<a id="pl.88.11"></a><var>88.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.88.12"></a><var>88.12</var>July 1, 2015.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.88.13"></a><var>88.13</var>    Sec. 14. Minnesota Statutes 2014, section 297G.09, subdivision 9, is amended to read:<br/>
<a id="pl.88.14"></a><var>88.14</var>    Subd. 9. <b>Accelerated tax payment; penalty.</b> A person liable for tax under this <br/>
<a id="pl.88.15"></a><var>88.15</var>chapter having a liability of $250,000 or more during a fiscal year ending June 30,
         shall <br/>
<a id="pl.88.16"></a><var>88.16</var>remit the June liability for the next year in the following manner:<br/>
<a id="pl.88.17"></a><var>88.17</var>    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual
         <br/>
<a id="pl.88.18"></a><var>88.18</var>May liability and 81.4 80 percent of the estimated June liability to the commissioner and <br/>
<a id="pl.88.19"></a><var>88.19</var>file the return in the form and manner prescribed by the commissioner.<br/>
<a id="pl.88.20"></a><var>88.20</var>    (b) On or before August 18 of the year, the taxpayer shall submit a return showing
         <br/>
<a id="pl.88.21"></a><var>88.21</var>the actual June liability and pay any additional amount of tax not remitted in June.
         A <br/>
<a id="pl.88.22"></a><var>88.22</var>penalty is imposed equal to ten percent of the amount of June liability required to
         be paid <br/>
<a id="pl.88.23"></a><var>88.23</var>in June less the amount remitted in June. However, the penalty is not imposed if the
         <br/>
<a id="pl.88.24"></a><var>88.24</var>amount remitted in June equals the lesser of:<br/>
<a id="pl.88.25"></a><var>88.25</var>    (1) 81.4 80 percent of the actual June liability; or<br/>
<a id="pl.88.26"></a><var>88.26</var>    (2) 81.4 80 percent of the preceding May liability.<br/>
<a id="pl.88.27"></a><var>88.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.88.28"></a><var>88.28</var>July 1, 2015.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.88.29"></a><var>88.29</var>    Sec. 15. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:<br/>
<a id="pl.88.30"></a><var>88.30</var>    Subd. 2. <b>Rate.</b> (a) Commercial generators that generate nonmixed municipal <br/>
<a id="pl.88.31"></a><var>88.31</var>solid waste shall pay a solid waste management tax of 60 cents per noncompacted <br/>
<a id="pl.88.32"></a><var>88.32</var>cubic yard of periodic waste collection capacity purchased by the generator, based
         on <br/>
<a id="pl.88.33"></a><var>88.33</var>the size of the container for the nonmixed municipal solid waste, the actual volume,
         <br/>
<a id="pl.89.1"></a><var>89.1</var>or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
         <br/>
<a id="pl.89.2"></a><var>89.2</var>be calculated by the waste management service provider using the same method for <br/>
<a id="pl.89.3"></a><var>89.3</var>calculating the waste management service fee so that both are calculated according
         to <br/>
<a id="pl.89.4"></a><var>89.4</var>container capacity, actual volume, or weight.<br/>
<a id="pl.89.5"></a><var>89.5</var>(b) Notwithstanding section 
         <statute_ref>297H.02</statute_ref>, a residential generator that generates <br/>
<a id="pl.89.6"></a><var>89.6</var>nonmixed municipal solid waste shall pay a solid waste management tax in the same
         <br/>
<a id="pl.89.7"></a><var>89.7</var>manner as provided in paragraph (a).<br/>
<a id="pl.89.8"></a><var>89.8</var>(c) The weight-to-volume conversion schedule for:<br/>
<a id="pl.89.9"></a><var>89.9</var>(1) construction debris as defined in section 
         <statute_ref>115A.03, subdivision 7</statute_ref>, is one ton <br/>
<a id="pl.89.10"></a><var>89.10</var>equals 
<statute_ref>3.33</statute_ref> cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner <br/>
<a id="pl.89.11"></a><var>89.11</var>of revenue, after consultation with the commissioner of the Pollution Control Agency,
         <br/>
<a id="pl.89.12"></a><var>89.12</var>shall determine and may publish by notice a conversion schedule for construction debris;<br/>
<a id="pl.89.13"></a><var>89.13</var>(2) industrial waste as defined in section 
         <statute_ref>115A.03, subdivision 13a</statute_ref>, is equal to <br/>
<a id="pl.89.14"></a><var>89.14</var>60 cents per cubic yard. The commissioner of revenue after consultation with the <br/>
<a id="pl.89.15"></a><var>89.15</var>commissioner of the Pollution Control Agency, shall determine, and may publish by
         <br/>
<a id="pl.89.16"></a><var>89.16</var>notice, a conversion schedule for various industrial wastes; and<br/>
<a id="pl.89.17"></a><var>89.17</var>(3) infectious waste as defined in section 
         <statute_ref>116.76, subdivision 12</statute_ref>, and pathological <br/>
<a id="pl.89.18"></a><var>89.18</var>waste as defined in section 
         <statute_ref>116.76, subdivision 14</statute_ref>, is 150 pounds equals one cubic yard, or <br/>
<a id="pl.89.19"></a><var>89.19</var>60 cents per 150 pounds.<br/>
<a id="pl.89.20"></a><var>89.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.89.21"></a><var>89.21</var>June 30, 2015.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.89.22"></a><var>89.22</var>    Sec. 16. Minnesota Statutes 2014, section 469.190, subdivision 1, is amended to read:<br/>
<a id="pl.89.23"></a><var>89.23</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding section 
         <statute_ref>477A.016</statute_ref> or any other law, <br/>
<a id="pl.89.24"></a><var>89.24</var>a statutory or home rule charter city may by ordinance, and a town may by the affirmative
         <br/>
<a id="pl.89.25"></a><var>89.25</var>vote of the electors at the annual town meeting, or at a special town meeting, impose
         a <br/>
<a id="pl.89.26"></a><var>89.26</var>tax of up to three percent on the gross receipts from the furnishing for consideration
         of <br/>
<a id="pl.89.27"></a><var>89.27</var>lodging at a hotel, motel, rooming house, tourist court, or resort, other than the
         renting or <br/>
<a id="pl.89.28"></a><var>89.28</var>leasing of it for a continuous period of 30 days or more. A statutory or home rule
         charter <br/>
<a id="pl.89.29"></a><var>89.29</var>city may by ordinance impose the tax authorized under this subdivision on the camping
         <br/>
<a id="pl.89.30"></a><var>89.30</var>site receipts of a municipal campground. Regardless of whether the tax is collected locally <br/>
<a id="pl.89.31"></a><var>89.31</var>or by the state, a tax imposed under this subdivision or under a special law applies
         to <br/>
<a id="pl.89.32"></a><var>89.32</var>the entire consideration paid to obtain access to lodging, including ancillary or
         related <br/>
<a id="pl.89.33"></a><var>89.33</var>services, such as services provided by accommodation intermediaries as defined in
         section <br/>
<a id="pl.89.34"></a><var>89.34</var>297A.61, and similar services.<br/>
<a id="pl.90.1"></a><var>90.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. In <br/>
<a id="pl.90.2"></a><var>90.2</var>enacting this section, the legislature confirms that Minnesota Statutes, section 469.190,
         its <br/>
<a id="pl.90.3"></a><var>90.3</var>predecessor provisions, and any special laws authorizing political subdivisions to
         impose <br/>
<a id="pl.90.4"></a><var>90.4</var>lodging taxes, were and are intended to apply to the entire consideration paid to
         obtain <br/>
<a id="pl.90.5"></a><var>90.5</var>access to lodging, including ancillary or related services, such as services provided
         by <br/>
<a id="pl.90.6"></a><var>90.6</var>accommodation intermediaries as defined in Minnesota Statutes, section 297A.61, and
         <br/>
<a id="pl.90.7"></a><var>90.7</var>similar services. The provisions of this section must not be interpreted to imply
         a narrower <br/>
<a id="pl.90.8"></a><var>90.8</var>construction of the tax base under lodging tax provisions of Minnesota law prior to
         the <br/>
<a id="pl.90.9"></a><var>90.9</var>enactment of this section.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.90.10"></a><var>90.10</var>    Sec. 17. Minnesota Statutes 2014, section 469.190, subdivision 7, is amended to read:<br/>
<a id="pl.90.11"></a><var>90.11</var>    Subd. 7. <b>Collection.</b> (a) The statutory or home rule charter city may agree with the <br/>
<a id="pl.90.12"></a><var>90.12</var>commissioner of revenue that a tax imposed pursuant to this section shall be collected
         <br/>
<a id="pl.90.13"></a><var>90.13</var>by the commissioner together with the tax imposed by chapter 297A, and subject to
         the <br/>
<a id="pl.90.14"></a><var>90.14</var>same interest, penalties, and other rules and that its proceeds, less the cost of
         collection, <br/>
<a id="pl.90.15"></a><var>90.15</var>shall be remitted to the city.<br/>
<a id="pl.90.16"></a><var>90.16</var>(b) If a tax under this section or under a special law is not collected by the <br/>
<a id="pl.90.17"></a><var>90.17</var>commissioner of revenue, the local government imposing the tax may by ordinance limit
         <br/>
<a id="pl.90.18"></a><var>90.18</var>the required filing and remittance of the tax by an accommodation intermediary, as
         <br/>
<a id="pl.90.19"></a><var>90.19</var>defined in section 297A.61, subdivision 47, to once in every calendar year. The local
         <br/>
<a id="pl.90.20"></a><var>90.20</var>government must inform the accommodation intermediary of the date when the return
         <br/>
<a id="pl.90.21"></a><var>90.21</var>or remittance is due and the dates must coincide with one of the monthly dates for
         filing <br/>
<a id="pl.90.22"></a><var>90.22</var>and remitting state sales tax under chapter 297A. The local government must also provide
         <br/>
<a id="pl.90.23"></a><var>90.23</var>accommodation intermediaries electronically with geographic and zip code information
         <br/>
<a id="pl.90.24"></a><var>90.24</var>necessary to correctly collect the tax.<br/>
<a id="pl.90.25"></a><var>90.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after final enactment.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.90.26"></a><var>90.26</var>    Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br/>
<a id="pl.90.27"></a><var>90.27</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
         Laws <br/>
<a id="pl.90.28"></a><var>90.28</var>2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter
         154, <br/>
<a id="pl.90.29"></a><var>90.29</var>article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended
         to read:<br/>
<a id="pl.90.30"></a><var>90.30</var>    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other <br/>
<a id="pl.90.31"></a><var>90.31</var>law, ordinance, or city charter provision to the contrary, the city of Duluth may,
         by <br/>
<a id="pl.90.32"></a><var>90.32</var>ordinance, impose an additional sales tax of up to one and three-quarter percent on
         sales <br/>
<a id="pl.90.33"></a><var>90.33</var>transactions which are described in Minnesota Statutes 2000, section 
         <statute_ref>297A.01</statute_ref>, subdivision <br/>
<a id="pl.90.34"></a><var>90.34</var>3, clause (c). The imposition of this tax shall not be subject to voter referendum
         under <br/>
<a id="pl.91.1"></a><var>91.1</var>either state law or city charter provisions. When the city council determines that
         the taxes <br/>
<a id="pl.91.2"></a><var>91.2</var>imposed under this paragraph at a rate of three-quarters of one percent and other
         sources <br/>
<a id="pl.91.3"></a><var>91.3</var>of revenue produce revenue sufficient to pay debt service on bonds in the principal
         amount <br/>
<a id="pl.91.4"></a><var>91.4</var>of $40,285,000 plus issuance and discount costs, issued for capital improvements at
         the <br/>
<a id="pl.91.5"></a><var>91.5</var>Duluth Entertainment and Convention Center, which include a new arena, the rate of
         tax <br/>
<a id="pl.91.6"></a><var>91.6</var>under this subdivision must be reduced by three-quarters of one percent.<br/>
<a id="pl.91.7"></a><var>91.7</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         <br/>
<a id="pl.91.8"></a><var>91.8</var>section 
         <statute_ref>477A.016</statute_ref>, or any other law, ordinance, or city charter provision to the contrary, <br/>
<a id="pl.91.9"></a><var>91.9</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
         of <br/>
<a id="pl.91.10"></a><var>91.10</var>one percent on sales transactions which are described in Minnesota Statutes 2000,
         section <br/>
<statute_ref><a id="pl.91.11"></a><var>91.11</var>297A.01, subdivision 3
         </statute_ref>, clause (c). This tax expires when the city council determines <br/>
<a id="pl.91.12"></a><var>91.12</var>that the tax imposed under this paragraph, along with the tax imposed under section
         <br/>
<a id="pl.91.13"></a><var>91.13</var>22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
         <br/>
<a id="pl.91.14"></a><var>91.14</var>in a principal amount of no more than $18,000,000, plus issuance and discount costs,
         <br/>
<a id="pl.91.15"></a><var>91.15</var>to finance capital improvements to public facilities to support tourism and recreational
         <br/>
<a id="pl.91.16"></a><var>91.16</var>activities in that portion of the city west of 34th 14th Avenue West and the area south of <br/>
<a id="pl.91.17"></a><var>91.17</var>and including Skyline Parkway.<br/>
<a id="pl.91.18"></a><var>91.18</var>(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
         <br/>
<a id="pl.91.19"></a><var>91.19</var>bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for
         the <br/>
<a id="pl.91.20"></a><var>91.20</var>costs of issuance and any premiums. The proceeds may be used to finance capital <br/>
<a id="pl.91.21"></a><var>91.21</var>improvements to public facilities that support tourism and recreational activities
         in the <br/>
<a id="pl.91.22"></a><var>91.22</var>portion of the city west of 34th 14th Avenue West and the area south of and including <br/>
<a id="pl.91.23"></a><var>91.23</var>Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the <br/>
<a id="pl.91.24"></a><var>91.24</var>provisions of Minnesota Statutes, chapter 475, except no election shall be required
         unless <br/>
<a id="pl.91.25"></a><var>91.25</var>required by the city charter. The bonds shall not be included in computing net debt.
         The <br/>
<a id="pl.91.26"></a><var>91.26</var>revenues from the taxes that the city of Duluth may impose under paragraph (b) and
         under <br/>
<a id="pl.91.27"></a><var>91.27</var>section 22, paragraph (b), may be pledged to pay principal of and interest on such
         bonds.<br/>
<a id="pl.91.28"></a><var>91.28</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.91.29"></a><var>91.29</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.91.30"></a><var>91.30</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.91.31"></a><var>91.31</var>    Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, <br/>
<a id="pl.91.32"></a><var>91.32</var>article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section
         12, and <br/>
<a id="pl.91.33"></a><var>91.33</var>Laws 2014, chapter 308, article 3, section 22, is amended to read:<br/>
<a id="pl.91.34"></a><var>91.34</var>    Sec. 22. <b>CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND </b><br/>
<a id="pl.91.35"></a><var>91.35</var><b>MOTELS.</b><br/>
<a id="pl.92.1"></a><var>92.1</var>    (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, or <br/>
<a id="pl.92.2"></a><var>92.2</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
         <br/>
<a id="pl.92.3"></a><var>92.3</var>impose an additional tax of one percent upon the gross receipts from the sale of lodging
         <br/>
<a id="pl.92.4"></a><var>92.4</var>for periods of less than 30 days in hotels and motels located in the city. The tax
         shall be <br/>
<a id="pl.92.5"></a><var>92.5</var>collected in the same manner as the tax set forth in the Duluth city charter, section
         54(d), <br/>
<a id="pl.92.6"></a><var>92.6</var>paragraph one. The imposition of this tax shall not be subject to voter referendum
         under <br/>
<a id="pl.92.7"></a><var>92.7</var>either state law or city charter provisions.<br/>
<a id="pl.92.8"></a><var>92.8</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         <br/>
<a id="pl.92.9"></a><var>92.9</var>section 
         <statute_ref>477A.016</statute_ref>, or any other law, ordinance, or city charter provision to the contrary, <br/>
<a id="pl.92.10"></a><var>92.10</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
         <br/>
<a id="pl.92.11"></a><var>92.11</var>of one percent on the gross receipts from the sale of lodging for periods of less
         than <br/>
<a id="pl.92.12"></a><var>92.12</var>30 days in hotels and motels located in the city. This tax expires when the city council
         <br/>
<a id="pl.92.13"></a><var>92.13</var>first determines that the tax imposed under this paragraph, along with the tax imposed
         <br/>
<a id="pl.92.14"></a><var>92.14</var>under section 21, paragraph (b), has produced revenues sufficient to pay the debt
         <br/>
<a id="pl.92.15"></a><var>92.15</var>service on bonds in a principal amount of no more than $18,000,000, plus issuance
         and <br/>
<a id="pl.92.16"></a><var>92.16</var>discount costs, to finance capital improvements to public facilities to support tourism
         and <br/>
<a id="pl.92.17"></a><var>92.17</var>recreational activities in that portion of the city west of 34th 14th Avenue West and the <br/>
<a id="pl.92.18"></a><var>92.18</var>area south of and including Skyline Parkway.<br/>
<a id="pl.92.19"></a><var>92.19</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.92.20"></a><var>92.20</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.92.21"></a><var>92.21</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.92.22"></a><var>92.22</var>    Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by <br/>
<a id="pl.92.23"></a><var>92.23</var>Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7,
         section 9, <br/>
<a id="pl.92.24"></a><var>92.24</var>and Laws 2009, chapter 88, article 4, section 14, is amended to read:<br/>
<a id="pl.92.25"></a><var>92.25</var>    Subd. 3.  <b>Use of revenues.</b> (a) Revenues received from taxes authorized by <br/>
<a id="pl.92.26"></a><var>92.26</var>subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax
         and to <br/>
<a id="pl.92.27"></a><var>92.27</var>pay all or a portion of the expenses of constructing and improving facilities as part
         of an <br/>
<a id="pl.92.28"></a><var>92.28</var>urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
         <br/>
<a id="pl.92.29"></a><var>92.29</var>expenses include, but are not limited to, acquiring property and paying relocation
         expenses <br/>
<a id="pl.92.30"></a><var>92.30</var>related to the development of Riverfront 2000 and related facilities, and securing
         or paying <br/>
<a id="pl.92.31"></a><var>92.31</var>debt service on bonds or other obligations issued to finance the construction of Riverfront
         <br/>
<a id="pl.92.32"></a><var>92.32</var>2000 and related facilities. For purposes of this section, "Riverfront 2000 and related
         <br/>
<a id="pl.92.33"></a><var>92.33</var>facilities" means a civic-convention center, an arena, a riverfront park, a technology
         center <br/>
<a id="pl.92.34"></a><var>92.34</var>and related educational facilities, and all publicly owned real or personal property
         that <br/>
<a id="pl.92.35"></a><var>92.35</var>the governing body of the city determines will be necessary to facilitate the use
         of these <br/>
<a id="pl.93.1"></a><var>93.1</var>facilities, including but not limited to parking, skyways, pedestrian bridges, lighting,
         and <br/>
<a id="pl.93.2"></a><var>93.2</var>landscaping. It also includes the performing arts theatre and the Southern Minnesota
         <br/>
<a id="pl.93.3"></a><var>93.3</var>Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.<br/>
<a id="pl.93.4"></a><var>93.4</var>    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
         <br/>
<a id="pl.93.5"></a><var>93.5</var>to voter approval at a special or general election held on or before December 31,
         2018, the <br/>
<a id="pl.93.6"></a><var>93.6</var>city may by ordinance also use revenues from taxes authorized under subdivisions 1
         and 2:<br/>
<a id="pl.93.7"></a><var>93.7</var>    (1) up to a maximum of $29,000,000, plus associated bond costs, to pay all or a <br/>
<a id="pl.93.8"></a><var>93.8</var>portion of the expenses of the following capital projects:<br/>
<a id="pl.93.9"></a><var>93.9</var>    (i) improvements to regional recreational facilities including existing hockey and
         <br/>
<a id="pl.93.10"></a><var>93.10</var>curling rinks, a baseball park, youth athletic fields and facilities, and the municipal
         <br/>
<a id="pl.93.11"></a><var>93.11</var>swimming pool including improvements to make the pool compliant with the Americans
         <br/>
<a id="pl.93.12"></a><var>93.12</var>with Disabilities Act; <br/>
<a id="pl.93.13"></a><var>93.13</var>    (ii) improvements to flood control and the levee system;<br/>
<a id="pl.93.14"></a><var>93.14</var>(iii) water quality improvement projects in Blue Earth and Nicollet Counties; <br/>
<a id="pl.93.15"></a><var>93.15</var>(iv) expansion of the regional transit building and related multimodal transit <br/>
<a id="pl.93.16"></a><var>93.16</var>improvements;<br/>
<a id="pl.93.17"></a><var>93.17</var>(v) regional public safety and emergency communications improvements and <br/>
<a id="pl.93.18"></a><var>93.18</var>equipment; and<br/>
<a id="pl.93.19"></a><var>93.19</var>(vi) matching funds for improvements to publicly owned regional facilities including
         <br/>
<a id="pl.93.20"></a><var>93.20</var>a historic museum, supportive housing, and a senior center; and<br/>
<a id="pl.93.21"></a><var>93.21</var>(2) up to a maximum of $25,000,000, plus associated bond costs, to pay all or a <br/>
<a id="pl.93.22"></a><var>93.22</var>portion of the costs of constructing the following new regional athletic facilities:
         ice <br/>
<a id="pl.93.23"></a><var>93.23</var>sheets, swimming and aquatic facility, multi-use sports bubble, indoor field house,
         or <br/>
<a id="pl.93.24"></a><var>93.24</var>indoor tennis courts. <br/>
<a id="pl.93.25"></a><var>93.25</var>(c) The additional uses of revenues authorized in paragraph (b) must be presented
         to <br/>
<a id="pl.93.26"></a><var>93.26</var>voters in one ballot question. The election must be held on the same date as the election
         to <br/>
<a id="pl.93.27"></a><var>93.27</var>extend the North Mankato local option sales tax authorized under section 25 of this
         article.<br/>
<a id="pl.93.28"></a><var>93.28</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.93.29"></a><var>93.29</var>the city of Mankato and its chief clerical officer timely complete their compliance
         with <br/>
<a id="pl.93.30"></a><var>93.30</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.93.31"></a><var>93.31</var>    Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by <br/>
<a id="pl.93.32"></a><var>93.32</var>Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008,
         chapter <br/>
<a id="pl.93.33"></a><var>93.33</var>366, article 7, section 10, is amended to read:<br/>
<a id="pl.93.34"></a><var>93.34</var>    Subd. 4.  <b>Expiration of taxing authority and expenditure limitation.</b> The <br/>
<a id="pl.93.35"></a><var>93.35</var>authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an
         excise tax <br/>
<a id="pl.94.1"></a><var>94.1</var>shall expire on at the later of when revenues are sufficient to pay off the bonds, including <br/>
<a id="pl.94.2"></a><var>94.2</var>interest and all other associated bond costs authorized under subdivision 5, or  December <br/>
<a id="pl.94.3"></a><var>94.3</var>31, 2022, unless the additional uses under subdivision 3, paragraph (b), are authorized. If
         <br/>
<a id="pl.94.4"></a><var>94.4</var>the additional uses allowed in subdivision 3, paragraph (b), are authorized, the taxes
         expire <br/>
<a id="pl.94.5"></a><var>94.5</var>at the later of when revenues are sufficient to pay off the bonds, including interest
         and all <br/>
<a id="pl.94.6"></a><var>94.6</var>other associated bond costs authorized under subdivision 5, or December 31, 2038.
         Upon <br/>
<a id="pl.94.7"></a><var>94.7</var>expiration of the taxes, any remaining fund balance of revenues derived from the taxes
         <br/>
<a id="pl.94.8"></a><var>94.8</var>shall be disbursed to the general fund of the city. The taxes imposed under subdivisions
         1 <br/>
<a id="pl.94.9"></a><var>94.9</var>and 2 may expire at an earlier time if the city so determines by ordinance. <br/>
<a id="pl.94.10"></a><var>94.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.94.11"></a><var>94.11</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.94.12"></a><var>94.12</var>    Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:<br/>
<a id="pl.94.13"></a><var>94.13</var>    Subd. 5. <b>Bonds.</b> (a) The city of Mankato may issue general obligation bonds of the <br/>
<a id="pl.94.14"></a><var>94.14</var>city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
         <br/>
<a id="pl.94.15"></a><var>94.15</var>without election under Minnesota Statutes, chapter 475, on the question of issuance
         of the <br/>
<a id="pl.94.16"></a><var>94.16</var>bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
         <br/>
<a id="pl.94.17"></a><var>94.17</var>and related facilities shall not be included in computing any debt limitations applicable
         <br/>
<a id="pl.94.18"></a><var>94.18</var>to the city of Mankato, and the levy of taxes required by section 
         <statute_ref>475.61</statute_ref> to pay principal <br/>
<a id="pl.94.19"></a><var>94.19</var>of and interest on the bonds shall not be subject to any levy limitation or be included
         in <br/>
<a id="pl.94.20"></a><var>94.20</var>computing or applying any levy limitation applicable to the city.<br/>
<a id="pl.94.21"></a><var>94.21</var>    (b) The city of Mankato, subject to voter approval at the election required under
         <br/>
<a id="pl.94.22"></a><var>94.22</var>subdivision 3, paragraph (b), may issue general obligation bonds of the city in an
         amount <br/>
<a id="pl.94.23"></a><var>94.23</var>not to exceed $29,000,000 for the projects listed under subdivision 3, paragraph (b),
         <br/>
<a id="pl.94.24"></a><var>94.24</var>clause (1), and not to exceed $25,000,000 for the projects listed under subdivision
         3, <br/>
<a id="pl.94.25"></a><var>94.25</var>paragraph (b), clause (2), without election under Minnesota Statutes, chapter 475,
         on the <br/>
<a id="pl.94.26"></a><var>94.26</var>question of issuance of the bonds or a tax to pay them. The debt represented by bonds
         <br/>
<a id="pl.94.27"></a><var>94.27</var>under this paragraph shall not be included in computing any debt limitations applicable
         <br/>
<a id="pl.94.28"></a><var>94.28</var>to the city of Mankato, and the levy of taxes required by Minnesota Statutes, section
         <br/>
<a id="pl.94.29"></a><var>94.29</var><statute_ref>475.61,</statute_ref> to pay principal of and interest on the bonds, and shall not be subject to any levy
         <br/>
<a id="pl.94.30"></a><var>94.30</var>limitation or be included in computing or applying any levy limitation applicable
         to the <br/>
<a id="pl.94.31"></a><var>94.31</var>city. The city may use tax revenue in excess of one year's principal interest reserve
         for <br/>
<a id="pl.94.32"></a><var>94.32</var>intended annual bond payments to pay all or a portion of the cost of capital improvements
         <br/>
<a id="pl.94.33"></a><var>94.33</var>authorized in subdivision 3.<br/>
<a id="pl.95.1"></a><var>95.1</var>    (c) Notwithstanding the maximum bond limits in this subdivision, the city may use
         <br/>
<a id="pl.95.2"></a><var>95.2</var>tax revenue in excess of any and all annual principal and interest payment obligations
         for <br/>
<a id="pl.95.3"></a><var>95.3</var>capital replacement associated with the uses authorized in subdivision 3.<br/>
<a id="pl.95.4"></a><var>95.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.95.5"></a><var>95.5</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.95.6"></a><var>95.6</var>    Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:<br/>
<a id="pl.95.7"></a><var>95.7</var>    Subd. 6. <b>Reverse referendum</b><b>; authorization of extensions</b><b>.</b> (a) If the Mankato city <br/>
<a id="pl.95.8"></a><var>95.8</var>council intends to exercise the authority provided by this section, it shall pass
         a resolution <br/>
<a id="pl.95.9"></a><var>95.9</var>stating the fact before July 1, 1991. The resolution must be published for two successive
         <br/>
<a id="pl.95.10"></a><var>95.10</var>weeks in the official newspaper of the city or, if there is no official newspaper,
         in a <br/>
<a id="pl.95.11"></a><var>95.11</var>newspaper of general circulation in the city, together with a notice fixing a date
         for a public <br/>
<a id="pl.95.12"></a><var>95.12</var>hearing on the matter. The hearing must be held at least two weeks but not more than
         four <br/>
<a id="pl.95.13"></a><var>95.13</var>weeks after the first publication of the resolution. Following the public hearing,
         the city <br/>
<a id="pl.95.14"></a><var>95.14</var>may determine to take no further action or adopt a resolution confirming its intention
         to <br/>
<a id="pl.95.15"></a><var>95.15</var>exercise the authority. That resolution must also be published in the official newspaper
         of <br/>
<a id="pl.95.16"></a><var>95.16</var>the city or, if there is no official newspaper, in a newspaper of general circulation
         in the <br/>
<a id="pl.95.17"></a><var>95.17</var>city. If within 30 days after publication of the resolution a petition signed by voters
         equal <br/>
<a id="pl.95.18"></a><var>95.18</var>in number to ten percent of the votes cast in the city in the last general election
         requesting <br/>
<a id="pl.95.19"></a><var>95.19</var>a vote on the proposed resolution is filed with the county auditor, the resolution
         is not <br/>
<a id="pl.95.20"></a><var>95.20</var>effective until it has been submitted to the voters at a general or special election
         and a <br/>
<a id="pl.95.21"></a><var>95.21</var>majority of votes cast on the question of approving the resolution are in the affirmative.
         The <br/>
<a id="pl.95.22"></a><var>95.22</var>commissioner of revenue shall prepare a suggested form of question to be presented
         at the <br/>
<a id="pl.95.23"></a><var>95.23</var>election. The referendum must be held at a special or general election before December
         1, <br/>
<a id="pl.95.24"></a><var>95.24</var>1991. This subdivision applies notwithstanding any city charter provision to the contrary.<br/>
<a id="pl.95.25"></a><var>95.25</var>    (b) If the Mankato city council wishes to extend the taxes authorized under <br/>
<a id="pl.95.26"></a><var>95.26</var>subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph
         (b) or <br/>
<a id="pl.95.27"></a><var>95.27</var>(c), the city must pass a resolution extending the taxes before July 1, 2015. The
         tax may <br/>
<a id="pl.95.28"></a><var>95.28</var>not be imposed unless approved by the voters.<br/>
<a id="pl.95.29"></a><var>95.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.95.30"></a><var>95.30</var>without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.95.31"></a><var>95.31</var>    Sec. 24. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws <br/>
<a id="pl.95.32"></a><var>95.32</var>2011, First Special Session chapter 7, article 3, section 17, is amended to read:<br/>
<a id="pl.96.1"></a><var>96.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases after June 30, <br/>
<a id="pl.96.2"></a><var>96.2</var>2006, and before July 1, 2015.<br/>
<a id="pl.96.3"></a><var>96.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.96.4"></a><var>96.4</var>    Sec. 25. Laws 2008, chapter 366, article 7, section 20, is amended to read:<br/>
<a id="pl.96.5"></a><var>96.5</var>    Sec. 20. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.96.6"></a><var>96.6</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.96.7"></a><var>96.7</var>section 
         <statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city charter, pursuant to <br/>
<a id="pl.96.8"></a><var>96.8</var>the approval of the voters on November 7, 2006, the city of North Mankato may impose
         <br/>
<a id="pl.96.9"></a><var>96.9</var>by ordinance a sales and use tax of one-half of one percent for the purposes specified
         <br/>
<a id="pl.96.10"></a><var>96.10</var>in subdivision 2. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the <br/>
<a id="pl.96.11"></a><var>96.11</var>imposition, administration, collection, and enforcement of the taxes authorized under
         <br/>
<a id="pl.96.12"></a><var>96.12</var>this subdivision. <br/>
<a id="pl.96.13"></a><var>96.13</var>    Subd. 2. <b>Use of revenues.</b> (a) Revenues received from the tax authorized by <br/>
<a id="pl.96.14"></a><var>96.14</var>subdivision 1 must be used to pay all or part of the capital costs of the following
         projects: <br/>
<a id="pl.96.15"></a><var>96.15</var>    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 <br/>
<a id="pl.96.16"></a><var>96.16</var>interchange project; <br/>
<a id="pl.96.17"></a><var>96.17</var>    (2) development of regional parks and hiking and biking trails;<br/>
<a id="pl.96.18"></a><var>96.18</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.96.19"></a><var>96.19</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.96.20"></a><var>96.20</var>    (5) lake improvement projects.<br/>
<a id="pl.96.21"></a><var>96.21</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund
         <br/>
<a id="pl.96.22"></a><var>96.22</var>these projects is $6,000,000 plus any associated bond costs.<br/>
<a id="pl.96.23"></a><var>96.23</var>    (b) If the city extends the tax as authorized under subdivision 2a, paragraph (a),
         the <br/>
<a id="pl.96.24"></a><var>96.24</var>total amount that may be used to fund these projects is increased by $9,000,000, plus
         <br/>
<a id="pl.96.25"></a><var>96.25</var>associated bond costs, including interest on the bonds, minus any revenues used for
         the <br/>
<a id="pl.96.26"></a><var>96.26</var>purposes listed in paragraph (c).<br/>
<a id="pl.96.27"></a><var>96.27</var>(c) Revenues raised from the tax imposed under subdivision 1 may also be used to <br/>
<a id="pl.96.28"></a><var>96.28</var>fund all or a portion of the costs of constructing new regional athletic facilities:
         ice sheets, <br/>
<a id="pl.96.29"></a><var>96.29</var>swimming and aquatic facility, multi-use sports bubble, indoor field house, or indoor
         <br/>
<a id="pl.96.30"></a><var>96.30</var>tennis courts if those facilities are constructed within the corporate boundaries
         of the city <br/>
<a id="pl.96.31"></a><var>96.31</var>of North Mankato. The tax may only be used for this purpose if authorized by the voters
         <br/>
<a id="pl.96.32"></a><var>96.32</var>as provided for in subdivision 2a, paragraph (b).<br/>
<a id="pl.96.33"></a><var>96.33</var>    Subd. 2a. <b>Authorization to extend the tax.</b> (a) Notwithstanding section 297A.99, <br/>
<a id="pl.96.34"></a><var>96.34</var>subdivision 3, if the North Mankato city council intends to extend the tax authorized
         under <br/>
<a id="pl.96.35"></a><var>96.35</var>subdivision 1 to cover an additional $9,000,000 in bonds, plus associated bond costs,
         <br/>
<a id="pl.97.1"></a><var>97.1</var>including interest on the bonds, to fund the projects in subdivision 2, paragraph
         (a), the <br/>
<a id="pl.97.2"></a><var>97.2</var>city must pass a resolution extending the tax before July 1, 2015. The resolution
         is not <br/>
<a id="pl.97.3"></a><var>97.3</var>effective until it has been submitted to the voters at a general or special election
         and a <br/>
<a id="pl.97.4"></a><var>97.4</var>majority of votes cast on the question of approving the resolution are in the affirmative.
         <br/>
<a id="pl.97.5"></a><var>97.5</var>The referendum must be held at a special or general election before December 1, 2018,
         <br/>
<a id="pl.97.6"></a><var>97.6</var>and must be held on the same date as the referendum required under section 20. This
         <br/>
<a id="pl.97.7"></a><var>97.7</var>subdivision applies notwithstanding any city charter provision to the contrary.<br/>
<a id="pl.97.8"></a><var>97.8</var>(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
         <br/>
<a id="pl.97.9"></a><var>97.9</var>at a special or general election held on or before December 1, 2018, the city may
         use up <br/>
<a id="pl.97.10"></a><var>97.10</var>to $5,000,000, plus associated bond costs of the additional sales tax revenue allowed
         to <br/>
<a id="pl.97.11"></a><var>97.11</var>be raised under paragraph (a), to pay all or a portion of the costs of constructing
         the new <br/>
<a id="pl.97.12"></a><var>97.12</var>regional athletic facilities listed in subdivision 2, paragraph (c). The referendum
         required <br/>
<a id="pl.97.13"></a><var>97.13</var>under this paragraph must be held on the same date as the referendum required under
         <br/>
<a id="pl.97.14"></a><var>97.14</var>paragraph (a). The uses of revenues authorized in this paragraph and paragraph (a)
         must <br/>
<a id="pl.97.15"></a><var>97.15</var>be presented to voters in one ballot question. The election must be held on the same
         date <br/>
<a id="pl.97.16"></a><var>97.16</var>as the election to extend the Mankato local option sales tax authorized under section
         20.<br/>
<a id="pl.97.17"></a><var>97.17</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the <br/>
<a id="pl.97.18"></a><var>97.18</var>voters at the November 7, 2006 referendum authorizing the imposition of the taxes
         in <br/>
<a id="pl.97.19"></a><var>97.19</var>this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital
         and <br/>
<a id="pl.97.20"></a><var>97.20</var>administrative expenses for the projects described in subdivision 2, paragraph (a), in an <br/>
<a id="pl.97.21"></a><var>97.21</var>amount that does not exceed $6,000,000. A separate election to approve the bonds under
         <br/>
<a id="pl.97.22"></a><var>97.22</var>Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.97.23"></a><var>97.23</var>(b) The city of North Mankato, subject to voter approval under subdivision 2a, <br/>
<a id="pl.97.24"></a><var>97.24</var>paragraph (a), allowing for additional revenue to be spent for the projects in subdivision
         2, <br/>
<a id="pl.97.25"></a><var>97.25</var>paragraph (a), may issue additional bonds under Minnesota Statutes, chapter 475, to
         pay <br/>
<a id="pl.97.26"></a><var>97.26</var>capital and administrative expenses for those projects in an amount that does not
         exceed <br/>
<a id="pl.97.27"></a><var>97.27</var>$9,000,000, plus associated bond costs, including interest on the bonds. If approved
         by <br/>
<a id="pl.97.28"></a><var>97.28</var>voters as required under subdivision 2a, paragraph (b), up to $5,000,000 of the bonds,
         plus <br/>
<a id="pl.97.29"></a><var>97.29</var>associated bond costs, may be used to pay capital and administrative costs for the
         projects <br/>
<a id="pl.97.30"></a><var>97.30</var>listed in subdivision 2, paragraph (b), instead. A separate election to approve the
         bonds <br/>
<a id="pl.97.31"></a><var>97.31</var>under Minnesota Statutes, section 
<statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.97.32"></a><var>97.32</var>    (b) (c) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.97.33"></a><var>97.33</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.97.34"></a><var>97.34</var>475.61
         </statute_ref>, to pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.98.1"></a><var>98.1</var>    (d) Notwithstanding the maximum bond limits set forth above, the city may use tax
         <br/>
<a id="pl.98.2"></a><var>98.2</var>revenue in excess of any and all annual principal and interest payment obligations
         for <br/>
<a id="pl.98.3"></a><var>98.3</var>capital replacement associated with the uses authorized in subdivision 2.<br/>
<a id="pl.98.4"></a><var>98.4</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires when <br/>
<a id="pl.98.5"></a><var>98.5</var>the city council determines that the amount of revenues received from the taxes to
         pay for <br/>
<a id="pl.98.6"></a><var>98.6</var>the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the <br/>
<a id="pl.98.7"></a><var>98.7</var>additional amount needed to pay the costs related to issuance of bonds under subdivision
         <br/>
<a id="pl.98.8"></a><var>98.8</var>3, including interest on the bonds, unless the tax is extended as allowed in this section. <br/>
<a id="pl.98.9"></a><var>98.9</var>If the tax is extended as allowed under subdivision 2a, paragraphs (a) and (b), the
         tax <br/>
<a id="pl.98.10"></a><var>98.10</var>expires December 31, 2038. Any funds remaining after completion of the projects and <br/>
<a id="pl.98.11"></a><var>98.11</var>retirement or redemption of the bonds shall be placed in a capital facilities and
         equipment <br/>
<a id="pl.98.12"></a><var>98.12</var>replacement fund of the city. The tax imposed under subdivision 1 may expire at an
         earlier <br/>
<a id="pl.98.13"></a><var>98.13</var>time if the city so determines by ordinance. <br/>
<a id="pl.98.14"></a><var>98.14</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.98.15"></a><var>98.15</var>the city of North Mankato and its chief clerical officer timely complete their compliance
         <br/>
<a id="pl.98.16"></a><var>98.16</var>with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.98.17"></a><var>98.17</var>    Sec. 26. Laws 2013, chapter 143, article 8, section 22, the effective date, as amended <br/>
<a id="pl.98.18"></a><var>98.18</var>by Laws 2014, chapter 308, article 3, section 30, is amended to read:<br/>
<a id="pl.98.19"></a><var>98.19</var><b>EFFECTIVE DATE.</b>Subdivision 7, paragraph (c), clause (2), is effective for sales <br/>
<a id="pl.98.20"></a><var>98.20</var>and purchases made after June 30, 2013. The provisions of subdivision 7, paragraph
         (b), <br/>
<a id="pl.98.21"></a><var>98.21</var>and paragraph (c), clause (8), are effective retroactively for sales and purchases
         made <br/>
<a id="pl.98.22"></a><var>98.22</var>after April 1, 2009. Any vendor who paid sales or use tax on items now exempt under
         <br/>
<a id="pl.98.23"></a><var>98.23</var>subdivision 7, paragraph (b), and paragraph (c), clause (8), that were sold after
         April 1, <br/>
<a id="pl.98.24"></a><var>98.24</var>2009, and before July 1, 2013, may apply for a refund of the sales or use tax paid
         in the <br/>
<a id="pl.98.25"></a><var>98.25</var>manner provided in Minnesota Statutes, section 
         <statute_ref>289A.50, subdivision 1</statute_ref>, but only if the <br/>
<a id="pl.98.26"></a><var>98.26</var>vendor did not collect and remit sales tax on the items for which a refund is claimed.
         <br/>
<a id="pl.98.27"></a><var>98.27</var>Interest on the refund shall be paid at the rate in Minnesota Statutes, section 
         <statute_ref>270C.405</statute_ref>, <br/>
<a id="pl.98.28"></a><var>98.28</var>from 90 days after the refund claim is filed with the commissioner of revenue. The
         amount <br/>
<a id="pl.98.29"></a><var>98.29</var>to make the refunds is annually appropriated to the commissioner of revenue from the
         <br/>
<a id="pl.98.30"></a><var>98.30</var>general fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes,
         <br/>
<a id="pl.98.31"></a><var>98.31</var>section 
         <statute_ref>289A.40</statute_ref>, claims may be filed with the commissioner until June 30, 2015 2016.<br/>
<a id="pl.98.32"></a><var>98.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.99.1"></a><var>99.1</var>    Sec. 27. Laws 2013, chapter 143, article 8, section 23, the effective date, as amended <br/>
<a id="pl.99.2"></a><var>99.2</var>by Laws 2014, chapter 308, article 3, section 31, is amended to read:<br/>
<a id="pl.99.3"></a><var>99.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.99.4"></a><var>99.4</var>June 30, 2013, except that the provision regarding accessories and supplies purchased
         <br/>
<a id="pl.99.5"></a><var>99.5</var>in a transaction covered by Medicare or Medicaid that are not already exempt under
         <br/>
<a id="pl.99.6"></a><var>99.6</var>Minnesota Statutes, section 
         <statute_ref>297A.67, subdivision 7</statute_ref>, and the provision defining "Medicare" <br/>
<a id="pl.99.7"></a><var>99.7</var>and "Medicaid" are effective retroactively for sales and purchases made after April
         1, <br/>
<a id="pl.99.8"></a><var>99.8</var>2009. Any vendor who paid sales or use tax on accessories and supplies purchased in
         a <br/>
<a id="pl.99.9"></a><var>99.9</var>transaction covered by Medicare or Medicaid that are not already exempt under Minnesota
         <br/>
<a id="pl.99.10"></a><var>99.10</var>Statutes, section 
         <statute_ref>297A.67, subdivision 7</statute_ref>, and that were sold after April 1, 2009, and before <br/>
<a id="pl.99.11"></a><var>99.11</var>July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided
         in <br/>
<a id="pl.99.12"></a><var>99.12</var>Minnesota Statutes, section 
         <statute_ref>289A.50, subdivision 1</statute_ref>, but only if the vendor did not collect <br/>
<a id="pl.99.13"></a><var>99.13</var>and remit sales tax on the accessories and supplies for which a refund is claimed.
         Interest <br/>
<a id="pl.99.14"></a><var>99.14</var>on the refund shall be paid at the rate in Minnesota Statutes, section 
         <statute_ref>270C.405</statute_ref>, from 90 <br/>
<a id="pl.99.15"></a><var>99.15</var>days after the refund claim is filed with the commissioner of revenue. The amount
         to make <br/>
<a id="pl.99.16"></a><var>99.16</var>the refunds is annually appropriated to the commissioner of revenue from the general
         <br/>
<a id="pl.99.17"></a><var>99.17</var>fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.99.18"></a><var>99.18</var>289A.40
         </statute_ref>, claims may be filed with the commissioner until June 30, 2015 2016.<br/>
<a id="pl.99.19"></a><var>99.19</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.99.20"></a><var>99.20</var>made after April 1, 2009.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.99.21"></a><var>99.21</var>    Sec. 28. Laws 2014, chapter 308, article 7, section 7, is amended to read:<br/>
<a id="pl.99.22"></a><var>99.22</var>    Sec. 7. <b>CITY OF LUVERNE LOCAL SALES TAX.</b><br/>
<a id="pl.99.23"></a><var>99.23</var>(a) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref>, 
         <statute_ref>297A.993</statute_ref>, and <br/>
<statute_ref><a id="pl.99.24"></a><var>99.24</var>477A.016
         </statute_ref>, or any other contrary provision of law, ordinance, or city charter, the city of
         <br/>
<a id="pl.99.25"></a><var>99.25</var>Luverne may, by ordinance, impose a sales and use tax of up to one-half of one percent
         for <br/>
<a id="pl.99.26"></a><var>99.26</var>the purposes specified in paragraph (b), if approved by the voters at a general election held <br/>
<a id="pl.99.27"></a><var>99.27</var>prior to December 31, 2020. Except as otherwise provided in this section, the provisions <br/>
<a id="pl.99.28"></a><var>99.28</var>of Minnesota Statutes, section 
         <statute_ref>297A.99, subdivisions </statute_ref>4 to 13, govern the imposition, <br/>
<a id="pl.99.29"></a><var>99.29</var>administration, collection, and enforcement of the tax authorized under this paragraph.<br/>
<a id="pl.99.30"></a><var>99.30</var>(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs of
         <br/>
<a id="pl.99.31"></a><var>99.31</var>collection, must be first used by the city to pay debt service on bonds issued the city's <br/>
<a id="pl.99.32"></a><var>99.32</var>local share under Minnesota Statutes, section 
         <statute_ref>469.194 477A.20</statute_ref>, to fund the Lewis and <br/>
<a id="pl.99.33"></a><var>99.33</var>Clark Regional Water System project. Revenues collected in any calendar year in excess
         <br/>
<a id="pl.99.34"></a><var>99.34</var>of the city obligation to pay for debt service on bonds issued the city's local share under <br/>
<a id="pl.100.1"></a><var>100.1</var>Minnesota Statutes, section 
         <statute_ref>469.194 477A.20</statute_ref>, may be retained by the city and used for <br/>
<a id="pl.100.2"></a><var>100.2</var>funding other capital projects within the city.<br/>
<a id="pl.100.3"></a><var>100.3</var>(c) A tax imposed under paragraph (a) expires when the city's share of bonds local <br/>
<a id="pl.100.4"></a><var>100.4</var>share issued under Minnesota Statutes, section 
         <statute_ref>469.194 477A.20</statute_ref>, to fund the Lewis and <br/>
<a id="pl.100.5"></a><var>100.5</var>Clark Regional Water System Project has been made, or at an earlier time if approved
         <br/>
<a id="pl.100.6"></a><var>100.6</var>by the city council. The tax must not terminate before the city council determines
         that <br/>
<a id="pl.100.7"></a><var>100.7</var>revenues from this tax and any other revenue source the city dedicates are sufficient
         to <br/>
<a id="pl.100.8"></a><var>100.8</var>pay the city city's local share of debt service on bonds issued under Minnesota Statutes, <br/>
<a id="pl.100.9"></a><var>100.9</var>section 
         <statute_ref>469.194 477A.20</statute_ref>.<br/>
<a id="pl.100.10"></a><var>100.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.100.11"></a><var>100.11</var>    Sec. 29. <b>CITY OF MARSHALL; VALIDATION OF PRIOR ACT.</b><br/>
<a id="pl.100.12"></a><var>100.12</var>(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
         <br/>
<a id="pl.100.13"></a><var>100.13</var>of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section
         14, <br/>
<a id="pl.100.14"></a><var>100.14</var>and file its approval with the secretary of state by June 15, 2013.  If approved as
         authorized <br/>
<a id="pl.100.15"></a><var>100.15</var>under this paragraph, actions undertaken by the city pursuant to the approval of the
         voters <br/>
<a id="pl.100.16"></a><var>100.16</var>on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
         <br/>
<a id="pl.100.17"></a><var>100.17</var>chapter 7, article 4, section 14, are validated.<br/>
<a id="pl.100.18"></a><var>100.18</var>(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
         <br/>
<a id="pl.100.19"></a><var>100.19</var>Special Session chapter 7, article 4, section 14, and subject to local approval under
         <br/>
<a id="pl.100.20"></a><var>100.20</var>paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.<br/>
<a id="pl.100.21"></a><var>100.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.100.24"></a><var>100.24</var>    Section 1. Minnesota Statutes 2014, section 477A.0124, subdivision 4, is amended to <br/>
<a id="pl.100.25"></a><var>100.25</var>read:<br/>
<a id="pl.100.26"></a><var>100.26</var>    Subd. 4. <b>County tax-base equalization aid.</b> (a) For 2006 and subsequent years, <br/>
<a id="pl.100.27"></a><var>100.27</var>the money appropriated to county tax-base equalization aid each calendar year, after
         the <br/>
<a id="pl.100.28"></a><var>100.28</var>payment under paragraph (f), shall be apportioned among the counties according to
         each <br/>
<a id="pl.100.29"></a><var>100.29</var>county's tax-base equalization aid factor.<br/>
<a id="pl.100.30"></a><var>100.30</var>(b) A county's tax-base equalization aid factor is equal to the amount by which (i)
         <br/>
<a id="pl.100.31"></a><var>100.31</var>$185 $330 times the county's population, exceeds (ii) 9.45 12 percent of the county's <br/>
<a id="pl.100.32"></a><var>100.32</var>net tax capacity.<br/>
<a id="pl.101.1"></a><var>101.1</var>(c) In the case of a county with a population less than 10,000, the factor determined
         <br/>
<a id="pl.101.2"></a><var>101.2</var>in paragraph (b) shall be multiplied by a factor of three.<br/>
<a id="pl.101.3"></a><var>101.3</var>(d) In the case of a county with a population greater than or equal to 10,000, but
         less <br/>
<a id="pl.101.4"></a><var>101.4</var>than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor
         of two.<br/>
<a id="pl.101.5"></a><var>101.5</var>(e) In the case of a county with a population greater than or equal to 12,500 but
         less <br/>
<a id="pl.101.6"></a><var>101.6</var>than 16,500, the factor determined in paragraph (b) shall be multiplied by a factor
         of 1.25.<br/>
<a id="pl.101.7"></a><var>101.7</var>(e) (f) In the case of a county with a population greater than 500,000, the factor <br/>
<a id="pl.101.8"></a><var>101.8</var>determined in paragraph (b) shall be multiplied by a factor of 0.25.<br/>
<a id="pl.101.9"></a><var>101.9</var>(g) For distributions in 2016, the allocation to a county under paragraphs (a) to
         (f) <br/>
<a id="pl.101.10"></a><var>101.10</var>shall not be less than 95 percent of the sum of the tax base equalization aid in 2014
         plus <br/>
<a id="pl.101.11"></a><var>101.11</var>any supplemental program aid that was distributed to the county under Laws 2014, chapter
         <br/>
<a id="pl.101.12"></a><var>101.12</var>308, article 1, section 13. For distributions in 2017 and subsequent years, the allocation
         <br/>
<a id="pl.101.13"></a><var>101.13</var>to a county under paragraphs (a) to (f) shall not be less than 95 percent of the tax
         base <br/>
<a id="pl.101.14"></a><var>101.14</var>equalization aid of the county in the prior year.<br/>
<a id="pl.101.15"></a><var>101.15</var>(h) Beginning with aid payable in 2017, the amount under paragraph (b), item (i),
         <br/>
<a id="pl.101.16"></a><var>101.16</var>shall be increased by the ratio of the statewide net tax capacity per capita to the
         statewide <br/>
<a id="pl.101.17"></a><var>101.17</var>net tax capacity per capita in the 2014 assessment year provided that in no case shall
         the <br/>
<a id="pl.101.18"></a><var>101.18</var>ratio be less than one or the ratio in the prior year, whichever is greater. The amount
         shall <br/>
<a id="pl.101.19"></a><var>101.19</var>be rounded to the nearest $10. The statewide taxable market value per capita shall
         be <br/>
<a id="pl.101.20"></a><var>101.20</var>calculated using the most recent population available for the relevant assessment
         year at <br/>
<a id="pl.101.21"></a><var>101.21</var>the time of the calculation of the aid by the commissioner under section 477A.014.<br/>
<a id="pl.101.22"></a><var>101.22</var>(f) (i) Before the money appropriated to county base equalization aid is apportioned <br/>
<a id="pl.101.23"></a><var>101.23</var>among the counties as provided in paragraph (a), an amount up to $73,259 is allocated
         <br/>
<a id="pl.101.24"></a><var>101.24</var>annually to Anoka County and up to $59,664 is annually allocated to Washington County
         <br/>
<a id="pl.101.25"></a><var>101.25</var>for the county to pay postretirement costs of health insurance premiums for court
         <br/>
<a id="pl.101.26"></a><var>101.26</var>employees. The allocation under this paragraph is in addition to the allocations under
         <br/>
<a id="pl.101.27"></a><var>101.27</var>paragraphs (a) to (e) (h).<br/>
<a id="pl.101.28"></a><var>101.28</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.101.29"></a><var>101.29</var>    Sec. 2. <b>[477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR </b><br/>
<a id="pl.101.30"></a><var>101.30</var><b>CERTAIN OUT-OF-HOME PLACEMENT.</b><br/>
<a id="pl.101.31"></a><var>101.31</var>    Subdivision 1. <b>Definition.</b> When used in this section, "out-of-home placement" <br/>
<a id="pl.101.32"></a><var>101.32</var>means 24-hour substitute care for an Indian child as defined by section 260C.007,
         <br/>
<a id="pl.101.33"></a><var>101.33</var>subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
         <br/>
<a id="pl.101.34"></a><var>101.34</var>away from the child's parent or guardian and for whom the county social services agency
         <br/>
<a id="pl.101.35"></a><var>101.35</var>or county correctional agency has been assigned responsibility for the child's placement
         <br/>
<a id="pl.102.1"></a><var>102.1</var>and care, which includes placement in foster care under section 260C.007, subdivision
         <br/>
<a id="pl.102.2"></a><var>102.2</var>18, and a correctional facility pursuant to a court order.<br/>
<a id="pl.102.3"></a><var>102.3</var>    Subd. 2. <b>Determination of nonfederal share of costs.</b> (a) By January 1, 2016, each <br/>
<a id="pl.102.4"></a><var>102.4</var>county shall report the following information to the commissioners of human services
         and <br/>
<a id="pl.102.5"></a><var>102.5</var>corrections: (1) the separate amounts paid out of its social service agency and its
         corrections <br/>
<a id="pl.102.6"></a><var>102.6</var>budget for out-of-home placement of children under the ICWA in calendar years 2012,
         <br/>
<a id="pl.102.7"></a><var>102.7</var>2013, and 2014; and (2) the number of case days associated with the expenditures from
         <br/>
<a id="pl.102.8"></a><var>102.8</var>each budget. By March 15, 2016, the commissioner of human services, in consultation
         with <br/>
<a id="pl.102.9"></a><var>102.9</var>the commissioner of corrections, shall certify to the commissioner of revenue and
         to the <br/>
<a id="pl.102.10"></a><var>102.10</var>legislative committees responsible for local government aids and out-of-home placement
         <br/>
<a id="pl.102.11"></a><var>102.11</var>funding, whether the data reported under this subdivision accurately reflects total
         <br/>
<a id="pl.102.12"></a><var>102.12</var>expenditures by counties for out-of-home placement costs of children under the ICWA.<br/>
<a id="pl.102.13"></a><var>102.13</var>(b) By January 1, 2018, and each January 1 thereafter, each county shall report to
         the <br/>
<a id="pl.102.14"></a><var>102.14</var>commissioners of human services and corrections the separate amounts paid out of its
         <br/>
<a id="pl.102.15"></a><var>102.15</var>social service agency and its corrections budget for out-of-home placement of children
         <br/>
<a id="pl.102.16"></a><var>102.16</var>under the ICWA in the calendar years two years before the current calendar year along
         <br/>
<a id="pl.102.17"></a><var>102.17</var>with the number of case days associated with the expenditures from each budget.<br/>
<a id="pl.102.18"></a><var>102.18</var>(c) Until the commissioner of human services develops another mechanism for <br/>
<a id="pl.102.19"></a><var>102.19</var>collecting and verifying data on out-of-home placements of children under the ICWA,
         and <br/>
<a id="pl.102.20"></a><var>102.20</var>the legislature authorizes the use of that data, the data collected under this subdivision
         <br/>
<a id="pl.102.21"></a><var>102.21</var>must be used to calculate payments under subdivision 3. The commissioner of human
         <br/>
<a id="pl.102.22"></a><var>102.22</var>services shall certify the nonfederal out-of-home placement costs for the three prior
         <br/>
<a id="pl.102.23"></a><var>102.23</var>calendar years for each county to the commissioner of revenue by June 1 of the year
         <br/>
<a id="pl.102.24"></a><var>102.24</var>prior to the aid payment.<br/>
<a id="pl.102.25"></a><var>102.25</var>    Subd. 3. <b>Aid payments to counties.</b> For aids payable in calendar year 2017 and <br/>
<a id="pl.102.26"></a><var>102.26</var>thereafter, the commissioner of revenue shall reimburse each county for 100 percent
         of <br/>
<a id="pl.102.27"></a><var>102.27</var>the nonfederal share of the cost of out-of-home placement of children under the ICWA
         <br/>
<a id="pl.102.28"></a><var>102.28</var>provided the commissioner of human services, in consultation with the commissioner
         <br/>
<a id="pl.102.29"></a><var>102.29</var>of corrections, certifies to the commissioner of revenue that accurate data is available
         <br/>
<a id="pl.102.30"></a><var>102.30</var>to make the aid determination under this section. The amount of reimbursement is the
         <br/>
<a id="pl.102.31"></a><var>102.31</var>county's average nonfederal share of the cost for out-of-home placement of children
         <br/>
<a id="pl.102.32"></a><var>102.32</var>under the ICWA for the most recent three calendar years for which data is available.
         <br/>
<a id="pl.102.33"></a><var>102.33</var>The commissioner shall pay the aid under the schedule used for local government aid
         <br/>
<a id="pl.102.34"></a><var>102.34</var>payments under section 477A.015.<br/>
<a id="pl.102.35"></a><var>102.35</var>    Subd. 4. <b>Aid payments to tribes.</b> (a) By January 1, 2016, and each year <br/>
<a id="pl.102.36"></a><var>102.36</var>thereafter, each tribe must certify to the commissioner of revenue the amount of federal
         <br/>
<a id="pl.103.1"></a><var>103.1</var>reimbursement received by the tribe for out-of-home placement of children under the
         <br/>
<a id="pl.103.2"></a><var>103.2</var>ICWA for the immediately preceding three calendar years.<br/>
<a id="pl.103.3"></a><var>103.3</var>(b) The amount of reimbursement to the tribe shall be the greater of: (1) five <br/>
<a id="pl.103.4"></a><var>103.4</var>percent of the average reimbursement amount received from the federal government for
         <br/>
<a id="pl.103.5"></a><var>103.5</var>out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
         <br/>
<a id="pl.103.6"></a><var>103.6</var>The commissioner shall pay the aid under this section under the schedule used for
         local <br/>
<a id="pl.103.7"></a><var>103.7</var>government aid payments under section 477A.015.<br/>
<a id="pl.103.8"></a><var>103.8</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to pay aid under this section is <br/>
<a id="pl.103.9"></a><var>103.9</var>annually appropriated to the commissioner of revenue from the general fund.<br/>
<a id="pl.103.10"></a><var>103.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.103.11"></a><var>103.11</var>    Sec. 3. Minnesota Statutes 2014, section 477A.013, subdivision 1, is amended to read:<br/>
<a id="pl.103.12"></a><var>103.12</var>    Subdivision 1. <b>Towns</b><b> and unorganized territories</b><b>.</b> In 2014 2016 and thereafter, <br/>
<a id="pl.103.13"></a><var>103.13</var>each town and the total area of any unorganized territory within a county is eligible for <br/>
<a id="pl.103.14"></a><var>103.14</var>a distribution under this subdivision equal to the product of (i) its agricultural
         property <br/>
<a id="pl.103.15"></a><var>103.15</var>factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this <br/>
<a id="pl.103.16"></a><var>103.16</var>subdivision, the following terms have the meanings given them:<br/>
<a id="pl.103.17"></a><var>103.17</var>(1) "agricultural property factor" means the ratio of the adjusted net tax capacity
         of <br/>
<a id="pl.103.18"></a><var>103.18</var>agricultural property located in a town, or unorganized territory divided by the adjusted <br/>
<a id="pl.103.19"></a><var>103.19</var>net tax capacity of all other property located in the town or unorganized territory. The <br/>
<a id="pl.103.20"></a><var>103.20</var>agricultural property factor cannot exceed eight;<br/>
<a id="pl.103.21"></a><var>103.21</var>(2) "agricultural property" means property classified under section 
         <statute_ref>273.13</statute_ref>, as <br/>
<a id="pl.103.22"></a><var>103.22</var>homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
         <br/>
<a id="pl.103.23"></a><var>103.23</var>seasonal recreational property;<br/>
<a id="pl.103.24"></a><var>103.24</var>(3) "town area factor" means the most recent estimate of total acreage, not to exceed <br/>
<a id="pl.103.25"></a><var>103.25</var>50,000 acres, located in the case of a township, or 75,000 acres in the case of unorganized <br/>
<a id="pl.103.26"></a><var>103.26</var>territory, available as of July 1 in the aid calculation year, estimated or established by:<br/>
<a id="pl.103.27"></a><var>103.27</var>(i) the United States Bureau of the Census;<br/>
<a id="pl.103.28"></a><var>103.28</var>(ii) the State Land Management Information Center Minnesota Geospatial <br/>
<a id="pl.103.29"></a><var>103.29</var>Information Office; or<br/>
<a id="pl.103.30"></a><var>103.30</var>(iii) the secretary of state; and<br/>
<a id="pl.103.31"></a><var>103.31</var>(4) "population factor" means the square root of the towns' town's or unorganized <br/>
<a id="pl.103.32"></a><var>103.32</var>territory's population.<br/>
<a id="pl.103.33"></a><var>103.33</var>If the sum of the aids payable to all towns and unorganized territories under this <br/>
<a id="pl.103.34"></a><var>103.34</var>subdivision exceeds or is less than the limit under section 
         <statute_ref>477A.03, subdivision 2c</statute_ref>, <br/>
<a id="pl.103.35"></a><var>103.35</var>the distribution to each town and unorganized territory must be reduced or increased <br/>
<a id="pl.104.1"></a><var>104.1</var>proportionately so that the total amount of aids distributed under this section does
         not <br/>
<a id="pl.104.2"></a><var>104.2</var>exceed the limit in section 
         <statute_ref>477A.03, subdivision 2c</statute_ref>.<br/>
<a id="pl.104.3"></a><var>104.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.104.4"></a><var>104.4</var>    Sec. 4. Minnesota Statutes 2014, section 477A.014, subdivision 1, is amended to read:<br/>
<a id="pl.104.5"></a><var>104.5</var>    Subdivision 1. <b>Calculations and payments.</b> (a) The commissioner of revenue shall <br/>
<a id="pl.104.6"></a><var>104.6</var>make all necessary calculations and make payments pursuant to sections 
         <statute_ref>477A.013</statute_ref> and <br/>
<statute_ref><a id="pl.104.7"></a><var>104.7</var>477A.03
         </statute_ref> directly to the affected taxing authorities annually. In addition, the commissioner
         <br/>
<a id="pl.104.8"></a><var>104.8</var>shall notify the authorities of their aid amounts, as well as the computational factors
         used <br/>
<a id="pl.104.9"></a><var>104.9</var>in making the calculations for their authority, and those statewide total figures
         that are <br/>
<a id="pl.104.10"></a><var>104.10</var>pertinent, before August 1 of the year preceding the aid distribution year. In the case of <br/>
<a id="pl.104.11"></a><var>104.11</var>unorganized territory, the commissioner shall notify the affected county government
         of <br/>
<a id="pl.104.12"></a><var>104.12</var>the aid amount for any unorganized territory within the county and make payments of
         aid <br/>
<a id="pl.104.13"></a><var>104.13</var>payable based on unorganized territory to the county government. The aid received
         by the <br/>
<a id="pl.104.14"></a><var>104.14</var>county government must be spent in and for the unorganized territory.<br/>
<a id="pl.104.15"></a><var>104.15</var>(b) For the purposes of this subdivision, aid is determined for a city or, town, <br/>
<a id="pl.104.16"></a><var>104.16</var>or unorganized territory based on its city or, town, or unorganized territory status as <br/>
<a id="pl.104.17"></a><var>104.17</var>of June 30 of the year preceding the aid distribution year. If the effective date
         for a <br/>
<a id="pl.104.18"></a><var>104.18</var>municipal incorporation, consolidation, annexation, detachment, dissolution, or township
         <br/>
<a id="pl.104.19"></a><var>104.19</var>organization is on or before June 30 of the year preceding the aid distribution year,
         such <br/>
<a id="pl.104.20"></a><var>104.20</var>change in boundaries or form of government shall be recognized for aid determinations
         for <br/>
<a id="pl.104.21"></a><var>104.21</var>the aid distribution year. If the effective date for a municipal incorporation, consolidation,
         <br/>
<a id="pl.104.22"></a><var>104.22</var>annexation, detachment, dissolution, or township organization is after June 30 of
         the year <br/>
<a id="pl.104.23"></a><var>104.23</var>preceding the aid distribution year, such change in boundaries or form of government
         shall <br/>
<a id="pl.104.24"></a><var>104.24</var>not be recognized for aid determinations until the following year.<br/>
<a id="pl.104.25"></a><var>104.25</var>(c) Changes in boundaries or form of government will only be recognized for the <br/>
<a id="pl.104.26"></a><var>104.26</var>purposes of this subdivision, to the extent that: (1) changes in market values are
         included <br/>
<a id="pl.104.27"></a><var>104.27</var>in market values reported by assessors to the commissioner, and changes in population
         <br/>
<a id="pl.104.28"></a><var>104.28</var>and household size are included in their respective certifications to the commissioner
         as <br/>
<a id="pl.104.29"></a><var>104.29</var>referenced in section 
         <statute_ref>477A.011</statute_ref>, or (2) an annexation information report as provided in <br/>
<a id="pl.104.30"></a><var>104.30</var>paragraph (d) is received by the commissioner on or before July 15 of the aid calculation
         <br/>
<a id="pl.104.31"></a><var>104.31</var>year. Revisions to estimates or data for use in recognizing changes in boundaries
         or form <br/>
<a id="pl.104.32"></a><var>104.32</var>of government are not effective for purposes of this subdivision unless received by
         the <br/>
<a id="pl.104.33"></a><var>104.33</var>commissioner on or before July 15 of the aid calculation year. Clerical errors in
         the <br/>
<a id="pl.104.34"></a><var>104.34</var>certification or use of estimates and data established as of July 15 in the aid calculation
         <br/>
<a id="pl.104.35"></a><var>104.35</var>year are subject to correction within the time periods allowed under subdivision 3.<br/>
<a id="pl.105.1"></a><var>105.1</var>(d) In the case of an annexation, an annexation information report may be completed
         <br/>
<a id="pl.105.2"></a><var>105.2</var>by the annexing jurisdiction and submitted to the commissioner for purposes of this
         <br/>
<a id="pl.105.3"></a><var>105.3</var>subdivision if the net tax capacity of annexed area for the assessment year preceding
         the <br/>
<a id="pl.105.4"></a><var>105.4</var>effective date of the annexation exceeds five percent of the city's net tax capacity
         for the <br/>
<a id="pl.105.5"></a><var>105.5</var>same year. The form and contents of the annexation information report shall be prescribed
         <br/>
<a id="pl.105.6"></a><var>105.6</var>by the commissioner. The commissioner shall change the net tax capacity, the population,
         <br/>
<a id="pl.105.7"></a><var>105.7</var>the population decline, the commercial industrial percentage, and the transformed
         <br/>
<a id="pl.105.8"></a><var>105.8</var>population for the annexing jurisdiction only if the annexation information report
         provides <br/>
<a id="pl.105.9"></a><var>105.9</var>data the commissioner determines to be reliable for all of these factors used to compute
         city <br/>
<a id="pl.105.10"></a><var>105.10</var>revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
         <br/>
<a id="pl.105.11"></a><var>105.11</var>housing percentage and household size only if the entire area of an existing city
         or, town, <br/>
<a id="pl.105.12"></a><var>105.12</var>or unorganized territory is annexed or consolidated and only if reliable data is available <br/>
<a id="pl.105.13"></a><var>105.13</var>for all of these factors used to compute city revenue need for the annexing jurisdiction.<br/>
<a id="pl.105.14"></a><var>105.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.105.15"></a><var>105.15</var>    Sec. 5. Minnesota Statutes 2014, section 477A.015, is amended to read:<br/>
<a id="pl.105.16"></a><var>105.16</var><b>477A.015 PAYMENT DATES.</b><br/>
<a id="pl.105.17"></a><var>105.17</var>The commissioner of revenue shall make the payments of local government aid to <br/>
<a id="pl.105.18"></a><var>105.18</var>affected taxing authorities in two four installments on March 15, July 20 and December 26 <br/>
<a id="pl.105.19"></a><var>105.19</var>15, September 15, and November 15 annually.<br/>
<a id="pl.105.20"></a><var>105.20</var>When the commissioner of public safety determines that a local government has <br/>
<a id="pl.105.21"></a><var>105.21</var>suffered financial hardship due to a natural disaster, the commissioner of public
         safety <br/>
<a id="pl.105.22"></a><var>105.22</var>shall notify the commissioner of revenue, who shall make payments of aids under sections
         <br/>
<statute_ref><a id="pl.105.23"></a><var>105.23</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.014</statute_ref>, which are otherwise due on December 26 November 15, as soon <br/>
<a id="pl.105.24"></a><var>105.24</var>as is practical after the determination is made but not before July 20.<br/>
<a id="pl.105.25"></a><var>105.25</var>The commissioner may pay all or part of the payments of aids under sections <br/>
<statute_ref><a id="pl.105.26"></a><var>105.26</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.014</statute_ref>, which are due on December 26 November 15 at any time after <br/>
<a id="pl.105.27"></a><var>105.27</var>August 15 if a local government requests such payment as being necessary for meeting
         its <br/>
<a id="pl.105.28"></a><var>105.28</var>cash flow needs. For aids payable in 2013 only, a city that is located in an area deemed a <br/>
<a id="pl.105.29"></a><var>105.29</var>disaster area during the month of April 2013, as defined in section 
<statute_ref>12A.02, subdivision 5</statute_ref>, <br/>
<a id="pl.105.30"></a><var>105.30</var>shall receive its December 26, 2013 payment with its July 20, 2013 payment.<br/>
<a id="pl.105.31"></a><var>105.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.105.32"></a><var>105.32</var>2016 and thereafter.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.105.33"></a><var>105.33</var>    Sec. 6. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:<br/>
<a id="pl.106.1"></a><var>106.1</var>    Subd. 2. <b>State auditor's duties.</b> The state auditor shall prescribe uniform financial <br/>
<a id="pl.106.2"></a><var>106.2</var>accounting and reporting standards in conformity with national standards to be applicable
         <br/>
<a id="pl.106.3"></a><var>106.3</var>to cities and towns of more than 2,500 population and uniform reporting standards
         to be <br/>
<a id="pl.106.4"></a><var>106.4</var>applicable to cities and towns of less than 2,500 population.<br/>
<a id="pl.106.5"></a><var>106.5</var><b>EFFECTIVE DATE.</b>This section applies to reporting of financial information for <br/>
<a id="pl.106.6"></a><var>106.6</var>years ending on or after December 31, 2015.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.106.7"></a><var>106.7</var>    Sec. 7. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:<br/>
<a id="pl.106.8"></a><var>106.8</var>    Subd. 3. <b>Conformity.</b> Other law to the contrary notwithstanding, in order to receive <br/>
<a id="pl.106.9"></a><var>106.9</var>distributions under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.03</statute_ref>, counties and,  cities, and towns must <br/>
<a id="pl.106.10"></a><var>106.10</var>conform to the standards set in subdivision 2 in making all financial reports required
         to be <br/>
<a id="pl.106.11"></a><var>106.11</var>made to the state auditor after June 30, 1984.<br/>
<a id="pl.106.12"></a><var>106.12</var><b>EFFECTIVE DATE.</b>This section applies to reporting of financial information for <br/>
<a id="pl.106.13"></a><var>106.13</var>years ending on or after December 31, 2015.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.106.14"></a><var>106.14</var>    Sec. 8. Minnesota Statutes 2014, section 477A.03, subdivision 2a, is amended to read:<br/>
<a id="pl.106.15"></a><var>106.15</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2014, the total aid paid under section <br/>
<statute_ref><a id="pl.106.16"></a><var>106.16</var>477A.013, subdivision 9
         </statute_ref>, is $507,598,012. The total aid paid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.106.17"></a><var>106.17</var>subdivision 9
         </statute_ref>, is $516,898,012 for aids payable in 2015. For aids payable in 2016 and <br/>
<a id="pl.106.18"></a><var>106.18</var>thereafter, the total aid paid under section 
         <statute_ref>477A.013, subdivision </statute_ref>9, is $519,398,012 <br/>
<a id="pl.106.19"></a><var>106.19</var>$540,940,079. For aids payable in 2017 and thereafter, the total aid paid under section
         <br/>
<a id="pl.106.20"></a><var>106.20</var>477A.013, subdivision 9, is $564,982,145.<br/>
<a id="pl.106.21"></a><var>106.21</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.106.22"></a><var>106.22</var>2016 and thereafter.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.106.23"></a><var>106.23</var>    Sec. 9. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.106.24"></a><var>106.24</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2014 and thereafter through 2016, <br/>
<a id="pl.106.25"></a><var>106.25</var>the total aid payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $100,795,000. For <br/>
<a id="pl.106.26"></a><var>106.26</var>aids payable in 2017 and thereafter, the total aid payable under section 477A.0124,
         <br/>
<a id="pl.106.27"></a><var>106.27</var>subdivision 3, is $102,895,000. Each calendar year, $500,000 of this appropriation shall <br/>
<a id="pl.106.28"></a><var>106.28</var>be retained by the commissioner of revenue to make reimbursements to the commissioner
         <br/>
<a id="pl.106.29"></a><var>106.29</var>of management and budget for payments made under section 
         <statute_ref>611.27</statute_ref>. The reimbursements <br/>
<a id="pl.106.30"></a><var>106.30</var>shall be to defray the additional costs associated with court-ordered counsel under
         section <br/>
<statute_ref><a id="pl.106.31"></a><var>106.31</var>611.27
         </statute_ref>. Any retained amounts not used for reimbursement in a year shall be included in <br/>
<a id="pl.107.1"></a><var>107.1</var>the next distribution of county need aid that is certified to the county auditors
         for the <br/>
<a id="pl.107.2"></a><var>107.2</var>purpose of property tax reduction for the next taxes payable year.<br/>
<a id="pl.107.3"></a><var>107.3</var>    (b) For aids payable in 2014 and thereafter 2015, the total aid under section <br/>
<statute_ref><a id="pl.107.4"></a><var>107.4</var>477A.0124, subdivision 4
         </statute_ref>, is $104,909,575. For aids payable in 2016, the total aid paid <br/>
<a id="pl.107.5"></a><var>107.5</var>under section 477A.0124 is $129,909,575. For aids payable in 2017 and thereafter,
         <br/>
<a id="pl.107.6"></a><var>107.6</var>the total aid payable under section 477A.0124, subdivision 4, is $132,509,575. The <br/>
<a id="pl.107.7"></a><var>107.7</var>commissioner of revenue shall transfer to the commissioner of management and budget
         <br/>
<a id="pl.107.8"></a><var>107.8</var>$207,000 annually for the cost of preparation of local impact notes as required by
         section <br/>
<statute_ref><a id="pl.107.9"></a><var>107.9</var>3.987
         </statute_ref>, and other local government activities. The commissioner of revenue shall transfer
         <br/>
<a id="pl.107.10"></a><var>107.10</var>to the commissioner of education $7,000 annually for the cost of preparation of local
         <br/>
<a id="pl.107.11"></a><var>107.11</var>impact notes for school districts as required by section 
         <statute_ref>3.987</statute_ref>. The commissioner of <br/>
<a id="pl.107.12"></a><var>107.12</var>revenue shall deduct the amounts transferred under this paragraph from the appropriation
         <br/>
<a id="pl.107.13"></a><var>107.13</var>under this paragraph. The amounts transferred are appropriated to the commissioner
         of <br/>
<a id="pl.107.14"></a><var>107.14</var>management and budget and the commissioner of education respectively.<br/>
<a id="pl.107.15"></a><var>107.15</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.107.16"></a><var>107.16</var>    Sec. 10. Minnesota Statutes 2014, section 477A.03, subdivision 2c, is amended to read:<br/>
<a id="pl.107.17"></a><var>107.17</var>    Subd. 2c. <b>Towns</b><b> and unorganized territories</b><b>.</b> For aids payable in 2014 2016 <br/>
<a id="pl.107.18"></a><var>107.18</var>and thereafter, the total aids paid under section 
         <statute_ref>477A.013, subdivision 1</statute_ref>, is limited to <br/>
<a id="pl.107.19"></a><var>107.19</var>$10,000,000 $12,000,000. For aids payable in 2015 and thereafter, the total aids paid <br/>
<a id="pl.107.20"></a><var>107.20</var>under section 
<statute_ref>477A.013, subdivision 1</statute_ref>, is limited to the amount certified to be paid in <br/>
<a id="pl.107.21"></a><var>107.21</var>the previous year.<br/>
<a id="pl.107.22"></a><var>107.22</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.107.23"></a><var>107.23</var>    Sec. 11. Minnesota Statutes 2014, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.107.24"></a><var>107.24</var>    Subdivision 1. <b>Types of land; payments.</b>  The following amounts are annually <br/>
<a id="pl.107.25"></a><var>107.25</var>appropriated to the commissioner of natural resources from the general fund for transfer
         <br/>
<a id="pl.107.26"></a><var>107.26</var>to the commissioner of revenue. The commissioner of revenue shall pay the transferred
         <br/>
<a id="pl.107.27"></a><var>107.27</var>funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The amounts, based on the <br/>
<a id="pl.107.28"></a><var>107.28</var>acreage as of July 1 of each year prior to the payment year, are:<br/>
<a id="pl.107.29"></a><var>107.29</var>(1) $5.133 multiplied by (i) the total number of acres of acquired natural resources <br/>
<a id="pl.107.30"></a><var>107.30</var>land or, at the county's option three-fourths of one percent of the appraised value
         of all <br/>
<a id="pl.107.31"></a><var>107.31</var>acquired natural resources land in the county, whichever is greater; and (ii) the total <br/>
<a id="pl.107.32"></a><var>107.32</var>number of acres in the county that were purchased by a federally recognized Indian
         tribe <br/>
<a id="pl.107.33"></a><var>107.33</var>with funding provided under section 97A.056;<br/>
<a id="pl.108.1"></a><var>108.1</var>(2) $5.133, multiplied by the total number of acres of transportation wetland or,
         at <br/>
<a id="pl.108.2"></a><var>108.2</var>the county's option, three-fourths of one percent of the appraised value of all transportation
         <br/>
<a id="pl.108.3"></a><var>108.3</var>wetland in the county, whichever is greater;<br/>
<a id="pl.108.4"></a><var>108.4</var>(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
         <br/>
<a id="pl.108.5"></a><var>108.5</var>at the county's option, three-fourths of one percent of the appraised value of all
         wildlife <br/>
<a id="pl.108.6"></a><var>108.6</var>management land in the county, whichever is greater;<br/>
<a id="pl.108.7"></a><var>108.7</var>(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
         <br/>
<a id="pl.108.8"></a><var>108.8</var>the number of acres of military refuge land in the county;<br/>
<a id="pl.108.9"></a><var>108.9</var>(5) $1.50 $2, multiplied by the number of acres of county-administered other natural <br/>
<a id="pl.108.10"></a><var>108.10</var>resources land in the county;<br/>
<a id="pl.108.11"></a><var>108.11</var>(6) $5.133, multiplied by the total number of acres of land utilization project land
         <br/>
<a id="pl.108.12"></a><var>108.12</var>in the county;<br/>
<a id="pl.108.13"></a><var>108.13</var>(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other <br/>
<a id="pl.108.14"></a><var>108.14</var>natural resources land in the county; and<br/>
<a id="pl.108.15"></a><var>108.15</var>    (8) without regard to acreage, and notwithstanding the rules adopted under section
         <br/>
<statute_ref><a id="pl.108.16"></a><var>108.16</var>84A.55
         </statute_ref>, $300,000 for local assessments under section 
         <statute_ref>84A.55, subdivision 9</statute_ref>, that shall be <br/>
<a id="pl.108.17"></a><var>108.17</var>divided and distributed to the counties containing state-owned lands within a conservation
         <br/>
<a id="pl.108.18"></a><var>108.18</var>area in proportion to each county's percentage of the total annual ditch assessments.; and<br/>
<a id="pl.108.19"></a><var>108.19</var>(9) without regard to acreage, and notwithstanding the rules adopted under section
         <br/>
<a id="pl.108.20"></a><var>108.20</var><statute_ref>84A.55</statute_ref>, $300,000 for past unpaid local assessments under section 
<statute_ref>84A.55, subdivision 9</statute_ref>, <br/>
<a id="pl.108.21"></a><var>108.21</var>shall be distributed to the counties containing state-owned lands within a conservation
         <br/>
<a id="pl.108.22"></a><var>108.22</var>area in proportion to each county's percentage of the total past unpaid ditch assessments.
         <br/>
<a id="pl.108.23"></a><var>108.23</var>The payments shall be made for aids payable in calendar years 2015 through 2024. The
         <br/>
<a id="pl.108.24"></a><var>108.24</var>payments made to counties under this paragraph shall be considered the final payment
         <br/>
<a id="pl.108.25"></a><var>108.25</var>for this purpose.<br/>
<a id="pl.108.26"></a><var>108.26</var>The commissioner of natural resources shall certify the number of acres and appraised
         <br/>
<a id="pl.108.27"></a><var>108.27</var>values for wildlife management lands under clause (3) for calendar year 2013 to the
         <br/>
<a id="pl.108.28"></a><var>108.28</var>commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the
         <br/>
<a id="pl.108.29"></a><var>108.29</var>payment for any positive difference in the 2013 payment under clause (3) by June 30,
         2014.<br/>
<a id="pl.108.30"></a><var>108.30</var><b>EFFECTIVE DATE.</b>Changes to clause (1) are effective for aids payable in <br/>
<a id="pl.108.31"></a><var>108.31</var>calendar year 2017 and thereafter. Changes to clauses (5), (7), and (9) are effective
         for <br/>
<a id="pl.108.32"></a><var>108.32</var>aids payable in calendar year 2015 and thereafter.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.108.33"></a><var>108.33</var>    Sec. 12. Minnesota Statutes 2014, section 477A.12, subdivision 2, is amended to read:<br/>
<a id="pl.109.1"></a><var>109.1</var>    Subd. 2. <b>Procedure.</b> (a) Each county auditor shall certify to the Department of <br/>
<a id="pl.109.2"></a><var>109.2</var>Natural Resources during July of each year prior to the payment year the number of
         acres <br/>
<a id="pl.109.3"></a><var>109.3</var>of county-administered other natural resources land within the county. The Department
         of <br/>
<a id="pl.109.4"></a><var>109.4</var>Natural resources may, in addition to the certification of acreage, require descriptive
         lists <br/>
<a id="pl.109.5"></a><var>109.5</var>of land so certified. The commissioner of natural resources shall determine and certify
         to <br/>
<a id="pl.109.6"></a><var>109.6</var>the commissioner of revenue by March 1 of the payment year:<br/>
<a id="pl.109.7"></a><var>109.7</var>(1) the number of acres and most recent appraised value of acquired natural <br/>
<a id="pl.109.8"></a><var>109.8</var>resources land, wildlife management land, and military refuge land within each county;<br/>
<a id="pl.109.9"></a><var>109.9</var>(2) the number of acres of commissioner-administered natural resources land within
         <br/>
<a id="pl.109.10"></a><var>109.10</var>each county;<br/>
<a id="pl.109.11"></a><var>109.11</var>(3) the number of acres of county-administered other natural resources land within
         <br/>
<a id="pl.109.12"></a><var>109.12</var>each county, based on the reports filed by each county auditor with the commissioner
         <br/>
<a id="pl.109.13"></a><var>109.13</var>of natural resources; and<br/>
<a id="pl.109.14"></a><var>109.14</var>(4) the number of acres of land utilization project land within each county; and<br/>
<a id="pl.109.15"></a><var>109.15</var>(5) the number of acres within each county purchased by a federally recognized <br/>
<a id="pl.109.16"></a><var>109.16</var>Indian tribe with funding provided under section 97A.056.<br/>
<a id="pl.109.17"></a><var>109.17</var>(b) The commissioner of transportation shall determine and certify to the <br/>
<a id="pl.109.18"></a><var>109.18</var>commissioner of revenue by March 1 of the payment year the number of acres of <br/>
<a id="pl.109.19"></a><var>109.19</var>transportation wetland and the appraised value of the land, but only if it exceeds
         500 <br/>
<a id="pl.109.20"></a><var>109.20</var>acres in a county.<br/>
<a id="pl.109.21"></a><var>109.21</var>(c) Each auditor of a county that contains state-owned lands within a conservation
         <br/>
<a id="pl.109.22"></a><var>109.22</var>area shall determine and certify to the commissioner of natural resources by May 31
         of <br/>
<a id="pl.109.23"></a><var>109.23</var>the payment year, the county's ditch assessments for state-owned lands subject to
         section <br/>
<statute_ref><a id="pl.109.24"></a><var>109.24</var>84A.55, subdivision 9
         </statute_ref>. A joint certification for two or more counties may be submitted to <br/>
<a id="pl.109.25"></a><var>109.25</var>the commissioner of natural resources through the Consolidated Conservation Counties
         <br/>
<a id="pl.109.26"></a><var>109.26</var>Joint Powers Board. The commissioner of natural resources shall certify the ditch
         <br/>
<a id="pl.109.27"></a><var>109.27</var>assessments to the commissioner of revenue by June 15 of the payment year. The <br/>
<a id="pl.109.28"></a><var>109.28</var>commissioner of natural resources shall certify the ditch assessments under this paragraph
         <br/>
<a id="pl.109.29"></a><var>109.29</var>for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the
         <br/>
<a id="pl.109.30"></a><var>109.30</var>payment for 2013 by June 30, 2014.<br/>
<a id="pl.109.31"></a><var>109.31</var>(d) The commissioner of revenue shall determine the distributions provided for in
         this <br/>
<a id="pl.109.32"></a><var>109.32</var>section using: (1) the number of acres and appraised values certified by the commissioner
         <br/>
<a id="pl.109.33"></a><var>109.33</var>of natural resources and the commissioner of transportation by March 1 of the payment
         <br/>
<a id="pl.109.34"></a><var>109.34</var>year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.<br/>
<a id="pl.109.35"></a><var>109.35</var><b>EFFECTIVE DATE.</b>This section is effective for certifications made in 2016 and <br/>
<a id="pl.109.36"></a><var>109.36</var>thereafter.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.110.1"></a><var>110.1</var>    Sec. 13. Minnesota Statutes 2014, section 477A.13, is amended to read:<br/>
<a id="pl.110.2"></a><var>110.2</var><b>477A.13 TIME OF PAYMENT, DEDUCTIONS.</b><br/>
<a id="pl.110.3"></a><var>110.3</var>Payments to the counties of the amounts determined under section 
         <statute_ref>477A.12</statute_ref> must <br/>
<a id="pl.110.4"></a><var>110.4</var>be made by the commissioner of revenue from the general fund at the time provided
         in <br/>
<a id="pl.110.5"></a><var>110.5</var>section 
         <statute_ref>477A.015</statute_ref> for the first second installment of local government aid.<br/>
<a id="pl.110.6"></a><var>110.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.110.7"></a><var>110.7</var>2016 and thereafter.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.110.8"></a><var>110.8</var>    Sec. 14. Minnesota Statutes 2014, section 477A.15, is amended to read:<br/>
<a id="pl.110.9"></a><var>110.9</var><b>477A.15 TACONITE AID REIMBURSEMENT.</b><br/>
<a id="pl.110.10"></a><var>110.10</var>Any school district in which is located property which had been entitled to a reduction
         <br/>
<a id="pl.110.11"></a><var>110.11</var>of tax pursuant to Minnesota Statutes 1978, section 
         <statute_ref>273.135, subdivision 2</statute_ref>, clause (c), <br/>
<a id="pl.110.12"></a><var>110.12</var>shall receive in 1981 and subsequent years an amount equal to the amount it received
         in <br/>
<a id="pl.110.13"></a><var>110.13</var>1980 pursuant to Minnesota Statutes 1978, section 
         <statute_ref>298.28, subdivision 1</statute_ref>, clause (3)(b). <br/>
<a id="pl.110.14"></a><var>110.14</var>Payments shall be made pursuant to this section and section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, <br/>
<a id="pl.110.15"></a><var>110.15</var>paragraph (5), by the commissioner of revenue to the taxing jurisdictions on the date
         in <br/>
<a id="pl.110.16"></a><var>110.16</var>each calendar year when the first second installment is paid under section 
         <statute_ref>477A.015</statute_ref>.<br/>
<a id="pl.110.17"></a><var>110.17</var><b>EFFECTIVE DATE.</b>This section is effective for payments made in calendar <br/>
<a id="pl.110.18"></a><var>110.18</var>year 2016 and thereafter.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.110.19"></a><var>110.19</var>    Sec. 15. Minnesota Statutes 2014, section 477A.20, is amended to read:<br/>
<a id="pl.110.20"></a><var>110.20</var><b>477A.20 DEBT SERVICE AID; </b><b>LEWIS AND CLARK JOINT POWERS </b><br/>
<a id="pl.110.21"></a><var>110.21</var><b>BOARD</b><b> </b><b>CITY OF WORTHINGTON</b><b>.</b><br/>
<a id="pl.110.22"></a><var>110.22</var>(a) The Lewis and Clark Joint Powers Board The city of Worthington is eligible to <br/>
<a id="pl.110.23"></a><var>110.23</var>receive an aid distribution under this section equal to (1) the principal and interest
         payable <br/>
<a id="pl.110.24"></a><var>110.24</var>in the succeeding calendar year for bonds issued under section 
         <statute_ref>469.194</statute_ref> minus the sum of <br/>
<a id="pl.110.25"></a><var>110.25</var>(2) the combined adjusted net tax capacity of Rock County and Nobles County for the <br/>
<a id="pl.110.26"></a><var>110.26</var>assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50
         percent <br/>
<a id="pl.110.27"></a><var>110.27</var>of any federal aid received to fund the project in the calendar year the total local share. For <br/>
<a id="pl.110.28"></a><var>110.28</var>purposes of this section, the "total local share" is as follows: the city of Worthington
         shall <br/>
<a id="pl.110.29"></a><var>110.29</var>pay $300,000, the city of Luverne shall pay $100,000, Rock County shall pay $50,000,
         and <br/>
<a id="pl.110.30"></a><var>110.30</var>Nobles County shall pay $50,000. Each municipality other than the city of Worthington
         <br/>
<a id="pl.110.31"></a><var>110.31</var>shall pay the amount indicated to the city of Worthington by July 1 of the year following
         <br/>
<a id="pl.110.32"></a><var>110.32</var>the year in which the bonds were issued and in each year thereafter until all principal
         <br/>
<a id="pl.111.1"></a><var>111.1</var>and interest has been paid. If a jurisdiction fails to pay the amount as indicated,
         the aid <br/>
<a id="pl.111.2"></a><var>111.2</var>reductions for that municipality under section 477A.21 shall be made. The commissioner
         <br/>
<a id="pl.111.3"></a><var>111.3</var>of revenue shall add the amount of any aid reduction to the aid distribution under
         this <br/>
<a id="pl.111.4"></a><var>111.4</var>section. The Board city of Worthington shall certify to the commissioner of revenue any <br/>
<a id="pl.111.5"></a><var>111.5</var>federal aid allocated to the project for the calendar year and the principal and interest due <br/>
<a id="pl.111.6"></a><var>111.6</var>in the succeeding calendar year by June 1 of the aid payable year. The commissioner
         of <br/>
<a id="pl.111.7"></a><var>111.7</var>revenue shall calculate the aid payable under this section and certify the amount
         payable <br/>
<a id="pl.111.8"></a><var>111.8</var>before July 1 of the aid distribution year. The commissioner shall pay the aid under
         this <br/>
<a id="pl.111.9"></a><var>111.9</var>section to the board city of Worthington at the times specified for payments of local <br/>
<a id="pl.111.10"></a><var>111.10</var>government aid in section 
         <statute_ref>477A.015</statute_ref>. An amount sufficient to pay the state aid authorized <br/>
<a id="pl.111.11"></a><var>111.11</var>under this section is annually appropriated to the commissioner from the general fund.<br/>
<a id="pl.111.12"></a><var>111.12</var>(b) The board must allocate the aid to the municipalities issuing bonds under section
         <br/>
<a id="pl.111.13"></a><var>111.13</var><statute_ref>469.194</statute_ref> in proportion to their principal and interest payments.<br/>
<a id="pl.111.14"></a><var>111.14</var>(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment <br/>
<a id="pl.111.15"></a><var>111.15</var>under this section in a calendar year, then the excess of the deduction must be carried
         <br/>
<a id="pl.111.16"></a><var>111.16</var>over and used to reduce the principal and interest in the succeeding year or years
         used to <br/>
<a id="pl.111.17"></a><var>111.17</var>calculate aid under paragraph (a).<br/>
<a id="pl.111.18"></a><var>111.18</var>(d) If federal grants and aid received for the project, not deducted under paragraph
         <br/>
<a id="pl.111.19"></a><var>111.19</var>(a), clause (3), exceed the total debt service payments for bonds issued under section
         <br/>
<a id="pl.111.20"></a><var>111.20</var><statute_ref>469.194</statute_ref>, other than payments made with state aid under this section, the joint powers <br/>
<a id="pl.111.21"></a><var>111.21</var>board must repay any excess to the commissioner of revenue for deposit in the general
         <br/>
<a id="pl.111.22"></a><var>111.22</var>fund. The repayment may not exceed the sum of state aid payments under this section
         and <br/>
<a id="pl.111.23"></a><var>111.23</var>any other grants made by the state for the project.<br/>
<a id="pl.111.24"></a><var>111.24</var>(e) (b) This section expires at the earlier of January 1, 2039, or when the bonds <br/>
<a id="pl.111.25"></a><var>111.25</var>authorized under section 
         <statute_ref>469.194</statute_ref> have been paid or defeased.<br/>
<a id="pl.111.26"></a><var>111.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.111.27"></a><var>111.27</var>    Sec. 16. <b>[477A.21] AID REDUCTIONS.</b><br/>
<a id="pl.111.28"></a><var>111.28</var>If a municipality fails to pay the amount indicated in section 477A.20, paragraph
         (a), <br/>
<a id="pl.111.29"></a><var>111.29</var>the city of Worthington must notify the commissioner of revenue by July 5. The following
         <br/>
<a id="pl.111.30"></a><var>111.30</var>aid reduction for that municipality must be made for that year:<br/>
<a id="pl.111.31"></a><var>111.31</var>(1) for the city of Luverne, the aid payable under section 477A.013, subdivision <br/>
<a id="pl.111.32"></a><var>111.32</var>9, shall be reduced by $100,000;<br/>
<a id="pl.111.33"></a><var>111.33</var>(2) for Rock County, the aid payable under section 477A.0124, subdivision 3, shall
         <br/>
<a id="pl.111.34"></a><var>111.34</var>be reduced by $50,000; and<br/>
<a id="pl.112.1"></a><var>112.1</var>(3) for Nobles County, the aid payable under section 477A.0124, subdivision 3, shall
         <br/>
<a id="pl.112.2"></a><var>112.2</var>be reduced by $50,000.<br/>
<a id="pl.112.3"></a><var>112.3</var>The amount of the aid reductions under this section shall cancel to the general fund.<br/>
<a id="pl.112.4"></a><var>112.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.112.5"></a><var>112.5</var>    Sec. 17. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended <br/>
<a id="pl.112.6"></a><var>112.6</var>to read:<br/>
<a id="pl.112.7"></a><var>112.7</var>    Sec. 86. <b>RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT </b><br/>
<a id="pl.112.8"></a><var>112.8</var><b>IN LIEU OF TAXES.</b><br/>
<a id="pl.112.9"></a><var>112.9</var>    (a) The Red River watershed management board may spend money from its general <br/>
<a id="pl.112.10"></a><var>112.10</var>fund to compensate counties and townships for lost tax revenue from land that becomes
         <br/>
<a id="pl.112.11"></a><var>112.11</var>tax exempt after it is acquired by the board or a member watershed district for flood
         <br/>
<a id="pl.112.12"></a><var>112.12</var>damage reduction project. The amount that may be paid under this section to a county
         <br/>
<a id="pl.112.13"></a><var>112.13</var>or township must not exceed the tax that was payable to that taxing jurisdiction on
         the <br/>
<a id="pl.112.14"></a><var>112.14</var>land in the last taxes payable year before the land became exempt due to the acquisition,
         <br/>
<a id="pl.112.15"></a><var>112.15</var>not to exceed $4 $5.133 per acre, multiplied by 20. This total amount may be paid in one <br/>
<a id="pl.112.16"></a><var>112.16</var>payment, or in equal annual installments over a period that does not exceed 20 years.
         A <br/>
<a id="pl.112.17"></a><var>112.17</var>member watershed district of the Red River management board may spend money from its
         <br/>
<a id="pl.112.18"></a><var>112.18</var>construction fund for the purposes described in this section.<br/>
<a id="pl.112.19"></a><var>112.19</var>    (b) For the purposes of this section, "Red River watershed management board" <br/>
<a id="pl.112.20"></a><var>112.20</var>refers to the board established by Laws 1976, chapter 162, section 1, as amended by
         Laws <br/>
<a id="pl.112.21"></a><var>112.21</var>1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
         <br/>
<a id="pl.112.22"></a><var>112.22</var>Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
         <br/>
<a id="pl.112.23"></a><var>112.23</var>1998, chapter 389, article 3, section 29.<br/>
<a id="pl.112.24"></a><var>112.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.112.25"></a><var>112.25</var>2015 and thereafter.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.112.26"></a><var>112.26</var>    Sec. 18. <b>2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.</b><br/>
<a id="pl.112.27"></a><var>112.27</var>Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of <br/>
<a id="pl.112.28"></a><var>112.28</var>Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         <br/>
<a id="pl.112.29"></a><var>112.29</var>Statutes, section 477A.013, that was withheld under Minnesota Statutes, section <br/>
<a id="pl.112.30"></a><var>112.30</var>477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
         <br/>
<a id="pl.112.31"></a><var>112.31</var>of revenue that it received audited financial statements from the city for calendar
         year <br/>
<a id="pl.112.32"></a><var>112.32</var>2012 by December 31, 2013. The commissioner of revenue shall make a payment of <br/>
<a id="pl.112.33"></a><var>112.33</var>$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
         <br/>
<a id="pl.113.1"></a><var>113.1</var>$37,473.50 is appropriated from the general fund to the commissioner of revenue in
         fiscal <br/>
<a id="pl.113.2"></a><var>113.2</var>year 2016 to make this payment.<br/>
<a id="pl.113.3"></a><var>113.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.113.4"></a><var>113.4</var>    Sec. 19. <b>2014 AID PENALTY FORGIVENESS.</b><br/>
<a id="pl.113.5"></a><var>113.5</var>(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         <br/>
<a id="pl.113.6"></a><var>113.6</var>of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid
         payment <br/>
<a id="pl.113.7"></a><var>113.7</var>that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         <br/>
<a id="pl.113.8"></a><var>113.8</var>that the state auditor certifies to the commissioner of revenue that the city complied
         with <br/>
<a id="pl.113.9"></a><var>113.9</var>all reporting requirements under Minnesota Statutes, section 477A.017, subdivision
         3, for <br/>
<a id="pl.113.10"></a><var>113.10</var>calendar years 2013 and 2014 by June 1, 2015.<br/>
<a id="pl.113.11"></a><var>113.11</var>(b) The commissioner of revenue shall make payment to each city no later than June
         <br/>
<a id="pl.113.12"></a><var>113.12</var>30, 2015. Up to $101,570 of the fiscal year 2015 appropriation for local government
         aid is <br/>
<a id="pl.113.13"></a><var>113.13</var>available for the payment under this section.<br/>
<a id="pl.113.14"></a><var>113.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.113.17"></a><var>113.17</var>    Section 1. <b>[116J.549] WORKFORCE HOUSING TAX CREDIT.</b><br/>
<a id="pl.113.18"></a><var>113.18</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.113.19"></a><var>113.19</var>have the meanings given.<br/>
<a id="pl.113.20"></a><var>113.20</var>(b) "City" means a statutory or home rule charter city.<br/>
<a id="pl.113.21"></a><var>113.21</var>(c) "Eligible project area" means an area that meets the following criteria:<br/>
<a id="pl.113.22"></a><var>113.22</var>(1) a census block with a population density over 200 persons per square mile <br/>
<a id="pl.113.23"></a><var>113.23</var>according to the most recent United States census data available;<br/>
<a id="pl.113.24"></a><var>113.24</var>(2) located in a city with a population greater than 1,000;<br/>
<a id="pl.113.25"></a><var>113.25</var>(3) having a median number of full-time jobs of at least 500 for the last five years;<br/>
<a id="pl.113.26"></a><var>113.26</var>(4) the average vacancy rate for rental housing located in the municipality and in
         <br/>
<a id="pl.113.27"></a><var>113.27</var>any statutory or home rule charter city located within 15 miles or less of the boundaries
         <br/>
<a id="pl.113.28"></a><var>113.28</var>of the municipality has been four percent or less for at least the immediately preceding
         <br/>
<a id="pl.113.29"></a><var>113.29</var>two-year period; <br/>
<a id="pl.113.30"></a><var>113.30</var>(5) located in an area served by a joint county-city economic development authority
         <br/>
<a id="pl.113.31"></a><var>113.31</var>or located in an area outside the following counties: Anoka, Benton, Carver, Chisago,
         <br/>
<a id="pl.113.32"></a><var>113.32</var>Dakota, Hennepin, Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington,
         <br/>
<a id="pl.113.33"></a><var>113.33</var>and Wright; and<br/>
<a id="pl.114.1"></a><var>114.1</var>(6) fewer than four market rate residential rental units per 1,000 residents were
         <br/>
<a id="pl.114.2"></a><var>114.2</var>constructed in the city in the last ten years without government financing, grants,
         or other <br/>
<a id="pl.114.3"></a><var>114.3</var>subsidies, other than subsidies under this section or section 469.175, subdivision
         3.<br/>
<a id="pl.114.4"></a><var>114.4</var>(d) "Joint county-city economic development authority" means an economic <br/>
<a id="pl.114.5"></a><var>114.5</var>development authority, formed under Laws 1988, chapter 516, section 1, as a joint
         <br/>
<a id="pl.114.6"></a><var>114.6</var>partnership between a city and county and excluding those established by the county
         only.<br/>
<a id="pl.114.7"></a><var>114.7</var>(e) "Market rate residential rental properties" means properties that are rented at
         <br/>
<a id="pl.114.8"></a><var>114.8</var>market value and excludes: (1) properties constructed with financial assistance requiring
         <br/>
<a id="pl.114.9"></a><var>114.9</var>the property to be occupied by residents that meet income limits under federal or
         state <br/>
<a id="pl.114.10"></a><var>114.10</var>law of initial occupancy; and (2) properties constructed with federal, state, or local
         flood <br/>
<a id="pl.114.11"></a><var>114.11</var>recovery assistance, regardless of whether that assistance imposed income limits as
         a <br/>
<a id="pl.114.12"></a><var>114.12</var>condition of receiving assistance.<br/>
<a id="pl.114.13"></a><var>114.13</var>(f) "Officer" means a person elected or appointed by the board of directors to <br/>
<a id="pl.114.14"></a><var>114.14</var>manage the daily operations of a business.<br/>
<a id="pl.114.15"></a><var>114.15</var>(g) "Principal" means a person having authority to act on behalf of a business.<br/>
<a id="pl.114.16"></a><var>114.16</var>(h) "Qualified investment" means a cash investment or the fair market value <br/>
<a id="pl.114.17"></a><var>114.17</var>equivalent for common stock, land, a partnership or membership interest, preferred
         <br/>
<a id="pl.114.18"></a><var>114.18</var>stock, debt with mandatory conversion to equity, or an equivalent ownership interest
         as <br/>
<a id="pl.114.19"></a><var>114.19</var>determined by the commissioner that is made in a qualified workforce housing project.<br/>
<a id="pl.114.20"></a><var>114.20</var>(i) "Qualified project investor" means an investor who has been certified by the <br/>
<a id="pl.114.21"></a><var>114.21</var>commissioner under subdivision 2.<br/>
<a id="pl.114.22"></a><var>114.22</var>(j) "Qualifying workforce housing project" means a project:<br/>
<a id="pl.114.23"></a><var>114.23</var>(1) for market rate residential rental properties with a minimum of three dwelling
         <br/>
<a id="pl.114.24"></a><var>114.24</var>units;<br/>
<a id="pl.114.25"></a><var>114.25</var>(2) with a cost per unit of no more than $150,000 and no less than $75,000;<br/>
<a id="pl.114.26"></a><var>114.26</var>(3) located in an eligible project area;<br/>
<a id="pl.114.27"></a><var>114.27</var>(4) that has more than 50 percent nonstate funding proposed to fund the project; and<br/>
<a id="pl.114.28"></a><var>114.28</var>(5) that has been designated by the commissioner as a qualifying workforce housing
         <br/>
<a id="pl.114.29"></a><var>114.29</var>project.<br/>
<a id="pl.114.30"></a><var>114.30</var>    Subd. 2. <b>Qualified project investor tax credits.</b> (a) A credit of up to $1,000,000 is <br/>
<a id="pl.114.31"></a><var>114.31</var>allowed against the tax imposed under chapter 290 for a taxpayer that makes a qualified
         <br/>
<a id="pl.114.32"></a><var>114.32</var>investment in a qualified workforce housing project equal to 33 percent of the amount
         of <br/>
<a id="pl.114.33"></a><var>114.33</var>the qualified investment. <br/>
<a id="pl.114.34"></a><var>114.34</var>(b) The credit under this subdivision is allowed in the taxable year that the qualified
         <br/>
<a id="pl.114.35"></a><var>114.35</var>workforce housing project has housing units that are certified for occupancy by the
         <br/>
<a id="pl.114.36"></a><var>114.36</var>Department of Labor and Industry or a city inspector.<br/>
<a id="pl.115.1"></a><var>115.1</var>(c) The commissioner must not allocate more than $5,000,000 in credits to qualified
         <br/>
<a id="pl.115.2"></a><var>115.2</var>project investors for taxable years beginning after December 31, 2015, and before
         January <br/>
<a id="pl.115.3"></a><var>115.3</var>1, 2017, and must not allocate more than $7,000,000 in credits to qualified project
         <br/>
<a id="pl.115.4"></a><var>115.4</var>investors for taxable years beginning after December 31, 2016, and before January
         1, <br/>
<a id="pl.115.5"></a><var>115.5</var>2022. The commissioner must not allocate more than 33 percent of qualified project
         <br/>
<a id="pl.115.6"></a><var>115.6</var>investor tax credits to the same qualified workforce housing project.<br/>
<a id="pl.115.7"></a><var>115.7</var>(d) Applications for tax credits for a taxable year must be made available by <br/>
<a id="pl.115.8"></a><var>115.8</var>the commissioner by November 1 of the prior calendar year. The commissioner must <br/>
<a id="pl.115.9"></a><var>115.9</var>make every effort to provide applications and relevant data to applicants in a simple,
         <br/>
<a id="pl.115.10"></a><var>115.10</var>concise manner using plain language. Tax credits must be allocated to qualified project
         <br/>
<a id="pl.115.11"></a><var>115.11</var>investors in the order that the tax credit request applications are filed, except
         where <br/>
<a id="pl.115.12"></a><var>115.12</var>the commissioner determines the investment is circumventing the spirit of the law
         or <br/>
<a id="pl.115.13"></a><var>115.13</var>where little or no local economic growth would occur as a result of the investment.
         The <br/>
<a id="pl.115.14"></a><var>115.14</var>commissioner must approve or reject a tax credit request application within 15 days
         of <br/>
<a id="pl.115.15"></a><var>115.15</var>receiving the application. The investment specified in the application must be made
         within <br/>
<a id="pl.115.16"></a><var>115.16</var>60 days of the allocation of the credit. If the investment is not made within 60 days,
         the <br/>
<a id="pl.115.17"></a><var>115.17</var>credit allocation is canceled. A qualified project investor who fails to invest as
         specified in <br/>
<a id="pl.115.18"></a><var>115.18</var>the application must notify the commissioner immediately and no later than five business
         <br/>
<a id="pl.115.19"></a><var>115.19</var>days after the expiration of the 60-day investment period. The commissioner may require
         <br/>
<a id="pl.115.20"></a><var>115.20</var>an application fee for the applications submitted under this subdivision.<br/>
<a id="pl.115.21"></a><var>115.21</var>(e) All tax credit request applications filed with the department on the same day
         <br/>
<a id="pl.115.22"></a><var>115.22</var>must be treated as having been filed contemporaneously. If two or more qualified project
         <br/>
<a id="pl.115.23"></a><var>115.23</var>investors file tax credit request applications on the same day, and the aggregate
         amount of <br/>
<a id="pl.115.24"></a><var>115.24</var>credit allocation claims exceeds the aggregate limit of credits under this section
         or the lesser <br/>
<a id="pl.115.25"></a><var>115.25</var>amount of credits that remain unallocated on that day, then the credits must be allocated
         <br/>
<a id="pl.115.26"></a><var>115.26</var>among the qualified project investors who filed on that day on a pro rata basis with
         respect <br/>
<a id="pl.115.27"></a><var>115.27</var>to the amounts claimed. The pro rata allocation for any one qualified project investor
         is the <br/>
<a id="pl.115.28"></a><var>115.28</var>product obtained by multiplying a fraction, the numerator of which is the amount of
         the <br/>
<a id="pl.115.29"></a><var>115.29</var>credit allocation claim filed on behalf of a qualified project investor and the denominator
         <br/>
<a id="pl.115.30"></a><var>115.30</var>of which is the total of all credit allocation claims filed on behalf of all applicants
         on that <br/>
<a id="pl.115.31"></a><var>115.31</var>day, by the amount of credits that remain unallocated on that day for the taxable
         year.<br/>
<a id="pl.115.32"></a><var>115.32</var>(f) If a credit allocation has been granted to the qualified project investor and
         the <br/>
<a id="pl.115.33"></a><var>115.33</var>qualified project investor has made the investment specified in the application as
         required <br/>
<a id="pl.115.34"></a><var>115.34</var>under paragraph (d), the commissioner must issue a credit certificate to the taxpayer
         <br/>
<a id="pl.115.35"></a><var>115.35</var>designated in the application. The credit certificate must state the amount of the
         credit. <br/>
<a id="pl.116.1"></a><var>116.1</var>The commissioner must notify the commissioner of revenue of credit certificates issued
         <br/>
<a id="pl.116.2"></a><var>116.2</var>under this subdivision.<br/>
<a id="pl.116.3"></a><var>116.3</var>(g) The commissioner of revenue shall prescribe the manner in which the credit <br/>
<a id="pl.116.4"></a><var>116.4</var>may be issued or claimed.<br/>
<a id="pl.116.5"></a><var>116.5</var>    Subd. 3. <b>Transfer and revocation of credits.</b> (a) A tax credit under this section <br/>
<a id="pl.116.6"></a><var>116.6</var>is not transferable to any other taxpayer. Credits passed through to partners, members,
         <br/>
<a id="pl.116.7"></a><var>116.7</var>shareholders, or owners are not considered transfers for purposes of this subdivision.<br/>
<a id="pl.116.8"></a><var>116.8</var>(b) If the commissioner discovers that a qualified project investor did not meet the
         <br/>
<a id="pl.116.9"></a><var>116.9</var>eligibility requirements for the tax credits under this section after the credits
         have been <br/>
<a id="pl.116.10"></a><var>116.10</var>allocated, the commissioner may determine that credit allocated is revoked and must
         be <br/>
<a id="pl.116.11"></a><var>116.11</var>repaid by the investor. The commissioner must notify the commissioner of revenue of
         <br/>
<a id="pl.116.12"></a><var>116.12</var>every credit revoked and subject to full or partial repayment under this section.<br/>
<a id="pl.116.13"></a><var>116.13</var>    Subd. 4. <b>Reporting.</b> Beginning in 2017, the commissioner must annually report <br/>
<a id="pl.116.14"></a><var>116.14</var>by March 15 to the chairs and ranking minority members of the committees in the senate
         <br/>
<a id="pl.116.15"></a><var>116.15</var>and house of representatives with jurisdiction over taxes and economic development,
         in <br/>
<a id="pl.116.16"></a><var>116.16</var>compliance with sections 3.195 and 3.197, on tax credits issued under this section.
         The <br/>
<a id="pl.116.17"></a><var>116.17</var>report must include:<br/>
<a id="pl.116.18"></a><var>116.18</var>(1) information about the availability of workforce housing in greater Minnesota;<br/>
<a id="pl.116.19"></a><var>116.19</var>(2) information from employers and communities in greater Minnesota about <br/>
<a id="pl.116.20"></a><var>116.20</var>whether or not workforce housing needs are being met;<br/>
<a id="pl.116.21"></a><var>116.21</var>(3) which projects have been funded by the workforce housing tax credit and <br/>
<a id="pl.116.22"></a><var>116.22</var>whether previously funded projects have created economic growth;<br/>
<a id="pl.116.23"></a><var>116.23</var>(4) any suggested legislation to accelerate construction of workforce housing;<br/>
<a id="pl.116.24"></a><var>116.24</var>(5) the number and amount of tax credits issued and the identity of the recipients;<br/>
<a id="pl.116.25"></a><var>116.25</var>(6) the number and amount of tax credits revoked under subdivision 3;<br/>
<a id="pl.116.26"></a><var>116.26</var>(7) the location, total cost of, and expected rent to be received as a result of <br/>
<a id="pl.116.27"></a><var>116.27</var>qualifying workforce housing projects funded under this section; and<br/>
<a id="pl.116.28"></a><var>116.28</var>(8) any other relevant information needed to evaluate the effect of the workforce
         <br/>
<a id="pl.116.29"></a><var>116.29</var>housing tax credits.<br/>
<a id="pl.116.30"></a><var>116.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.116.31"></a><var>116.31</var>December 31, 2015.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.116.32"></a><var>116.32</var>    Sec. 2. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision <br/>
<a id="pl.116.33"></a><var>116.33</var>to read:<br/>
<a id="pl.117.1"></a><var>117.1</var>    Subd. 38. <b>Workforce housing tax credit.</b> (a) A taxpayer is allowed a credit against <br/>
<a id="pl.117.2"></a><var>117.2</var>the tax under this chapter equal to the amount certified by the commissioner of employment
         <br/>
<a id="pl.117.3"></a><var>117.3</var>and economic development under section 116J.549 to the  taxpayer for the taxable year.<br/>
<a id="pl.117.4"></a><var>117.4</var>(b) Credits allowed to a partnership, limited liability company taxed as a partnership,
         <br/>
<a id="pl.117.5"></a><var>117.5</var>corporation, or multiple owners of property are passed through to the partners, members,
         <br/>
<a id="pl.117.6"></a><var>117.6</var>shareholders, or owners, respectively, pro rata to each partner, member, shareholder,
         or <br/>
<a id="pl.117.7"></a><var>117.7</var>owner based on that person's share of the entity's income for the taxable year.<br/>
<a id="pl.117.8"></a><var>117.8</var>(c) If the amount of the credit that the taxpayer is eligible to receive under this
         <br/>
<a id="pl.117.9"></a><var>117.9</var>subdivision exceeds the liability for tax under this chapter, the commissioner shall
         <br/>
<a id="pl.117.10"></a><var>117.10</var>refund the excess to the taxpayer. For purposes of this subdivision, "liability for
         tax" <br/>
<a id="pl.117.11"></a><var>117.11</var>means the tax imposed under this chapter for the taxable year reduced by the sum of
         the <br/>
<a id="pl.117.12"></a><var>117.12</var>nonrefundable credits allowed under this chapter.<br/>
<a id="pl.117.13"></a><var>117.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.117.14"></a><var>117.14</var>December 31, 2015.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.117.15"></a><var>117.15</var>    Sec. 3. Minnesota Statutes 2014, section 469.174, subdivision 12, is amended to read:<br/>
<a id="pl.117.16"></a><var>117.16</var>    Subd. 12. <b>Economic development district.</b> "Economic development district" <br/>
<a id="pl.117.17"></a><var>117.17</var>means a type of tax increment financing district which consists of any project, or
         portions <br/>
<a id="pl.117.18"></a><var>117.18</var>of a project, which the authority finds to be in the public interest because:<br/>
<a id="pl.117.19"></a><var>117.19</var>(1) it will discourage commerce, industry, or manufacturing from moving their <br/>
<a id="pl.117.20"></a><var>117.20</var>operations to another state or municipality; or<br/>
<a id="pl.117.21"></a><var>117.21</var>(2) it will result in increased employment in the state; or<br/>
<a id="pl.117.22"></a><var>117.22</var>(3) it will result in preservation and enhancement of the tax base of the state; or<br/>
<a id="pl.117.23"></a><var>117.23</var>(4) it satisfies the requirements of a workforce housing project under section <br/>
<a id="pl.117.24"></a><var>117.24</var>469.176, subdivision 4c, paragraph (d).<br/>
<a id="pl.117.25"></a><var>117.25</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.117.26"></a><var>117.26</var>certification is made after June 30, 2015.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.117.27"></a><var>117.27</var>    Sec. 4. Minnesota Statutes 2014, section 469.175, subdivision 3, is amended to read:<br/>
<a id="pl.117.28"></a><var>117.28</var>    Subd. 3. <b>Municipality approval.</b> (a) A county auditor shall not certify the original <br/>
<a id="pl.117.29"></a><var>117.29</var>net tax capacity of a tax increment financing district until the tax increment financing
         plan <br/>
<a id="pl.117.30"></a><var>117.30</var>proposed for that district has been approved by the municipality in which the district
         <br/>
<a id="pl.117.31"></a><var>117.31</var>is located. If an authority that proposes to establish a tax increment financing district
         <br/>
<a id="pl.117.32"></a><var>117.32</var>and the municipality are not the same, the authority shall apply to the municipality
         in <br/>
<a id="pl.117.33"></a><var>117.33</var>which the district is proposed to be located and shall obtain the approval of its
         tax <br/>
<a id="pl.118.1"></a><var>118.1</var>increment financing plan by the municipality before the authority may use tax increment
         <br/>
<a id="pl.118.2"></a><var>118.2</var>financing. The municipality shall approve the tax increment financing plan only after
         a <br/>
<a id="pl.118.3"></a><var>118.3</var>public hearing thereon after published notice in a newspaper of general circulation
         in the <br/>
<a id="pl.118.4"></a><var>118.4</var>municipality at least once not less than ten days nor more than 30 days prior to the
         date <br/>
<a id="pl.118.5"></a><var>118.5</var>of the hearing. The published notice must include a map of the area of the district
         from <br/>
<a id="pl.118.6"></a><var>118.6</var>which increments may be collected and, if the project area includes additional area,
         a map <br/>
<a id="pl.118.7"></a><var>118.7</var>of the project area in which the increments may be expended. The hearing may be held
         <br/>
<a id="pl.118.8"></a><var>118.8</var>before or after the approval or creation of the project or it may be held in conjunction
         with <br/>
<a id="pl.118.9"></a><var>118.9</var>a hearing to approve the project.<br/>
<a id="pl.118.10"></a><var>118.10</var>    (b) Before or at the time of approval of the tax increment financing plan, the <br/>
<a id="pl.118.11"></a><var>118.11</var>municipality shall make the following findings, and shall set forth in writing the
         reasons <br/>
<a id="pl.118.12"></a><var>118.12</var>and supporting facts for each determination:<br/>
<a id="pl.118.13"></a><var>118.13</var>    (1) that the proposed tax increment financing district is a redevelopment district,
         a <br/>
<a id="pl.118.14"></a><var>118.14</var>renewal or renovation district, a housing district, a soils condition district, or
         an economic <br/>
<a id="pl.118.15"></a><var>118.15</var>development district; if the proposed district is a redevelopment district or a renewal
         or <br/>
<a id="pl.118.16"></a><var>118.16</var>renovation district, the reasons and supporting facts for the determination that the
         district <br/>
<a id="pl.118.17"></a><var>118.17</var>meets the criteria of section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (a), clauses (1) and (2), or <br/>
<a id="pl.118.18"></a><var>118.18</var>subdivision 10a, must be documented in writing and retained and made available to
         the <br/>
<a id="pl.118.19"></a><var>118.19</var>public by the authority until the district has been terminated;<br/>
<a id="pl.118.20"></a><var>118.20</var>    (2) that, in the opinion of the municipality:<br/>
<a id="pl.118.21"></a><var>118.21</var>    (i) the proposed development or redevelopment would not reasonably be expected to
         <br/>
<a id="pl.118.22"></a><var>118.22</var>occur solely through private investment within the reasonably foreseeable future;
         and<br/>
<a id="pl.118.23"></a><var>118.23</var>    (ii) the increased market value of the site that could reasonably be expected to occur
         <br/>
<a id="pl.118.24"></a><var>118.24</var>without the use of tax increment financing would be less than the increase in the
         market <br/>
<a id="pl.118.25"></a><var>118.25</var>value estimated to result from the proposed development after subtracting the present
         <br/>
<a id="pl.118.26"></a><var>118.26</var>value of the projected tax increments for the maximum duration of the district permitted
         <br/>
<a id="pl.118.27"></a><var>118.27</var>by the plan. The requirements of this item do not apply if the district is a housing
         district;<br/>
<a id="pl.118.28"></a><var>118.28</var>    (3) that the tax increment financing plan conforms to the general plan for the <br/>
<a id="pl.118.29"></a><var>118.29</var>development or redevelopment of the municipality as a whole;<br/>
<a id="pl.118.30"></a><var>118.30</var>    (4) that the tax increment financing plan will afford maximum opportunity, <br/>
<a id="pl.118.31"></a><var>118.31</var>consistent with the sound needs of the municipality as a whole, for the development
         or <br/>
<a id="pl.118.32"></a><var>118.32</var>redevelopment of the project by private enterprise;<br/>
<a id="pl.118.33"></a><var>118.33</var>    (5) that the municipality elects the method of tax increment computation set forth
         in <br/>
<a id="pl.118.34"></a><var>118.34</var>section 
         <statute_ref>469.177, subdivision 3, paragraph (b)</statute_ref>, if applicable.<br/>
<a id="pl.118.35"></a><var>118.35</var>    (c) When the municipality and the authority are not the same, the municipality shall
         <br/>
<a id="pl.118.36"></a><var>118.36</var>approve or disapprove the tax increment financing plan within 60 days of submission
         by the <br/>
<a id="pl.119.1"></a><var>119.1</var>authority. When the municipality and the authority are not the same, the municipality
         may <br/>
<a id="pl.119.2"></a><var>119.2</var>not amend or modify a tax increment financing plan except as proposed by the authority
         <br/>
<a id="pl.119.3"></a><var>119.3</var>pursuant to subdivision 4. Once approved, the determination of the authority to undertake
         <br/>
<a id="pl.119.4"></a><var>119.4</var>the project through the use of tax increment financing and the resolution of the governing
         <br/>
<a id="pl.119.5"></a><var>119.5</var>body shall be conclusive of the findings therein and of the public need for the financing.<br/>
<a id="pl.119.6"></a><var>119.6</var>    (d) For a district that is subject to the requirements of paragraph (b), clause (2),
         <br/>
<a id="pl.119.7"></a><var>119.7</var>item (ii), the municipality's statement of reasons and supporting facts must include
         all of <br/>
<a id="pl.119.8"></a><var>119.8</var>the following:<br/>
<a id="pl.119.9"></a><var>119.9</var>    (1) an estimate of the amount by which the market value of the site will increase
         <br/>
<a id="pl.119.10"></a><var>119.10</var>without the use of tax increment financing;<br/>
<a id="pl.119.11"></a><var>119.11</var>    (2) an estimate of the increase in the market value that will result from the <br/>
<a id="pl.119.12"></a><var>119.12</var>development or redevelopment to be assisted with tax increment financing; and<br/>
<a id="pl.119.13"></a><var>119.13</var>    (3) the present value of the projected tax increments for the maximum duration of
         <br/>
<a id="pl.119.14"></a><var>119.14</var>the district permitted by the tax increment financing plan.<br/>
<a id="pl.119.15"></a><var>119.15</var>    (e) For purposes of this subdivision, "site" means the parcels on which the <br/>
<a id="pl.119.16"></a><var>119.16</var>development or redevelopment to be assisted with tax increment financing will be located.<br/>
<a id="pl.119.17"></a><var>119.17</var>(f) Before or at the time of approval of the tax increment financing plan for a district
         <br/>
<a id="pl.119.18"></a><var>119.18</var>to be used to fund a workforce housing project under section 469.176, subdivision
         4c, <br/>
<a id="pl.119.19"></a><var>119.19</var>paragraph (d), the municipality shall make the following findings and shall set forth
         in <br/>
<a id="pl.119.20"></a><var>119.20</var>writing the reasons and supporting facts for each determination:<br/>
<a id="pl.119.21"></a><var>119.21</var>(1) the city has a population greater than 1,000;<br/>
<a id="pl.119.22"></a><var>119.22</var>(2) having a median number of full-time jobs of at least 500 for the last five years;<br/>
<a id="pl.119.23"></a><var>119.23</var>(3) located in a census block with a population density over 200 persons per square
         <br/>
<a id="pl.119.24"></a><var>119.24</var>mile, according to the most recent United States census data available;<br/>
<a id="pl.119.25"></a><var>119.25</var>(4) located in an area served by a joint county-city economic development authority
         <br/>
<a id="pl.119.26"></a><var>119.26</var>or outside the following counties: Anoka, Benton, Carver, Chisago, Dakota, Hennepin,
         <br/>
<a id="pl.119.27"></a><var>119.27</var>Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright;<br/>
<a id="pl.119.28"></a><var>119.28</var>(5) the average vacancy rate for rental housing located in the municipality, and in
         <br/>
<a id="pl.119.29"></a><var>119.29</var>any statutory or home rule charter city located within 15 miles or less of the boundaries
         <br/>
<a id="pl.119.30"></a><var>119.30</var>of the municipality, has been four percent or less for at least the immediately preceding
         <br/>
<a id="pl.119.31"></a><var>119.31</var>two-year period;<br/>
<a id="pl.119.32"></a><var>119.32</var>(6) at least one business located in the municipality, or within 15 miles of the <br/>
<a id="pl.119.33"></a><var>119.33</var>municipality, that employs a minimum of 20 full-time equivalent employees in aggregate
         <br/>
<a id="pl.119.34"></a><var>119.34</var>has provided a written statement to the municipality indicating that the lack of available
         <br/>
<a id="pl.119.35"></a><var>119.35</var>rental housing has impeded their ability to recruit and hire employees; <br/>
<a id="pl.120.1"></a><var>120.1</var>(7) fewer than four market rate residential rental units per 1,000 residents were
         <br/>
<a id="pl.120.2"></a><var>120.2</var>constructed in the city in the last ten years without government financing, grants,
         or other <br/>
<a id="pl.120.3"></a><var>120.3</var>subsidies, other than subsidies under this section; and<br/>
<a id="pl.120.4"></a><var>120.4</var>(8) the municipality and the development authority intend to use increments from <br/>
<a id="pl.120.5"></a><var>120.5</var>the district for the development of market rate residential rental properties and
         includes <br/>
<a id="pl.120.6"></a><var>120.6</var>new modular homes or new manufactured homes, new manufactured homes on leased <br/>
<a id="pl.120.7"></a><var>120.7</var>land, or in a manufacturer's home park to serve employees or businesses located in
         the <br/>
<a id="pl.120.8"></a><var>120.8</var>municipality or surrounding area.<br/>
<a id="pl.120.9"></a><var>120.9</var>For purposes of this section: (1) "joint county-city economic development authority"
         <br/>
<a id="pl.120.10"></a><var>120.10</var>means an economic development authority, formed under Laws 1988, chapter 516, section
         <br/>
<a id="pl.120.11"></a><var>120.11</var>1, as a joint partnership between a city and county and excluding those established
         by the <br/>
<a id="pl.120.12"></a><var>120.12</var>county only; and (2) "market rate residential rental properties" means properties
         that are <br/>
<a id="pl.120.13"></a><var>120.13</var>rented at market value and excludes: (i) properties constructed with financial assistance
         <br/>
<a id="pl.120.14"></a><var>120.14</var>requiring the property to be occupied by residents that meet income limits under federal
         or <br/>
<a id="pl.120.15"></a><var>120.15</var>state law of initial occupancy; and (ii) properties constructed with federal, state,
         or local <br/>
<a id="pl.120.16"></a><var>120.16</var>flood recovery assistance, regardless of whether that assistance imposed income limits
         as a <br/>
<a id="pl.120.17"></a><var>120.17</var>condition of receiving assistance.<br/>
<a id="pl.120.18"></a><var>120.18</var>The authority to request certification of districts under this section expires June
         <br/>
<a id="pl.120.19"></a><var>120.19</var>30, 2020.<br/>
<a id="pl.120.20"></a><var>120.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.120.21"></a><var>120.21</var>certification is made after June 30, 2015.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.120.22"></a><var>120.22</var>    Sec. 5. Minnesota Statutes 2014, section 469.176, subdivision 4c, is amended to read:<br/>
<a id="pl.120.23"></a><var>120.23</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax increment <br/>
<a id="pl.120.24"></a><var>120.24</var>from an economic development district may not be used to provide improvements, loans,
         <br/>
<a id="pl.120.25"></a><var>120.25</var>subsidies, grants, interest rate subsidies, or assistance in any form to developments
         <br/>
<a id="pl.120.26"></a><var>120.26</var>consisting of buildings and ancillary facilities, if more than 15 percent of the buildings
         and <br/>
<a id="pl.120.27"></a><var>120.27</var>facilities (determined on the basis of square footage) are used for a purpose other
         than:<br/>
<a id="pl.120.28"></a><var>120.28</var>    (1) the manufacturing or production of tangible personal property, including <br/>
<a id="pl.120.29"></a><var>120.29</var>processing resulting in the change in condition of the property;<br/>
<a id="pl.120.30"></a><var>120.30</var>    (2) warehousing, storage, and distribution of tangible personal property, excluding
         <br/>
<a id="pl.120.31"></a><var>120.31</var>retail sales;<br/>
<a id="pl.120.32"></a><var>120.32</var>    (3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.120.33"></a><var>120.33</var>    (4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.120.34"></a><var>120.34</var>    (5) tourism facilities; or<br/>
<a id="pl.120.35"></a><var>120.35</var>    (6) space necessary for and related to the activities listed in clauses (1) to (5); or<br/>
<a id="pl.121.1"></a><var>121.1</var>    (7) a workforce housing project that satisfies the requirements of paragraph (d).<br/>
<a id="pl.121.2"></a><var>121.2</var>    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
         <br/>
<a id="pl.121.3"></a><var>121.3</var>increment from an economic development district may be used to provide improvements,
         <br/>
<a id="pl.121.4"></a><var>121.4</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up
         to 15,000 <br/>
<a id="pl.121.5"></a><var>121.5</var>square feet of any separately owned commercial facility located within the municipal
         <br/>
<a id="pl.121.6"></a><var>121.6</var>jurisdiction of a small city, if the revenues derived from increments are spent only
         to <br/>
<a id="pl.121.7"></a><var>121.7</var>assist the facility directly or for administrative expenses, the assistance is necessary
         to <br/>
<a id="pl.121.8"></a><var>121.8</var>develop the facility, and all of the increments, except those for administrative expenses,
         <br/>
<a id="pl.121.9"></a><var>121.9</var>are spent only for activities within the district.<br/>
<a id="pl.121.10"></a><var>121.10</var>    (c) A city is a small city for purposes of this subdivision if the city was a small
         city <br/>
<a id="pl.121.11"></a><var>121.11</var>in the year in which the request for certification was made and applies for the rest
         of <br/>
<a id="pl.121.12"></a><var>121.12</var>the duration of the district, regardless of whether the city qualifies or ceases to
         qualify <br/>
<a id="pl.121.13"></a><var>121.13</var>as a small city.<br/>
<a id="pl.121.14"></a><var>121.14</var>(d) A project qualifies as a workforce housing project under this subdivision if <br/>
<a id="pl.121.15"></a><var>121.15</var>increments from the district are used exclusively to assist in the acquisition of
         property; <br/>
<a id="pl.121.16"></a><var>121.16</var>construction of improvements; and provision of loans or subsidies, grants, interest
         <br/>
<a id="pl.121.17"></a><var>121.17</var>rate subsidies, public infrastructure, and related financing costs for rental housing
         <br/>
<a id="pl.121.18"></a><var>121.18</var>developments in the municipality, and if the governing body of the municipality made
         the <br/>
<a id="pl.121.19"></a><var>121.19</var>findings for the project required by section 469.175, subdivision 3, paragraph (f).<br/>
<a id="pl.121.20"></a><var>121.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.121.21"></a><var>121.21</var>certification is made after June 30, 2015.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.121.22"></a><var>121.22</var>    Sec. 6. Minnesota Statutes 2014, section 469.1761, is amended by adding a subdivision <br/>
<a id="pl.121.23"></a><var>121.23</var>to read:<br/>
<a id="pl.121.24"></a><var>121.24</var>    Subd. 5. <b>Income limits; Minnesota Housing Finance Agency challenge program.</b><br/>
<a id="pl.121.25"></a><var>121.25</var>For a project receiving a loan or grant from the Minnesota Housing Finance Agency
         <br/>
<a id="pl.121.26"></a><var>121.26</var>challenge program under section 462A.33, the income limits under section 462A.33 are
         <br/>
<a id="pl.121.27"></a><var>121.27</var>substituted for the applicable income limits under subdivision 2 or 3 for the project.<br/>
<a id="pl.121.28"></a><var>121.28</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.121.29"></a><var>121.29</var>certification is made after June 30, 2015.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.122.3"></a><var>122.3</var>    Section 1. Minnesota Statutes 2014, section 298.17, is amended to read:<br/>
<a id="pl.122.4"></a><var>122.4</var><b>298.17 OCCUPATION TAXES TO BE APPORTIONED.</b><br/>
<a id="pl.122.5"></a><var>122.5</var>(a) All occupation taxes paid by persons, copartnerships, companies, joint stock <br/>
<a id="pl.122.6"></a><var>122.6</var>companies, corporations, and associations, however or for whatever purpose organized,
         <br/>
<a id="pl.122.7"></a><var>122.7</var>engaged in the business of mining or producing iron ore or other ores, when collected
         <br/>
<a id="pl.122.8"></a><var>122.8</var>shall be apportioned and distributed in accordance with the Constitution of the state
         of <br/>
<a id="pl.122.9"></a><var>122.9</var>Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
         <br/>
<a id="pl.122.10"></a><var>122.10</var>in the state treasury and credited to the general fund of which four-ninths shall
         be used <br/>
<a id="pl.122.11"></a><var>122.11</var>for the support of elementary and secondary schools; and ten percent of the proceeds
         of <br/>
<a id="pl.122.12"></a><var>122.12</var>the tax imposed by this section shall be deposited in the state treasury and credited
         to the <br/>
<a id="pl.122.13"></a><var>122.13</var>general fund for the general support of the university.<br/>
<a id="pl.122.14"></a><var>122.14</var>(b) Of the money apportioned to the general fund by this section: (1) there <br/>
<a id="pl.122.15"></a><var>122.15</var>is annually appropriated and credited to the mining environmental and regulatory <br/>
<a id="pl.122.16"></a><var>122.16</var>account in the special revenue fund an amount equal to the greater of $1,500,000 or <br/>
<a id="pl.122.17"></a><var>122.17</var>that which would have been generated by a 2-1/2 cent tax imposed by section 
         <statute_ref>298.24</statute_ref> <br/>
<a id="pl.122.18"></a><var>122.18</var>on each taxable ton produced in the preceding calendar year. Money in the mining <br/>
<a id="pl.122.19"></a><var>122.19</var>environmental and regulatory account is appropriated annually to the commissioner
         of <br/>
<a id="pl.122.20"></a><var>122.20</var>natural resources to fund agency staff to work on environmental issues and provide
         <br/>
<a id="pl.122.21"></a><var>122.21</var>regulatory services for ferrous and nonferrous mining operations in this state. Payment
         to <br/>
<a id="pl.122.22"></a><var>122.22</var>the mining environmental and regulatory account shall be made by on July 1 annually. <br/>
<a id="pl.122.23"></a><var>122.23</var>The commissioner of natural resources shall execute an interagency agreement with
         <br/>
<a id="pl.122.24"></a><var>122.24</var>the Pollution Control Agency to assist with the provision of environmental regulatory
         <br/>
<a id="pl.122.25"></a><var>122.25</var>services such as monitoring and permitting required for ferrous and nonferrous mining
         <br/>
<a id="pl.122.26"></a><var>122.26</var>operations; (2) there is annually appropriated and credited to the Iron Range Resources
         and <br/>
<a id="pl.122.27"></a><var>122.27</var>Rehabilitation Board account in the special revenue fund an amount equal to that which
         <br/>
<a id="pl.122.28"></a><var>122.28</var>would have been generated by a 1.5 cent tax imposed by section 
         <statute_ref>298.24</statute_ref> on each taxable <br/>
<a id="pl.122.29"></a><var>122.29</var>ton produced in the preceding calendar year, to be expended for the purposes of section
         <br/>
<statute_ref><a id="pl.122.30"></a><var>122.30</var>298.22
         </statute_ref>; and (3) there is annually appropriated and credited to the Iron Range Resources <br/>
<a id="pl.122.31"></a><var>122.31</var>and Rehabilitation Board account in the special revenue fund for transfer to the Iron
         Range <br/>
<a id="pl.122.32"></a><var>122.32</var>school consolidation and cooperatively operated school account under section 
         <statute_ref>298.28, <br/>
<a id="pl.122.33"></a><var>122.33</var>subdivision 7a
         </statute_ref>, an amount equal to that which would have been generated by a six cent tax <br/>
<a id="pl.122.34"></a><var>122.34</var>imposed by section 
         <statute_ref>298.24</statute_ref> on each taxable ton produced in the preceding calendar year. <br/>
<a id="pl.122.35"></a><var>122.35</var>Payment to the Iron Range Resources and Rehabilitation Board account shall be made
         by <br/>
<a id="pl.123.1"></a><var>123.1</var>May 15 on July 1 annually; and (4) there is annually appropriated and credited to the Iron <br/>
<a id="pl.123.2"></a><var>123.2</var>Range Resources and Rehabilitation Board account in the special revenue fund for transfer
         <br/>
<a id="pl.123.3"></a><var>123.3</var>to the energy efficiency and mining protection account under section 298.227, paragraph
         <br/>
<a id="pl.123.4"></a><var>123.4</var>(d), an amount equal to that which would have been generated by a 15 cent tax imposed
         <br/>
<a id="pl.123.5"></a><var>123.5</var>by section 298.24 on each taxable ton produced in the preceding year. Payment to the
         Iron <br/>
<a id="pl.123.6"></a><var>123.6</var>Range Resources and Rehabilitation Board account shall be made on July 1 annually.<br/>
<a id="pl.123.7"></a><var>123.7</var>(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i)
         <br/>
<a id="pl.123.8"></a><var>123.8</var>to provide environmental development grants to local governments located within any
         <br/>
<a id="pl.123.9"></a><var>123.9</var>county in region 3 as defined in governor's executive order number 60, issued on June
         <br/>
<a id="pl.123.10"></a><var>123.10</var>12, 1970, which does not contain a municipality qualifying pursuant to section 
         <statute_ref>273.134, <br/>
<a id="pl.123.11"></a><var>123.11</var>paragraph (b)
         </statute_ref>, or (ii) to provide economic development loans or grants to businesses <br/>
<a id="pl.123.12"></a><var>123.12</var>located within any such county, provided that the county board or an advisory group
         <br/>
<a id="pl.123.13"></a><var>123.13</var>appointed by the county board to provide recommendations on economic development <br/>
<a id="pl.123.14"></a><var>123.14</var>shall make recommendations to the Iron Range Resources and Rehabilitation Board <br/>
<a id="pl.123.15"></a><var>123.15</var>regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
         <br/>
<a id="pl.123.16"></a><var>123.16</var>account shall be made by May 15 on July 1 annually.<br/>
<a id="pl.123.17"></a><var>123.17</var>(d) Of the money allocated to Koochiching County, one-third must be paid to the <br/>
<a id="pl.123.18"></a><var>123.18</var>Koochiching County Economic Development Commission.<br/>
<a id="pl.123.19"></a><var>123.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the 2015 production <br/>
<a id="pl.123.20"></a><var>123.20</var>year.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.123.21"></a><var>123.21</var>    Sec. 2. Minnesota Statutes 2014, section 298.227, is amended to read:<br/>
<a id="pl.123.22"></a><var>123.22</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.123.23"></a><var>123.23</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         <br/>
<a id="pl.123.24"></a><var>123.24</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by <br/>
<a id="pl.123.25"></a><var>123.25</var>the Iron Range Resources and Rehabilitation Board in a separate taconite economic
         <br/>
<a id="pl.123.26"></a><var>123.26</var>development fund for each taconite and direct reduced ore producer. Money from the
         <br/>
<a id="pl.123.27"></a><var>123.27</var>fund for each producer shall be released by the commissioner after review by a joint
         <br/>
<a id="pl.123.28"></a><var>123.28</var>committee consisting of an equal number of representatives of the salaried employees
         and <br/>
<a id="pl.123.29"></a><var>123.29</var>the nonsalaried production and maintenance employees of that producer. The District
         11 <br/>
<a id="pl.123.30"></a><var>123.30</var>director of the United States Steelworkers of America, on advice of each local employee
         <br/>
<a id="pl.123.31"></a><var>123.31</var>president, shall select the employee members. In nonorganized operations, the employee
         <br/>
<a id="pl.123.32"></a><var>123.32</var>committee shall be elected by the nonsalaried production and maintenance employees.
         <br/>
<a id="pl.123.33"></a><var>123.33</var>The review must be completed no later than six months after the producer presents
         a <br/>
<a id="pl.123.34"></a><var>123.34</var>proposal for expenditure of the funds to the committee. The funds held pursuant to
         this <br/>
<a id="pl.124.1"></a><var>124.1</var>section may be released only for workforce development and associated public facility
         <br/>
<a id="pl.124.2"></a><var>124.2</var>improvement, or for acquisition of plant and stationary mining equipment and facilities
         <br/>
<a id="pl.124.3"></a><var>124.3</var>for the producer or for research and development in Minnesota on new mining, or <br/>
<a id="pl.124.4"></a><var>124.4</var>taconite, iron, or steel production technology, but only if the producer provides
         a matching <br/>
<a id="pl.124.5"></a><var>124.5</var>expenditure equal to the amount of the distribution to be used for the same purpose
         <br/>
<a id="pl.124.6"></a><var>124.6</var>beginning with distributions in 2014. Effective for proposals for expenditures of
         money <br/>
<a id="pl.124.7"></a><var>124.7</var>from the fund beginning May 26, 2007, the commissioner may not release the funds <br/>
<a id="pl.124.8"></a><var>124.8</var>before the next scheduled meeting of the board. If a proposed expenditure is not approved
         <br/>
<a id="pl.124.9"></a><var>124.9</var>by the board, the funds must be deposited in the Taconite Environmental Protection
         Fund <br/>
<a id="pl.124.10"></a><var>124.10</var>under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses money which has been released <br/>
<a id="pl.124.11"></a><var>124.11</var>from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or
         <br/>
<a id="pl.124.12"></a><var>124.12</var>mining shovels, and the producer removes the piece of equipment from the taconite
         tax <br/>
<a id="pl.124.13"></a><var>124.13</var>relief area defined in section 
         <statute_ref>273.134</statute_ref> within ten years from the date of receipt of the <br/>
<a id="pl.124.14"></a><var>124.14</var>money from the fund, a portion of the money granted from the fund must be repaid to
         <br/>
<a id="pl.124.15"></a><var>124.15</var>the taconite economic development fund. The portion of the money to be repaid is 100
         <br/>
<a id="pl.124.16"></a><var>124.16</var>percent of the grant if the equipment is removed from the taconite tax relief area
         within 12 <br/>
<a id="pl.124.17"></a><var>124.17</var>months after receipt of the money from the fund, declining by ten percent for each
         of the <br/>
<a id="pl.124.18"></a><var>124.18</var>subsequent nine years during which the equipment remains within the taconite tax relief
         <br/>
<a id="pl.124.19"></a><var>124.19</var>area. If a taconite production facility is sold after operations at the facility had
         ceased, any <br/>
<a id="pl.124.20"></a><var>124.20</var>money remaining in the fund for the former producer may be released to the purchaser
         of <br/>
<a id="pl.124.21"></a><var>124.21</var>the facility on the terms otherwise applicable to the former producer under this section.
         If <br/>
<a id="pl.124.22"></a><var>124.22</var>a producer fails to provide matching funds for a proposed expenditure within six months
         <br/>
<a id="pl.124.23"></a><var>124.23</var>after the commissioner approves release of the funds, the funds are available for
         release to <br/>
<a id="pl.124.24"></a><var>124.24</var>another producer in proportion to the distribution provided and under the conditions
         of <br/>
<a id="pl.124.25"></a><var>124.25</var>this section. Any portion of the fund which is not released by the commissioner within
         <br/>
<a id="pl.124.26"></a><var>124.26</var>one year of its deposit in the fund shall be divided between the taconite environmental
         <br/>
<a id="pl.124.27"></a><var>124.27</var>protection fund created in section 
         <statute_ref>298.223 </statute_ref>and the Douglas J. Johnson economic protection <br/>
<a id="pl.124.28"></a><var>124.28</var>trust fund created in section 
         <statute_ref>298.292</statute_ref> for placement in their respective special accounts. <br/>
<a id="pl.124.29"></a><var>124.29</var>Two-thirds of the unreleased funds shall be distributed to the taconite environmental
         <br/>
<a id="pl.124.30"></a><var>124.30</var>protection fund and one-third to the Douglas J. Johnson economic protection trust
         fund.<br/>
<a id="pl.124.31"></a><var>124.31</var>    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.124.32"></a><var>124.32</var>distributions and the review process, an amount equal to ten cents per taxable ton
         of <br/>
<a id="pl.124.33"></a><var>124.33</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed
         <br/>
<a id="pl.124.34"></a><var>124.34</var>under paragraph (a), may be used for a loan or grant for the cost of providing for
         a <br/>
<a id="pl.124.35"></a><var>124.35</var>value-added wood product facility located in the taconite tax relief area and in a
         county <br/>
<a id="pl.124.36"></a><var>124.36</var>that contains a city of the first class. This amount must be deducted from the distribution
         <br/>
<a id="pl.125.1"></a><var>125.1</var>under paragraph (a) for which a matching expenditure by the producer is not required.
         The <br/>
<a id="pl.125.2"></a><var>125.2</var>granting of the loan or grant is subject to approval by the board. If the money is
         provided <br/>
<a id="pl.125.3"></a><var>125.3</var>as a loan, interest must be payable on the loan at the rate prescribed in section
         
         <statute_ref>298.2213, <br/>
<a id="pl.125.4"></a><var>125.4</var>subdivision 3
         </statute_ref>. (ii) Repayments of the loan and interest, if any, must be deposited in the <br/>
<a id="pl.125.5"></a><var>125.5</var>taconite environment protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a loan or <br/>
<a id="pl.125.6"></a><var>125.6</var>grant is not made under this paragraph by July 1, 2012, the amount that had been made
         <br/>
<a id="pl.125.7"></a><var>125.7</var>available for the loan under this paragraph must be transferred to the taconite environment
         <br/>
<a id="pl.125.8"></a><var>125.8</var>protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. (iii) Money distributed in 2008 to the <br/>
<a id="pl.125.9"></a><var>125.9</var>fund established under this section that exceeds ten cents per ton is available to
         qualifying <br/>
<a id="pl.125.10"></a><var>125.10</var>producers under paragraph (a) on a pro rata basis.<br/>
<a id="pl.125.11"></a><var>125.11</var>(c) Repayment or transfer of money to the taconite environmental protection fund <br/>
<a id="pl.125.12"></a><var>125.12</var>under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
         <br/>
<a id="pl.125.13"></a><var>125.13</var>Rehabilitation Board for public works projects in house legislative districts in the
         same <br/>
<a id="pl.125.14"></a><var>125.14</var>proportion as taxable tonnage of production in 2007 in each house legislative district,
         for <br/>
<a id="pl.125.15"></a><var>125.15</var>distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
         <br/>
<a id="pl.125.16"></a><var>125.16</var>in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
         <br/>
<a id="pl.125.17"></a><var>125.17</var>do not require approval by the governor. For purposes of this paragraph, "house legislative
         <br/>
<a id="pl.125.18"></a><var>125.18</var>districts" means the legislative districts in existence on May 15, 2009.<br/>
<a id="pl.125.19"></a><var>125.19</var>(d) An amount equal to that determined under section 298.17, paragraph (b), <br/>
<a id="pl.125.20"></a><var>125.20</var>clause (4), shall be held by the Iron Range Resources and Rehabilitation Board in
         a <br/>
<a id="pl.125.21"></a><var>125.21</var>separate energy efficiency and mining protection account within the taconite economic
         <br/>
<a id="pl.125.22"></a><var>125.22</var>development fund that is hereby created for taconite and direct reduced ore producers.
         <br/>
<a id="pl.125.23"></a><var>125.23</var>Funds from the account shall be released annually by the Iron Range Resources and
         <br/>
<a id="pl.125.24"></a><var>125.24</var>Rehabilitation Board to each producer in direct proportion to the amount of the tax
         paid by <br/>
<a id="pl.125.25"></a><var>125.25</var>that producer in the preceding year under section 298.01, as compared to the total
         amount <br/>
<a id="pl.125.26"></a><var>125.26</var>of tax paid under section 298.01 in the preceding year by all producers, provided
         that a <br/>
<a id="pl.125.27"></a><var>125.27</var>producer shall not be eligible for a distribution in amount greater than the amount
         of the <br/>
<a id="pl.125.28"></a><var>125.28</var>tax paid in the preceding year. No expenditure under this section shall be paid unless
         <br/>
<a id="pl.125.29"></a><var>125.29</var>approved by seven members of the Iron Range Resources and Rehabilitation Board.<br/>
<a id="pl.125.30"></a><var>125.30</var>Notwithstanding any other law to the contrary, any amount allocated to the energy
         <br/>
<a id="pl.125.31"></a><var>125.31</var>efficiency and mining protection account does not cancel nor is eligible for transfer
         to <br/>
<a id="pl.125.32"></a><var>125.32</var>another account or fund.<br/>
<a id="pl.125.33"></a><var>125.33</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the 2015 production <br/>
<a id="pl.125.34"></a><var>125.34</var>year.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.125.35"></a><var>125.35</var>    Sec. 3. Minnesota Statutes 2014, section 298.24, subdivision 1, is amended to read:<br/>
<a id="pl.126.1"></a><var>126.1</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2013, there is <br/>
<a id="pl.126.2"></a><var>126.2</var>imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof,
         <br/>
<a id="pl.126.3"></a><var>126.3</var>and upon the production of iron ore concentrate therefrom, and upon the concentrate
         so <br/>
<a id="pl.126.4"></a><var>126.4</var>produced, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
         <br/>
<a id="pl.126.5"></a><var>126.5</var>therefrom. The tax is also imposed upon other iron-bearing material.<br/>
<a id="pl.126.6"></a><var>126.6</var>    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be
         <br/>
<a id="pl.126.7"></a><var>126.7</var>equal to the preceding year's tax rate plus an amount equal to the preceding year's
         tax rate <br/>
<a id="pl.126.8"></a><var>126.8</var>multiplied by the percentage increase in the implicit price deflator from the fourth
         quarter <br/>
<a id="pl.126.9"></a><var>126.9</var>of the second preceding year to the fourth quarter of the preceding year. "Implicit
         price <br/>
<a id="pl.126.10"></a><var>126.10</var>deflator" means the implicit price deflator for the gross domestic product prepared
         by the <br/>
<a id="pl.126.11"></a><var>126.11</var>Bureau of Economic Analysis of the United States Department of Commerce.<br/>
<a id="pl.126.12"></a><var>126.12</var>    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
         <br/>
<a id="pl.126.13"></a><var>126.13</var>iron ore concentrate for each one percent that the iron content of the product exceeds
         72 <br/>
<a id="pl.126.14"></a><var>126.14</var>percent, when dried at 212 degrees Fahrenheit.<br/>
<a id="pl.126.15"></a><var>126.15</var>    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
         <br/>
<a id="pl.126.16"></a><var>126.16</var>production for the current year and the previous two years. The rate of the tax imposed
         <br/>
<a id="pl.126.17"></a><var>126.17</var>will be the current year's tax rate. This clause shall not apply in the case of the
         closing <br/>
<a id="pl.126.18"></a><var>126.18</var>of a taconite facility if the property taxes on the facility would be higher if this
         clause <br/>
<a id="pl.126.19"></a><var>126.19</var>and section 
         <statute_ref>298.25</statute_ref> were not applicable. The tax on other iron-bearing material shall be <br/>
<a id="pl.126.20"></a><var>126.20</var>imposed on the current year production.<br/>
<a id="pl.126.21"></a><var>126.21</var>    (e) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.126.22"></a><var>126.22</var>unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate
         <br/>
<a id="pl.126.23"></a><var>126.23</var>produced shall be imposed.<br/>
<a id="pl.126.24"></a><var>126.24</var>    (f) Consistent with the intent of this subdivision to impose a tax based upon the
         <br/>
<a id="pl.126.25"></a><var>126.25</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
         <br/>
<a id="pl.126.26"></a><var>126.26</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets
         by <br/>
<a id="pl.126.27"></a><var>126.27</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other
         basic <br/>
<a id="pl.126.28"></a><var>126.28</var>flux additives included in the pellets from the weight of the pellets. For purposes
         of this <br/>
<a id="pl.126.29"></a><var>126.29</var>paragraph, "fluxed pellets" are pellets produced in a process in which limestone,
         dolomite, <br/>
<a id="pl.126.30"></a><var>126.30</var>olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
         <br/>
<a id="pl.126.31"></a><var>126.31</var>No subtraction from the weight of the pellets shall be allowed for binders, mineral
         and <br/>
<a id="pl.126.32"></a><var>126.32</var>chemical additives other than basic flux additives, or moisture.<br/>
<a id="pl.126.33"></a><var>126.33</var>    (g)(1) Notwithstanding any other provision of this subdivision, for the first two
         years <br/>
<a id="pl.126.34"></a><var>126.34</var>of a plant's commercial production of direct reduced ore from ore mined in this state,
         no <br/>
<a id="pl.126.35"></a><var>126.35</var>tax is imposed under this section. As used in this paragraph, "commercial production"
         is <br/>
<a id="pl.126.36"></a><var>126.36</var>production of more than 50,000 tons of direct reduced ore in the current year or in
         any prior <br/>
<a id="pl.127.1"></a><var>127.1</var>year, "noncommercial production" is production of 50,000 tons or less of direct reduced
         ore <br/>
<a id="pl.127.2"></a><var>127.2</var>in any year, and "direct reduced ore" is ore that results in a product that has an
         iron content <br/>
<a id="pl.127.3"></a><var>127.3</var>of at least 75 percent. For the third year of a plant's commercial production of direct
         <br/>
<a id="pl.127.4"></a><var>127.4</var>reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
         otherwise <br/>
<a id="pl.127.5"></a><var>127.5</var>determined under this subdivision. For the fourth commercial production year, the
         rate is <br/>
<a id="pl.127.6"></a><var>127.6</var>50 percent of the rate otherwise determined under this subdivision; for the fifth
         commercial <br/>
<a id="pl.127.7"></a><var>127.7</var>production year, the rate is 75 percent of the rate otherwise determined under this
         <br/>
<a id="pl.127.8"></a><var>127.8</var>subdivision; and for all subsequent commercial production years, the full rate is
         imposed.<br/>
<a id="pl.127.9"></a><var>127.9</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject
         to <br/>
<a id="pl.127.10"></a><var>127.10</var>the tax imposed by this section, but if that production is not produced by a producer
         of <br/>
<a id="pl.127.11"></a><var>127.11</var>taconite, iron sulfides, or other iron-bearing material, the production of taconite,
         iron <br/>
<a id="pl.127.12"></a><var>127.12</var>sulfides, or other iron-bearing material, that is consumed in the production of direct
         <br/>
<a id="pl.127.13"></a><var>127.13</var>reduced iron in this state is not subject to the tax imposed by this section on taconite,
         <br/>
<a id="pl.127.14"></a><var>127.14</var>iron sulfides, or other iron-bearing material.<br/>
<a id="pl.127.15"></a><var>127.15</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed <br/>
<a id="pl.127.16"></a><var>127.16</var>on direct reduced ore under this section during the facility's noncommercial production
         <br/>
<a id="pl.127.17"></a><var>127.17</var>of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
         <br/>
<a id="pl.127.18"></a><var>127.18</var>production of direct reduced ore is subject to the tax imposed by this section on
         taconite <br/>
<a id="pl.127.19"></a><var>127.19</var>and iron sulphides. Three-year average production of direct reduced ore does not <br/>
<a id="pl.127.20"></a><var>127.20</var>include production of direct reduced ore in any noncommercial year. Three-year average
         <br/>
<a id="pl.127.21"></a><var>127.21</var>production for a direct reduced ore facility that has noncommercial production is
         the <br/>
<a id="pl.127.22"></a><var>127.22</var>average of the commercial production of direct reduced ore for the current year and
         the <br/>
<a id="pl.127.23"></a><var>127.23</var>previous two commercial years.<br/>
<a id="pl.127.24"></a><var>127.24</var>    (4) This paragraph applies only to plants for which all environmental permits have
         <br/>
<a id="pl.127.25"></a><var>127.25</var>been obtained and construction has begun before July 1, 2008 2020.<br/>
<a id="pl.127.26"></a><var>127.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxes based on concentrate <br/>
<a id="pl.127.27"></a><var>127.27</var>produced in 2015 and thereafter.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.127.28"></a><var>127.28</var>    Sec. 4. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision <br/>
<a id="pl.127.29"></a><var>127.29</var>to read:<br/>
<a id="pl.127.30"></a><var>127.30</var>    Subd. 5. <b>TEDF; deposits redirected.</b> (a) For concentrates produced by a plant <br/>
<a id="pl.127.31"></a><var>127.31</var>subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
         <br/>
<a id="pl.127.32"></a><var>127.32</var>County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
         <br/>
<a id="pl.127.33"></a><var>127.33</var>sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.<br/>
<a id="pl.128.1"></a><var>128.1</var>(b) All amounts not deposited in the taconite economic development fund as a <br/>
<a id="pl.128.2"></a><var>128.2</var>result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
         <br/>
<a id="pl.128.3"></a><var>128.3</var>trust fund created under section 298.292.<br/>
<a id="pl.128.4"></a><var>128.4</var>(c) The provisions of this subdivision expire upon certification by the commissioner
         <br/>
<a id="pl.128.5"></a><var>128.5</var>of employment and economic development that all requirements of the reimbursement
         <br/>
<a id="pl.128.6"></a><var>128.6</var>agreement, as specified in paragraph (a), are satisfied.<br/>
<a id="pl.128.7"></a><var>128.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.128.8"></a><var>128.8</var>    Sec. 5. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:<br/>
<a id="pl.128.9"></a><var>128.9</var>    Subd. 3. <b>Cities; towns.</b> (a) 12.5 cents per taxable ton, less any amount distributed <br/>
<a id="pl.128.10"></a><var>128.10</var>under subdivision 8, and paragraph (b), must be allocated to the taconite municipal
         aid <br/>
<a id="pl.128.11"></a><var>128.11</var>account to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>.<br/>
<a id="pl.128.12"></a><var>128.12</var>    (b) An amount must be allocated to towns or cities that is annually certified by <br/>
<a id="pl.128.13"></a><var>128.13</var>the county auditor of a county containing a taconite tax relief area as defined in
         section <br/>
<statute_ref><a id="pl.128.14"></a><var>128.14</var>273.134, paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January <br/>
<a id="pl.128.15"></a><var>128.15</var>2, 1982, more than 75 percent of the assessed valuation of the township consists of
         iron <br/>
<a id="pl.128.16"></a><var>128.16</var>ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed
         valuation <br/>
<a id="pl.128.17"></a><var>128.17</var>of the city consists of iron ore.<br/>
<a id="pl.128.18"></a><var>128.18</var>    (c) The amount allocated under paragraph (b) will be the portion of a township's or
         <br/>
<a id="pl.128.19"></a><var>128.19</var>city's certified levy equal to the proportion of (1) the difference between 50 percent
         of <br/>
<a id="pl.128.20"></a><var>128.20</var>January 2, 1982, assessed value in the case of a township and 50 percent of the January
         2, <br/>
<a id="pl.128.21"></a><var>128.21</var>1980, assessed value in the case of a city and its current assessed value to (2) the
         sum of <br/>
<a id="pl.128.22"></a><var>128.22</var>its current assessed value plus the difference determined in (1), provided that the
         amount <br/>
<a id="pl.128.23"></a><var>128.23</var>distributed shall not exceed $55 per capita in the case of a township or $75 per capita
         in <br/>
<a id="pl.128.24"></a><var>128.24</var>the case of a city. For purposes of this limitation, population will be determined
         according <br/>
<a id="pl.128.25"></a><var>128.25</var>to the 1980 decennial census conducted by the United States Bureau of the Census.
         If the <br/>
<a id="pl.128.26"></a><var>128.26</var>current assessed value of the township exceeds 50 percent of the township's January
         2, <br/>
<a id="pl.128.27"></a><var>128.27</var>1982, assessed value, or if the current assessed value of the city exceeds 50 percent
         of the <br/>
<a id="pl.128.28"></a><var>128.28</var>city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes
         of this <br/>
<a id="pl.128.29"></a><var>128.29</var>paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
         <br/>
<a id="pl.128.30"></a><var>128.30</var>means the appropriate net tax capacities multiplied by 10.2.<br/>
<a id="pl.128.31"></a><var>128.31</var>    (d) In addition to other distributions under this subdivision, three cents per taxable
         <br/>
<a id="pl.128.32"></a><var>128.32</var>ton for distributions in 2009 must be allocated for distribution to (1) towns that are entirely <br/>
<a id="pl.128.33"></a><var>128.33</var>located within the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref>, paragraph (b); and <br/>
<a id="pl.128.34"></a><var>128.34</var>(2) the following unorganized territories located in St. Louis County: 56-17; 58-22;
         59-16; <br/>
<a id="pl.128.35"></a><var>128.35</var>59-21; 60-18; and 60-19. For distribution in 2010 through 2014 and for distribution in <br/>
<a id="pl.129.1"></a><var>129.1</var>2018 and subsequent years, the three-cent amount must be annually increased in the
         <br/>
<a id="pl.129.2"></a><var>129.2</var>same proportion as the increase in the implicit price deflator as provided in section
         <br/>
<statute_ref><a id="pl.129.3"></a><var>129.3</var>298.24, subdivision 1
         </statute_ref>. The amount available under this paragraph will be to towns shall <br/>
<a id="pl.129.4"></a><var>129.4</var>be distributed to eligible towns on a per capita basis, provided that no town may receive
         <br/>
<a id="pl.129.5"></a><var>129.5</var>more than $50,000 in any year under this paragraph. Any amount of the distribution
         that <br/>
<a id="pl.129.6"></a><var>129.6</var>exceeds the $50,000 limitation for a town under this paragraph must be redistributed
         on <br/>
<a id="pl.129.7"></a><var>129.7</var>a per capita basis among the other eligible towns, to whose distributions do not exceed
         <br/>
<a id="pl.129.8"></a><var>129.8</var>$50,000. The amount available to unorganized territories in St. Louis County may be held
         <br/>
<a id="pl.129.9"></a><var>129.9</var>by the county and combined for public infrastructure projects.<br/>
<a id="pl.129.10"></a><var>129.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the 2015 production <br/>
<a id="pl.129.11"></a><var>129.11</var>year.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.129.12"></a><var>129.12</var>    Sec. 6. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:<br/>
<a id="pl.129.13"></a><var>129.13</var>    Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br/>
<a id="pl.129.14"></a><var>129.14</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br/>
<a id="pl.129.15"></a><var>129.15</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br/>
<a id="pl.129.16"></a><var>129.16</var>cooperatively operated school account that is hereby created:<br/>
<a id="pl.129.17"></a><var>129.17</var>(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
         <br/>
<a id="pl.129.18"></a><var>129.18</var>imposed under section 
         <statute_ref>298.24</statute_ref>; and (ii) for distributions beginning in 2024, five cents per <br/>
<a id="pl.129.19"></a><var>129.19</var>taxable ton of the tax imposed under section 
         <statute_ref>298.24</statute_ref>;<br/>
<a id="pl.129.20"></a><var>129.20</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3);<br/>
<a id="pl.129.21"></a><var>129.21</var>(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
         <br/>
<a id="pl.129.22"></a><var>129.22</var>proceeds attributable to the increase in the implicit price deflator as provided in
         section <br/>
<statute_ref><a id="pl.129.23"></a><var>129.23</var>298.24, subdivision 1
         </statute_ref>, with the remaining one-third to be distributed to the Douglas J. <br/>
<a id="pl.129.24"></a><var>129.24</var>Johnson economic protection trust fund;<br/>
<a id="pl.129.25"></a><var>129.25</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the <br/>
<a id="pl.129.26"></a><var>129.26</var>increased tax proceeds attributable to the increase in the implicit price deflator
         as provided <br/>
<a id="pl.129.27"></a><var>129.27</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015 and 2016, with the remaining <br/>
<a id="pl.129.28"></a><var>129.28</var>one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
         and<br/>
<a id="pl.129.29"></a><var>129.29</var>(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the <br/>
<a id="pl.129.30"></a><var>129.30</var>sum of the increased tax proceeds attributable to the increase in the implicit price
         deflator <br/>
<a id="pl.129.31"></a><var>129.31</var>as provided in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015, 2016, and <br/>
<a id="pl.129.32"></a><var>129.32</var>2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
         <br/>
<a id="pl.129.33"></a><var>129.33</var>protection trust fund; and<br/>
<a id="pl.129.34"></a><var>129.34</var>(4) any other amount as provided by law.<br/>
<a id="pl.130.1"></a><var>130.1</var>Expenditures from this account shall be made only to provide disbursements to <br/>
<a id="pl.130.2"></a><var>130.2</var>assist school districts with the payment of bonds that were issued for qualified school
         <br/>
<a id="pl.130.3"></a><var>130.3</var>projects, or for any other school disbursement as approved by the Iron Range Resources
         <br/>
<a id="pl.130.4"></a><var>130.4</var>and Rehabilitation Board. For purposes of this section, "qualified school projects"
         means <br/>
<a id="pl.130.5"></a><var>130.5</var>school projects within the taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were <br/>
<a id="pl.130.6"></a><var>130.6</var>(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
         <br/>
<a id="pl.130.7"></a><var>130.7</var>of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br/>
<a id="pl.130.8"></a><var>130.8</var>Beginning in fiscal year 2019, the disbursement to school districts for payments for
         <br/>
<a id="pl.130.9"></a><var>130.9</var>bonds issued under section 
         <statute_ref>123A.482</statute_ref>, subdivision 9, must be increased each year to <br/>
<a id="pl.130.10"></a><var>130.10</var>offset any reduction in debt service equalization aid that the school district qualifies
         for in <br/>
<a id="pl.130.11"></a><var>130.11</var>that year, under section 
         <statute_ref>123B.53, subdivision 6</statute_ref>, compared with the amount the school <br/>
<a id="pl.130.12"></a><var>130.12</var>district qualified for in fiscal year 2018.<br/>
<a id="pl.130.13"></a><var>130.13</var>No expenditure under this section shall be made unless approved by seven members <br/>
<a id="pl.130.14"></a><var>130.14</var>of the Iron Range Resources and Rehabilitation Board.<br/>
<a id="pl.130.15"></a><var>130.15</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2016 <br/>
<a id="pl.130.16"></a><var>130.16</var>and thereafter.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.130.19"></a><var>130.19</var>    Section 1. Minnesota Statutes 2014, section 216B.1621, subdivision 2, is amended to <br/>
<a id="pl.130.20"></a><var>130.20</var>read:<br/>
<a id="pl.130.21"></a><var>130.21</var>    Subd. 2. <b>Commission approval.</b> (a) The commission shall approve an agreement <br/>
<a id="pl.130.22"></a><var>130.22</var>under this section upon finding that:<br/>
<a id="pl.130.23"></a><var>130.23</var>(1) the proposed electric service power generation facility could reasonably be <br/>
<a id="pl.130.24"></a><var>130.24</var>expected to qualify for a market value exclusion under section 
<statute_ref>272.0211</statute_ref>;<br/>
<a id="pl.130.25"></a><var>130.25</var>(2) (1) the public utility has a contractual option to purchase electric power from <br/>
<a id="pl.130.26"></a><var>130.26</var>the proposed facility; and<br/>
<a id="pl.130.27"></a><var>130.27</var>(3) (2) the public utility can use the output from the proposed facility to meet its <br/>
<a id="pl.130.28"></a><var>130.28</var>future need for power as demonstrated in the most recent resource plan filed with
         and <br/>
<a id="pl.130.29"></a><var>130.29</var>approved by the commission under section 
         <statute_ref>216B.2422</statute_ref>.<br/>
<a id="pl.130.30"></a><var>130.30</var>(b) Sections 
         <statute_ref>216B.03</statute_ref>, 
         <statute_ref>216B.05</statute_ref>, 
         <statute_ref>216B.06</statute_ref>, 
         <statute_ref>216B.07</statute_ref>, 
         <statute_ref>216B.16</statute_ref>, 
         <statute_ref>216B.162</statute_ref>, and <br/>
<statute_ref><a id="pl.130.31"></a><var>130.31</var>216B.23
         </statute_ref> do not apply to an agreement under this section.<br/>
<a id="pl.130.32"></a><var>130.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year <br/>
<a id="pl.130.33"></a><var>130.33</var>2016 and thereafter.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.131.1"></a><var>131.1</var>    Sec. 2. Minnesota Statutes 2014, section 216B.164, subdivision 2a, is amended to read:<br/>
<a id="pl.131.2"></a><var>131.2</var>    Subd. 2a. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.131.3"></a><var>131.3</var>have the meanings given them.<br/>
<a id="pl.131.4"></a><var>131.4</var>(b) "Aggregated meter" means a meter located on the premises of a customer's <br/>
<a id="pl.131.5"></a><var>131.5</var>owned or leased property that is contiguous with property containing the customer's
         <br/>
<a id="pl.131.6"></a><var>131.6</var>designated meter.<br/>
<a id="pl.131.7"></a><var>131.7</var>(c) "Capacity" means the number of megawatts alternating current (AC) at the point
         <br/>
<a id="pl.131.8"></a><var>131.8</var>of interconnection between a distributed generation facility and a utility's electric
         system.<br/>
<a id="pl.131.9"></a><var>131.9</var>(d) "Cogeneration" means a combined process whereby electrical and useful thermal
         <br/>
<a id="pl.131.10"></a><var>131.10</var>energy are produced simultaneously.<br/>
<a id="pl.131.11"></a><var>131.11</var>(e) "Contiguous property" means property owned or leased by the customer sharing <br/>
<a id="pl.131.12"></a><var>131.12</var>a common border, without regard to interruptions in contiguity caused by easements,
         <br/>
<a id="pl.131.13"></a><var>131.13</var>public thoroughfares, transportation rights-of-way, or utility rights-of-way.<br/>
<a id="pl.131.14"></a><var>131.14</var>(f) "Customer" means the person who is named on the utility electric bill for the
         <br/>
<a id="pl.131.15"></a><var>131.15</var>premises.<br/>
<a id="pl.131.16"></a><var>131.16</var>(g) "Designated meter" means a meter that is physically attached to the customer's
         <br/>
<a id="pl.131.17"></a><var>131.17</var>facility that the customer-generator designates as the first meter to which net metered
         <br/>
<a id="pl.131.18"></a><var>131.18</var>credits are to be applied as the primary meter for billing purposes when the customer
         is <br/>
<a id="pl.131.19"></a><var>131.19</var>serviced by more than one meter.<br/>
<a id="pl.131.20"></a><var>131.20</var>(h) "Distributed generation" means a facility that:<br/>
<a id="pl.131.21"></a><var>131.21</var>(1) has a capacity of ten megawatts or less;<br/>
<a id="pl.131.22"></a><var>131.22</var>(2) is interconnected with a utility's distribution system, over which the commission
         <br/>
<a id="pl.131.23"></a><var>131.23</var>has jurisdiction; and<br/>
<a id="pl.131.24"></a><var>131.24</var>(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
         <br/>
<a id="pl.131.25"></a><var>131.25</var>and may include waste heat, cogeneration, or fuel cell technology.<br/>
<a id="pl.131.26"></a><var>131.26</var>(i) "High-efficiency distributed generation" means a distributed energy facility that
         <br/>
<a id="pl.131.27"></a><var>131.27</var>has a minimum efficiency of 40 percent, as calculated under Minnesota Statutes 2014, <br/>
<a id="pl.131.28"></a><var>131.28</var>section 
         <statute_ref>272.0211</statute_ref>, subdivision 1.<br/>
<a id="pl.131.29"></a><var>131.29</var>(j) "Net metered facility" means an electric generation facility constructed for the
         <br/>
<a id="pl.131.30"></a><var>131.30</var>purpose of offsetting energy use through the use of renewable energy or high-efficiency
         <br/>
<a id="pl.131.31"></a><var>131.31</var>distributed generation sources.<br/>
<a id="pl.131.32"></a><var>131.32</var>(k) "Renewable energy" has the meaning given in section 
         <statute_ref>216B.2411, subdivision 2</statute_ref>.<br/>
<a id="pl.131.33"></a><var>131.33</var>(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
         <br/>
<a id="pl.131.34"></a><var>131.34</var>generation facility for the recovery of costs for the provision of standby services,
         as <br/>
<a id="pl.131.35"></a><var>131.35</var>provided for in a utility's tariffs approved by the commission, necessary to make
         electricity <br/>
<a id="pl.131.36"></a><var>131.36</var>service available to the distributed generation facility.<br/>
<a id="pl.132.1"></a><var>132.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year <br/>
<a id="pl.132.2"></a><var>132.2</var>2016 and thereafter.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.132.3"></a><var>132.3</var>    Sec. 3. Minnesota Statutes 2014, section 216B.2424, subdivision 5, is amended to read:<br/>
<a id="pl.132.4"></a><var>132.4</var>    Subd. 5. <b>Mandate.</b> (a) A public utility, as defined in section 
         <statute_ref>216B.02, subdivision 4</statute_ref>, <br/>
<a id="pl.132.5"></a><var>132.5</var>that operates a nuclear-powered electric generating plant within this state must construct
         <br/>
<a id="pl.132.6"></a><var>132.6</var>and operate, purchase, or contract to construct and operate (1) by December 31, 1998,
         <br/>
<a id="pl.132.7"></a><var>132.7</var>50 megawatts of electric energy installed capacity generated by farm-grown closed-loop
         <br/>
<a id="pl.132.8"></a><var>132.8</var>biomass scheduled to be operational by December 31, 2001; and (2) by December 31,
         <br/>
<a id="pl.132.9"></a><var>132.9</var>1998, an additional 75 megawatts of installed capacity so generated scheduled to be
         <br/>
<a id="pl.132.10"></a><var>132.10</var>operational by December 31, 2002.<br/>
<a id="pl.132.11"></a><var>132.11</var>(b) Of the 125 megawatts of biomass electricity installed capacity required under
         <br/>
<a id="pl.132.12"></a><var>132.12</var>this subdivision, no more than 55 megawatts of this capacity may be provided by a
         facility <br/>
<a id="pl.132.13"></a><var>132.13</var>that uses poultry litter as its primary fuel source and any such facility:<br/>
<a id="pl.132.14"></a><var>132.14</var>(1) need not use biomass that complies with the definition in subdivision 1;<br/>
<a id="pl.132.15"></a><var>132.15</var>(2) must enter into a contract with the public utility for such capacity, that has
         an <br/>
<a id="pl.132.16"></a><var>132.16</var>average purchase price per megawatt hour over the life of the contract that is equal
         to or <br/>
<a id="pl.132.17"></a><var>132.17</var>less than the average purchase price per megawatt hour over the life of the contract
         in <br/>
<a id="pl.132.18"></a><var>132.18</var>contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy
         <br/>
<a id="pl.132.19"></a><var>132.19</var>the mandate of this section, and file that contract with the Public Utilities Commission
         <br/>
<a id="pl.132.20"></a><var>132.20</var>prior to September 1, 2000; and<br/>
<a id="pl.132.21"></a><var>132.21</var>(3) must schedule such capacity to be operational by December 31, 2002.<br/>
<a id="pl.132.22"></a><var>132.22</var>(c) Of the total 125 megawatts of biomass electric energy installed capacity required
         <br/>
<a id="pl.132.23"></a><var>132.23</var>under this section, no more than 75 megawatts may be provided by a single project.<br/>
<a id="pl.132.24"></a><var>132.24</var>(d) Of the 75 megawatts of biomass electric energy installed capacity required under
         <br/>
<a id="pl.132.25"></a><var>132.25</var>paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided
         by <br/>
<a id="pl.132.26"></a><var>132.26</var>a St. Paul district heating and cooling system cogeneration facility utilizing waste
         wood <br/>
<a id="pl.132.27"></a><var>132.27</var>as a primary fuel source. The St. Paul district heating and cooling system cogeneration
         <br/>
<a id="pl.132.28"></a><var>132.28</var>facility need not use biomass that complies with the definition in subdivision 1.<br/>
<a id="pl.132.29"></a><var>132.29</var>(e) The public utility must accept and consider on an equal basis with other biomass
         <br/>
<a id="pl.132.30"></a><var>132.30</var>proposals:<br/>
<a id="pl.132.31"></a><var>132.31</var>(1) a proposal to satisfy the requirements of this section that includes a project
         that <br/>
<a id="pl.132.32"></a><var>132.32</var>exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or
         (2), and <br/>
<a id="pl.132.33"></a><var>132.33</var>that proposes to sell the excess capacity to the public utility or to other purchasers;
         and<br/>
<a id="pl.132.34"></a><var>132.34</var>(2) a proposal for a new facility to satisfy more than ten but not more than 20 <br/>
<a id="pl.132.35"></a><var>132.35</var>megawatts of the electrical generation requirements by a small business-sponsored
         <br/>
<a id="pl.133.1"></a><var>133.1</var>independent power producer facility to be located within the northern quarter of the
         state, <br/>
<a id="pl.133.2"></a><var>133.2</var>which means the area located north of Constitutional Route No. 8 as described in section
         <br/>
<statute_ref><a id="pl.133.3"></a><var>133.3</var>161.114, subdivision 2
         </statute_ref>, and that utilizes biomass residue wood, sawdust, bark, chipped <br/>
<a id="pl.133.4"></a><var>133.4</var>wood, or brush to generate electricity. A facility described in this clause is not
         required <br/>
<a id="pl.133.5"></a><var>133.5</var>to utilize biomass complying with the definition in subdivision 1, but must be under
         <br/>
<a id="pl.133.6"></a><var>133.6</var>construction by December 31, 2005.<br/>
<a id="pl.133.7"></a><var>133.7</var>(f) If a public utility files a contract with the commission for electric energy installed
         <br/>
<a id="pl.133.8"></a><var>133.8</var>capacity that uses poultry litter as its primary fuel source, the commission must
         do a <br/>
<a id="pl.133.9"></a><var>133.9</var>preliminary review of the contract to determine if it meets the purchase price criteria
         <br/>
<a id="pl.133.10"></a><var>133.10</var>provided in paragraph (b), clause (2). The commission shall perform its review and
         advise <br/>
<a id="pl.133.11"></a><var>133.11</var>the parties of its determination within 30 days of filing of such a contract by a
         public <br/>
<a id="pl.133.12"></a><var>133.12</var>utility. A public utility may submit by September 1, 2000, a revised contract to address
         the <br/>
<a id="pl.133.13"></a><var>133.13</var>commission's preliminary determination.<br/>
<a id="pl.133.14"></a><var>133.14</var>(g) The commission shall finally approve, modify, or disapprove no later than July
         <br/>
<a id="pl.133.15"></a><var>133.15</var>1, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet
         the <br/>
<a id="pl.133.16"></a><var>133.16</var>mandate set forth in this subdivision.<br/>
<a id="pl.133.17"></a><var>133.17</var>(h) If a public utility subject to this section exercises an option to increase the
         <br/>
<a id="pl.133.18"></a><var>133.18</var>generating capacity of a project in a contract approved by the commission prior to
         April <br/>
<a id="pl.133.19"></a><var>133.19</var>25, 2000, to satisfy the mandate in this subdivision, the public utility must notify
         the <br/>
<a id="pl.133.20"></a><var>133.20</var>commission by September 1, 2000, that it has exercised the option and include in the
         <br/>
<a id="pl.133.21"></a><var>133.21</var>notice the amount of additional megawatts to be generated under the option exercised.
         <br/>
<a id="pl.133.22"></a><var>133.22</var>Any review by the commission of the project after exercise of such an option shall
         be <br/>
<a id="pl.133.23"></a><var>133.23</var>based on the same criteria used to review the existing contract.<br/>
<a id="pl.133.24"></a><var>133.24</var>(i) A facility specified in this subdivision qualifies for exemption from property
         <br/>
<a id="pl.133.25"></a><var>133.25</var>taxation under section 
<statute_ref>272.02, subdivision 45</statute_ref>.<br/>
<a id="pl.133.26"></a><var>133.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year <br/>
<a id="pl.133.27"></a><var>133.27</var>2016 and thereafter.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.133.28"></a><var>133.28</var>    Sec. 4. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:<br/>
<a id="pl.133.29"></a><var>133.29</var>    Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br/>
<a id="pl.133.30"></a><var>133.30</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br/>
<a id="pl.133.31"></a><var>133.31</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br/>
<a id="pl.133.32"></a><var>133.32</var>The following personal property shall be taxable:<br/>
<a id="pl.133.33"></a><var>133.33</var>(a) personal property which is part of an electric generating, transmission, or <br/>
<a id="pl.133.34"></a><var>133.34</var>distribution system or a pipeline system transporting or distributing water, gas,
         crude <br/>
<a id="pl.134.1"></a><var>134.1</var>oil, or petroleum products or mains and pipes used in the distribution of steam or
         hot or <br/>
<a id="pl.134.2"></a><var>134.2</var>chilled water for heating or cooling buildings and structures;<br/>
<a id="pl.134.3"></a><var>134.3</var>(b) railroad docks and wharves which are part of the operating property of a railroad
         <br/>
<a id="pl.134.4"></a><var>134.4</var>company as defined in section 
         <statute_ref>270.80</statute_ref>;<br/>
<a id="pl.134.5"></a><var>134.5</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br/>
<a id="pl.134.6"></a><var>134.6</var>(d) leasehold or other personal property interests which are taxed pursuant to section
         <br/>
<statute_ref><a id="pl.134.7"></a><var>134.7</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br/>
<a id="pl.134.8"></a><var>134.8</var>providing the property is taxable as if the lessee or user were the fee owner;<br/>
<a id="pl.134.9"></a><var>134.9</var>(e) manufactured homes and sectional structures, including storage sheds, decks, <br/>
<a id="pl.134.10"></a><var>134.10</var>and similar removable improvements constructed on the site of a manufactured home,
         <br/>
<a id="pl.134.11"></a><var>134.11</var>sectional structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision <br/>
<a id="pl.134.12"></a><var>134.12</var>8
         </statute_ref>, paragraph (f); and<br/>
<a id="pl.134.13"></a><var>134.13</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br/>
<a id="pl.134.14"></a><var>134.14</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year <br/>
<a id="pl.134.15"></a><var>134.15</var>2016 and thereafter.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.134.16"></a><var>134.16</var>    Sec. 5. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.134.17"></a><var>134.17</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.134.18"></a><var>134.18</var>primarily for the abatement and control of air, water, or land pollution is exempt
         to the <br/>
<a id="pl.134.19"></a><var>134.19</var>extent that it is so used, and real property is exempt if it is used primarily for
         abatement <br/>
<a id="pl.134.20"></a><var>134.20</var>and control of air, water, or land pollution as part of an agricultural operation,
         as a part <br/>
<a id="pl.134.21"></a><var>134.21</var>of a centralized treatment and recovery facility operating under a permit issued by
         the <br/>
<a id="pl.134.22"></a><var>134.22</var>Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
         <br/>
<a id="pl.134.23"></a><var>134.23</var>Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater <br/>
<a id="pl.134.24"></a><var>134.24</var>treatment facility and for the treatment, recovery, and stabilization of metals, oils,
         <br/>
<a id="pl.134.25"></a><var>134.25</var>chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as <br/>
<a id="pl.134.26"></a><var>134.26</var>part of an electric generation system. For purposes of this subdivision, personal property <br/>
<a id="pl.134.27"></a><var>134.27</var>includes ponderous machinery and equipment used in a business or production activity
         <br/>
<a id="pl.134.28"></a><var>134.28</var>that at common law is considered real property. The real or personal property of an <br/>
<a id="pl.134.29"></a><var>134.29</var>electric generation system is not eligible for an exemption under this section.<br/>
<a id="pl.134.30"></a><var>134.30</var>Any taxpayer requesting exemption of all or a portion of any real property or any
         <br/>
<a id="pl.134.31"></a><var>134.31</var>equipment or device, or part thereof, operated primarily for the control or abatement
         of <br/>
<a id="pl.134.32"></a><var>134.32</var>air, water, or land pollution shall file an application with the commissioner of revenue.
         <br/>
<a id="pl.134.33"></a><var>134.33</var>The commissioner shall develop an electronic means to notify interested parties when
         <br/>
<a id="pl.134.34"></a><var>134.34</var>electric power generation facilities have filed an application. The Minnesota Pollution
         <br/>
<a id="pl.135.1"></a><var>135.1</var>Control Agency shall upon request of the commissioner furnish information and advice
         to <br/>
<a id="pl.135.2"></a><var>135.2</var>the commissioner.<br/>
<a id="pl.135.3"></a><var>135.3</var>The information and advice furnished by the Minnesota Pollution Control <br/>
<a id="pl.135.4"></a><var>135.4</var>Agency must include statements as to whether the equipment, device, or real property
         <br/>
<a id="pl.135.5"></a><var>135.5</var>meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
         <br/>
<a id="pl.135.6"></a><var>135.6</var>Control Agency, and whether the equipment, device, or real property is installed or
         <br/>
<a id="pl.135.7"></a><var>135.7</var>operated in accordance with it. On determining that property qualifies for exemption,
         <br/>
<a id="pl.135.8"></a><var>135.8</var>the commissioner shall issue an order exempting the property from taxation. The <br/>
<a id="pl.135.9"></a><var>135.9</var>commissioner shall develop an electronic means to notify interested parties when <br/>
<a id="pl.135.10"></a><var>135.10</var>the commissioner has issued an order exempting property from taxation under this <br/>
<a id="pl.135.11"></a><var>135.11</var>subdivision. The equipment, device, or real property shall continue to be exempt from
         <br/>
<a id="pl.135.12"></a><var>135.12</var>taxation as long as the order issued by the commissioner remains in effect.<br/>
<a id="pl.135.13"></a><var>135.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.135.14"></a><var>135.14</var>thereafter.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.135.15"></a><var>135.15</var>    Sec. 6. <b>[273.129] ELECTRIC GENERATION MACHINERY; VALUATION.</b><br/>
<a id="pl.135.16"></a><var>135.16</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.135.17"></a><var>135.17</var>having the meanings given.<br/>
<a id="pl.135.18"></a><var>135.18</var>(b) "Biomass generating system" means any device used to produce energy by the <br/>
<a id="pl.135.19"></a><var>135.19</var>direct combustion of carbon-based organisms.<br/>
<a id="pl.135.20"></a><var>135.20</var>(c) "Coal generating system" means any device whose primary purpose is the <br/>
<a id="pl.135.21"></a><var>135.21</var>production of electricity derived by the direct combustion of coal to produce steam.<br/>
<a id="pl.135.22"></a><var>135.22</var>(d) "Electric generation machinery" means all personal property of an electric <br/>
<a id="pl.135.23"></a><var>135.23</var>generation system, excluding solar energy generating systems and wind energy conversion
         <br/>
<a id="pl.135.24"></a><var>135.24</var>systems, used for the purpose of generating electricity.<br/>
<a id="pl.135.25"></a><var>135.25</var>(e) "Generation capacity" means the generation rate per megawatt as follows:<br/>
<a id="pl.135.26"></a><var>135.26</var>(1) $0 for hydroelectric generating systems;<br/>
<a id="pl.135.27"></a><var>135.27</var>(2) $5,000 for machinery used to generate electricity from biomass, natural gas, or
         <br/>
<a id="pl.135.28"></a><var>135.28</var>nuclear fuel generation systems; and<br/>
<a id="pl.135.29"></a><var>135.29</var>(3) $10,000 for machinery used to generate electricity from a coal or oil generation
         <br/>
<a id="pl.135.30"></a><var>135.30</var>system or any other fossil fuel.<br/>
<a id="pl.135.31"></a><var>135.31</var>(f) "Generation rate" means the rate per kilowatt hour as follows:<br/>
<a id="pl.135.32"></a><var>135.32</var>(1) $.05 for hydroelectric generating systems;<br/>
<a id="pl.135.33"></a><var>135.33</var>(2) $.0525 for machinery used to generate electricity from biomass, natural gas, or
         <br/>
<a id="pl.135.34"></a><var>135.34</var>nuclear fuel generation systems; and<br/>
<a id="pl.136.1"></a><var>136.1</var>(3) $.055 for machinery used to generate electricity from a coal or oil generation
         <br/>
<a id="pl.136.2"></a><var>136.2</var>system or any other fossil fuel.<br/>
<a id="pl.136.3"></a><var>136.3</var>(g) "Hydroelectric generating system" means any device whose primary purpose is <br/>
<a id="pl.136.4"></a><var>136.4</var>the production of electricity derived from flowing water.<br/>
<a id="pl.136.5"></a><var>136.5</var>(h) "Nameplate capacity" means the maximum rated output of a generator, prime <br/>
<a id="pl.136.6"></a><var>136.6</var>mover, or other electric power production equipment under specific conditions designated
         <br/>
<a id="pl.136.7"></a><var>136.7</var>by the manufacturer.<br/>
<a id="pl.136.8"></a><var>136.8</var>(i) "Natural gas generating system" means any device whose primary purpose is the
         <br/>
<a id="pl.136.9"></a><var>136.9</var>production of electricity derived from natural gas.<br/>
<a id="pl.136.10"></a><var>136.10</var>(j) "Nuclear fuel generating system" means any device whose primary purpose is <br/>
<a id="pl.136.11"></a><var>136.11</var>the production of electricity generated by the use of the thermal energy released
         from the <br/>
<a id="pl.136.12"></a><var>136.12</var>fission of nuclear fuel in a reactor.<br/>
<a id="pl.136.13"></a><var>136.13</var>(k) "Oil generating system" means any device whose primary purpose is the <br/>
<a id="pl.136.14"></a><var>136.14</var>production of electricity derived by direct combustion of oil to produce steam.<br/>
<a id="pl.136.15"></a><var>136.15</var>(l) "Primary fuel source" means the fuel source that is dominantly used by a facility
         <br/>
<a id="pl.136.16"></a><var>136.16</var>in the production of electricity.<br/>
<a id="pl.136.17"></a><var>136.17</var>(m) "Spent fuel" means fuel that has been irradiated in a nuclear reactor to the point
         <br/>
<a id="pl.136.18"></a><var>136.18</var>where it is no longer useful in sustaining a nuclear reaction.<br/>
<a id="pl.136.19"></a><var>136.19</var>(n) "Spent fuel tax base" means $150,000,000 per facility plus $100,000 per ton of
         <br/>
<a id="pl.136.20"></a><var>136.20</var>spent fuel of a nuclear generating facility.<br/>
<a id="pl.136.21"></a><var>136.21</var>    Subd. 2. <b>Rates; adjustment.</b> The generation and capacity rates as provided in <br/>
<a id="pl.136.22"></a><var>136.22</var>subdivision 1, paragraphs (e) and (f), shall be increased annually by an amount equal
         to the <br/>
<a id="pl.136.23"></a><var>136.23</var>percentage change in the retail price of electricity for the residential sector in
         Minnesota <br/>
<a id="pl.136.24"></a><var>136.24</var>for the prior year as reported by the U.S. Energy Information Administration.<br/>
<a id="pl.136.25"></a><var>136.25</var>    Subd. 3. <b>Electric generation tax base.</b> (a) The commissioner shall annually <br/>
<a id="pl.136.26"></a><var>136.26</var>calculate the electric generation tax base under this section. An electric generating
         system <br/>
<a id="pl.136.27"></a><var>136.27</var>with a capacity of one megawatt or less as determined under subdivision 4 shall be
         <br/>
<a id="pl.136.28"></a><var>136.28</var>exempt from the provisions of this section. The commissioner shall calculate the electric
         <br/>
<a id="pl.136.29"></a><var>136.29</var>generation tax base using the applicable capacity and generation rate based on the
         electric <br/>
<a id="pl.136.30"></a><var>136.30</var>generation system's primary fuel source.<br/>
<a id="pl.136.31"></a><var>136.31</var>(b) The electric generation tax base for property described in subdivision 1 is equal
         <br/>
<a id="pl.136.32"></a><var>136.32</var>to the sum of: (1) its nameplate capacity multiplied by its generation capacity rate;
         (2) <br/>
<a id="pl.136.33"></a><var>136.33</var>the average of its electric energy production as reported to the commissioner of revenue
         <br/>
<a id="pl.136.34"></a><var>136.34</var>for the immediately preceding five years, multiplied by its generation rate; and (3)
         its <br/>
<a id="pl.136.35"></a><var>136.35</var>spent fuel tax base. For electric generating systems that have been operational for
         less <br/>
<a id="pl.136.36"></a><var>136.36</var>than the immediately preceding five years, the average of its electric energy production
         <br/>
<a id="pl.137.1"></a><var>137.1</var>shall be the average of its electric energy production for the time period since the
         facility <br/>
<a id="pl.137.2"></a><var>137.2</var>commenced operation.<br/>
<a id="pl.137.3"></a><var>137.3</var>(c) For purposes of a levy based on market value, the electric generation tax base
         <br/>
<a id="pl.137.4"></a><var>137.4</var>shall become part of the jurisdiction's market value tax base. For all levies based
         on net <br/>
<a id="pl.137.5"></a><var>137.5</var>tax capacity, the electric generation tax base multiplied by two percent shall be
         added <br/>
<a id="pl.137.6"></a><var>137.6</var>to the jurisdiction's net tax capacity base.<br/>
<a id="pl.137.7"></a><var>137.7</var>    Subd. 4. <b>Electric generating systems; size.</b> The total capacity of an electric <br/>
<a id="pl.137.8"></a><var>137.8</var>generating system, pursuant to this section, shall be determined by combining all
         <br/>
<a id="pl.137.9"></a><var>137.9</var>generators of each fuel type within each facility, based on the information reported
         to the <br/>
<a id="pl.137.10"></a><var>137.10</var>commissioner of revenue as required under subdivision 5.<br/>
<a id="pl.137.11"></a><var>137.11</var>    Subd. 5. <b>Generating systems; reports.</b> An owner of an electric generating system <br/>
<a id="pl.137.12"></a><var>137.12</var>shall file a report with the commissioner of revenue annually on or before February
         1 <br/>
<a id="pl.137.13"></a><var>137.13</var>detailing: (1) the amount of electricity that was produced by each generator in the
         previous <br/>
<a id="pl.137.14"></a><var>137.14</var>calendar year as reported to the U.S. Energy Information Administration; and (2) the
         <br/>
<a id="pl.137.15"></a><var>137.15</var>location, length, and capacity of all transmission and distribution lines. The commissioner
         <br/>
<a id="pl.137.16"></a><var>137.16</var>shall prescribe the form of the report. The report must contain the information required
         by <br/>
<a id="pl.137.17"></a><var>137.17</var>the commissioner to determine the electric generation tax base. If an owner of an
         electric <br/>
<a id="pl.137.18"></a><var>137.18</var>generating system fails to file the report by the due date, the commissioner of revenue
         <br/>
<a id="pl.137.19"></a><var>137.19</var>shall determine the electric generation tax base based upon the nameplate capacity
         of the <br/>
<a id="pl.137.20"></a><var>137.20</var>system multiplied by a capacity factor of 100 percent.<br/>
<a id="pl.137.21"></a><var>137.21</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.137.22"></a><var>137.22</var>    Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:<br/>
<a id="pl.137.23"></a><var>137.23</var>    Subd. 24. <b>Class 3.</b>  Commercial and industrial property and utility real and personal <br/>
<a id="pl.137.24"></a><var>137.24</var>property is class 3a.<br/>
<a id="pl.137.25"></a><var>137.25</var>(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
         <br/>
<a id="pl.137.26"></a><var>137.26</var>real property has a classification rate of 1.5 percent of the first tier of market
         value, and 2.0 <br/>
<a id="pl.137.27"></a><var>137.27</var>percent of the remaining market value. In the case of contiguous parcels of property
         owned <br/>
<a id="pl.137.28"></a><var>137.28</var>by the same person or entity, only the value equal to the first-tier value of the
         contiguous <br/>
<a id="pl.137.29"></a><var>137.29</var>parcels qualifies for the reduced classification rate, except that contiguous parcels
         owned <br/>
<a id="pl.137.30"></a><var>137.30</var>by the same person or entity shall be eligible for the first-tier value classification
         rate on <br/>
<a id="pl.137.31"></a><var>137.31</var>each separate business operated by the owner of the property, provided the business
         is <br/>
<a id="pl.137.32"></a><var>137.32</var>housed in a separate structure. For the purposes of this subdivision, the first tier
         means the <br/>
<a id="pl.137.33"></a><var>137.33</var>first $150,000 of market value. Real property owned in fee by a utility for transmission
         <br/>
<a id="pl.137.34"></a><var>137.34</var>line right-of-way shall be classified at the classification rate for the higher tier.<br/>
<a id="pl.138.1"></a><var>138.1</var>For purposes of this subdivision, parcels are considered to be contiguous even if
         <br/>
<a id="pl.138.2"></a><var>138.2</var>they are separated from each other by a road, street, waterway, or other similar intervening
         <br/>
<a id="pl.138.3"></a><var>138.3</var>type of property. Connections between parcels that consist of power lines or pipelines
         do <br/>
<a id="pl.138.4"></a><var>138.4</var>not cause the parcels to be contiguous. Property owners who have contiguous parcels
         of <br/>
<a id="pl.138.5"></a><var>138.5</var>property that constitute separate businesses that may qualify for the first-tier classification
         <br/>
<a id="pl.138.6"></a><var>138.6</var>rate shall notify the assessor by July 1, for treatment beginning in the following
         taxes <br/>
<a id="pl.138.7"></a><var>138.7</var>payable year.<br/>
<a id="pl.138.8"></a><var>138.8</var>(2) All personal property that is: (i) part of an electric generation, transmission, or <br/>
<a id="pl.138.9"></a><var>138.9</var>distribution system; or (ii) part of a pipeline system transporting or distributing
         water, gas, <br/>
<a id="pl.138.10"></a><var>138.10</var>crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
         <br/>
<a id="pl.138.11"></a><var>138.11</var>operating property has a classification rate as provided under clause (1) for the
         first tier <br/>
<a id="pl.138.12"></a><var>138.12</var>of market value and the remaining market value. In the case of multiple parcels in
         one <br/>
<a id="pl.138.13"></a><var>138.13</var>county that are owned by one person or entity, only one first tier amount is eligible
         for the <br/>
<a id="pl.138.14"></a><var>138.14</var>reduced rate.<br/>
<a id="pl.138.15"></a><var>138.15</var>(3) The entire market value of personal property that is: (i) tools, and  implements, <br/>
<a id="pl.138.16"></a><var>138.16</var>and machinery of an electric generation, transmission, or distribution system; (ii) tools, <br/>
<a id="pl.138.17"></a><var>138.17</var>implements, and machinery of a pipeline system transporting or distributing water,
         gas, <br/>
<a id="pl.138.18"></a><var>138.18</var>crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution
         of <br/>
<a id="pl.138.19"></a><var>138.19</var>steam or hot or chilled water for heating or cooling buildings, has a classification
         rate as <br/>
<a id="pl.138.20"></a><var>138.20</var>provided under clause (1) for the remaining market value in excess of the first tier.<br/>
<a id="pl.138.21"></a><var>138.21</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2016.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.138.22"></a><var>138.22</var>    Sec. 8. Minnesota Statutes 2014, section 273.37, subdivision 1, is amended to read:<br/>
<a id="pl.138.23"></a><var>138.23</var>    Subdivision 1. <b>Listing and assessment where situated.</b> (a) Personal property of <br/>
<a id="pl.138.24"></a><var>138.24</var>electric light and power companies, and other individuals and partnerships supplying
         <br/>
<a id="pl.138.25"></a><var>138.25</var>electric light and power, having a fixed situs outside of the corporate limits of
         cities shall <br/>
<a id="pl.138.26"></a><var>138.26</var>be listed and assessed in the district where situated, except as otherwise provided.<br/>
<a id="pl.138.27"></a><var>138.27</var>(b) Notwithstanding any other law to the contrary, the nonoperating property, and
         <br/>
<a id="pl.138.28"></a><var>138.28</var>operating real property of electric light and power companies that is part of an electric
         <br/>
<a id="pl.138.29"></a><var>138.29</var>generation system, shall be listed and assessed by the local or county assessor.<br/>
<a id="pl.138.30"></a><var>138.30</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.138.31"></a><var>138.31</var>thereafter.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.138.32"></a><var>138.32</var>    Sec. 9. <b>[477A.21] ELECTRIC GENERATION PROPERTY TRANSITION AID.</b><br/>
<a id="pl.139.1"></a><var>139.1</var>    Subdivision 1. <b>Definitions.</b> For the purposes of this section, "local unit" means a <br/>
<a id="pl.139.2"></a><var>139.2</var>home rule charter or statutory city, county, or a town.<br/>
<a id="pl.139.3"></a><var>139.3</var>    Subd. 2. <b>Aid eligibility; payment.</b> For aids payable in 2017 and thereafter, <br/>
<a id="pl.139.4"></a><var>139.4</var>transition aid under this section for an eligible local unit equals: (1) the net tax
         capacity of <br/>
<a id="pl.139.5"></a><var>139.5</var>all personal property of all electric generating systems as determined for assessment
         year <br/>
<a id="pl.139.6"></a><var>139.6</var>2015 multiplied by the 2015 local tax rate; minus (2) the net tax capacity in the
         current <br/>
<a id="pl.139.7"></a><var>139.7</var>year of all electric generating systems as determined under section 273.129, multiplied
         by <br/>
<a id="pl.139.8"></a><var>139.8</var>the current local tax rate. Aid to a local unit shall cease beginning in the year
         following <br/>
<a id="pl.139.9"></a><var>139.9</var>the year in which the aid equals zero. Once a local unit becomes ineligible for aid
         under <br/>
<a id="pl.139.10"></a><var>139.10</var>this section, it may not subsequently become eligible.<br/>
<a id="pl.139.11"></a><var>139.11</var>The commissioner of revenue shall compute the amount of transition aid payable to
         <br/>
<a id="pl.139.12"></a><var>139.12</var>each local unit under this section. On or before August 1 of each year, the commissioner
         <br/>
<a id="pl.139.13"></a><var>139.13</var>shall certify the amount of transition aid computed for aids payable in the following
         year <br/>
<a id="pl.139.14"></a><var>139.14</var>for each recipient local unit. The commissioner shall pay transition aid to local
         units <br/>
<a id="pl.139.15"></a><var>139.15</var>annually at the time provided for the second installment of local government aid under
         <br/>
<a id="pl.139.16"></a><var>139.16</var>section 477A.015.<br/>
<a id="pl.139.17"></a><var>139.17</var>The commissioner of revenue may require counties to provide any data that the <br/>
<a id="pl.139.18"></a><var>139.18</var>commissioner deems necessary to administer this section.<br/>
<a id="pl.139.19"></a><var>139.19</var>    Subd. 3. <b>Appropriation.</b> An amount sufficient to pay transition aid under this <br/>
<a id="pl.139.20"></a><var>139.20</var>section is annually appropriated to the commissioner of revenue from the general fund.<br/>
<a id="pl.139.21"></a><var>139.21</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.139.22"></a><var>139.22</var>    Sec. 10. <b> REPEALER.</b><br/>
<a id="pl.139.23"></a><var>139.23</var>Minnesota Statutes 2014, sections 272.02, subdivisions 29, 33, 41, 44, 45, 47, 52,
         <br/>
<a id="pl.139.24"></a><var>139.24</var>54, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, and 99; 272.0211, are repealed.<br/>
<a id="pl.139.25"></a><var>139.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year <br/>
<a id="pl.139.26"></a><var>139.26</var>2016 and thereafter.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.139.29"></a><var>139.29</var>    Section 1. Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:<br/>
<a id="pl.139.30"></a><var>139.30</var>    Subdivision 1. <b>Applicability.</b> The following words and phrases when used <br/>
<a id="pl.139.31"></a><var>139.31</var>in sections 
         <statute_ref>270.80</statute_ref> 273.3712 to 
         <statute_ref>270.87</statute_ref> 273.3719, unless the context clearly indicates <br/>
<a id="pl.139.32"></a><var>139.32</var>otherwise, have the meanings ascribed to them in this section.<br/>
<a id="pl.140.1"></a><var>140.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.140.2"></a><var>140.2</var>thereafter.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.140.3"></a><var>140.3</var>    Sec. 2. Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:<br/>
<a id="pl.140.4"></a><var>140.4</var>    Subd. 2. <b>Railroad company.</b> "Railroad company" means:<br/>
<a id="pl.140.5"></a><var>140.5</var>(1) any company which as a common carrier operates a railroad or a line or lines of
         <br/>
<a id="pl.140.6"></a><var>140.6</var>railway railroad situated within or partly within Minnesota; or<br/>
<a id="pl.140.7"></a><var>140.7</var>(2) any company owning or operating, other than as a common carrier, a railway <br/>
<a id="pl.140.8"></a><var>140.8</var>principally used for transportation of taconite concentrates from the plant at which
         the <br/>
<a id="pl.140.9"></a><var>140.9</var>taconite concentrates are produced in shipping form to a point of consumption or port
         <br/>
<a id="pl.140.10"></a><var>140.10</var>for shipment beyond the state; or<br/>
<a id="pl.140.11"></a><var>140.11</var>(3) any company that produces concentrates from taconite and transports that <br/>
<a id="pl.140.12"></a><var>140.12</var>taconite in the course of the concentrating process and before the concentrating process
         is <br/>
<a id="pl.140.13"></a><var>140.13</var>completed to a concentrating plant located within the state over a railroad that is
         not a <br/>
<a id="pl.140.14"></a><var>140.14</var>common carrier and shall does not use a common carrier or taconite railroad company as <br/>
<a id="pl.140.15"></a><var>140.15</var>defined in clause (2) for the movement of the concentrate to a point of consumption
         or <br/>
<a id="pl.140.16"></a><var>140.16</var>port for shipment beyond the state.<br/>
<a id="pl.140.17"></a><var>140.17</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.140.18"></a><var>140.18</var>thereafter.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.140.19"></a><var>140.19</var>    Sec. 3. Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:<br/>
<a id="pl.140.20"></a><var>140.20</var>    Subd. 3. <b>Operating property.</b> "Operating property" means all property owned <br/>
<a id="pl.140.21"></a><var>140.21</var>or used by a railroad company in the performance of railroad transportation services,
         <br/>
<a id="pl.140.22"></a><var>140.22</var>including without limitation franchises, rights-of-way, bridges, trestles, shops, docks, <br/>
<a id="pl.140.23"></a><var>140.23</var>wharves, buildings and structures, but not limited to, road, locomotives, freight cars, <br/>
<a id="pl.140.24"></a><var>140.24</var>and improvements on leased property. Operating property is listed and assessed by
         the <br/>
<a id="pl.140.25"></a><var>140.25</var>commissioner where the property is located.<br/>
<a id="pl.140.26"></a><var>140.26</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.140.27"></a><var>140.27</var>thereafter.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.140.28"></a><var>140.28</var>    Sec. 4. Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:<br/>
<a id="pl.140.29"></a><var>140.29</var>    Subd. 4. <b>Nonoperating property.</b> "Nonoperating property" means and includes all <br/>
<a id="pl.140.30"></a><var>140.30</var>property other than property defined in subdivision 3. Nonoperating property shall include <br/>
<a id="pl.140.31"></a><var>140.31</var>includes real property which that is leased or rented or available for lease or rent to any <br/>
<a id="pl.140.32"></a><var>140.32</var>person which that is not a railroad company. Vacant land shall be presumed to be available <br/>
<a id="pl.141.1"></a><var>141.1</var>for lease or rent if it has not been used as operating property for a period of one
         year <br/>
<a id="pl.141.2"></a><var>141.2</var>immediately preceding the valuation date. Nonoperating property also includes land which <br/>
<a id="pl.141.3"></a><var>141.3</var>that is not necessary and integral to the performance of railroad transportation services
         <br/>
<a id="pl.141.4"></a><var>141.4</var>and which that is not used on a regular and continual basis in the performance of these <br/>
<a id="pl.141.5"></a><var>141.5</var>services. Nonoperating property also includes that portion of a general corporation office <br/>
<a id="pl.141.6"></a><var>141.6</var>building and its proportionate share of land which that is not used for railway railroad <br/>
<a id="pl.141.7"></a><var>141.7</var>operation or purpose. Nonoperating property is assessed by the local or county assessor.<br/>
<a id="pl.141.8"></a><var>141.8</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.141.9"></a><var>141.9</var>thereafter.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.141.10"></a><var>141.10</var>    Sec. 5. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.141.11"></a><var>141.11</var>to read:<br/>
<a id="pl.141.12"></a><var>141.12</var>    Subd. 6. <b>Company.</b> "Company" means any corporation, limited liability company, <br/>
<a id="pl.141.13"></a><var>141.13</var>association, partnership, trust, estate, fiduciary, public or private organization
         of any kind, <br/>
<a id="pl.141.14"></a><var>141.14</var>or any other legal entity.<br/>
<a id="pl.141.15"></a><var>141.15</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.141.16"></a><var>141.16</var>thereafter.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.141.17"></a><var>141.17</var>    Sec. 6. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.141.18"></a><var>141.18</var>to read:<br/>
<a id="pl.141.19"></a><var>141.19</var>    Subd. 7. <b>Unit value.</b> "Unit value" means the value of the whole integrated system <br/>
<a id="pl.141.20"></a><var>141.20</var>of a railroad company operating as a going concern without regard to the value of
         its <br/>
<a id="pl.141.21"></a><var>141.21</var>component parts.<br/>
<a id="pl.141.22"></a><var>141.22</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.141.23"></a><var>141.23</var>thereafter.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.141.24"></a><var>141.24</var>    Sec. 7. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.141.25"></a><var>141.25</var>to read:<br/>
<a id="pl.141.26"></a><var>141.26</var>    Subd. 8. <b>Book depreciation.</b> "Book depreciation" means the accumulated <br/>
<a id="pl.141.27"></a><var>141.27</var>depreciation shown by a railroad company on its books or allowed to the company by
         <br/>
<a id="pl.141.28"></a><var>141.28</var>the Surface Transportation Board.<br/>
<a id="pl.141.29"></a><var>141.29</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.141.30"></a><var>141.30</var>thereafter.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.142.1"></a><var>142.1</var>    Sec. 8. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.142.2"></a><var>142.2</var>to read:<br/>
<a id="pl.142.3"></a><var>142.3</var>    Subd. 9. <b>Equalization.</b> "Equalization" means the adjustment of the estimated value <br/>
<a id="pl.142.4"></a><var>142.4</var>of railroad operating property to the apparent sales ratio of commercial and industrial
         <br/>
<a id="pl.142.5"></a><var>142.5</var>property.<br/>
<a id="pl.142.6"></a><var>142.6</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.142.7"></a><var>142.7</var>thereafter.<br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.142.8"></a><var>142.8</var>    Sec. 9. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.142.9"></a><var>142.9</var>to read:<br/>
<a id="pl.142.10"></a><var>142.10</var>    Subd. 10. <b>Exempt property.</b> "Exempt property" means property which is <br/>
<a id="pl.142.11"></a><var>142.11</var>nontaxable for ad valorem tax purposes under Minnesota Statutes, including personal
         <br/>
<a id="pl.142.12"></a><var>142.12</var>property exempt from taxation under chapter 272.<br/>
<a id="pl.142.13"></a><var>142.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.142.14"></a><var>142.14</var>thereafter.<br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.142.15"></a><var>142.15</var>    Sec. 10. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.142.16"></a><var>142.16</var>to read:<br/>
<a id="pl.142.17"></a><var>142.17</var>    Subd. 11. <b>Original cost.</b> "Original cost" means the amount paid for an asset by the <br/>
<a id="pl.142.18"></a><var>142.18</var>current owner as recorded on the railroad's books or allowed by the Surface Transportation
         <br/>
<a id="pl.142.19"></a><var>142.19</var>Board.<br/>
<a id="pl.142.20"></a><var>142.20</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.142.21"></a><var>142.21</var>thereafter.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.142.22"></a><var>142.22</var>    Sec. 11. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.142.23"></a><var>142.23</var>to read:<br/>
<a id="pl.142.24"></a><var>142.24</var>    Subd. 12. <b>System.</b> "System" means the total property, real and personal, of a <br/>
<a id="pl.142.25"></a><var>142.25</var>railroad, that is used in its railroad operations.<br/>
<a id="pl.142.26"></a><var>142.26</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.142.27"></a><var>142.27</var>thereafter.<br/>
<br/>
<a id="bill.9.12.0"></a><a id="pl.142.28"></a><var>142.28</var>    Sec. 12. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision <br/>
<a id="pl.142.29"></a><var>142.29</var>to read:<br/>
<a id="pl.143.1"></a><var>143.1</var>    Subd. 14. <b>Minnesota allocated value.</b> "Minnesota allocated value" means the value <br/>
<a id="pl.143.2"></a><var>143.2</var>of a railroad company's operating property that is assigned to Minnesota for tax purposes.<br/>
<a id="pl.143.3"></a><var>143.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.143.4"></a><var>143.4</var>thereafter.<br/>
<br/>
<a id="bill.9.13.0"></a><a id="pl.143.5"></a><var>143.5</var>    Sec. 13. Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:<br/>
<a id="pl.143.6"></a><var>143.6</var>    Subdivision 1. <b>Valuation of operating property.</b> The operating property of every <br/>
<a id="pl.143.7"></a><var>143.7</var>railroad company doing business in Minnesota shall be valued by the commissioner in
         the <br/>
<a id="pl.143.8"></a><var>143.8</var>manner prescribed by sections 
         <statute_ref>270.80</statute_ref> 273.3712 to 
         <statute_ref>270.87</statute_ref> 273.3719.<br/>
<a id="pl.143.9"></a><var>143.9</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.143.10"></a><var>143.10</var>thereafter.<br/>
<br/>
<a id="bill.9.14.0"></a><a id="pl.143.11"></a><var>143.11</var>    Sec. 14. Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:<br/>
<a id="pl.143.12"></a><var>143.12</var>    Subd. 3. <b>Determination of type of property.</b> (a) The commissioner shall have has <br/>
<a id="pl.143.13"></a><var>143.13</var>exclusive primary jurisdiction to determine what whether railroad property is operating <br/>
<a id="pl.143.14"></a><var>143.14</var>property and what is or nonoperating property. In making such the determination, the <br/>
<a id="pl.143.15"></a><var>143.15</var>commissioner shall may solicit information and opinions from outside the department <br/>
<a id="pl.143.16"></a><var>143.16</var>and afford all interested persons an opportunity to submit data or views on the subject
         <br/>
<a id="pl.143.17"></a><var>143.17</var>in writing or orally.<br/>
<a id="pl.143.18"></a><var>143.18</var>(b) Local and county assessors may submit written requests to the commissioner, <br/>
<a id="pl.143.19"></a><var>143.19</var>asking for a determination of the nature of specific whether property owned by a <br/>
<a id="pl.143.20"></a><var>143.20</var>railroad and located within their assessing jurisdiction is operating or nonoperating. Any <br/>
<a id="pl.143.21"></a><var>143.21</var>determination made by the commissioner may be appealed by the assessor to the Tax
         Court <br/>
<a id="pl.143.22"></a><var>143.22</var>pursuant to chapter 271. The requests must be submitted by April 1 of the assessing year. <br/>
<a id="pl.143.23"></a><var>143.23</var>The commissioner must send the assessor a written determination by May 1. Assessors
         may <br/>
<a id="pl.143.24"></a><var>143.24</var>appeal determinations made by the commissioner to the Tax Court pursuant to chapter
         271.<br/>
<a id="pl.143.25"></a><var>143.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.143.26"></a><var>143.26</var>thereafter.<br/>
<br/>
<a id="bill.9.15.0"></a><a id="pl.143.27"></a><var>143.27</var>    Sec. 15. Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision <br/>
<a id="pl.143.28"></a><var>143.28</var>to read:<br/>
<a id="pl.143.29"></a><var>143.29</var>    Subd. 6. <b>Deduction for nonoperating and exempt property.</b> Property that was part <br/>
<a id="pl.143.30"></a><var>143.30</var>of the system, but is nonoperating property, or that is exempt from ad valorem taxation,
         is <br/>
<a id="pl.143.31"></a><var>143.31</var>excluded from the Minnesota allocated value under section 273.3718, subdivision 1a.
         Only <br/>
<a id="pl.143.32"></a><var>143.32</var>qualifying property located in Minnesota may be deducted from the Minnesota allocated
         <br/>
<a id="pl.144.1"></a><var>144.1</var>value. The commissioner must deduct the market value of the property to be excluded.
         This <br/>
<a id="pl.144.2"></a><var>144.2</var>must be calculated by multiplying the book value of the property by the market-to-book
         <br/>
<a id="pl.144.3"></a><var>144.3</var>ratio of the unit. The company has the burden of proof to establish that property
         should <br/>
<a id="pl.144.4"></a><var>144.4</var>be excluded from the Minnesota allocated value. The railroad company must submit <br/>
<a id="pl.144.5"></a><var>144.5</var>schedules of exempt or nonoperating property as the commissioner may require. The
         <br/>
<a id="pl.144.6"></a><var>144.6</var>remaining amount after this deduction is the Minnesota apportionable market value.<br/>
<a id="pl.144.7"></a><var>144.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.144.8"></a><var>144.8</var>thereafter.<br/>
<br/>
<a id="bill.9.16.0"></a><a id="pl.144.9"></a><var>144.9</var>    Sec. 16. Minnesota Statutes 2014, section 270.82, is amended to read:<br/>
<a id="pl.144.10"></a><var>144.10</var><b>270.82 REPORTS OF RAILROAD COMPANIES.</b><br/>
<a id="pl.144.11"></a><var>144.11</var>    Subdivision 1. <b>Annual report required.</b> Before March 31, every railroad company <br/>
<a id="pl.144.12"></a><var>144.12</var>doing business in Minnesota shall annually must file with the commissioner on or before <br/>
<a id="pl.144.13"></a><var>144.13</var>March 31 a an annual report under oath setting forth the information prescribed by the <br/>
<a id="pl.144.14"></a><var>144.14</var>commissioner to enable the commissioner to make the valuation and equalization required
         <br/>
<a id="pl.144.15"></a><var>144.15</var>by sections 
         <statute_ref>270.80</statute_ref> 273.3712 to 
         <statute_ref>270.87</statute_ref>. 273.3719. The commissioner shall prescribe the <br/>
<a id="pl.144.16"></a><var>144.16</var>content, format, and manner of the report pursuant to section 270C.30. If a report
         is made <br/>
<a id="pl.144.17"></a><var>144.17</var>by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
         <br/>
<a id="pl.144.18"></a><var>144.18</var>except that a "law administered by the commissioner" includes the property tax laws.<br/>
<a id="pl.144.19"></a><var>144.19</var>    Subd. 2. <b>Extension of time.</b> If the commissioner for good determines that there is <br/>
<a id="pl.144.20"></a><var>144.20</var>reasonable cause, the commissioner may extend the time for filing the report required by <br/>
<a id="pl.144.21"></a><var>144.21</var>subdivision 1 for up to 15 days the time for filing the report required by subdivision 1.<br/>
<a id="pl.144.22"></a><var>144.22</var>    Subd. 3. <b>Amended reports.</b> A railroad company may file an amended report to <br/>
<a id="pl.144.23"></a><var>144.23</var>correct or add information to the original report. Amended reports must be filed with
         <br/>
<a id="pl.144.24"></a><var>144.24</var>the commissioner by April 30.<br/>
<a id="pl.144.25"></a><var>144.25</var>    Subd. 4. <b>Failure to file reports.</b> (a) The commissioner may make the valuation <br/>
<a id="pl.144.26"></a><var>144.26</var>provided for by sections 273.3712 to 237.3719, according to the commissioner's best
         <br/>
<a id="pl.144.27"></a><var>144.27</var>judgment based on available information, if any railroad company does not:<br/>
<a id="pl.144.28"></a><var>144.28</var>(1) make the report required by this section;<br/>
<a id="pl.144.29"></a><var>144.29</var>(2) permit an inspection and examination of its property, records, books, accounts,
         <br/>
<a id="pl.144.30"></a><var>144.30</var>or other papers when requested by the commissioner; or<br/>
<a id="pl.144.31"></a><var>144.31</var>(3) appear before the commissioner or a person appointed under section 273.3715, <br/>
<a id="pl.144.32"></a><var>144.32</var>when required to do so.<br/>
<a id="pl.144.33"></a><var>144.33</var>(b) If the commissioner makes the valuation pursuant to paragraph (a), the <br/>
<a id="pl.144.34"></a><var>144.34</var>commissioner's valuation is final. Notwithstanding any other law to the contrary,
         <br/>
<a id="pl.145.1"></a><var>145.1</var>the commissioner's valuation made pursuant to this subdivision is not appealable <br/>
<a id="pl.145.2"></a><var>145.2</var>administratively.<br/>
<a id="pl.145.3"></a><var>145.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.145.4"></a><var>145.4</var>thereafter.<br/>
<br/>
<a id="bill.9.17.0"></a><a id="pl.145.5"></a><var>145.5</var>    Sec. 17. Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:<br/>
<a id="pl.145.6"></a><var>145.6</var>    Subdivision 1. <b>Powers of commissioner.</b> The commissioner shall have has the <br/>
<a id="pl.145.7"></a><var>145.7</var>power to examine or cause to be examined any books, papers, records, or memoranda
         <br/>
<a id="pl.145.8"></a><var>145.8</var>relevant to the determination of the valuation of operating property as herein provided. <br/>
<a id="pl.145.9"></a><var>145.9</var>The commissioner shall have the further power to may require the attendance of any <br/>
<a id="pl.145.10"></a><var>145.10</var>person having knowledge or information in the premises concerning the valuation of the <br/>
<a id="pl.145.11"></a><var>145.11</var>operating property, to compel the production of books, papers, records, or memoranda by <br/>
<a id="pl.145.12"></a><var>145.12</var>persons so required to attend, to take testimony on matters material to such determination <br/>
<a id="pl.145.13"></a><var>145.13</var>determine the valuation of operating property, and administer oaths or affirmations.<br/>
<a id="pl.145.14"></a><var>145.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.145.15"></a><var>145.15</var>thereafter.<br/>
<br/>
<a id="bill.9.18.0"></a><a id="pl.145.16"></a><var>145.16</var>    Sec. 18. Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:<br/>
<a id="pl.145.17"></a><var>145.17</var>    Subd. 2. <b>Appointment of persons; subpoenas.</b> For the purpose of making such <br/>
<a id="pl.145.18"></a><var>145.18</var>examinations, The commissioner may appoint such persons as the commissioner may <br/>
<a id="pl.145.19"></a><var>145.19</var>deem deems necessary to make the examinations described in subdivision 1. Such <br/>
<a id="pl.145.20"></a><var>145.20</var>persons shall have the rights and powers of the examining of Persons appointed may <br/>
<a id="pl.145.21"></a><var>145.21</var>examine books, papers, records or memoranda, and of subpoenaing subpoena witnesses, <br/>
<a id="pl.145.22"></a><var>145.22</var>administering administer oaths and affirmations, and taking of take testimony, which are <br/>
<a id="pl.145.23"></a><var>145.23</var>conferred upon the commissioner hereby. The court administrator of any court of record, <br/>
<a id="pl.145.24"></a><var>145.24</var>upon demand of any such person appointed, shall issue a subpoena for the attendance of <br/>
<a id="pl.145.25"></a><var>145.25</var>any witness or the production of any books, papers, records, or memoranda before such
         <br/>
<a id="pl.145.26"></a><var>145.26</var>person. The commissioner may also issue subpoenas for the appearance of witnesses
         <br/>
<a id="pl.145.27"></a><var>145.27</var>before the commissioner or before such persons. Disobedience of subpoenas so issued
         <br/>
<a id="pl.145.28"></a><var>145.28</var>shall be punished by the district court of the district in which the subpoena is issued
         for a <br/>
<a id="pl.145.29"></a><var>145.29</var>contempt of the district court. Failure to comply with a subpoena shall be punished in the <br/>
<a id="pl.145.30"></a><var>145.30</var>same manner as contempt of the district court.<br/>
<a id="pl.145.31"></a><var>145.31</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.145.32"></a><var>145.32</var>thereafter.<br/>
<br/>
<a id="bill.9.19.0"></a><a id="pl.146.1"></a><var>146.1</var>    Sec. 19. Minnesota Statutes 2014, section 270.84, is amended to read:<br/>
<a id="pl.146.2"></a><var>146.2</var><b>270.84 ANNUAL VALUATION OF OPERATING PROPERTY.</b><br/>
<a id="pl.146.3"></a><var>146.3</var>    Subdivision 1. <b>Annual valuation; rules.</b> (a) Before July 1, the commissioner <br/>
<a id="pl.146.4"></a><var>146.4</var>shall annually between March 31 and May 31 make a determination of must determine <br/>
<a id="pl.146.5"></a><var>146.5</var>the fair market value of the operating property of every railroad company doing business <br/>
<a id="pl.146.6"></a><var>146.6</var>in this state as of January 2 of the year in which the valuation is made. In making <br/>
<a id="pl.146.7"></a><var>146.7</var>this determination, The commissioner shall must employ generally accepted appraisal <br/>
<a id="pl.146.8"></a><var>146.8</var>principles and practices which may include the unit method of determining value., and <br/>
<a id="pl.146.9"></a><var>146.9</var>approaches approved by the Western States Association of Tax Administrators, National
         <br/>
<a id="pl.146.10"></a><var>146.10</var>Conference of Unit Valuation States, and the International Association of Assessing
         <br/>
<a id="pl.146.11"></a><var>146.11</var>Officers.<br/>
<a id="pl.146.12"></a><var>146.12</var>(b) The unit value of railroad property is the reconciled value considering the cost,
         <br/>
<a id="pl.146.13"></a><var>146.13</var>income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must
         <br/>
<a id="pl.146.14"></a><var>146.14</var>be weighted in accordance with the reliability of the information and the commissioner's
         <br/>
<a id="pl.146.15"></a><var>146.15</var>judgment.<br/>
<a id="pl.146.16"></a><var>146.16</var>    Subd. 1a. <b>Cost approach.</b> (a) The commissioner may use the cost approach, <br/>
<a id="pl.146.17"></a><var>146.17</var>including but not limited to original cost less book depreciation and replacement
         cost <br/>
<a id="pl.146.18"></a><var>146.18</var>less depreciation.<br/>
<a id="pl.146.19"></a><var>146.19</var>(b) Book depreciation is allowed as a deduction from an original cost model. Book
         <br/>
<a id="pl.146.20"></a><var>146.20</var>depreciation is assumed to include all forms of appraisal depreciation.<br/>
<a id="pl.146.21"></a><var>146.21</var>(c) Explicitly calculated appraisal depreciation, including physical, functional,
         and <br/>
<a id="pl.146.22"></a><var>146.22</var>external obsolescence, is allowed as a deduction from the replacement cost model.<br/>
<a id="pl.146.23"></a><var>146.23</var>    Subd. 1b. <b>Income approach.</b> (a) The commissioner may use the income approach, <br/>
<a id="pl.146.24"></a><var>146.24</var>including but not limited to direct capitalization models and yield capitalization
         models.<br/>
<a id="pl.146.25"></a><var>146.25</var>(b) The yield rate is calculated using market data on selected comparable companies
         <br/>
<a id="pl.146.26"></a><var>146.26</var>in the band of investment method.<br/>
<a id="pl.146.27"></a><var>146.27</var>(1) Discounted cash flows is a yield capitalization model that calculates the present
         <br/>
<a id="pl.146.28"></a><var>146.28</var>value of explicit cash flow forecasts capitalized using the yield rate, plus reversion
         to <br/>
<a id="pl.146.29"></a><var>146.29</var>stable growth yield capitalization after the period of explicit forecasts.<br/>
<a id="pl.146.30"></a><var>146.30</var>(2) Stable growth yield capitalization is a yield capitalization model that calculates
         <br/>
<a id="pl.146.31"></a><var>146.31</var>the present value of anticipated future cash flows, capitalized using the yield rate
         and <br/>
<a id="pl.146.32"></a><var>146.32</var>considering growth.<br/>
<a id="pl.146.33"></a><var>146.33</var>(c) Direct capitalization is the expected net operating income for the following year,
         <br/>
<a id="pl.146.34"></a><var>146.34</var>divided by the direct capitalization rate. The direct capitalization rate is calculated
         by <br/>
<a id="pl.146.35"></a><var>146.35</var>using direct market observations from comparable sales or using market earning-to-price
         <br/>
<a id="pl.146.36"></a><var>146.36</var>information in the band of investment method.<br/>
<a id="pl.147.1"></a><var>147.1</var>    Subd. 1c. <b>Market approach.</b> The commissioner may use the market approach, <br/>
<a id="pl.147.2"></a><var>147.2</var>including but not limited to a sales comparison model, a stock and debt model, or
         other <br/>
<a id="pl.147.3"></a><var>147.3</var>market models that are available and reliable.<br/>
<a id="pl.147.4"></a><var>147.4</var>    Subd. 2. <b>Notice.</b> The commissioner, after determining the fair market value of the <br/>
<a id="pl.147.5"></a><var>147.5</var>operating property of each railroad company, shall give notice to must notify the railroad <br/>
<a id="pl.147.6"></a><var>147.6</var>company of the valuation by first class mail, overnight delivery, or messenger service.<br/>
<a id="pl.147.7"></a><var>147.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.147.8"></a><var>147.8</var>thereafter.<br/>
<br/>
<a id="bill.9.20.0"></a><a id="pl.147.9"></a><var>147.9</var>    Sec. 20. Minnesota Statutes 2014, section 270.86, is amended to read:<br/>
<a id="pl.147.10"></a><var>147.10</var><b>270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.</b><br/>
<a id="pl.147.11"></a><var>147.11</var>    Subdivision 1. <b>Apportionment of value.</b> Upon determining After allocating to <br/>
<a id="pl.147.12"></a><var>147.12</var>Minnesota the fair market value of the operating property of each railroad company, the <br/>
<a id="pl.147.13"></a><var>147.13</var>commissioner shall must apportion such the value to the respective counties and to the <br/>
<a id="pl.147.14"></a><var>147.14</var>taxing districts therein in conformity with fair and reasonable rules and standards
         to be <br/>
<a id="pl.147.15"></a><var>147.15</var>established by the commissioner pursuant to notice and hearing, except as provided
         in <br/>
<a id="pl.147.16"></a><var>147.16</var>section 
<statute_ref>270.81</statute_ref>. In establishing such rules and standards the commissioner may consider <br/>
<a id="pl.147.17"></a><var>147.17</var>(a) the physical situs of all station houses, depots, docks, wharves, and other buildings
         and <br/>
<a id="pl.147.18"></a><var>147.18</var>structures with an original cost in excess of $10,000; (b) the proportion that the
         length and <br/>
<a id="pl.147.19"></a><var>147.19</var>type of all the tracks used by the railroad in such county and taxing district bears
         to the <br/>
<a id="pl.147.20"></a><var>147.20</var>length and type of all the track used in the state; and (c) other facts as will result
         in a fair <br/>
<a id="pl.147.21"></a><var>147.21</var>and equitable apportionment of value the operating parcels in Minnesota.<br/>
<a id="pl.147.22"></a><var>147.22</var>The apportioned market value of each company's operating parcel in Minnesota is <br/>
<a id="pl.147.23"></a><var>147.23</var>the current original cost of each parcel as of the last assessment date plus original
         cost <br/>
<a id="pl.147.24"></a><var>147.24</var>of new construction minus the original cost of property retired since the last assessment
         <br/>
<a id="pl.147.25"></a><var>147.25</var>date. The total Minnesota apportionable market value of the railroad is divided by
         the <br/>
<a id="pl.147.26"></a><var>147.26</var>total current original cost of the railroad in Minnesota to determine a percentage.
         The <br/>
<a id="pl.147.27"></a><var>147.27</var>resulting percentage is multiplied by the current original cost of each parcel to
         determine <br/>
<a id="pl.147.28"></a><var>147.28</var>the apportioned market value of each parcel.<br/>
<a id="pl.147.29"></a><var>147.29</var>    Subd. 1a. <b>Allocation of value.</b> (a) After the market value of operating property has <br/>
<a id="pl.147.30"></a><var>147.30</var>been estimated, the portion of value that is attributable to Minnesota must be determined
         <br/>
<a id="pl.147.31"></a><var>147.31</var>by calculating an allocation percentage using factors relevant to the industry segment
         of <br/>
<a id="pl.147.32"></a><var>147.32</var>the railroad company. The allocation percentage must be multiplied by the value of
         the <br/>
<a id="pl.147.33"></a><var>147.33</var>operating property to determine the Minnesota allocated value.<br/>
<a id="pl.147.34"></a><var>147.34</var>(b) The Minnesota allocated value is determined by averaging the following factors:<br/>
<a id="pl.148.1"></a><var>148.1</var>(1) miles of railroad track operated in Minnesota divided by miles of railroad track
         <br/>
<a id="pl.148.2"></a><var>148.2</var>operated in all states;<br/>
<a id="pl.148.3"></a><var>148.3</var>(2) ton miles of revenue freight transported in Minnesota divided by ton miles of
         <br/>
<a id="pl.148.4"></a><var>148.4</var>revenue freight transported in all states;<br/>
<a id="pl.148.5"></a><var>148.5</var>(3) gross revenues from transportation operations within Minnesota divided by gross
         <br/>
<a id="pl.148.6"></a><var>148.6</var>revenues from transportation operations in all states; and<br/>
<a id="pl.148.7"></a><var>148.7</var>(4) cost of railroad property in Minnesota divided by cost of railroad property in
         <br/>
<a id="pl.148.8"></a><var>148.8</var>all states.<br/>
<a id="pl.148.9"></a><var>148.9</var>(c) Each of the available factors must be weighted equally.<br/>
<a id="pl.148.10"></a><var>148.10</var>    Subd. 2. <b>Equalized valuation.</b> After making the apportionment provided in <br/>
<a id="pl.148.11"></a><var>148.11</var>subdivision 1, the commissioner shall must determine the equalized valuation of the <br/>
<a id="pl.148.12"></a><var>148.12</var>operating property in each county by applying to the apportioned value an estimated
         <br/>
<a id="pl.148.13"></a><var>148.13</var>current year median sales ratio for all commercial and industrial property in that
         county. <br/>
<a id="pl.148.14"></a><var>148.14</var>If the commissioner decides determines that there are insufficient sales to determine a <br/>
<a id="pl.148.15"></a><var>148.15</var>median commercial-industrial sales ratio, an estimated current year countywide median
         <br/>
<a id="pl.148.16"></a><var>148.16</var>sales ratio for all property shall must be applied to the apportioned value. No equalization <br/>
<a id="pl.148.17"></a><var>148.17</var>shall Equalization must not be made to the market value of the operating property if the <br/>
<a id="pl.148.18"></a><var>148.18</var>median sales ratio determined pursuant to this subdivision is within five at least 90 but less <br/>
<a id="pl.148.19"></a><var>148.19</var>than 105 percent of the assessment ratio of the railroad operating property.<br/>
<a id="pl.148.20"></a><var>148.20</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.148.21"></a><var>148.21</var>thereafter.<br/>
<br/>
<a id="bill.9.21.0"></a><a id="pl.148.22"></a><var>148.22</var>    Sec. 21. Minnesota Statutes 2014, section 270.87, is amended to read:<br/>
<a id="pl.148.23"></a><var>148.23</var><b>270.87 CERTIFICATION TO COUNTY ASSESSORS.</b><br/>
<a id="pl.148.24"></a><var>148.24</var>After making an annual determination of the equalized fair market value of the <br/>
<a id="pl.148.25"></a><var>148.25</var>operating property of each company in each of the respective counties, and in the
         taxing <br/>
<a id="pl.148.26"></a><var>148.26</var>districts therein, The commissioner shall must certify the equalized fair market value of <br/>
<a id="pl.148.27"></a><var>148.27</var>the operating property to the county assessor on or before June 30 August 1. The equalized <br/>
<a id="pl.148.28"></a><var>148.28</var>fair market value of the operating property of the railroad company in the county and
         the <br/>
<a id="pl.148.29"></a><var>148.29</var>taxing districts therein is the value on which taxes must be levied and collected
         in the <br/>
<a id="pl.148.30"></a><var>148.30</var>same manner as on the commercial and industrial property of such county and the taxing <br/>
<a id="pl.148.31"></a><var>148.31</var>districts therein in the counties and taxing districts. If the commissioner determines that <br/>
<a id="pl.148.32"></a><var>148.32</var>the equalized fair market value certified on or before June 30 August 1 is in error, the <br/>
<a id="pl.148.33"></a><var>148.33</var>commissioner may issue a corrected certification on or before August 31 October 1. The <br/>
<a id="pl.148.34"></a><var>148.34</var>commissioner may correct errors that are merely clerical in nature until December
         31.<br/>
<a id="pl.149.1"></a><var>149.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.149.2"></a><var>149.2</var>thereafter.<br/>
<br/>
<a id="bill.9.22.0"></a><a id="pl.149.3"></a><var>149.3</var>    Sec. 22. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:<br/>
<a id="pl.149.4"></a><var>149.4</var>    Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br/>
<a id="pl.149.5"></a><var>149.5</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br/>
<a id="pl.149.6"></a><var>149.6</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br/>
<a id="pl.149.7"></a><var>149.7</var>The following personal property shall be taxable:<br/>
<a id="pl.149.8"></a><var>149.8</var>(a) personal property which is part of an electric generating, transmission, or <br/>
<a id="pl.149.9"></a><var>149.9</var>distribution system or a pipeline system transporting or distributing water, gas,
         crude <br/>
<a id="pl.149.10"></a><var>149.10</var>oil, or petroleum products or mains and pipes used in the distribution of steam or
         hot or <br/>
<a id="pl.149.11"></a><var>149.11</var>chilled water for heating or cooling buildings and structures;<br/>
<a id="pl.149.12"></a><var>149.12</var>(b) railroad docks and wharves which are part of the personal property that is part of <br/>
<a id="pl.149.13"></a><var>149.13</var>the operating property of a railroad company as defined in section 
         <statute_ref>270.80</statute_ref> 273.3712;<br/>
<a id="pl.149.14"></a><var>149.14</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br/>
<a id="pl.149.15"></a><var>149.15</var>(d) leasehold or other personal property interests which are taxed pursuant to section
         <br/>
<statute_ref><a id="pl.149.16"></a><var>149.16</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br/>
<a id="pl.149.17"></a><var>149.17</var>providing the property is taxable as if the lessee or user were the fee owner;<br/>
<a id="pl.149.18"></a><var>149.18</var>(e) manufactured homes and sectional structures, including storage sheds, decks, <br/>
<a id="pl.149.19"></a><var>149.19</var>and similar removable improvements constructed on the site of a manufactured home,
         <br/>
<a id="pl.149.20"></a><var>149.20</var>sectional structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision <br/>
<a id="pl.149.21"></a><var>149.21</var>8
         </statute_ref>, paragraph (f); and<br/>
<a id="pl.149.22"></a><var>149.22</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br/>
<a id="pl.149.23"></a><var>149.23</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.149.24"></a><var>149.24</var>thereafter.<br/>
<br/>
<a id="bill.9.23.0"></a><a id="pl.149.25"></a><var>149.25</var>    Sec. 23. <b>SEVERABILITY.</b><br/>
<a id="pl.149.26"></a><var>149.26</var>If any part of this article is found to be invalid because it is in conflict with
         a <br/>
<a id="pl.149.27"></a><var>149.27</var>provision of the Minnesota Constitution or for any other reason, all other provisions
         <br/>
<a id="pl.149.28"></a><var>149.28</var>of this act shall remain valid and any rights, remedies, and privileges that have
         been <br/>
<a id="pl.149.29"></a><var>149.29</var>otherwise accrued by this act, shall remain in effect and may be proceeded with and
         <br/>
<a id="pl.149.30"></a><var>149.30</var>concluded under the provisions of this act.<br/>
<br/>
<a id="bill.9.24.0"></a><a id="pl.149.31"></a><var>149.31</var>    Sec. 24. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.149.32"></a><var>149.32</var>The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
         <br/>
<a id="pl.149.33"></a><var>149.33</var>in column A to the references listed in column B. The revisor shall also make necessary
         <br/>
<a id="pl.150.1"></a><var>150.1</var>cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with
         <br/>
<a id="pl.150.2"></a><var>150.2</var>renumbering.<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="27.5"/>
<col width="27.5"/>
<tr>
<td><a id="pl.150.3"></a><var>150.3</var><br/>
</td>
<td></td>
<td>Column A<br/>
</td>
<td>Column B<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.4"></a><var>150.4</var><br/>
</td>
<td></td>
<td>270.80<br/>
</td>
<td>273.3712<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.5"></a><var>150.5</var><br/>
</td>
<td></td>
<td>270.81<br/>
</td>
<td>273.3713<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.6"></a><var>150.6</var><br/>
</td>
<td></td>
<td>270.82<br/>
</td>
<td>273.3714<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.7"></a><var>150.7</var><br/>
</td>
<td></td>
<td>270.83<br/>
</td>
<td>273.3715<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.8"></a><var>150.8</var><br/>
</td>
<td></td>
<td>270.84<br/>
</td>
<td>273.3716<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.9"></a><var>150.9</var><br/>
</td>
<td></td>
<td>270.85<br/>
</td>
<td>273.3717<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.10"></a><var>150.10</var><br/>
</td>
<td></td>
<td>270.86<br/>
</td>
<td>273.3718<br/>
</td>
</tr>
<tr>
<td><a id="pl.150.11"></a><var>150.11</var><br/>
</td>
<td></td>
<td>270.87<br/>
</td>
<td>273.3719<br/>
</td>
</tr>
</table><a id="pl.150.12"></a><var>150.12</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.150.13"></a><var>150.13</var>thereafter.<br/>
<br/>
<a id="bill.9.25.0"></a><a id="pl.150.14"></a><var>150.14</var>    Sec. 25. <b> REPEALER.</b><br/>
<a id="pl.150.15"></a><var>150.15</var>Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
         <br/>
<a id="pl.150.16"></a><var>150.16</var>and Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14,
         17, <br/>
<a id="pl.150.17"></a><var>150.17</var>17a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600;
         <br/>
<a id="pl.150.18"></a><var>150.18</var>8106.0700; 8106.0800; and 8106.9900, are repealed.<br/>
<a id="pl.150.19"></a><var>150.19</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2015 and <br/>
<a id="pl.150.20"></a><var>150.20</var>thereafter.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.150.23"></a><var>150.23</var>    Section 1. Minnesota Statutes 2014, section 126C.40, subdivision 1, is amended to read:<br/>
<a id="pl.150.24"></a><var>150.24</var>    Subdivision 1. <b>To lease building or land.</b> (a) When an independent or a special <br/>
<a id="pl.150.25"></a><var>150.25</var>school district or a group of independent or special school districts finds it economically
         <br/>
<a id="pl.150.26"></a><var>150.26</var>advantageous to rent or lease a building or land for any instructional purposes or
         for school <br/>
<a id="pl.150.27"></a><var>150.27</var>storage or furniture repair, and it determines that the operating capital revenue
         authorized <br/>
<a id="pl.150.28"></a><var>150.28</var>under section 
         <statute_ref>126C.10, subdivision 13</statute_ref>, is insufficient for this purpose, it may apply to seek <br/>
<a id="pl.150.29"></a><var>150.29</var>permission from the commissioner for permission to make an additional capital expenditure <br/>
<a id="pl.150.30"></a><var>150.30</var>levy for this purpose. An application for permission to levy under this subdivision must <br/>
<a id="pl.150.31"></a><var>150.31</var>contain financial justification for the proposed levy, the terms and conditions of
         the <br/>
<a id="pl.150.32"></a><var>150.32</var>proposed lease, and a description of the space to be leased and its proposed use.<br/>
<a id="pl.150.33"></a><var>150.33</var>    (b) In granting permission to levy under this subdivision, the commissioner may <br/>
<a id="pl.150.34"></a><var>150.34</var>consider the financial justification for the proposed levy, the terms and conditions
         <br/>
<a id="pl.151.1"></a><var>151.1</var>of the proposed lease, and a description of the space to be leased and its proposed
         <br/>
<a id="pl.151.2"></a><var>151.2</var>use. Additional information shall be provided for consideration upon request of the
         <br/>
<a id="pl.151.3"></a><var>151.3</var>commissioner. The criteria for approval of applications granting permission to levy under <br/>
<a id="pl.151.4"></a><var>151.4</var>this subdivision must include: the reasonableness of the price, the appropriateness
         of the <br/>
<a id="pl.151.5"></a><var>151.5</var>space to the proposed activity, the feasibility of transporting pupils to the leased
         building <br/>
<a id="pl.151.6"></a><var>151.6</var>or land, conformity of the lease to the laws and rules of the state of Minnesota,
         and the <br/>
<a id="pl.151.7"></a><var>151.7</var>appropriateness of the proposed lease to the space needs and the financial condition
         of the <br/>
<a id="pl.151.8"></a><var>151.8</var>district. The commissioner must not authorize a levy under this subdivision in an
         amount <br/>
<a id="pl.151.9"></a><var>151.9</var>greater than the cost to the district of renting or leasing a building or land for
         approved <br/>
<a id="pl.151.10"></a><var>151.10</var>purposes. The proceeds of this levy must not be used for custodial or other maintenance
         <br/>
<a id="pl.151.11"></a><var>151.11</var>services. A district may not levy under this subdivision for the purpose of leasing
         or <br/>
<a id="pl.151.12"></a><var>151.12</var>renting a district-owned building or site to itself.<br/>
<a id="pl.151.13"></a><var>151.13</var>    (c) For agreements finalized after July 1, 1997, a district may not levy under this
         <br/>
<a id="pl.151.14"></a><var>151.14</var>subdivision for the purpose of leasing: (1) a newly constructed building used primarily
         <br/>
<a id="pl.151.15"></a><var>151.15</var>for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
         <br/>
<a id="pl.151.16"></a><var>151.16</var>building addition or additions used primarily for regular kindergarten, elementary,
         or <br/>
<a id="pl.151.17"></a><var>151.17</var>secondary instruction that contains more than 20 percent of the square footage of
         the <br/>
<a id="pl.151.18"></a><var>151.18</var>previously existing building.<br/>
<a id="pl.151.19"></a><var>151.19</var>    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for
         the <br/>
<a id="pl.151.20"></a><var>151.20</var>purpose of leasing or renting a district-owned building or site to itself only if
         the amount <br/>
<a id="pl.151.21"></a><var>151.21</var>is needed by the district to make payments required by a lease purchase agreement,
         <br/>
<a id="pl.151.22"></a><var>151.22</var>installment purchase agreement, or other deferred payments agreement authorized by
         law, <br/>
<a id="pl.151.23"></a><var>151.23</var>and the levy meets the requirements of paragraph (c). A levy authorized for a district
         by <br/>
<a id="pl.151.24"></a><var>151.24</var>the commissioner under this paragraph may be in the amount needed by the district
         to <br/>
<a id="pl.151.25"></a><var>151.25</var>make payments required by a lease purchase agreement, installment purchase agreement,
         <br/>
<a id="pl.151.26"></a><var>151.26</var>or other deferred payments agreement authorized by law, provided that any agreement
         <br/>
<a id="pl.151.27"></a><var>151.27</var>include a provision giving the school districts the right to terminate the agreement
         <br/>
<a id="pl.151.28"></a><var>151.28</var>annually without penalty.<br/>
<a id="pl.151.29"></a><var>151.29</var>    (e) The total levy under this subdivision for a district for any year must not exceed
         <br/>
<a id="pl.151.30"></a><var>151.30</var>$212 times the adjusted pupil units for the fiscal year to which the levy is attributable.<br/>
<a id="pl.151.31"></a><var>151.31</var>    (f) For agreements for which a review and comment have been submitted to the <br/>
<a id="pl.151.32"></a><var>151.32</var>Department of Education after April 1, 1998, the term "instructional purpose" as used
         in <br/>
<a id="pl.151.33"></a><var>151.33</var>this subdivision excludes expenditures on stadiums.<br/>
<a id="pl.151.34"></a><var>151.34</var>    (g) The commissioner of education may authorize a school district to exceed the <br/>
<a id="pl.151.35"></a><var>151.35</var>limit in paragraph (e) if the school district petitions the commissioner for approval.
         The <br/>
<a id="pl.152.1"></a><var>152.1</var>commissioner shall grant approval to a school district to exceed the limit in paragraph
         (e) <br/>
<a id="pl.152.2"></a><var>152.2</var>for not more than five years if the district meets the following criteria:<br/>
<a id="pl.152.3"></a><var>152.3</var>    (1) the school district has been experiencing pupil enrollment growth in the <br/>
<a id="pl.152.4"></a><var>152.4</var>preceding five years;<br/>
<a id="pl.152.5"></a><var>152.5</var>    (2) the purpose of the increased levy is in the long-term public interest;<br/>
<a id="pl.152.6"></a><var>152.6</var>    (3) the purpose of the increased levy promotes colocation of government services;
         and<br/>
<a id="pl.152.7"></a><var>152.7</var>    (4) the purpose of the increased levy is in the long-term interest of the district
         by <br/>
<a id="pl.152.8"></a><var>152.8</var>avoiding over construction of school facilities.<br/>
<a id="pl.152.9"></a><var>152.9</var>    (h) A school district that is a member of an intermediate school district may include
         <br/>
<a id="pl.152.10"></a><var>152.10</var>in its authority under this section the costs associated with leases of administrative
         and <br/>
<a id="pl.152.11"></a><var>152.11</var>classroom space for intermediate school district programs. This authority must not
         exceed <br/>
<a id="pl.152.12"></a><var>152.12</var>$65 times the adjusted pupil units of the member districts. This authority is in addition
         to <br/>
<a id="pl.152.13"></a><var>152.13</var>any other authority authorized under this section.<br/>
<a id="pl.152.14"></a><var>152.14</var>    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable
         in <br/>
<a id="pl.152.15"></a><var>152.15</var>2012 to 2023, a district that is a member of the "Technology and Information Education
         <br/>
<a id="pl.152.16"></a><var>152.16</var>Systems" data processing joint board, that finds it economically advantageous to enter
         into <br/>
<a id="pl.152.17"></a><var>152.17</var>a lease agreement to finance improvements to a building and land for a group of school
         <br/>
<a id="pl.152.18"></a><var>152.18</var>districts or special school districts for staff development purposes, may levy for
         its portion <br/>
<a id="pl.152.19"></a><var>152.19</var>of lease costs attributed to the district within the total levy limit in paragraph
         (e). The total <br/>
<a id="pl.152.20"></a><var>152.20</var>levy authority under this paragraph shall not exceed $632,000.<br/>
<a id="pl.152.21"></a><var>152.21</var>(j) Notwithstanding paragraph (a), a district may levy under this subdivision for
         the <br/>
<a id="pl.152.22"></a><var>152.22</var>purpose of leasing administrative space if the district can demonstrate to the satisfaction
         of <br/>
<a id="pl.152.23"></a><var>152.23</var>the commissioner that the lease cost for the administrative space is no greater than
         the <br/>
<a id="pl.152.24"></a><var>152.24</var>lease cost for instructional space that the district would otherwise lease. The commissioner
         <br/>
<a id="pl.152.25"></a><var>152.25</var>must deny this levy authority unless the district passes a resolution stating its
         intent to <br/>
<a id="pl.152.26"></a><var>152.26</var>lease instructional space under this section if the commissioner does not grant authority
         <br/>
<a id="pl.152.27"></a><var>152.27</var>under this paragraph. The resolution must also certify that the lease cost for administrative
         <br/>
<a id="pl.152.28"></a><var>152.28</var>space under this paragraph is no greater than the lease cost for the district's proposed
         <br/>
<a id="pl.152.29"></a><var>152.29</var>instructional lease.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.152.30"></a><var>152.30</var>    Sec. 2. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.152.31"></a><var>152.31</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br/>
<a id="pl.152.32"></a><var>152.32</var>of indebtedness within the debt limits for a town purpose otherwise authorized by
         law. <br/>
<a id="pl.152.33"></a><var>152.33</var>The certificates shall be payable in not more than ten years and be issued on the
         terms and <br/>
<a id="pl.152.34"></a><var>152.34</var>in the manner as the board may determine, provided that notes issued for projects that <br/>
<a id="pl.152.35"></a><var>152.35</var>eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause
         (2), <br/>
<a id="pl.153.1"></a><var>153.1</var>shall be payable in not more than 20 years. If the amount of the certificates to be issued <br/>
<a id="pl.153.2"></a><var>153.2</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be
         issued <br/>
<a id="pl.153.3"></a><var>153.3</var>for at least ten days after publication in a newspaper of general circulation in the
         town of <br/>
<a id="pl.153.4"></a><var>153.4</var>the board's resolution determining to issue them. If within that time, a petition
         asking for <br/>
<a id="pl.153.5"></a><var>153.5</var>an election on the proposition signed by voters equal to ten percent of the number
         of voters <br/>
<a id="pl.153.6"></a><var>153.6</var>at the last regular town election is filed with the clerk, the certificates shall
         not be issued <br/>
<a id="pl.153.7"></a><var>153.7</var>until their issuance has been approved by a majority of the votes cast on the question
         at <br/>
<a id="pl.153.8"></a><var>153.8</var>a regular or special election. A tax levy shall be made to pay the principal and interest
         <br/>
<a id="pl.153.9"></a><var>153.9</var>on the certificates as in the case of bonds.<br/>
<br/>
<a id="bill.10.3.0"></a><a id="pl.153.10"></a><var>153.10</var>    Sec. 3. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:<br/>
<a id="pl.153.11"></a><var>153.11</var>    Subd. 2. <b>Equipment acquisition; capital notes.</b> The board may, by resolution and <br/>
<a id="pl.153.12"></a><var>153.12</var>without public referendum, issue capital notes within existing debt limits for the
         purpose <br/>
<a id="pl.153.13"></a><var>153.13</var>of purchasing ambulance and other medical equipment, road construction or maintenance
         <br/>
<a id="pl.153.14"></a><var>153.14</var>equipment, public safety equipment and other capital equipment having an expected
         <br/>
<a id="pl.153.15"></a><var>153.15</var>useful life at least equal to the term of the notes issued. The notes shall be payable
         <br/>
<a id="pl.153.16"></a><var>153.16</var>in not more than ten years and shall be issued on terms and in a manner as the board
         <br/>
<a id="pl.153.17"></a><var>153.17</var>determines, provided that notes issued for projects that eliminate R-22, as such projects <br/>
<a id="pl.153.18"></a><var>153.18</var>are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not
         more <br/>
<a id="pl.153.19"></a><var>153.19</var>than 20 years. The total principal amount of the notes issued for any fiscal year shall not <br/>
<a id="pl.153.20"></a><var>153.20</var>exceed one percent of the total annual budget for that year and shall be issued solely
         for <br/>
<a id="pl.153.21"></a><var>153.21</var>the purchases authorized in this subdivision. A tax levy shall be made for the payment
         <br/>
<a id="pl.153.22"></a><var>153.22</var>of the principal and interest on such notes as in the case of bonds. For purposes
         of this <br/>
<a id="pl.153.23"></a><var>153.23</var>subdivision, "equipment" includes computer hardware and software, whether bundled
         with <br/>
<a id="pl.153.24"></a><var>153.24</var>machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
         <br/>
<a id="pl.153.25"></a><var>153.25</var>equipment" includes computer hardware and software and other intellectual property
         for <br/>
<a id="pl.153.26"></a><var>153.26</var>use in medical diagnosis, medical procedures, research, record keeping, billing, and
         other <br/>
<a id="pl.153.27"></a><var>153.27</var>hospital applications, together with application development services and training
         related <br/>
<a id="pl.153.28"></a><var>153.28</var>to the use of the computer hardware and software and other intellectual property,
         all <br/>
<a id="pl.153.29"></a><var>153.29</var>without regard to their useful life. For purposes of determining the amount of capital
         notes <br/>
<a id="pl.153.30"></a><var>153.30</var>which the county may issue in any year, the budget of the county and Hennepin Healthcare
         <br/>
<a id="pl.153.31"></a><var>153.31</var>System, Inc. shall be combined and the notes issuable under this subdivision shall
         be in <br/>
<a id="pl.153.32"></a><var>153.32</var>addition to obligations issuable under section 
         <statute_ref>373.01, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.10.4.0"></a><a id="pl.153.33"></a><var>153.33</var>    Sec. 4. Minnesota Statutes 2014, section 410.32, is amended to read:<br/>
<a id="pl.153.34"></a><var>153.34</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.154.1"></a><var>154.1</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule <br/>
<a id="pl.154.2"></a><var>154.2</var>charter city may, by resolution and without public referendum, issue capital notes
         subject <br/>
<a id="pl.154.3"></a><var>154.3</var>to the city debt limit to purchase capital equipment.<br/>
<a id="pl.154.4"></a><var>154.4</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.154.5"></a><var>154.5</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.154.6"></a><var>154.6</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.154.7"></a><var>154.7</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.154.8"></a><var>154.8</var>or unbundled, together with application development services and training related
         to the <br/>
<a id="pl.154.9"></a><var>154.9</var>use of the computer hardware and software.<br/>
<a id="pl.154.10"></a><var>154.10</var>    (c) The equipment or software must have an expected useful life at least as long <br/>
<a id="pl.154.11"></a><var>154.11</var>as the term of the notes.<br/>
<a id="pl.154.12"></a><var>154.12</var>    (d) The notes shall be payable in not more than ten years and be issued on terms and
         <br/>
<a id="pl.154.13"></a><var>154.13</var>in the manner the city determines, provided that notes issued for projects that eliminate <br/>
<a id="pl.154.14"></a><var>154.14</var>R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
         shall be <br/>
<a id="pl.154.15"></a><var>154.15</var>payable in not more than 20 years. The total principal amount of the capital notes issued <br/>
<a id="pl.154.16"></a><var>154.16</var>in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
         <br/>
<a id="pl.154.17"></a><var>154.17</var>property in the city for that year.<br/>
<a id="pl.154.18"></a><var>154.18</var>    (e) A tax levy shall be made for the payment of the principal and interest on the
         <br/>
<a id="pl.154.19"></a><var>154.19</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.154.20"></a><var>154.20</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds
         of <br/>
<a id="pl.154.21"></a><var>154.21</var>the governing body of the city.<br/>
<a id="pl.154.22"></a><var>154.22</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
         <br/>
<a id="pl.154.23"></a><var>154.23</var>city may also issue capital notes subject to its debt limit in the manner and subject
         to the <br/>
<a id="pl.154.24"></a><var>154.24</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.10.5.0"></a><a id="pl.154.25"></a><var>154.25</var>    Sec. 5. Minnesota Statutes 2014, section 412.301, is amended to read:<br/>
<a id="pl.154.26"></a><var>154.26</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.154.27"></a><var>154.27</var>    (a) The council may issue certificates of indebtedness or capital notes subject to
         the <br/>
<a id="pl.154.28"></a><var>154.28</var>city debt limits to purchase capital equipment.<br/>
<a id="pl.154.29"></a><var>154.29</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.154.30"></a><var>154.30</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.154.31"></a><var>154.31</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.154.32"></a><var>154.32</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.154.33"></a><var>154.33</var>or unbundled, together with application development services and training related
         to the <br/>
<a id="pl.154.34"></a><var>154.34</var>use of the computer hardware or software.<br/>
<a id="pl.155.1"></a><var>155.1</var>    (c) The equipment or software must have an expected useful life at least as long as
         <br/>
<a id="pl.155.2"></a><var>155.2</var>the terms of the certificates or notes.<br/>
<a id="pl.155.3"></a><var>155.3</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall
         <br/>
<a id="pl.155.4"></a><var>155.4</var>be issued on such terms and in such manner as the council may determine, provided, <br/>
<a id="pl.155.5"></a><var>155.5</var>however, that notes issued for projects that eliminate R-22, as such projects are
         defined in <br/>
<a id="pl.155.6"></a><var>155.6</var>section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.<br/>
<a id="pl.155.7"></a><var>155.7</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         <br/>
<a id="pl.155.8"></a><var>155.8</var>exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they <br/>
<a id="pl.155.9"></a><var>155.9</var>shall not be issued for at least ten days after publication in the official newspaper
         of <br/>
<a id="pl.155.10"></a><var>155.10</var>a council resolution determining to issue them; and if before the end of that time,
         a <br/>
<a id="pl.155.11"></a><var>155.11</var>petition asking for an election on the proposition signed by voters equal to ten percent
         <br/>
<a id="pl.155.12"></a><var>155.12</var>of the number of voters at the last regular municipal election is filed with the clerk,
         such <br/>
<a id="pl.155.13"></a><var>155.13</var>certificates or notes shall not be issued until the proposition of their issuance
         has been <br/>
<a id="pl.155.14"></a><var>155.14</var>approved by a majority of the votes cast on the question at a regular or special election.<br/>
<a id="pl.155.15"></a><var>155.15</var>    (f) A tax levy shall be made for the payment of the principal and interest on such
         <br/>
<a id="pl.155.16"></a><var>155.16</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.10.6.0"></a><a id="pl.155.17"></a><var>155.17</var>    Sec. 6. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:<br/>
<a id="pl.155.18"></a><var>155.18</var>    Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br/>
<a id="pl.155.19"></a><var>155.19</var>general obligation of the general jurisdiction governmental unit as additional security
         for <br/>
<a id="pl.155.20"></a><var>155.20</var>bonds payable from income or revenues of the project or the authority. The authority
         <br/>
<a id="pl.155.21"></a><var>155.21</var>must find that the pledged revenues will equal or exceed 110 percent of the principal
         and <br/>
<a id="pl.155.22"></a><var>155.22</var>interest due on the bonds for each year. The proceeds of the bonds must be used for
         a <br/>
<a id="pl.155.23"></a><var>155.23</var>qualified housing development project or projects. The obligations must be issued
         and <br/>
<a id="pl.155.24"></a><var>155.24</var>sold in the manner and following the procedures provided by chapter 475, except the
         <br/>
<a id="pl.155.25"></a><var>155.25</var>obligations are not subject to approval by the electors, and the maturities may extend
         to <br/>
<a id="pl.155.26"></a><var>155.26</var>not more than 35 years for obligations sold to finance housing for the elderly and
         40 years <br/>
<a id="pl.155.27"></a><var>155.27</var>for other obligations issued under this subdivision. The authority is the municipality
         for <br/>
<a id="pl.155.28"></a><var>155.28</var>purposes of chapter 475.<br/>
<a id="pl.155.29"></a><var>155.29</var>    (b) The principal amount of the issue must be approved by the governing body of <br/>
<a id="pl.155.30"></a><var>155.30</var>the general jurisdiction governmental unit whose general obligation is pledged. Public
         <br/>
<a id="pl.155.31"></a><var>155.31</var>hearings must be held on issuance of the obligations by both the authority and the
         general <br/>
<a id="pl.155.32"></a><var>155.32</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not
         more <br/>
<a id="pl.155.33"></a><var>155.33</var>than 120 days, before the sale of the obligations.<br/>
<a id="pl.155.34"></a><var>155.34</var>    (c) The maximum amount of general obligation bonds that may be issued and <br/>
<a id="pl.155.35"></a><var>155.35</var>outstanding under this section equals the greater of (1) one-half of one percent of
         the <br/>
<a id="pl.156.1"></a><var>156.1</var>estimated market value of the general jurisdiction governmental unit whose general
         <br/>
<a id="pl.156.2"></a><var>156.2</var>obligation is pledged, or (2) $3,000,000 $5,000,000. In the case of county or multicounty <br/>
<a id="pl.156.3"></a><var>156.3</var>general obligation bonds, the outstanding general obligation bonds of all cities in
         the <br/>
<a id="pl.156.4"></a><var>156.4</var>county or counties issued under this subdivision must be added in calculating the
         limit <br/>
<a id="pl.156.5"></a><var>156.5</var>under clause (1).<br/>
<a id="pl.156.6"></a><var>156.6</var>    (d) "General jurisdiction governmental unit" means the city in which the housing <br/>
<a id="pl.156.7"></a><var>156.7</var>development project is located. In the case of a county or multicounty authority,
         the <br/>
<a id="pl.156.8"></a><var>156.8</var>county or counties may act as the general jurisdiction governmental unit. In the case
         of <br/>
<a id="pl.156.9"></a><var>156.9</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax
         on the <br/>
<a id="pl.156.10"></a><var>156.10</var>taxable property in each of the counties.<br/>
<a id="pl.156.11"></a><var>156.11</var>    (e) "Qualified housing development project" means a housing development project <br/>
<a id="pl.156.12"></a><var>156.12</var>providing housing either for the elderly or for individuals and families with incomes
         not <br/>
<a id="pl.156.13"></a><var>156.13</var>greater than 80 percent of the median family income as estimated by the United States
         <br/>
<a id="pl.156.14"></a><var>156.14</var>Department of Housing and Urban Development for the standard metropolitan statistical
         <br/>
<a id="pl.156.15"></a><var>156.15</var>area or the nonmetropolitan county in which the project is located. The project must
         be <br/>
<a id="pl.156.16"></a><var>156.16</var>owned for the term of the bonds either by the authority or by a limited partnership
         or other <br/>
<a id="pl.156.17"></a><var>156.17</var>entity in which the authority or another entity under the sole control of the authority
         is <br/>
<a id="pl.156.18"></a><var>156.18</var>the sole general partner and the partnership or other entity must receive (1) an allocation
         <br/>
<a id="pl.156.19"></a><var>156.19</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt
         <br/>
<a id="pl.156.20"></a><var>156.20</var>bonding authority for the project and a preliminary determination by the Minnesota
         <br/>
<a id="pl.156.21"></a><var>156.21</var>Housing Finance Agency or the applicable suballocator of tax credits that the project
         <br/>
<a id="pl.156.22"></a><var>156.22</var>will qualify for four percent low-income housing tax credits or (2) a reservation
         of nine <br/>
<a id="pl.156.23"></a><var>156.23</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or
         a <br/>
<a id="pl.156.24"></a><var>156.24</var>suballocator of tax credits for the project. A qualified housing development project
         may <br/>
<a id="pl.156.25"></a><var>156.25</var>admit nonelderly individuals and families with higher incomes if:<br/>
<a id="pl.156.26"></a><var>156.26</var>    (1) three years have passed since initial occupancy;<br/>
<a id="pl.156.27"></a><var>156.27</var>    (2) the authority finds the project is experiencing unanticipated vacancies resulting
         in <br/>
<a id="pl.156.28"></a><var>156.28</var>insufficient revenues, because of changes in population or other unforeseen circumstances
         <br/>
<a id="pl.156.29"></a><var>156.29</var>that occurred after the initial finding of adequate revenues; and<br/>
<a id="pl.156.30"></a><var>156.30</var>    (3) the authority finds a tax levy or payment from general assets of the general <br/>
<a id="pl.156.31"></a><var>156.31</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds
         if higher <br/>
<a id="pl.156.32"></a><var>156.32</var>income individuals or families are not admitted.<br/>
<a id="pl.156.33"></a><var>156.33</var>    (f) The authority may issue bonds to refund bonds issued under this subdivision in
         <br/>
<a id="pl.156.34"></a><var>156.34</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br/>
<a id="pl.156.35"></a><var>156.35</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply
         to the <br/>
<a id="pl.157.1"></a><var>157.1</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
         <br/>
<a id="pl.157.2"></a><var>157.2</var>after July 1, 1992.<br/>
<br/>
<a id="bill.10.7.0"></a><a id="pl.157.3"></a><var>157.3</var>    Sec. 7. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:<br/>
<a id="pl.157.4"></a><var>157.4</var>    Subdivision 1. <b>Establishment.</b> An economic development authority may create <br/>
<a id="pl.157.5"></a><var>157.5</var>and define the boundaries of economic development districts at any place or places
         within <br/>
<a id="pl.157.6"></a><var>157.6</var>the city, except that the district boundaries must be contiguous, and may use the
         powers <br/>
<a id="pl.157.7"></a><var>157.7</var>granted in sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref> to carry out its purposes. First the authority must <br/>
<a id="pl.157.8"></a><var>157.8</var>hold a public hearing on the matter. At least ten days before the hearing, the authority
         <br/>
<a id="pl.157.9"></a><var>157.9</var>shall publish notice of the hearing in a daily newspaper of general circulation in the city. <br/>
<a id="pl.157.10"></a><var>157.10</var>Also, the authority shall find that an economic development district is proper and
         desirable <br/>
<a id="pl.157.11"></a><var>157.11</var>to establish and develop within the city.<br/>
<br/>
<a id="bill.10.8.0"></a><a id="pl.157.12"></a><var>157.12</var>    Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:<br/>
<a id="pl.157.13"></a><var>157.13</var>    Subd. 3b. <b>Street reconstruction and bituminous overlays.</b> (a) A municipality may, <br/>
<a id="pl.157.14"></a><var>157.14</var>without regard to the election requirement under subdivision 1, issue and sell obligations
         <br/>
<a id="pl.157.15"></a><var>157.15</var>for street reconstruction or bituminous overlays, if the following conditions are
         met:<br/>
<a id="pl.157.16"></a><var>157.16</var>    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
         <br/>
<a id="pl.157.17"></a><var>157.17</var>plan that describes the street reconstruction or overlay to be financed, the estimated
         costs, <br/>
<a id="pl.157.18"></a><var>157.18</var>and any planned reconstruction or overlay of other streets in the municipality over
         the next <br/>
<a id="pl.157.19"></a><var>157.19</var>five years, and the plan and issuance of the obligations has been approved by a vote
         of <br/>
<a id="pl.157.20"></a><var>157.20</var>all a majority of the members of the governing body present at the meeting following a <br/>
<a id="pl.157.21"></a><var>157.21</var>public hearing for which notice has been published in the official newspaper at least
         ten <br/>
<a id="pl.157.22"></a><var>157.22</var>days but not more than 28 days prior to the hearing; and<br/>
<a id="pl.157.23"></a><var>157.23</var>    (2) if a petition requesting a vote on the issuance is signed by voters equal to <br/>
<a id="pl.157.24"></a><var>157.24</var>five percent of the votes cast in the last municipal general election and is filed
         with the <br/>
<a id="pl.157.25"></a><var>157.25</var>municipal clerk within 30 days of the public hearing, the municipality may issue the
         bonds <br/>
<a id="pl.157.26"></a><var>157.26</var>only after obtaining the approval of a majority of the voters voting on the question
         of the <br/>
<a id="pl.157.27"></a><var>157.27</var>issuance of the obligations. If the municipality elects not to submit the question
         to the <br/>
<a id="pl.157.28"></a><var>157.28</var>voters, the municipality shall not propose the issuance of bonds under this section
         for the <br/>
<a id="pl.157.29"></a><var>157.29</var>same purpose and in the same amount for a period of 365 days from the date of receipt
         <br/>
<a id="pl.157.30"></a><var>157.30</var>of the petition. If the question of issuing the bonds is submitted and not approved
         by the <br/>
<a id="pl.157.31"></a><var>157.31</var>voters, the provisions of section 
         <statute_ref>475.58, subdivision 1a</statute_ref>, shall apply.<br/>
<a id="pl.157.32"></a><var>157.32</var>    (b) Obligations issued under this subdivision are subject to the debt limit of the
         <br/>
<a id="pl.157.33"></a><var>157.33</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br/>
<a id="pl.158.1"></a><var>158.1</var>    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
         <br/>
<a id="pl.158.2"></a><var>158.2</var>includes utility replacement and relocation and other activities incidental to the
         street <br/>
<a id="pl.158.3"></a><var>158.3</var>reconstruction, turn lanes and other improvements having a substantial public safety
         <br/>
<a id="pl.158.4"></a><var>158.4</var>function, realignments, other modifications to intersect with state and county roads,
         and <br/>
<a id="pl.158.5"></a><var>158.5</var>the local share of state and county road projects. For purposes of this subdivision,
         "street <br/>
<a id="pl.158.6"></a><var>158.6</var>reconstruction" includes expenditures for street reconstruction that have been incurred
         <br/>
<a id="pl.158.7"></a><var>158.7</var>by a municipality before approval of a street reconstruction plan, if such expenditures
         <br/>
<a id="pl.158.8"></a><var>158.8</var>are included in a street reconstruction plan approved on or before the date of the
         public <br/>
<a id="pl.158.9"></a><var>158.9</var>hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.<br/>
<a id="pl.158.10"></a><var>158.10</var>    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
         <br/>
<a id="pl.158.11"></a><var>158.11</var>modifications, and the local share of state and county road projects, street reconstruction
         <br/>
<a id="pl.158.12"></a><var>158.12</var>and bituminous overlays does not include the portion of project cost allocable to
         widening <br/>
<a id="pl.158.13"></a><var>158.13</var>a street or adding curbs and gutters where none previously existed.<br/>
<br/>
<a id="bill.10.9.0"></a><a id="pl.158.14"></a><var>158.14</var>    Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:<br/>
<a id="pl.158.15"></a><var>158.15</var>    Subd. 2. <b>Requirements waived.</b> The requirements as to public sale shall not <br/>
<a id="pl.158.16"></a><var>158.16</var>apply to:<br/>
<a id="pl.158.17"></a><var>158.17</var>(1) obligations issued under the provisions of a home rule charter or of a law <br/>
<a id="pl.158.18"></a><var>158.18</var>specifically authorizing a different method of sale, or authorizing them to be issued
         in such <br/>
<a id="pl.158.19"></a><var>158.19</var>manner or on such terms and conditions as the governing body may determine;<br/>
<a id="pl.158.20"></a><var>158.20</var>(2) obligations sold by an issuer in an amount not exceeding the total sum of <br/>
<a id="pl.158.21"></a><var>158.21</var>$1,200,000 in any 12-month period;<br/>
<a id="pl.158.22"></a><var>158.22</var>(3) obligations issued by a governing body other than a school board in anticipation
         <br/>
<a id="pl.158.23"></a><var>158.23</var>of the collection of taxes or other revenues appropriated for expenditure in a single
         year, if <br/>
<a id="pl.158.24"></a><var>158.24</var>sold in accordance with the most favorable of two or more proposals solicited privately;<br/>
<a id="pl.158.25"></a><var>158.25</var>(4) obligations sold to any board, department, or agency of the United States of <br/>
<a id="pl.158.26"></a><var>158.26</var>America or of the state of Minnesota, in accordance with rules or regulations promulgated
         <br/>
<a id="pl.158.27"></a><var>158.27</var>by such board, department, or agency;<br/>
<a id="pl.158.28"></a><var>158.28</var>(5) obligations issued to fund pension and retirement fund liabilities under section
         <br/>
<statute_ref><a id="pl.158.29"></a><var>158.29</var>475.52, subdivision 6
         </statute_ref>, obligations issued with tender options under section 
         <statute_ref>475.54, <br/>
<a id="pl.158.30"></a><var>158.30</var>subdivision 5a
         </statute_ref>, crossover refunding obligations referred to in section 
         <statute_ref>475.67, subdivision <br/>
<a id="pl.158.31"></a><var>158.31</var>13
         </statute_ref>, and any issue of obligations comprised in whole or in part of obligations bearing
         <br/>
<a id="pl.158.32"></a><var>158.32</var>interest at a rate or rates which vary periodically referred to in section 
         <statute_ref>475.56</statute_ref>;<br/>
<a id="pl.158.33"></a><var>158.33</var>(6) obligations to be issued for a purpose, in a manner, and upon terms and <br/>
<a id="pl.158.34"></a><var>158.34</var>conditions authorized by law, if the governing body of the municipality, on the advice
         of <br/>
<a id="pl.159.1"></a><var>159.1</var>bond counsel or special tax counsel, determines that interest on the obligations cannot
         be <br/>
<a id="pl.159.2"></a><var>159.2</var>represented to be excluded from gross income for purposes of federal income taxation;<br/>
<a id="pl.159.3"></a><var>159.3</var>(7) obligations issued in the form of an installment purchase contract, lease purchase
         <br/>
<a id="pl.159.4"></a><var>159.4</var>agreement, or other similar agreement;<br/>
<a id="pl.159.5"></a><var>159.5</var>(8) obligations sold under a bond reinvestment program; and<br/>
<a id="pl.159.6"></a><var>159.6</var>(9) if the municipality has retained an independent financial municipal advisor, <br/>
<a id="pl.159.7"></a><var>159.7</var>obligations which the governing body determines shall be sold by private negotiation.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="bill.11.1.0"></a><a id="pl.159.10"></a><var>159.10</var>    Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:<br/>
<a id="pl.159.11"></a><var>159.11</var><b>290C.01 PURPOSE.</b><br/>
<a id="pl.159.12"></a><var>159.12</var>It is the policy of this state to promote sustainable forest resource management on
         <br/>
<a id="pl.159.13"></a><var>159.13</var>the state's public and private lands. Recognizing that The state's private forests comprise <br/>
<a id="pl.159.14"></a><var>159.14</var>approximately one-half of the state forest land resources, that healthy and robust forest <br/>
<a id="pl.159.15"></a><var>159.15</var>land provides significant benefits to the state of Minnesota, and that ad. These forests <br/>
<a id="pl.159.16"></a><var>159.16</var>play a critical role in protecting water quality and soil resources, and provide extensive
         <br/>
<a id="pl.159.17"></a><var>159.17</var>wildlife habitat, diverse recreational experiences, and significant forest products
         that <br/>
<a id="pl.159.18"></a><var>159.18</var>support the state's economy. Ad valorem property taxes represent a significant annual <br/>
<a id="pl.159.19"></a><var>159.19</var>cost that can discourage long-term forest management investments. In order to foster <br/>
<a id="pl.159.20"></a><var>159.20</var>silviculture investments and retain these forests for their economic and ecological
         benefits, <br/>
<a id="pl.159.21"></a><var>159.21</var>this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is
         enacted <br/>
<a id="pl.159.22"></a><var>159.22</var>to encourage the state's private forest landowners to make a long-term commitment
         to <br/>
<a id="pl.159.23"></a><var>159.23</var>sustainable forest management.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.159.24"></a><var>159.24</var>    Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:<br/>
<a id="pl.159.25"></a><var>159.25</var>    Subdivision 1. <b>Application.</b> When used in sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref> 290C.13, <br/>
<a id="pl.159.26"></a><var>159.26</var>the terms in this section have the meanings given them.<br/>
<a id="pl.159.27"></a><var>159.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.159.28"></a><var>159.28</var>    Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:<br/>
<a id="pl.159.29"></a><var>159.29</var>    Subd. 3. <b>Claimant.</b> (a) "Claimant" means:<br/>
<a id="pl.159.30"></a><var>159.30</var>    (1) a person, as that term is defined in section 
         <statute_ref>290.01, subdivision 2</statute_ref>, who owns <br/>
<a id="pl.159.31"></a><var>159.31</var>forest land in Minnesota and files an application authorized by the Sustainable Forest
         <br/>
<a id="pl.159.32"></a><var>159.32</var>Incentive Act;<br/>
<a id="pl.160.1"></a><var>160.1</var>    (2) a purchaser or grantee if property enrolled in the program was sold or transferred
         <br/>
<a id="pl.160.2"></a><var>160.2</var>after the original application was filed and prior to the annual incentive payment
         being <br/>
<a id="pl.160.3"></a><var>160.3</var>made; or<br/>
<a id="pl.160.4"></a><var>160.4</var>    (3) an owner of land previously covered by an auxiliary forest contract that <br/>
<a id="pl.160.5"></a><var>160.5</var>automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
         <br/>
<a id="pl.160.6"></a><var>160.6</var>pursuant to section 
         <statute_ref>88.49, subdivision 9a</statute_ref>, or 
         <statute_ref>88.491, subdivision 2</statute_ref>. <br/>
<a id="pl.160.7"></a><var>160.7</var>    The purchaser or grantee must notify the commissioner in writing of the sale or <br/>
<a id="pl.160.8"></a><var>160.8</var>transfer of the property. Owners of land that qualifies for inclusion pursuant to section <br/>
<statute_ref><a id="pl.160.9"></a><var>160.9</var>88.49, subdivision 9a
         </statute_ref>, or 
         <statute_ref>88.491, subdivision 2</statute_ref>, must notify the commissioner in writing <br/>
<a id="pl.160.10"></a><var>160.10</var>of the expiration of the auxiliary forest contract or land trade with a governmental
         unit <br/>
<a id="pl.160.11"></a><var>160.11</var>and submit an application to the commissioner by August 15 July 1 in order to be eligible <br/>
<a id="pl.160.12"></a><var>160.12</var>to receive a payment by October 1 of that same year. For purposes of section 
         <statute_ref>290C.11</statute_ref>, <br/>
<a id="pl.160.13"></a><var>160.13</var>claimant also includes any person bound by the covenant required in section 
         <statute_ref>290C.04</statute_ref>.<br/>
<a id="pl.160.14"></a><var>160.14</var>    (b) No more than one claimant is entitled to a payment under this chapter with <br/>
<a id="pl.160.15"></a><var>160.15</var>respect to any tract, parcel, or piece of land enrolled under this chapter that has
         been <br/>
<a id="pl.160.16"></a><var>160.16</var>assigned the same parcel identification number. When enrolled forest land is owned
         by <br/>
<a id="pl.160.17"></a><var>160.17</var>two or more persons, the owners must determine between them which person is eligible
         to <br/>
<a id="pl.160.18"></a><var>160.18</var>claim the payments provided under sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref>. In the case of property <br/>
<a id="pl.160.19"></a><var>160.19</var>sold or transferred, the former owner and the purchaser or grantee must determine
         between <br/>
<a id="pl.160.20"></a><var>160.20</var>them which person is eligible to claim the payments provided under sections 
         <statute_ref>290C.01</statute_ref> to <br/>
<statute_ref><a id="pl.160.21"></a><var>160.21</var>290C.11
         </statute_ref>. The owners, transferees, or grantees must notify the commissioner in writing <br/>
<a id="pl.160.22"></a><var>160.22</var>which person is eligible to claim the payments.<br/>
<a id="pl.160.23"></a><var>160.23</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br/>
<a id="pl.160.24"></a><var>160.24</var>due in 2016 and thereafter.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.160.25"></a><var>160.25</var>    Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:<br/>
<a id="pl.160.26"></a><var>160.26</var>    Subd. 6. <b>Forest land.</b> "Forest land" means land containing a minimum of 20 <br/>
<a id="pl.160.27"></a><var>160.27</var>contiguous acres for which the owner has implemented a forest management plan that
         was <br/>
<a id="pl.160.28"></a><var>160.28</var>prepared or updated within the past ten years by an approved plan writer. For purposes
         of <br/>
<a id="pl.160.29"></a><var>160.29</var>this subdivision, acres are considered to be contiguous even if they are separated
         by a road, <br/>
<a id="pl.160.30"></a><var>160.30</var>waterway, railroad track, or other similar intervening property. At least 50 percent
         of the <br/>
<a id="pl.160.31"></a><var>160.31</var>contiguous acreage must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision <br/>
<a id="pl.160.32"></a><var>160.32</var>7
         </statute_ref>. For the purposes of sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref>, forest land does not include (i) <br/>
<a id="pl.160.33"></a><var>160.33</var>land used for residential or agricultural purposes, (ii) land enrolled in the reinvest
         in <br/>
<a id="pl.160.34"></a><var>160.34</var>Minnesota program, a state or federal conservation reserve or easement reserve program
         <br/>
<a id="pl.160.35"></a><var>160.35</var>under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.531</statute_ref>, the Minnesota agricultural property tax law under <br/>
<a id="pl.161.1"></a><var>161.1</var>section 
         <statute_ref>273.111</statute_ref>, or land subject to agricultural land preservation controls or restrictions <br/>
<a id="pl.161.2"></a><var>161.2</var>as defined in section 
         <statute_ref>40A.02</statute_ref> or under the Metropolitan Agricultural Preserves Act under <br/>
<a id="pl.161.3"></a><var>161.3</var>chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation <br/>
<a id="pl.161.4"></a><var>161.4</var>easement funded under section 
<statute_ref>97A.056</statute_ref> or a comparable permanent easement conveyed <br/>
<a id="pl.161.5"></a><var>161.5</var>to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation <br/>
<a id="pl.161.6"></a><var>161.6</var>easement funded under section 
         <statute_ref>97A.056</statute_ref> or a comparable permanent easement conveyed <br/>
<a id="pl.161.7"></a><var>161.7</var>to a governmental or nonprofit entity after May 30, 2013; or (v)  (iv) land improved with a <br/>
<a id="pl.161.8"></a><var>161.8</var>structure, pavement, sewer, campsite, or any road, other than a township road, used
         for <br/>
<a id="pl.161.9"></a><var>161.9</var>purposes not prescribed in the forest management plan.<br/>
<a id="pl.161.10"></a><var>161.10</var><b>EFFECTIVE DATE.</b>This section is effective for applications made in 2016 and <br/>
<a id="pl.161.11"></a><var>161.11</var>thereafter. <br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.161.12"></a><var>161.12</var>    Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:<br/>
<a id="pl.161.13"></a><var>161.13</var><b>290C.03 ELIGIBILITY REQUIREMENTS.</b><br/>
<a id="pl.161.14"></a><var>161.14</var>(a) Land may be enrolled in the sustainable forest incentive program under this <br/>
<a id="pl.161.15"></a><var>161.15</var>chapter if all of the following conditions are met:<br/>
<a id="pl.161.16"></a><var>161.16</var>(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
         <br/>
<a id="pl.161.17"></a><var>161.17</var>land must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>, during the <br/>
<a id="pl.161.18"></a><var>161.18</var>enrollment;<br/>
<a id="pl.161.19"></a><var>161.19</var>(2) a forest management plan for the land must be prepared by an approved plan <br/>
<a id="pl.161.20"></a><var>161.20</var>writer and implemented during the period in which the land is enrolled;<br/>
<a id="pl.161.21"></a><var>161.21</var>(3) timber harvesting and forest management guidelines must be used in conjunction
         <br/>
<a id="pl.161.22"></a><var>161.22</var>with any timber harvesting or forest management activities conducted on the land during
         <br/>
<a id="pl.161.23"></a><var>161.23</var>the period in which the land is enrolled;<br/>
<a id="pl.161.24"></a><var>161.24</var>(4) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.161.25"></a><var>161.25</var>(5) there are no delinquent property taxes on the land; and<br/>
<a id="pl.161.26"></a><var>161.26</var>(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject <br/>
<a id="pl.161.27"></a><var>161.27</var>to a conservation easement funded under section 97A.056, or a comparable permanent
         <br/>
<a id="pl.161.28"></a><var>161.28</var>easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive <br/>
<a id="pl.161.29"></a><var>161.29</var>program must allow year-round, nonmotorized access to fish and wildlife resources
         and <br/>
<a id="pl.161.30"></a><var>161.30</var>motorized access on established and maintained roads and trails, unless the road or
         trail is <br/>
<a id="pl.161.31"></a><var>161.31</var>temporarily closed for safety, natural resource, or road damage reasons on enrolled
         land <br/>
<a id="pl.161.32"></a><var>161.32</var>except within one-fourth mile of a permanent dwelling or during periods of high fire
         <br/>
<a id="pl.161.33"></a><var>161.33</var>hazard as determined by the commissioner of natural resources;<br/>
<a id="pl.162.1"></a><var>162.1</var>(7) the claimant has registered with the forest management plan under clause (2) <br/>
<a id="pl.162.2"></a><var>162.2</var>with the commissioner of natural resources, who has determined that the land meets
         <br/>
<a id="pl.162.3"></a><var>162.3</var>qualifications for enrollment; and<br/>
<a id="pl.162.4"></a><var>162.4</var>(8) the land is not classified as class 2c managed forest land.<br/>
<a id="pl.162.5"></a><var>162.5</var>(b) Claimants required to allow access under paragraph (a), clause (6), do not by
         <br/>
<a id="pl.162.6"></a><var>162.6</var>that action:<br/>
<a id="pl.162.7"></a><var>162.7</var>(1) extend any assurance that the land is safe for any purpose;<br/>
<a id="pl.162.8"></a><var>162.8</var>(2) confer upon the person the legal status of an invitee or licensee to whom a duty
         <br/>
<a id="pl.162.9"></a><var>162.9</var>of care is owed; or<br/>
<a id="pl.162.10"></a><var>162.10</var>(3) assume responsibility for or incur liability for any injury to the person or property
         <br/>
<a id="pl.162.11"></a><var>162.11</var>caused by an act or omission of the person.<br/>
<a id="pl.162.12"></a><var>162.12</var>(c) The commissioner of natural resources shall annually provide county assessors
         <br/>
<a id="pl.162.13"></a><var>162.13</var>verification information regarding plan registration under paragraph (a), clause (7),
         on <br/>
<a id="pl.162.14"></a><var>162.14</var>a timely basis.<br/>
<a id="pl.162.15"></a><var>162.15</var>(d) A minimum of three acres must be excluded from enrolled land when the land is
         <br/>
<a id="pl.162.16"></a><var>162.16</var>improved with a structure that is not a minor, ancillary, nonresidential structure.<br/>
<a id="pl.162.17"></a><var>162.17</var>(e) If land does not meet the definition of forest land in section 290C.02, subdivision
         <br/>
<a id="pl.162.18"></a><var>162.18</var>6, because the land is: (1) enrolled in the reinvest in Minnesota program; (2) enrolled
         in <br/>
<a id="pl.162.19"></a><var>162.19</var>a state or federal conservation reserve or easement program under sections 103F.501
         to <br/>
<a id="pl.162.20"></a><var>162.20</var>103F.531; (3) subject to the Minnesota agricultural property tax under section 273.111;
         or <br/>
<a id="pl.162.21"></a><var>162.21</var>(4) subject to agricultural land preservation controls or restrictions as defined
         in section <br/>
<a id="pl.162.22"></a><var>162.22</var>40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire
         tax <br/>
<a id="pl.162.23"></a><var>162.23</var>parcel that contains the land is not eligible to be enrolled in the program.<br/>
<a id="pl.162.24"></a><var>162.24</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br/>
<a id="pl.162.25"></a><var>162.25</var>due in 2016 and thereafter.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.162.26"></a><var>162.26</var>    Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:<br/>
<a id="pl.162.27"></a><var>162.27</var><b>290C.04 APPLICATIONS.</b><br/>
<a id="pl.162.28"></a><var>162.28</var>    (a) A landowner may apply to enroll forest land for the sustainable forest incentive
         <br/>
<a id="pl.162.29"></a><var>162.29</var>program under this chapter. The claimant must complete, sign, and submit an application
         <br/>
<a id="pl.162.30"></a><var>162.30</var>to the commissioner by September 30 in order for the land to become eligible beginning
         <br/>
<a id="pl.162.31"></a><var>162.31</var>in the next year. The application shall be on a form prescribed by the commissioner <br/>
<a id="pl.162.32"></a><var>162.32</var>commissioners of revenue and natural resources and must include the information the <br/>
<a id="pl.162.33"></a><var>162.33</var>commissioner deems necessary. At a minimum, the application must show the following
         <br/>
<a id="pl.162.34"></a><var>162.34</var>information for the land and the claimant: (i) the claimant's Social Security number
         or <br/>
<a id="pl.163.1"></a><var>163.1</var>state or federal business tax registration number and date of birth, (ii) the claimant's
         <br/>
<a id="pl.163.2"></a><var>163.2</var>address, (iii) the claimant's signature, (iv) the county's parcel identification numbers
         for <br/>
<a id="pl.163.3"></a><var>163.3</var>the tax parcels that completely contain the claimant's forest land that is sought
         to be <br/>
<a id="pl.163.4"></a><var>163.4</var>enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the
         approved <br/>
<a id="pl.163.5"></a><var>163.5</var>plan writer's signature and identification number, and (vii) proof, in a form specified by the <br/>
<a id="pl.163.6"></a><var>163.6</var>commissioner, that the claimant has executed and acknowledged in the manner required
         <br/>
<a id="pl.163.7"></a><var>163.7</var>by law for a deed, and recorded, a covenant that the land is not and shall not be
         developed <br/>
<a id="pl.163.8"></a><var>163.8</var>in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a <br/>
<a id="pl.163.9"></a><var>163.9</var>registration number for the forest management plan, issued by the commissioner of
         natural <br/>
<a id="pl.163.10"></a><var>163.10</var>resources. The covenant shall state in writing that the covenant is binding on the claimant
         <br/>
<a id="pl.163.11"></a><var>163.11</var>and the claimant's successor or assignee, and that it runs with the land for a period
         of not <br/>
<a id="pl.163.12"></a><var>163.12</var>less than eight years unless the claimant requests termination of the covenant after a <br/>
<a id="pl.163.13"></a><var>163.13</var>reduction in payments due to changes in the payment formula under section 290C.07. The <br/>
<a id="pl.163.14"></a><var>163.14</var>commissioner shall specify the form of the covenant and provide copies upon request.
         <br/>
<a id="pl.163.15"></a><var>163.15</var>The covenant must include a legal description that encompasses all the forest land
         that the <br/>
<a id="pl.163.16"></a><var>163.16</var>claimant wishes to enroll under this section or the certificate of title number for
         that land if <br/>
<a id="pl.163.17"></a><var>163.17</var>it is registered land. The commissioner of natural resources shall record the area eligible <br/>
<a id="pl.163.18"></a><var>163.18</var>for enrollment into the Sustainable Forest Incentive Act as electronic geospatial
         data, as <br/>
<a id="pl.163.19"></a><var>163.19</var>defined in section 16E.30, subdivision 10.<br/>
<a id="pl.163.20"></a><var>163.20</var>(b) The commissioner shall provide a copy of the application filed by the claimant
         <br/>
<a id="pl.163.21"></a><var>163.21</var>and all supporting materials to the commissioner of natural resources within 15 days
         of <br/>
<a id="pl.163.22"></a><var>163.22</var>receipt or by September 1, whichever is sooner. The commissioner of natural resources
         <br/>
<a id="pl.163.23"></a><var>163.23</var>must notify the commissioner whether the applicant qualifies for enrollment within
         30 <br/>
<a id="pl.163.24"></a><var>163.24</var>days of receipt, and if the applicant qualifies for enrollment, the commissioner of
         natural <br/>
<a id="pl.163.25"></a><var>163.25</var>resources shall specify the number of qualifying acres per tax parcel.<br/>
<a id="pl.163.26"></a><var>163.26</var>    (b) In all cases, (c) The commissioner shall notify the claimant within 90 days after <br/>
<a id="pl.163.27"></a><var>163.27</var>receipt of a completed application that either the land has or has not been approved
         for <br/>
<a id="pl.163.28"></a><var>163.28</var>enrollment. A claimant whose application is denied may appeal the denial as provided
         <br/>
<a id="pl.163.29"></a><var>163.29</var>in section 
         <statute_ref>290C.13</statute_ref>.<br/>
<a id="pl.163.30"></a><var>163.30</var>    (c) (d) Within 90 days after the denial of an application, or within 90 days after the <br/>
<a id="pl.163.31"></a><var>163.31</var>final resolution of any appeal related to the denial, the commissioner shall execute
         and <br/>
<a id="pl.163.32"></a><var>163.32</var>acknowledge a document releasing the land from the covenant required under this chapter.
         <br/>
<a id="pl.163.33"></a><var>163.33</var>The document must be mailed to the claimant and is entitled to be recorded.<br/>
<a id="pl.163.34"></a><var>163.34</var>    (d) (e) The Social Security numbers collected from individuals under this section are <br/>
<a id="pl.163.35"></a><var>163.35</var>private data as provided in section 
         <statute_ref>13.355</statute_ref>. The federal business tax registration number <br/>
<a id="pl.163.36"></a><var>163.36</var>and date of birth data collected under this section are also private data on individuals
         or <br/>
<a id="pl.164.1"></a><var>164.1</var>nonpublic data, as defined in section 
         <statute_ref>13.02</statute_ref>, subdivisions 9 and 12, but may be shared <br/>
<a id="pl.164.2"></a><var>164.2</var>with county assessors for purposes of tax administration and with county treasurers
         for <br/>
<a id="pl.164.3"></a><var>164.3</var>purposes of the revenue recapture under chapter 270A.<br/>
<a id="pl.164.4"></a><var>164.4</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br/>
<a id="pl.164.5"></a><var>164.5</var>due in 2016 and thereafter.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.164.6"></a><var>164.6</var>    Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:<br/>
<a id="pl.164.7"></a><var>164.7</var><b>290C.05 ANNUAL CERTIFICATION</b><b> AND MONITORING</b><b>.</b><br/>
<a id="pl.164.8"></a><var>164.8</var>    (a) On or before July 1 May 15 of each year, beginning with the year after the <br/>
<a id="pl.164.9"></a><var>164.9</var>original claimant has received an approved application, the commissioner shall send
         each <br/>
<a id="pl.164.10"></a><var>164.10</var>claimant enrolled under the sustainable forest incentive program a certification form.
         For <br/>
<a id="pl.164.11"></a><var>164.11</var>purposes of this section, the original claimant is the person that filed the first application <br/>
<a id="pl.164.12"></a><var>164.12</var>under section 
<statute_ref>290C.04</statute_ref> to enroll the land in the program current property owner on record, <br/>
<a id="pl.164.13"></a><var>164.13</var>or the person designated by the owners in the case of multiple ownership. The claimant <br/>
<a id="pl.164.14"></a><var>164.14</var>must sign and return the certification, attesting to the commissioner by July 1 of that <br/>
<a id="pl.164.15"></a><var>164.15</var>same year, and (1) attest that the requirements and conditions for continued enrollment <br/>
<a id="pl.164.16"></a><var>164.16</var>in the program are currently being met, and must return the signed certification form to <br/>
<a id="pl.164.17"></a><var>164.17</var>the commissioner by August 15 of that same year (2) provide a report in the form and <br/>
<a id="pl.164.18"></a><var>164.18</var>manner determined by the commissioner of natural resources describing the management
         <br/>
<a id="pl.164.19"></a><var>164.19</var>practices that have been carried out on the enrolled property during the prior year. If the <br/>
<a id="pl.164.20"></a><var>164.20</var>claimant does not return an annual certification form by the due date, the provisions
         <br/>
<a id="pl.164.21"></a><var>164.21</var>in section 
         <statute_ref>290C.11</statute_ref> apply. The commissioner of natural resources will verify that the <br/>
<a id="pl.164.22"></a><var>164.22</var>claimant meets program requirements.<br/>
<a id="pl.164.23"></a><var>164.23</var>(b) The commissioner must provide the certification form and annual report described
         <br/>
<a id="pl.164.24"></a><var>164.24</var>in paragraph (a), clause (2), to the commissioner of natural resources by August 1.<br/>
<a id="pl.164.25"></a><var>164.25</var>(c) The commissioner of natural resources must conduct annual monitoring <br/>
<a id="pl.164.26"></a><var>164.26</var>of a subset of claimants, excluding land also enrolled in a conservation easement
         <br/>
<a id="pl.164.27"></a><var>164.27</var>program. Claimants will be selected for monitoring based on reported violations, annual
         <br/>
<a id="pl.164.28"></a><var>164.28</var>certification, and random selections. Monitoring will be conducted on ten percent
         of <br/>
<a id="pl.164.29"></a><var>164.29</var>claimants as of July 1 of each year. Monitoring may include, but is not limited to,
         a site <br/>
<a id="pl.164.30"></a><var>164.30</var>visit by a department of natural resources or a contracted forester. The commissioner
         of <br/>
<a id="pl.164.31"></a><var>164.31</var>natural resources will develop a monitoring form to record the monitoring data.<br/>
<a id="pl.164.32"></a><var>164.32</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (b) are effective for certifications and <br/>
<a id="pl.164.33"></a><var>164.33</var>applications due in 2016 and thereafter. Paragraph (c) is effective July 1, 2018.<br/>
<br/>
<a id="bill.11.8.0"></a><a id="pl.165.1"></a><var>165.1</var>    Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:<br/>
<a id="pl.165.2"></a><var>165.2</var><b>290C.055 LENGTH OF COVENANT.</b><br/>
<a id="pl.165.3"></a><var>165.3</var>(a) The covenant remains in effect for a minimum of eight years Claimants enrolling <br/>
<a id="pl.165.4"></a><var>165.4</var>any land that is subject to a conservation easement funded under section 97A.056 or
         a <br/>
<a id="pl.165.5"></a><var>165.5</var>comparable permanent easement conveyed to a governmental or nonprofit entity must
         <br/>
<a id="pl.165.6"></a><var>165.6</var>enroll their land under a covenant with a minimum duration of eight years. All other
         <br/>
<a id="pl.165.7"></a><var>165.7</var>claimants may choose to enroll their land under a covenant with a minimum duration
         of <br/>
<a id="pl.165.8"></a><var>165.8</var>eight, 20, or 50 years. If land is removed the claimant requests removal from the program <br/>
<a id="pl.165.9"></a><var>165.9</var>before it has been enrolled for four years half the number of years of the covenant's <br/>
<a id="pl.165.10"></a><var>165.10</var>duration, the covenant remains in effect for eight years the entire duration of the covenant <br/>
<a id="pl.165.11"></a><var>165.11</var>from the date recorded.<br/>
<a id="pl.165.12"></a><var>165.12</var>(b) If land that has been enrolled for four years half the number of years of the <br/>
<a id="pl.165.13"></a><var>165.13</var>covenant's minimum duration or more is removed from the program for any reason, there <br/>
<a id="pl.165.14"></a><var>165.14</var>is a waiting period before the covenant terminates. The covenant terminates on January
         1 <br/>
<a id="pl.165.15"></a><var>165.15</var>of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, <br/>
<a id="pl.165.16"></a><var>165.16</var>respectively, that begins after the date that:<br/>
<a id="pl.165.17"></a><var>165.17</var>(1) the commissioner receives notification from the claimant that the claimant wishes
         <br/>
<a id="pl.165.18"></a><var>165.18</var>to remove the land from the program under section 
         <statute_ref>290C.10</statute_ref>; or<br/>
<a id="pl.165.19"></a><var>165.19</var>(2) the date that the land is removed from the program under section 
         <statute_ref>290C.11</statute_ref>.<br/>
<a id="pl.165.20"></a><var>165.20</var>(c) Notwithstanding the other provisions of this section, the covenant is terminated:<br/>
<a id="pl.165.21"></a><var>165.21</var>(1) at the same time that the land is removed from the program due to acquisition
         of <br/>
<a id="pl.165.22"></a><var>165.22</var>title or possession for a public purpose under section 
         <statute_ref>290C.10</statute_ref>; or<br/>
<a id="pl.165.23"></a><var>165.23</var>(2) at the request of the claimant after a reduction in payments due to changes in
         the <br/>
<a id="pl.165.24"></a><var>165.24</var>payment formula under section 
         <statute_ref>290C.07</statute_ref>.<br/>
<a id="pl.165.25"></a><var>165.25</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications in <br/>
<a id="pl.165.26"></a><var>165.26</var>2016 and thereafter.<br/>
<br/>
<a id="bill.11.9.0"></a><a id="pl.165.27"></a><var>165.27</var>    Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:<br/>
<a id="pl.165.28"></a><var>165.28</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT. </b><br/>
<a id="pl.165.29"></a><var>165.29</var>    An approved claimant under the sustainable forest incentive program is eligible to
         <br/>
<a id="pl.165.30"></a><var>165.30</var>receive an annual payment for each acre of enrolled land. The payment shall equal $7 <br/>
<a id="pl.165.31"></a><var>165.31</var>per acre for each acre enrolled in the sustainable forest incentive program a percentage of <br/>
<a id="pl.165.32"></a><var>165.32</var>the property tax that would be paid on the land determined by using the previous year's
         <br/>
<a id="pl.165.33"></a><var>165.33</var>statewide average total tax rate for all taxes levied within townships or unorganized
         <br/>
<a id="pl.165.34"></a><var>165.34</var>territories, the estimated market value per acre as calculated in section 290C.06,
         and <br/>
<a id="pl.166.1"></a><var>166.1</var>a class rate of one percent as follows: (1) for claimants enrolling land that is subject
         <br/>
<a id="pl.166.2"></a><var>166.2</var>to a conservation easement funded under section 
<statute_ref>97A.056</statute_ref> or a comparable permanent <br/>
<a id="pl.166.3"></a><var>166.3</var>easement conveyed to a governmental or nonprofit entity before May 31, 2013, under
         an <br/>
<a id="pl.166.4"></a><var>166.4</var>eight-year covenant, 25 percent; (2) for claimants enrolling land that is not subject
         to <br/>
<a id="pl.166.5"></a><var>166.5</var>a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
         <br/>
<a id="pl.166.6"></a><var>166.6</var>enrolling land that is not subject to a conservation easement  under a 20-year covenant,
         90 <br/>
<a id="pl.166.7"></a><var>166.7</var>percent; and (4) for claimants enrolling land that is not subject to a conservation
         easement <br/>
<a id="pl.166.8"></a><var>166.8</var>under a 50-year covenant, 115 percent. The calculated payment shall not be less than
         the <br/>
<a id="pl.166.9"></a><var>166.9</var>payment received in 2016 and shall not increase or decrease by more than ten percent
         <br/>
<a id="pl.166.10"></a><var>166.10</var>relative to the payment received for the previous year.<br/>
<a id="pl.166.11"></a><var>166.11</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2016 and <br/>
<a id="pl.166.12"></a><var>166.12</var>thereafter. <br/>
<br/>
<a id="bill.11.10.0"></a><a id="pl.166.13"></a><var>166.13</var>    Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:<br/>
<a id="pl.166.14"></a><var>166.14</var>    Subdivision 1. <b>Annual payment.</b> An incentive payment for each acre of enrolled <br/>
<a id="pl.166.15"></a><var>166.15</var>land will be made annually to each claimant in the amount determined under section
         <br/>
<statute_ref><a id="pl.166.16"></a><var>166.16</var>290C.07
         </statute_ref>. By September 15 of each year, the commissioner of natural resources will <br/>
<a id="pl.166.17"></a><var>166.17</var>certify to the commissioner the eligibility of each claimant to receive a payment.
         The <br/>
<a id="pl.166.18"></a><var>166.18</var>incentive payment shall be paid by the commissioner on or before October 1 each year <br/>
<a id="pl.166.19"></a><var>166.19</var>based on the certifications due August 15 July 1 of that year. Interest at the annual rate <br/>
<a id="pl.166.20"></a><var>166.20</var>determined under section 
         <statute_ref>270C.40</statute_ref> shall be included with any incentive payment not <br/>
<a id="pl.166.21"></a><var>166.21</var>paid by the later of October 1 of the year the certification was due, or 45 days after
         the <br/>
<a id="pl.166.22"></a><var>166.22</var>completed certification was returned or filed if the commissioner accepts a certification
         <br/>
<a id="pl.166.23"></a><var>166.23</var>filed after August 15 July 1 of the taxes payable year as the resolution of an appeal.<br/>
<a id="pl.166.24"></a><var>166.24</var><b>EFFECTIVE DATE.</b>This section is effective for certifications and applications <br/>
<a id="pl.166.25"></a><var>166.25</var>due in 2016 and thereafter.<br/>
<br/>
<a id="bill.11.11.0"></a><a id="pl.166.26"></a><var>166.26</var>    Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:<br/>
<a id="pl.166.27"></a><var>166.27</var><b>290C.10 WITHDRAWAL PROCEDURES.</b><br/>
<a id="pl.166.28"></a><var>166.28</var>An approved claimant (a) The current owner of land enrolled under the sustainable <br/>
<a id="pl.166.29"></a><var>166.29</var>forest incentive program for a minimum of four years half the number of years of the <br/>
<a id="pl.166.30"></a><var>166.30</var>covenant's minimum duration may notify the commissioner of the intent to terminate <br/>
<a id="pl.166.31"></a><var>166.31</var>enrollment. Within 90 days of receipt of notice to terminate enrollment, the commissioner
         <br/>
<a id="pl.166.32"></a><var>166.32</var>shall inform the claimant in writing, acknowledging receipt of this notice and indicating
         <br/>
<a id="pl.166.33"></a><var>166.33</var>the effective date of termination from the sustainable forest incentive program. <br/>
<a id="pl.167.1"></a><var>167.1</var>Termination of enrollment in the sustainable forest incentive program occurs on January
         1 <br/>
<a id="pl.167.2"></a><var>167.2</var>of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective minimum <br/>
<a id="pl.167.3"></a><var>167.3</var>covenant that begins after receipt by the commissioner of the termination notice. After the
         <br/>
<a id="pl.167.4"></a><var>167.4</var>commissioner issues an effective date of termination, a claimant wishing to continue
         the <br/>
<a id="pl.167.5"></a><var>167.5</var>land's enrollment in the sustainable forest incentive program beyond the termination
         date <br/>
<a id="pl.167.6"></a><var>167.6</var>must apply for enrollment as prescribed in section 
         <statute_ref>290C.04</statute_ref>. A claimant who withdraws <br/>
<a id="pl.167.7"></a><var>167.7</var>a parcel of land from this program may not reenroll the parcel for a period of three
         <br/>
<a id="pl.167.8"></a><var>167.8</var>years. Within 90 days after the termination date, the commissioner shall execute and
         <br/>
<a id="pl.167.9"></a><var>167.9</var>acknowledge a document releasing the land from the covenant required under this chapter.
         <br/>
<a id="pl.167.10"></a><var>167.10</var>The document must be mailed to the claimant and is entitled to be recorded.<br/>
<a id="pl.167.11"></a><var>167.11</var>(b) Notwithstanding paragraph (a), on request of the claimant,  the commissioner may <br/>
<a id="pl.167.12"></a><var>167.12</var>allow early withdrawal from the Sustainable Forest Incentive Act without penalty when
         the <br/>
<a id="pl.167.13"></a><var>167.13</var>state of Minnesota, any local government unit, or any other entity which has the power
         of <br/>
<a id="pl.167.14"></a><var>167.14</var>eminent domain acquires title or possession to the land for a public purpose notwithstanding <br/>
<a id="pl.167.15"></a><var>167.15</var>the provisions of this section. In the case of such an eligible acquisition under this <br/>
<a id="pl.167.16"></a><var>167.16</var>paragraph, the commissioner shall execute and acknowledge a document releasing the <br/>
<a id="pl.167.17"></a><var>167.17</var>land acquired by the state, local government unit, or other entity from the covenant.<br/>
<a id="pl.167.18"></a><var>167.18</var>(c) Notwithstanding paragraph (a), on request of the claimant, the commissioner <br/>
<a id="pl.167.19"></a><var>167.19</var>shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
         <br/>
<a id="pl.167.20"></a><var>167.20</var>when the government or nonprofit entity acquires a permanent conservation easement
         <br/>
<a id="pl.167.21"></a><var>167.21</var>on the enrolled property and the conservation easement is at least as restrictive
         as the <br/>
<a id="pl.167.22"></a><var>167.22</var>covenant required under section 290C.04. The commissioner of natural resources must
         <br/>
<a id="pl.167.23"></a><var>167.23</var>notify the commissioner of lands acquired under this paragraph that are eligible for
         <br/>
<a id="pl.167.24"></a><var>167.24</var>withdrawal. In the case of an eligible easement acquisition under this paragraph,
         the <br/>
<a id="pl.167.25"></a><var>167.25</var>commissioner shall execute and acknowledge a document releasing the land subject to
         <br/>
<a id="pl.167.26"></a><var>167.26</var>the easement from the covenant.<br/>
<a id="pl.167.27"></a><var>167.27</var>(d) Notwithstanding paragraph (a), on request of the claimant, the commissioner <br/>
<a id="pl.167.28"></a><var>167.28</var>shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
         for <br/>
<a id="pl.167.29"></a><var>167.29</var>land that is subject to fee or easement acquisition or lease to the state of Minnesota
         or a <br/>
<a id="pl.167.30"></a><var>167.30</var>political subdivision of the state for the public purpose of a paved trail. The commissioner
         <br/>
<a id="pl.167.31"></a><var>167.31</var>of natural resources must notify the commissioner of lands acquired under this paragraph
         <br/>
<a id="pl.167.32"></a><var>167.32</var>that are eligible for withdrawal. In the case of an eligible fee or easement acquisition
         or <br/>
<a id="pl.167.33"></a><var>167.33</var>lease under this paragraph, the commissioner shall execute and acknowledge a document
         <br/>
<a id="pl.167.34"></a><var>167.34</var>releasing the land subject to fee or easement acquisition or lease by the state or
         political <br/>
<a id="pl.167.35"></a><var>167.35</var>subdivision of the state.<br/>
<a id="pl.167.36"></a><var>167.36</var>(e) All other enrolled land must remain in the program.<br/>
<a id="pl.168.1"></a><var>168.1</var><b>EFFECTIVE DATE.</b>Paragraphs (c) and (d) are effective the day following final <br/>
<a id="pl.168.2"></a><var>168.2</var>enactment. Paragraphs (a), (b), and (e) are effective for notifications made in 2016
         and <br/>
<a id="pl.168.3"></a><var>168.3</var>thereafter.<br/>
<br/>
<a id="bill.11.12.0"></a><a id="pl.168.4"></a><var>168.4</var>    Sec. 12. <b>[290C.101] TRANSFER OF OWNERSHIP.</b><br/>
<a id="pl.168.5"></a><var>168.5</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.168.6"></a><var>168.6</var>have the meanings provided.<br/>
<a id="pl.168.7"></a><var>168.7</var>(b) "New owner" means a prospective purchaser or grantee.<br/>
<a id="pl.168.8"></a><var>168.8</var>(c) "Owner" means a grantor or seller.<br/>
<a id="pl.168.9"></a><var>168.9</var>    Subd. 2. <b>Notification to commissioner.</b> (a) An owner must notify the commissioner <br/>
<a id="pl.168.10"></a><var>168.10</var>if the owner transfers any or all of the owner's land enrolled in the sustainable
         forest <br/>
<a id="pl.168.11"></a><var>168.11</var>incentive program to one or more new owners within 60 days of the transfer of title
         to the <br/>
<a id="pl.168.12"></a><var>168.12</var>property. The notification must include the legal descriptions of the transferred
         property, <br/>
<a id="pl.168.13"></a><var>168.13</var>the tax parcel numbers, and the name and address of the new owner. If transfer of
         ownership <br/>
<a id="pl.168.14"></a><var>168.14</var>is a result of the death of the claimant, the provisions of section 290C.12 shall
         apply.<br/>
<a id="pl.168.15"></a><var>168.15</var>(b) Upon notification, the commissioner shall inform the new owner of the <br/>
<a id="pl.168.16"></a><var>168.16</var>restrictions of the covenant required by section 290C.04 and the withdrawal procedures
         <br/>
<a id="pl.168.17"></a><var>168.17</var>under section 290C.10. In order for the new owner to receive payments pursuant to
         this <br/>
<a id="pl.168.18"></a><var>168.18</var>chapter, the new owner must file an application and register a new forest management
         plan <br/>
<a id="pl.168.19"></a><var>168.19</var>with the commissioner of natural resources within two years from the date the title
         of the <br/>
<a id="pl.168.20"></a><var>168.20</var>property was transferred to remain eligible.<br/>
<a id="pl.168.21"></a><var>168.21</var>    Subd. 3. <b>Termination of enrollment.</b> The commissioner will terminate enrollment <br/>
<a id="pl.168.22"></a><var>168.22</var>according to the procedure in section 290C.10 for failure of the new owner to register
         a <br/>
<a id="pl.168.23"></a><var>168.23</var>forest management plan within the time period in subdivision 2, paragraph (b).<br/>
<a id="pl.168.24"></a><var>168.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.13.0"></a><a id="pl.168.25"></a><var>168.25</var>    Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:<br/>
<a id="pl.168.26"></a><var>168.26</var><b>290C.11 PENALTIES FOR REMOVAL.</b><br/>
<a id="pl.168.27"></a><var>168.27</var>    (a) If the commissioner determines that land enrolled in the sustainable forest <br/>
<a id="pl.168.28"></a><var>168.28</var>incentive program is in violation of the conditions for enrollment as specified in
         section <br/>
<statute_ref><a id="pl.168.29"></a><var>168.29</var>290C.03
         </statute_ref>, or upon notification by the commissioner of natural resources that land enrolled
         <br/>
<a id="pl.168.30"></a><var>168.30</var>is in violation of the conditions for enrollment, the commissioner shall notify the claimant <br/>
<a id="pl.168.31"></a><var>168.31</var>current owner of the land of the intent to remove all the tax parcel of the enrolled land <br/>
<a id="pl.168.32"></a><var>168.32</var>where the violation has occurred from the sustainable forest incentive program. The <br/>
<a id="pl.169.1"></a><var>169.1</var>penalties described under paragraph (c) shall apply. The claimant current owner has 60 <br/>
<a id="pl.169.2"></a><var>169.2</var>days to appeal this determination under the provisions of section 
         <statute_ref>290C.13</statute_ref>.<br/>
<a id="pl.169.3"></a><var>169.3</var>    (b) If the commissioner determines the land is to be removed from the sustainable
         <br/>
<a id="pl.169.4"></a><var>169.4</var>forest incentive program due to the construction or addition of an improvement to the <br/>
<a id="pl.169.5"></a><var>169.5</var>property, the claimant owner of the tax parcel that is in violation is liable for payment <br/>
<a id="pl.169.6"></a><var>169.6</var>to the commissioner in the amount equal to : (1) the payments received issued related to <br/>
<a id="pl.169.7"></a><var>169.7</var>the enrolled tax parcel under this chapter for the previous four-year period in the case of <br/>
<a id="pl.169.8"></a><var>169.8</var>an eight-year minimum covenant, ten-year period in the case of a 20-year minimum <br/>
<a id="pl.169.9"></a><var>169.9</var>covenant, and 25-year period in the case of a 50-year minimum covenant, plus interest; <br/>
<a id="pl.169.10"></a><var>169.10</var>and (2) 25 percent of the estimated market value of the property as reclassified under
         <br/>
<a id="pl.169.11"></a><var>169.11</var>section 273.13 due to the structure being on the tax parcel, as determined by the
         assessor.<br/>
<a id="pl.169.12"></a><var>169.12</var>(c) If the commissioner of natural resources determines that the land is used for
         <br/>
<a id="pl.169.13"></a><var>169.13</var>purposes other than forestry purposes, the commissioner of natural resources shall
         notify <br/>
<a id="pl.169.14"></a><var>169.14</var>the commissioner of revenue, who shall notify the current owner of the tax parcel
         that is in <br/>
<a id="pl.169.15"></a><var>169.15</var>violation that the current owner is liable to the commissioner in an amount equal
         to: (1) 30 <br/>
<a id="pl.169.16"></a><var>169.16</var>percent of the estimated market value as property reclassified under section 273.13,
         due to <br/>
<a id="pl.169.17"></a><var>169.17</var>the change in use, as determined by the assessor; and (2) the payments issued related
         to <br/>
<a id="pl.169.18"></a><var>169.18</var>the enrolled tax parcel under this chapter for the previous four-year period in the
         case of <br/>
<a id="pl.169.19"></a><var>169.19</var>an eight-year covenant, ten-year period in the case of a 20-year covenant, and 25-year
         <br/>
<a id="pl.169.20"></a><var>169.20</var>period in the case of a 50-year covenant, plus interest.<br/>
<a id="pl.169.21"></a><var>169.21</var>    (d) The claimant has 90 days to satisfy the payment for removal of land from the <br/>
<a id="pl.169.22"></a><var>169.22</var>sustainable forest incentive program under this section. If the penalty is not paid
         within <br/>
<a id="pl.169.23"></a><var>169.23</var>the 90-day period under this paragraph, the commissioner shall certify the amount
         to the <br/>
<a id="pl.169.24"></a><var>169.24</var>county auditor for collection as a part of the general ad valorem real property taxes
         on the <br/>
<a id="pl.169.25"></a><var>169.25</var>land in the following taxes payable year.<br/>
<a id="pl.169.26"></a><var>169.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.14.0"></a><a id="pl.169.27"></a><var>169.27</var>    Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:<br/>
<a id="pl.169.28"></a><var>169.28</var>    Subd. 6. <b>Determination of appeal.</b> On the basis of applicable law and available <br/>
<a id="pl.169.29"></a><var>169.29</var>information, the commissioner shall determine the validity, if any, in whole or in
         part, <br/>
<a id="pl.169.30"></a><var>169.30</var>of the appeal and notify the claimant of the decision. This notice must be in writing
         <br/>
<a id="pl.169.31"></a><var>169.31</var>and contain the basis for the determination. The commissioner shall consult with the <br/>
<a id="pl.169.32"></a><var>169.32</var>commissioner of natural resources when an appeal relates to the use of the property
         for <br/>
<a id="pl.169.33"></a><var>169.33</var>forestry or nonforestry purposes and for appeals related to forest management plans.<br/>
<a id="pl.169.34"></a><var>169.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.15.0"></a><a id="pl.170.1"></a><var>170.1</var>    Sec. 15. <b>SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION </b><br/>
<a id="pl.170.2"></a><var>170.2</var><b>PROVISION.</b><br/>
<a id="pl.170.3"></a><var>170.3</var>(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
         <br/>
<a id="pl.170.4"></a><var>170.4</var>owner of enrolled lands may elect through May 15, 2017, and without penalty, to change
         <br/>
<a id="pl.170.5"></a><var>170.5</var>the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055.
         The <br/>
<a id="pl.170.6"></a><var>170.6</var>owner of enrolled land must provide notice to the Department of Revenue of its intent
         to <br/>
<a id="pl.170.7"></a><var>170.7</var>change the length of its covenant.<br/>
<a id="pl.170.8"></a><var>170.8</var>(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
         <br/>
<a id="pl.170.9"></a><var>170.9</var>owner of enrolled land must comply with the changes made in the act by certifications
         due <br/>
<a id="pl.170.10"></a><var>170.10</var>in 2017, as required under Minnesota Statutes, section 290C.05.<br/>
<a id="pl.170.11"></a><var>170.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.16.0"></a><a id="pl.170.12"></a><var>170.12</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.170.13"></a><var>170.13</var>Minnesota Statutes 2014, sections 290C.02, subdivisions 5 and 9, are repealed.<br/>
<a id="pl.170.14"></a><var>170.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="bill.12.1.0"></a><a id="pl.170.17"></a><var>170.17</var>    Section 1. Minnesota Statutes 2014, section 16A.152, subdivision 2, is amended to read:<br/>
<a id="pl.170.18"></a><var>170.18</var>    Subd. 2. <b>Additional revenues; priority.</b> (a) If on the basis of a forecast of general <br/>
<a id="pl.170.19"></a><var>170.19</var>fund revenues and expenditures, the commissioner of management and budget determines
         <br/>
<a id="pl.170.20"></a><var>170.20</var>that there will be a positive unrestricted budgetary general fund balance at the close
         of <br/>
<a id="pl.170.21"></a><var>170.21</var>the biennium, the commissioner of management and budget must allocate money to the
         <br/>
<a id="pl.170.22"></a><var>170.22</var>following accounts and purposes in priority order:<br/>
<a id="pl.170.23"></a><var>170.23</var>    (1) the cash flow account established in subdivision 1 until that account reaches
         <br/>
<a id="pl.170.24"></a><var>170.24</var>$350,000,000;<br/>
<a id="pl.170.25"></a><var>170.25</var>    (2) the budget reserve account established in subdivision 1a until that account <br/>
<a id="pl.170.26"></a><var>170.26</var>reaches $810,992,000 $994,339,000;<br/>
<a id="pl.170.27"></a><var>170.27</var>    (3) the amount necessary to increase the aid payment schedule for school district
         <br/>
<a id="pl.170.28"></a><var>170.28</var>aids and credits payments in section 
         <statute_ref>127A.45</statute_ref> to not more than 90 percent rounded to the <br/>
<a id="pl.170.29"></a><var>170.29</var>nearest tenth of a percent without exceeding the amount available and with any remaining
         <br/>
<a id="pl.170.30"></a><var>170.30</var>funds deposited in the budget reserve; and<br/>
<a id="pl.170.31"></a><var>170.31</var>    (4) the amount necessary to restore all or a portion of the net aid reductions under
         <br/>
<a id="pl.170.32"></a><var>170.32</var>section 
         <statute_ref>127A.441</statute_ref> and to reduce the property tax revenue recognition shift under section <br/>
<statute_ref><a id="pl.170.33"></a><var>170.33</var>123B.75, subdivision 5
         </statute_ref>, by the same amount.<br/>
<a id="pl.171.1"></a><var>171.1</var>    (b) The amounts necessary to meet the requirements of this section are appropriated
         <br/>
<a id="pl.171.2"></a><var>171.2</var>from the general fund within two weeks after the forecast is released or, in the case
         of <br/>
<a id="pl.171.3"></a><var>171.3</var>transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
         <br/>
<a id="pl.171.4"></a><var>171.4</var>schedules otherwise established in statute.<br/>
<a id="pl.171.5"></a><var>171.5</var>    (c) The commissioner of management and budget shall certify the total dollar <br/>
<a id="pl.171.6"></a><var>171.6</var>amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner
         of <br/>
<a id="pl.171.7"></a><var>171.7</var>education. The commissioner of education shall increase the aid payment percentage
         and <br/>
<a id="pl.171.8"></a><var>171.8</var>reduce the property tax shift percentage by these amounts and apply those reductions
         to <br/>
<a id="pl.171.9"></a><var>171.9</var>the current fiscal year and thereafter.<br/>
<a id="pl.171.10"></a><var>171.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2015.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.171.11"></a><var>171.11</var>    Sec. 2. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:<br/>
<a id="pl.171.12"></a><var>171.12</var>    Subd. 8. <b>Report on budget reserve percentage.</b> (a) The commissioner of <br/>
<a id="pl.171.13"></a><var>171.13</var>management and budget shall develop and annually review a methodology for evaluating
         <br/>
<a id="pl.171.14"></a><var>171.14</var>the adequacy of the budget reserve based on the volatility of Minnesota's general
         fund <br/>
<a id="pl.171.15"></a><var>171.15</var>tax structure. The review must take into consideration relevant statistical and economic
         <br/>
<a id="pl.171.16"></a><var>171.16</var>literature. After completing the review, the commissioner may revise the methodology
         <br/>
<a id="pl.171.17"></a><var>171.17</var>if necessary. The commissioner must use the methodology to annually estimate the <br/>
<a id="pl.171.18"></a><var>171.18</var>percentage of the current biennium's general fund nondedicated revenues recommended
         <br/>
<a id="pl.171.19"></a><var>171.19</var>as a budget reserve.<br/>
<a id="pl.171.20"></a><var>171.20</var>    (b) By January 15 August 31 of each year, the commissioner shall report the <br/>
<a id="pl.171.21"></a><var>171.21</var>percentage of the current biennium's general fund nondedicated revenue that is <br/>
<a id="pl.171.22"></a><var>171.22</var>recommended as a budget reserve to the chairs and ranking minority members of the
         <br/>
<a id="pl.171.23"></a><var>171.23</var>legislative committees with jurisdiction over the Department of Management and Budget
         <br/>
<a id="pl.171.24"></a><var>171.24</var>senate committee on finance, the house of representatives committee on ways and means,
         <br/>
<a id="pl.171.25"></a><var>171.25</var>and the senate and house of representatives committees on taxes. The report must also <br/>
<a id="pl.171.26"></a><var>171.26</var>specify:<br/>
<a id="pl.171.27"></a><var>171.27</var>    (1) whether the commissioner revised the recommendation as a result of significant
         <br/>
<a id="pl.171.28"></a><var>171.28</var>changes in the mix of general fund taxes or the base of one or more general fund taxes;<br/>
<a id="pl.171.29"></a><var>171.29</var>    (2) whether the commissioner revised the recommendation as a result of a revision
         <br/>
<a id="pl.171.30"></a><var>171.30</var>to the methodology; and<br/>
<a id="pl.171.31"></a><var>171.31</var>    (3) any additional appropriate information.<br/>
<a id="pl.171.32"></a><var>171.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2015.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.171.33"></a><var>171.33</var>    Sec. 3. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:<br/>
<a id="pl.172.1"></a><var>172.1</var>    Subdivision 1. <b>Written order.</b> The Tax Court, except in Small Claims Division, <br/>
<a id="pl.172.2"></a><var>172.2</var>shall determine every appeal by written order containing findings of fact and the
         decision <br/>
<a id="pl.172.3"></a><var>172.3</var>of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
         <br/>
<a id="pl.172.4"></a><var>172.4</var>of the entry of the order and of the substance of the decision shall be mailed to
         all parties. <br/>
<a id="pl.172.5"></a><var>172.5</var>A motion for rehearing, which includes a motion for amended findings of fact, conclusions
         <br/>
<a id="pl.172.6"></a><var>172.6</var>of law, or a new trial, must be served by the moving party within 15 30 days after mailing <br/>
<a id="pl.172.7"></a><var>172.7</var>of the notice by the court as specified in this subdivision, and the motion must be
         heard <br/>
<a id="pl.172.8"></a><var>172.8</var>within 30 60 days thereafter, unless the time for hearing is extended by the court within <br/>
<a id="pl.172.9"></a><var>172.9</var>the 30-day 60-day period for good cause shown.<br/>
<a id="pl.172.10"></a><var>172.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.172.11"></a><var>172.11</var>    Sec. 4. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:<br/>
<a id="pl.172.12"></a><var>172.12</var>    Subd. 2. <b>Jurisdiction.</b> At the election of the taxpayer, the Small Claims Division <br/>
<a id="pl.172.13"></a><var>172.13</var>shall have jurisdiction only in the following matters:<br/>
<a id="pl.172.14"></a><var>172.14</var>(a) cases involving valuation, assessment, or taxation of real or personal property,
         if:<br/>
<a id="pl.172.15"></a><var>172.15</var>(i) the issue is a denial of a current year application for the homestead classification
         <br/>
<a id="pl.172.16"></a><var>172.16</var>for the taxpayer's property;<br/>
<a id="pl.172.17"></a><var>172.17</var>(ii) only one parcel is included in the petition, the entire parcel is classified
         as <br/>
<a id="pl.172.18"></a><var>172.18</var>homestead class 1a or 1b under section 
         <statute_ref>273.13</statute_ref>, and the parcel contains no more than <br/>
<a id="pl.172.19"></a><var>172.19</var>one dwelling unit;<br/>
<a id="pl.172.20"></a><var>172.20</var>(iii) the entire property is classified as agricultural homestead class 2a or 1b under
         <br/>
<a id="pl.172.21"></a><var>172.21</var>section 
         <statute_ref>273.13</statute_ref>; or<br/>
<a id="pl.172.22"></a><var>172.22</var>(iv) the assessor's estimated market value of the property included in the petition
         <br/>
<a id="pl.172.23"></a><var>172.23</var>is less than $300,000; or<br/>
<a id="pl.172.24"></a><var>172.24</var>(b) any case not involving valuation, assessment, or taxation of real and personal
         <br/>
<a id="pl.172.25"></a><var>172.25</var>property in which the amount in controversy does not exceed $5,000 $15,000, including <br/>
<a id="pl.172.26"></a><var>172.26</var>penalty and interest.<br/>
<a id="pl.172.27"></a><var>172.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.172.28"></a><var>172.28</var>    Sec. 5. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:<br/>
<a id="pl.172.29"></a><var>172.29</var>    Subd. 12. <b>Compressed natural gas or CNG.</b> "Compressed natural gas" or "CNG" <br/>
<a id="pl.172.30"></a><var>172.30</var>means natural gas, primarily methane, condensed under high pressure and stored in
         <br/>
<a id="pl.172.31"></a><var>172.31</var>specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
         <br/>
<a id="pl.172.32"></a><var>172.32</var>For purposes of this chapter, the energy content of CNG is considered to be 1,000 900 <br/>
<a id="pl.172.33"></a><var>172.33</var>BTUs per cubic foot.<br/>
<a id="pl.173.1"></a><var>173.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.173.2"></a><var>173.2</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.173.3"></a><var>173.3</var>    Sec. 6. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision <br/>
<a id="pl.173.4"></a><var>173.4</var>to read:<br/>
<a id="pl.173.5"></a><var>173.5</var>    Subd. 13a. <b>Dealer of gasoline used as a substitute for aviation gasoline.</b> "Dealer <br/>
<a id="pl.173.6"></a><var>173.6</var>of gasoline used as a substitute for aviation gasoline" means any person who sells
         gasoline <br/>
<a id="pl.173.7"></a><var>173.7</var>on the premises of an airport as defined under section 360.013, subdivision 39, to
         be <br/>
<a id="pl.173.8"></a><var>173.8</var>dispensed directly into the fuel tank of an aircraft.<br/>
<a id="pl.173.9"></a><var>173.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.173.10"></a><var>173.10</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.173.11"></a><var>173.11</var>    Sec. 7. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:<br/>
<a id="pl.173.12"></a><var>173.12</var>    Subd. 4. <b>Exemptions.</b> The provisions of subdivision 1 do not apply to gasoline or <br/>
<a id="pl.173.13"></a><var>173.13</var>denatured ethanol purchased by:<br/>
<a id="pl.173.14"></a><var>173.14</var>    (1) a transit system or transit provider receiving financial assistance or <br/>
<a id="pl.173.15"></a><var>173.15</var>reimbursement under section 
         <statute_ref>174.24</statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>;<br/>
<a id="pl.173.16"></a><var>173.16</var>    (2) providers of transportation to recipients of medical assistance home and <br/>
<a id="pl.173.17"></a><var>173.17</var>community-based services waivers enrolled in day programs, including adult day care,
         <br/>
<a id="pl.173.18"></a><var>173.18</var>family adult day care, day treatment and habilitation, prevocational services, and
         <br/>
<a id="pl.173.19"></a><var>173.19</var>structured day services;<br/>
<a id="pl.173.20"></a><var>173.20</var>(3) an ambulance service licensed under chapter 144E;<br/>
<a id="pl.173.21"></a><var>173.21</var>(4) providers of medical or dental services by a federally qualified health center,
         <br/>
<a id="pl.173.22"></a><var>173.22</var>as defined under title 19 of the Social Security Act, as amended by Section 4161 of
         the <br/>
<a id="pl.173.23"></a><var>173.23</var>Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as
         a <br/>
<a id="pl.173.24"></a><var>173.24</var>mobile medical unit; or<br/>
<a id="pl.173.25"></a><var>173.25</var>    (5) a licensed distributor to be delivered to a terminal for use in blending; or<br/>
<a id="pl.173.26"></a><var>173.26</var>    (6) a dealer of gasoline used as a substitute for aviation gasoline.<br/>
<a id="pl.173.27"></a><var>173.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.173.28"></a><var>173.28</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.173.29"></a><var>173.29</var>    Sec. 8. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:<br/>
<a id="pl.173.30"></a><var>173.30</var>    Subd. 2. <b>Rate of tax.</b> The special fuel excise tax is imposed at the following rates:<br/>
<a id="pl.173.31"></a><var>173.31</var>    (a) Liquefied petroleum gas or propane is taxed at the rate of 
         <statute_ref>18.75 </statute_ref>cents per gallon.<br/>
<a id="pl.173.32"></a><var>173.32</var>    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.<br/>
<a id="pl.174.1"></a><var>174.1</var>    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic <br/>
<a id="pl.174.2"></a><var>174.2</var>feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
         <br/>
<a id="pl.174.3"></a><var>174.3</var>equivalent," as defined by the National Conference on Weights and Measures, is 5.66
         <br/>
<a id="pl.174.4"></a><var>174.4</var>pounds of natural gas or 126.67 cubic feet.<br/>
<a id="pl.174.5"></a><var>174.5</var>    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
         <br/>
<a id="pl.174.6"></a><var>174.6</var>specified in section 
         <statute_ref>296A.07, subdivision 2</statute_ref>. The tax is payable in the form and manner <br/>
<a id="pl.174.7"></a><var>174.7</var>prescribed by the commissioner.<br/>
<a id="pl.174.8"></a><var>174.8</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.174.9"></a><var>174.9</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.9.0"></a><a id="pl.174.10"></a><var>174.10</var>    Sec. 9. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:<br/>
<a id="pl.174.11"></a><var>174.11</var>    Subdivision 1. <b>Gasoline tax imposed.</b> Subject to any refunds or credits there is <br/>
<a id="pl.174.12"></a><var>174.12</var>imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline
         received, <br/>
<a id="pl.174.13"></a><var>174.13</var>sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute <br/>
<a id="pl.174.14"></a><var>174.14</var>for aviation gasoline. Aviation gasoline is defined in section 
         <statute_ref>296A.01, subdivision 7</statute_ref>.<br/>
<a id="pl.174.15"></a><var>174.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.174.16"></a><var>174.16</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.10.0"></a><a id="pl.174.17"></a><var>174.17</var>    Sec. 10. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:<br/>
<a id="pl.174.18"></a><var>174.18</var>    Subd. 3. <b>Exception to tax for aviation use.</b> The provisions of subdivisions 1 and 2 <br/>
<a id="pl.174.19"></a><var>174.19</var>do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline or <br/>
<a id="pl.174.20"></a><var>174.20</var>special fuel purchased and placed in the fuel tanks of an aircraft outside the state,
         even <br/>
<a id="pl.174.21"></a><var>174.21</var>though the gasoline may be consumed within this state.<br/>
<a id="pl.174.22"></a><var>174.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.174.23"></a><var>174.23</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.11.0"></a><a id="pl.174.24"></a><var>174.24</var>    Sec. 11. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:<br/>
<a id="pl.174.25"></a><var>174.25</var>    Subd. 5. <b>Tax not on consumption.</b> The taxes imposed by subdivisions 1 and 2 are <br/>
<a id="pl.174.26"></a><var>174.26</var>expressly declared not to be a tax upon consumption of gasoline used as a substitute for <br/>
<a id="pl.174.27"></a><var>174.27</var>aviation gasoline, aviation gasoline or special fuel by an aircraft.<br/>
<a id="pl.174.28"></a><var>174.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.174.29"></a><var>174.29</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.12.0"></a><a id="pl.174.30"></a><var>174.30</var>    Sec. 12. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:<br/>
<a id="pl.175.1"></a><var>175.1</var>    Subd. 6. <b>Exemptions.</b> The provisions of subdivisions 1 and 2 do not apply to <br/>
<a id="pl.175.2"></a><var>175.2</var>gasoline used as a substitute for aviation gasoline, aviation gasoline or jet fuel purchased <br/>
<a id="pl.175.3"></a><var>175.3</var>by an ambulance service licensed under chapter 144E.<br/>
<a id="pl.175.4"></a><var>175.4</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.175.5"></a><var>175.5</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.13.0"></a><a id="pl.175.6"></a><var>175.6</var>    Sec. 13. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:<br/>
<a id="pl.175.7"></a><var>175.7</var>    Subdivision 1. <b>Monthly gasoline report; shrinkage allowance.</b> (a) Except <br/>
<a id="pl.175.8"></a><var>175.8</var>as provided in paragraph (e), on or before the 23rd day of each month, every person
         <br/>
<a id="pl.175.9"></a><var>175.9</var>who is required to pay a gasoline tax shall file with the commissioner a report, in
         the <br/>
<a id="pl.175.10"></a><var>175.10</var>form and manner prescribed by the commissioner, showing the number of gallons of <br/>
<a id="pl.175.11"></a><var>175.11</var>petroleum products received by the reporter during the preceding calendar month, and
         <br/>
<a id="pl.175.12"></a><var>175.12</var>other information the commissioner may require. A written report is deemed to have
         <br/>
<a id="pl.175.13"></a><var>175.13</var>been filed as required in this subdivision if postmarked on or before the 23rd day
         of the <br/>
<a id="pl.175.14"></a><var>175.14</var>month in which the tax is payable.<br/>
<a id="pl.175.15"></a><var>175.15</var>(b) The number of gallons of gasoline must be reported in United States standard <br/>
<a id="pl.175.16"></a><var>175.16</var>liquid gallons, 231 cubic inches, except that the commissioner may upon written <br/>
<a id="pl.175.17"></a><var>175.17</var>application and for cause shown permit the distributor to report the number of gallons
         of <br/>
<a id="pl.175.18"></a><var>175.18</var>gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application
         is <br/>
<a id="pl.175.19"></a><var>175.19</var>granted, all gasoline covered in the application and allowed by the commissioner must
         <br/>
<a id="pl.175.20"></a><var>175.20</var>continue to be reported by the distributor on the adjusted basis for a period of one
         year <br/>
<a id="pl.175.21"></a><var>175.21</var>from the date of the granting of the application. The number of gallons of petroleum
         <br/>
<a id="pl.175.22"></a><var>175.22</var>products other than gasoline must be reported as originally invoiced. Each report
         must <br/>
<a id="pl.175.23"></a><var>175.23</var>show separately the number of gallons of aviation gasoline received by the reporter
         during <br/>
<a id="pl.175.24"></a><var>175.24</var>each calendar month and the number of gallons of gasoline sold to a dealer of gasoline <br/>
<a id="pl.175.25"></a><var>175.25</var>used as a substitute for aviation fuel during each calendar month.<br/>
<a id="pl.175.26"></a><var>175.26</var>(c) Each report must also include the amount of gasoline tax on gasoline received
         by <br/>
<a id="pl.175.27"></a><var>175.27</var>the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
         <br/>
<a id="pl.175.28"></a><var>175.28</var>of the quantity of gasoline received by a distributor shall be made for evaporation
         and loss. <br/>
<a id="pl.175.29"></a><var>175.29</var>At the time of reporting, the reporter shall submit satisfactory evidence that one-third
         of <br/>
<a id="pl.175.30"></a><var>175.30</var>the 2.5 percent deduction has been credited or paid to dealers on quantities sold
         to them.<br/>
<a id="pl.175.31"></a><var>175.31</var>(d) Each report shall contain a confession of judgment for the amount of the tax <br/>
<a id="pl.175.32"></a><var>175.32</var>shown due to the extent not timely paid.<br/>
<a id="pl.175.33"></a><var>175.33</var>(e) Under certain circumstances and with the approval of the commissioner, <br/>
<a id="pl.175.34"></a><var>175.34</var>taxpayers may be allowed to file reports annually.<br/>
<a id="pl.176.1"></a><var>176.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.176.2"></a><var>176.2</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.14.0"></a><a id="pl.176.3"></a><var>176.3</var>    Sec. 14. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:<br/>
<a id="pl.176.4"></a><var>176.4</var>    Subd. 4. <b>Failure to use or sell for intended purpose; report required.</b> (a) Any <br/>
<a id="pl.176.5"></a><var>176.5</var>person who buys gasoline from a dealer of gasoline used as a substitute for aviation <br/>
<a id="pl.176.6"></a><var>176.6</var>gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the <br/>
<a id="pl.176.7"></a><var>176.7</var>excise taxes due directly or indirectly through the amount of the tax being included
         in the <br/>
<a id="pl.176.8"></a><var>176.8</var>price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
         <br/>
<a id="pl.176.9"></a><var>176.9</var>sells it to any person for use in motor vehicles shall, on or before the 23rd day
         of the month <br/>
<a id="pl.176.10"></a><var>176.10</var>following that in which such gasoline or special fuel was so used or sold, report
         the fact of <br/>
<a id="pl.176.11"></a><var>176.11</var>the use or sale to the commissioner in the form and manner prescribed by the commissioner.<br/>
<a id="pl.176.12"></a><var>176.12</var>(b) Any person who buys gasoline other than aviation gasoline and who has paid the
         <br/>
<a id="pl.176.13"></a><var>176.13</var>motor vehicle gasoline excise tax directly or indirectly through the amount of the
         tax being <br/>
<a id="pl.176.14"></a><var>176.14</var>included in the price of the gasoline, or otherwise, who knowingly sells such gasoline
         to any <br/>
<a id="pl.176.15"></a><var>176.15</var>person to be used for the purpose of producing or generating power for propelling
         aircraft, <br/>
<a id="pl.176.16"></a><var>176.16</var>or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
         <br/>
<a id="pl.176.17"></a><var>176.17</var>shall, on or before the 23rd day of the month following that in which such gasoline
         was so <br/>
<a id="pl.176.18"></a><var>176.18</var>sold, stored, or withdrawn from storage, report the fact of the sale, storage, or
         withdrawal <br/>
<a id="pl.176.19"></a><var>176.19</var>from storage to the commissioner in the form and manner prescribed by the commissioner.<br/>
<a id="pl.176.20"></a><var>176.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.176.21"></a><var>176.21</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.15.0"></a><a id="pl.176.22"></a><var>176.22</var>    Sec. 15. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:<br/>
<a id="pl.176.23"></a><var>176.23</var>    Subdivision 1. <b>Aviation refund requirements.</b> Any person claiming to be entitled <br/>
<a id="pl.176.24"></a><var>176.24</var>to any refund or credit provided for in subdivision 3 shall receive the refund or
         credit <br/>
<a id="pl.176.25"></a><var>176.25</var>upon filing with the commissioner a claim in such form and manner prescribed by the
         <br/>
<a id="pl.176.26"></a><var>176.26</var>commissioner. The claim shall set forth, among other things, the total number of gallons
         <br/>
<a id="pl.176.27"></a><var>176.27</var>of gasoline used as a substitute for aviation gasoline, aviation gasoline or special fuel <br/>
<a id="pl.176.28"></a><var>176.28</var>for aircraft use upon which the claimant has directly or indirectly paid the excise
         tax <br/>
<a id="pl.176.29"></a><var>176.29</var>provided for in this chapter, during the calendar year, which has been received, stored,
         or <br/>
<a id="pl.176.30"></a><var>176.30</var>withdrawn from storage by the claimant in this state and not sold or otherwise disposed
         of <br/>
<a id="pl.176.31"></a><var>176.31</var>to others. All claims for refunds under this subdivision shall be made on or before
         April <br/>
<a id="pl.176.32"></a><var>176.32</var>30 following the end of the calendar year for which the refund is claimed.<br/>
<a id="pl.177.1"></a><var>177.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.177.2"></a><var>177.2</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.16.0"></a><a id="pl.177.3"></a><var>177.3</var>    Sec. 16. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:<br/>
<a id="pl.177.4"></a><var>177.4</var>    Subd. 2. <b>Claim for refund; aviation tax.</b> (a) Any person who buys gasoline used <br/>
<a id="pl.177.5"></a><var>177.5</var>as a substitute for aviation gasoline, aviation gasoline or special fuel for aircraft use and <br/>
<a id="pl.177.6"></a><var>177.6</var>who has paid the excise taxes directly or indirectly through the amount of the tax
         being <br/>
<a id="pl.177.7"></a><var>177.7</var>included in the price, or otherwise, who does not use it in motor vehicles or receive,
         sell, <br/>
<a id="pl.177.8"></a><var>177.8</var>store, or withdraw it from storage for the purpose of producing or generating power
         for <br/>
<a id="pl.177.9"></a><var>177.9</var>propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon
         filing <br/>
<a id="pl.177.10"></a><var>177.10</var>with the commissioner a claim in the form and manner prescribed by the commissioner.
         <br/>
<a id="pl.177.11"></a><var>177.11</var>The claim shall state the total amount of the gasoline used as a substitute for aviation <br/>
<a id="pl.177.12"></a><var>177.12</var>gasoline, aviation gasoline or special fuel for aircraft use purchased and used by the <br/>
<a id="pl.177.13"></a><var>177.13</var>applicant, and shall state when and for what purpose it was used. On being satisfied
         that <br/>
<a id="pl.177.14"></a><var>177.14</var>the claimant is entitled to payment, the commissioner shall approve the claim and
         transmit <br/>
<a id="pl.177.15"></a><var>177.15</var>it to the commissioner of management and budget. The postmark on the envelope in <br/>
<a id="pl.177.16"></a><var>177.16</var>which a written claim is mailed determines the date of filing.<br/>
<a id="pl.177.17"></a><var>177.17</var>(b) If a claim contains an error in preparation in computation or preparation, the
         <br/>
<a id="pl.177.18"></a><var>177.18</var>commissioner is authorized to adjust the claim in accordance with the evidence shown
         on <br/>
<a id="pl.177.19"></a><var>177.19</var>the claim or other information available to the commissioner.<br/>
<a id="pl.177.20"></a><var>177.20</var>(c) An applicant who files a claim that is false or fraudulent, is subject to the
         <br/>
<a id="pl.177.21"></a><var>177.21</var>penalties provided in section 
         <statute_ref>296A.23</statute_ref> for knowingly and willfully making a false claim.<br/>
<a id="pl.177.22"></a><var>177.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.177.23"></a><var>177.23</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.17.0"></a><a id="pl.177.24"></a><var>177.24</var>    Sec. 17. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:<br/>
<a id="pl.177.25"></a><var>177.25</var>    Subd. 3. <b>Refund on graduated basis.</b> Any person who has directly or indirectly <br/>
<a id="pl.177.26"></a><var>177.26</var>paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline <br/>
<a id="pl.177.27"></a><var>177.27</var>or special fuel for aircraft use provided for by this chapter and either paid the airflight <br/>
<a id="pl.177.28"></a><var>177.28</var>property tax under section 
         <statute_ref>270.072</statute_ref> or is an aerial applicator with a category B, general <br/>
<a id="pl.177.29"></a><var>177.29</var>aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for <br/>
<a id="pl.177.30"></a><var>177.30</var>aviation gasoline, aviation gasoline and special fuel received, stored, or withdrawn from <br/>
<a id="pl.177.31"></a><var>177.31</var>storage by the person in this state in any calendar year and not sold or otherwise
         disposed <br/>
<a id="pl.177.32"></a><var>177.32</var>of to others, or intended for sale or other disposition to others, on which such tax
         has been <br/>
<a id="pl.177.33"></a><var>177.33</var>so paid, be entitled to the following graduated reductions in such tax for that calendar
         <br/>
<a id="pl.177.34"></a><var>177.34</var>year, to be obtained by means of the following refunds:<br/>
<a id="pl.178.1"></a><var>178.1</var>(1) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br/>
<a id="pl.178.2"></a><var>178.2</var>gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;<br/>
<a id="pl.178.3"></a><var>178.3</var>(2) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br/>
<a id="pl.178.4"></a><var>178.4</var>gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all
         <br/>
<a id="pl.178.5"></a><var>178.5</var>but two cents per gallon;<br/>
<a id="pl.178.6"></a><var>178.6</var>(3) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br/>
<a id="pl.178.7"></a><var>178.7</var>gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons,
         all <br/>
<a id="pl.178.8"></a><var>178.8</var>but one cent per gallon;<br/>
<a id="pl.178.9"></a><var>178.9</var>(4) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation <br/>
<a id="pl.178.10"></a><var>178.10</var>gasoline or special fuel above 200,000, all but one-half cent per gallon.<br/>
<a id="pl.178.11"></a><var>178.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.178.12"></a><var>178.12</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.18.0"></a><a id="pl.178.13"></a><var>178.13</var>    Sec. 18. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:<br/>
<a id="pl.178.14"></a><var>178.14</var>    Subdivision 1. <b>Intent; gasoline use.</b> All gasoline received in this state and all <br/>
<a id="pl.178.15"></a><var>178.15</var>gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a <br/>
<a id="pl.178.16"></a><var>178.16</var>dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be <br/>
<a id="pl.178.17"></a><var>178.17</var>determined to be intended for use in motor vehicles in this state.<br/>
<a id="pl.178.18"></a><var>178.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.178.19"></a><var>178.19</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.19.0"></a><a id="pl.178.20"></a><var>178.20</var>    Sec. 19. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:<br/>
<a id="pl.178.21"></a><var>178.21</var>    Subd. 8. <b>Airports.</b> The revenues derived from the excise taxes on gasoline used <br/>
<a id="pl.178.22"></a><var>178.22</var>as a substitute for aviation gasoline, aviation gasoline and on special fuel received, sold, <br/>
<a id="pl.178.23"></a><var>178.23</var>stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid
         into <br/>
<a id="pl.178.24"></a><var>178.24</var>the state treasury and credited to the state airports fund. There is hereby appropriated
         such <br/>
<a id="pl.178.25"></a><var>178.25</var>sums as are needed to carry out the provisions of this subdivision.<br/>
<a id="pl.178.26"></a><var>178.26</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.178.27"></a><var>178.27</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.20.0"></a><a id="pl.178.28"></a><var>178.28</var>    Sec. 20. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:<br/>
<a id="pl.178.29"></a><var>178.29</var>    Subdivision 1. <b>Retention.</b> All distributors, dealers, special fuel dealers, bulk <br/>
<a id="pl.178.30"></a><var>178.30</var>purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of <br/>
<a id="pl.178.31"></a><var>178.31</var>special fuel shall keep a true and accurate record of all purchases, transfers, sales,
         and use <br/>
<a id="pl.179.1"></a><var>179.1</var>of petroleum products and special fuel, including copies of all sales tickets issued,
         in a form <br/>
<a id="pl.179.2"></a><var>179.2</var>and manner approved by the commissioner, and shall retain all such records for 3-1/2
         years.<br/>
<a id="pl.179.3"></a><var>179.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.179.4"></a><var>179.4</var>June 30, 2015.<br/>
<br/>
<a id="bill.12.21.0"></a><a id="pl.179.5"></a><var>179.5</var>    Sec. 21. Minnesota Statutes 2014, section 297A.994, subdivision 4, is amended to read:<br/>
<a id="pl.179.6"></a><var>179.6</var>    Subd. 4. <b>General fund allocations.</b> The commissioner must retain and deposit to <br/>
<a id="pl.179.7"></a><var>179.7</var>the general fund the following amounts, as required by subdivision 3, clause (3):<br/>
<a id="pl.179.8"></a><var>179.8</var>(1) for state bond debt service support beginning in calendar year 2021, and for each
         <br/>
<a id="pl.179.9"></a><var>179.9</var>calendar year thereafter through calendar year 2046, periodic amounts so that not
         later than <br/>
<a id="pl.179.10"></a><var>179.10</var>December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has
         been <br/>
<a id="pl.179.11"></a><var>179.11</var>deposited in the general fund. To determine aggregate present value, the commissioner
         <br/>
<a id="pl.179.12"></a><var>179.12</var>must consult with the commissioner of management and budget regarding the present
         value <br/>
<a id="pl.179.13"></a><var>179.13</var>dates, discount rate or rates, and schedules of annual amounts. The present value
         date or <br/>
<a id="pl.179.14"></a><var>179.14</var>dates must be based on the date or dates bonds are sold under section 
         <statute_ref>16A.965</statute_ref>, or the date <br/>
<a id="pl.179.15"></a><var>179.15</var>or dates other state funds, if any, are deposited into the construction fund. The
         discount rate <br/>
<a id="pl.179.16"></a><var>179.16</var>or rates must be based on the true interest cost of the bonds issued under section
         
         <statute_ref>16A.965</statute_ref>, <br/>
<a id="pl.179.17"></a><var>179.17</var>or an equivalent 30-year bond index, as determined by the commissioner of management
         <br/>
<a id="pl.179.18"></a><var>179.18</var>and budget. The schedule of annual amounts must be certified to the commissioner by
         the <br/>
<a id="pl.179.19"></a><var>179.19</var>commissioner of management and budget and the finance officer of the city;<br/>
<a id="pl.179.20"></a><var>179.20</var>(2) for the capital improvement reserve appropriation to the Minnesota Sports <br/>
<a id="pl.179.21"></a><var>179.21</var>Facilities Authority beginning in calendar year 2021, and for each calendar year thereafter
         <br/>
<a id="pl.179.22"></a><var>179.22</var>through calendar year 2046, an aggregate annual amount equal to the amount paid by
         the <br/>
<a id="pl.179.23"></a><var>179.23</var>state for this purpose in that calendar year under section 
         <statute_ref>473J.13, subdivision 4</statute_ref>;<br/>
<a id="pl.179.24"></a><var>179.24</var>(3) for the operating expense appropriation to the Minnesota Sports Facilities <br/>
<a id="pl.179.25"></a><var>179.25</var>Authority beginning in calendar year 2021, and for each calendar year thereafter through
         <br/>
<a id="pl.179.26"></a><var>179.26</var>calendar year 2046, an aggregate annual amount equal to the amount paid by the state
         for <br/>
<a id="pl.179.27"></a><var>179.27</var>this purpose in that calendar year under section 
         <statute_ref>473J.13, subdivision 2</statute_ref>;<br/>
<a id="pl.179.28"></a><var>179.28</var>(4) for recapture of state advances for capital improvements and operating expenses
         <br/>
<a id="pl.179.29"></a><var>179.29</var>for calendar years 2016 through 2020 beginning in calendar year 2021, and for each
         <br/>
<a id="pl.179.30"></a><var>179.30</var>calendar year thereafter until all amounts under this clause have been paid, proportionate
         <br/>
<a id="pl.179.31"></a><var>179.31</var>amounts periodically until an aggregate amount equal to the present value of all amounts
         <br/>
<a id="pl.179.32"></a><var>179.32</var>paid by the state have been deposited in the general fund. To determine the present
         <br/>
<a id="pl.179.33"></a><var>179.33</var>value of the amounts paid by the state to the authority and the present value of amounts
         <br/>
<a id="pl.179.34"></a><var>179.34</var>deposited to the general fund under this clause, the commissioner shall consult with
         the <br/>
<a id="pl.179.35"></a><var>179.35</var>commissioner of management and budget regarding the present value dates, discount
         rate <br/>
<a id="pl.180.1"></a><var>180.1</var>or rates, and schedule of annual amounts. The present value dates must be based on
         <br/>
<a id="pl.180.2"></a><var>180.2</var>the dates state funds are paid to the authority, or the dates the commissioner of
         revenue <br/>
<a id="pl.180.3"></a><var>180.3</var>deposits taxes for purposes of this clause to the general fund. The discount rates
         must be <br/>
<a id="pl.180.4"></a><var>180.4</var>based on the reasonably equivalent cost of state funds as determined by the commissioner
         <br/>
<a id="pl.180.5"></a><var>180.5</var>of management and budget. The schedule of annual amounts must be revised to reflect
         <br/>
<a id="pl.180.6"></a><var>180.6</var>amounts paid under section 
         <statute_ref>473J.13, subdivision 2</statute_ref>, paragraph (b), for 2016 to 2020, <br/>
<a id="pl.180.7"></a><var>180.7</var>and subdivision 4, paragraph (c), for 2016 to 2020, and taxes deposited to the general
         <br/>
<a id="pl.180.8"></a><var>180.8</var>fund from time to time under this clause, and the schedule and revised schedules must
         <br/>
<a id="pl.180.9"></a><var>180.9</var>be certified to the commissioner by the commissioner of management and budget and
         <br/>
<a id="pl.180.10"></a><var>180.10</var>the finance officer of the city, and are transferred as accrued from the general fund
         for <br/>
<a id="pl.180.11"></a><var>180.11</var>repayment of advances made by the state to the authority; and<br/>
<a id="pl.180.12"></a><var>180.12</var>(5) to capture increases in taxes imposed under the special law, for the benefit of
         <br/>
<a id="pl.180.13"></a><var>180.13</var>the Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for
         each <br/>
<a id="pl.180.14"></a><var>180.14</var>calendar year thereafter through 2046, there shall be deposited to the general fund
         in <br/>
<a id="pl.180.15"></a><var>180.15</var>proportionate periodic payments in the following year, an amount equal to the following:<br/>
<a id="pl.180.16"></a><var>180.16</var>(i) 50 percent of the difference, if any, by which the amount of the net annual taxes
         <br/>
<a id="pl.180.17"></a><var>180.17</var>for the previous year exceeds the sum of the net actual taxes in calendar year 2011
         plus <br/>
<a id="pl.180.18"></a><var>180.18</var>$1,000,000, inflated at two percent per year since 2011, minus<br/>
<a id="pl.180.19"></a><var>180.19</var>(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes
         <br/>
<a id="pl.180.20"></a><var>180.20</var>for the preceding year exceeds the sum of the net actual taxes in calendar year 2011
         plus <br/>
<a id="pl.180.21"></a><var>180.21</var>$3,000,000, inflated at two percent per year since 2011; and<br/>
<a id="pl.180.22"></a><var>180.22</var>(iii) of the amounts determined under items (i) and (ii), a total of $2,700,000 shall
         <br/>
<a id="pl.180.23"></a><var>180.23</var>be used to offset taxes paid by the NFL and its employees in connection with a world
         <br/>
<a id="pl.180.24"></a><var>180.24</var>championship football game sponsored by the NFL played at the stadium.<br/>
<a id="pl.180.25"></a><var>180.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.22.0"></a><a id="pl.180.26"></a><var>180.26</var>    Sec. 22. <b>[383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS </b><br/>
<a id="pl.180.27"></a><var>180.27</var><b>OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.</b><br/>
<a id="pl.180.28"></a><var>180.28</var>Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27,
         <br/>
<a id="pl.180.29"></a><var>180.29</var>and 222.36, or any other law, the powers of a foreign or domestic railroad corporation
         or a <br/>
<a id="pl.180.30"></a><var>180.30</var>railroad company or a railroad interest acting as a public service corporation or
         a common <br/>
<a id="pl.180.31"></a><var>180.31</var>carrier do not include the power to exercise eminent domain over a property interest
         of <br/>
<a id="pl.180.32"></a><var>180.32</var>Hennepin County, the Hennepin County Housing and Redevelopment Authority, or the <br/>
<a id="pl.180.33"></a><var>180.33</var>Hennepin County Regional Railroad Authority if the governmental power, by resolution
         <br/>
<a id="pl.180.34"></a><var>180.34</var>of its governing board, determines based on specific findings that the public safety
         or <br/>
<a id="pl.180.35"></a><var>180.35</var>access of first responders would be substantially and adversely affected by the exercise.
         <br/>
<a id="pl.181.1"></a><var>181.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from March 2, 2015, <br/>
<a id="pl.181.2"></a><var>181.2</var>and applies to any eminent domain action to acquire any property interest of any of
         the <br/>
<a id="pl.181.3"></a><var>181.3</var>named entities.<br/>
<br/>
<a id="bill.12.23.0"></a><a id="pl.181.4"></a><var>181.4</var>    Sec. 23. <b>[465.95] BROADBAND SERVICE PUBLIC-PRIVATE PARTNERSHIPS.</b><br/>
<a id="pl.181.5"></a><var>181.5</var>    Subdivision 1. <b>Local authority; broadband service.</b> (a) A local unit of government <br/>
<a id="pl.181.6"></a><var>181.6</var>may finance, acquire, and construct broadband equipment.<br/>
<a id="pl.181.7"></a><var>181.7</var>(b) Local units of government and broadband joint powers boards, authorized under
         <br/>
<a id="pl.181.8"></a><var>181.8</var>subdivision 3, are authorized to partner or contract with a private provider or cooperative
         <br/>
<a id="pl.181.9"></a><var>181.9</var>to finance, acquire and construct the broadband equipment. For purposes of this section,
         a <br/>
<a id="pl.181.10"></a><var>181.10</var>"local unit of government" means a statutory city, a home rule charter city, or county.<br/>
<a id="pl.181.11"></a><var>181.11</var>    Subd. 2. <b>Local authority; broadband infrastructure bonding.</b> (a) Each local <br/>
<a id="pl.181.12"></a><var>181.12</var>unit of government may authorize the issuance of general obligation bonds to provide
         <br/>
<a id="pl.181.13"></a><var>181.13</var>funds for the acquisition or betterment of its broadband infrastructure, or for refunding
         <br/>
<a id="pl.181.14"></a><var>181.14</var>any outstanding bonds issued for that purpose. Bonds may only be issued by the local
         <br/>
<a id="pl.181.15"></a><var>181.15</var>unit upon obtaining the approval of a majority of the electors voting on the question
         of <br/>
<a id="pl.181.16"></a><var>181.16</var>issuing the obligations.<br/>
<a id="pl.181.17"></a><var>181.17</var>(b) The proceeds of the bonds may also be used, in part, to establish a reserve as
         <br/>
<a id="pl.181.18"></a><var>181.18</var>further security for the payment of the principal and interest of the bonds when due.<br/>
<a id="pl.181.19"></a><var>181.19</var>(c) The local unit of government may pledge its full faith, credit, and taxing powers,
         <br/>
<a id="pl.181.20"></a><var>181.20</var>or the proceeds of any designated tax levies, or the gross or net revenues or charges
         to <br/>
<a id="pl.181.21"></a><var>181.21</var>be derived from any broadband service operated for the local unit of government, or
         any <br/>
<a id="pl.181.22"></a><var>181.22</var>combination thereof. Taxes levied for the payment of the bonds and interest shall
         not reduce <br/>
<a id="pl.181.23"></a><var>181.23</var>the amounts of other taxes which the local unit of government is authorized by law
         to levy.<br/>
<a id="pl.181.24"></a><var>181.24</var>(d) Bonds issued under this section may be sold at public or private sale upon the
         terms <br/>
<a id="pl.181.25"></a><var>181.25</var>and conditions the local unit of government determines. Except as otherwise provided,
         the <br/>
<a id="pl.181.26"></a><var>181.26</var>bonds shall be issued and sold in accordance with the provisions of chapter 475.<br/>
<a id="pl.181.27"></a><var>181.27</var>    Subd. 3. <b>Broadband joint powers board.</b> (a) A local unit of government may enter <br/>
<a id="pl.181.28"></a><var>181.28</var>into an agreement under section 471.59 with other local units of government to finance,
         <br/>
<a id="pl.181.29"></a><var>181.29</var>acquire, and construct broadband equipment in the territory within the jurisdiction
         of all <br/>
<a id="pl.181.30"></a><var>181.30</var>participating local units of government.<br/>
<a id="pl.181.31"></a><var>181.31</var>(b) An agreement entered into under this section may provide that:<br/>
<a id="pl.181.32"></a><var>181.32</var>(1) each local unit of government shall issue bonds to pay their respective shares
         of <br/>
<a id="pl.181.33"></a><var>181.33</var>the cost of the broadband projects;<br/>
<a id="pl.181.34"></a><var>181.34</var>(2) one of the local units of government shall issue bonds to pay the full costs of
         the <br/>
<a id="pl.181.35"></a><var>181.35</var>project and the other participating local units of government shall levy the tax authorized
         <br/>
<a id="pl.182.1"></a><var>182.1</var>under this subdivision and pledge the collections of the tax to the local unit of
         government <br/>
<a id="pl.182.2"></a><var>182.2</var>that issues the bonds; or<br/>
<a id="pl.182.3"></a><var>182.3</var>(3) the joint powers board shall issue revenue bonds to pay the full costs of the
         <br/>
<a id="pl.182.4"></a><var>182.4</var>project and the participating local units of government shall levy the tax authorized
         <br/>
<a id="pl.182.5"></a><var>182.5</var>under this subdivision and pledge the collections of the tax to the joint powers entity
         for <br/>
<a id="pl.182.6"></a><var>182.6</var>payment of the revenue bonds.<br/>
<a id="pl.182.7"></a><var>182.7</var>Bonds may only be issued by the local unit under this subdivision upon obtaining <br/>
<a id="pl.182.8"></a><var>182.8</var>the approval of a majority of the electors voting on the question of issuing the obligations.<br/>
<a id="pl.182.9"></a><var>182.9</var>    Subd. 4. <b>Exemption.</b> Section 237.19 does not apply to broadband activities under <br/>
<a id="pl.182.10"></a><var>182.10</var>this section.<br/>
<a id="pl.182.11"></a><var>182.11</var>    Subd. 5. <b>Applicability.</b> Subdivisions 2 and 3 apply only when a local unit of <br/>
<a id="pl.182.12"></a><var>182.12</var>government partners or enters into an agreement with a private provider or cooperative
         to <br/>
<a id="pl.182.13"></a><var>182.13</var>operate and maintain broadband service and equipment.<br/>
<a id="pl.182.14"></a><var>182.14</var>    Subd. 6. <b>Additional authority.</b> This section is in addition to and does not limit <br/>
<a id="pl.182.15"></a><var>182.15</var>any other authority of a local unit of government to engage in the activities authorized
         <br/>
<a id="pl.182.16"></a><var>182.16</var>by this section.<br/>
<a id="pl.182.17"></a><var>182.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.24.0"></a><a id="pl.182.18"></a><var>182.18</var>    Sec. 24. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision <br/>
<a id="pl.182.19"></a><var>182.19</var>to read:<br/>
<a id="pl.182.20"></a><var>182.20</var>    Subd. 20. <b>Additional border city allocations; 2015.</b> In addition to the tax <br/>
<a id="pl.182.21"></a><var>182.21</var>reductions authorized in subdivisions 12 to 19, the commissioner shall allocate $2,000,000
         <br/>
<a id="pl.182.22"></a><var>182.22</var>for tax reductions to border city enterprise zones in cities located on the western
         border of <br/>
<a id="pl.182.23"></a><var>182.23</var>the state. The commissioner shall allocate this amount among cities on a per capita
         basis. <br/>
<a id="pl.182.24"></a><var>182.24</var>Allocations made under this subdivision may be used for tax reductions under sections
         <br/>
<a id="pl.182.25"></a><var>182.25</var>469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted
         <br/>
<a id="pl.182.26"></a><var>182.26</var>by businesses located in the enterprise zone, but only if the municipality determines
         <br/>
<a id="pl.182.27"></a><var>182.27</var>that the granting of the tax reduction or offset is necessary to retain a business
         within <br/>
<a id="pl.182.28"></a><var>182.28</var>or attract a business to the zone.<br/>
<a id="pl.182.29"></a><var>182.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2015.<br/>
<br/>
<a id="bill.12.25.0"></a><a id="pl.182.30"></a><var>182.30</var>    Sec. 25. Minnesota Statutes 2014, section 469.40, subdivision 11, as amended by Laws <br/>
<a id="pl.182.31"></a><var>182.31</var>2015, chapter 1, section 6, is amended to read:<br/>
<a id="pl.182.32"></a><var>182.32</var>    Subd. 11. <b>Public infrastructure project.</b> (a) "Public infrastructure project" means <br/>
<a id="pl.182.33"></a><var>182.33</var>a project financed in part or in whole with public money in order to support the medical
         <br/>
<a id="pl.183.1"></a><var>183.1</var>business entity's development plans, as identified in the DMCC development plan. A
         <br/>
<a id="pl.183.2"></a><var>183.2</var>public infrastructure project may:<br/>
<a id="pl.183.3"></a><var>183.3</var>(1) acquire real property and other assets associated with the real property;<br/>
<a id="pl.183.4"></a><var>183.4</var>(2) demolish, repair, or rehabilitate buildings;<br/>
<a id="pl.183.5"></a><var>183.5</var>(3) remediate land and buildings as required to prepare the property for acquisition
         <br/>
<a id="pl.183.6"></a><var>183.6</var>or development;<br/>
<a id="pl.183.7"></a><var>183.7</var>(4) install, construct, or reconstruct elements of public infrastructure required
         to <br/>
<a id="pl.183.8"></a><var>183.8</var>support the overall development of the destination medical center development district
         <br/>
<a id="pl.183.9"></a><var>183.9</var>including, but not limited to, streets, roadways, utilities systems and related facilities,
         <br/>
<a id="pl.183.10"></a><var>183.10</var>utility relocations and replacements, network and communication systems, streetscape
         <br/>
<a id="pl.183.11"></a><var>183.11</var>improvements, drainage systems, sewer and water systems, subgrade structures and <br/>
<a id="pl.183.12"></a><var>183.12</var>associated improvements, landscaping, façade construction and restoration, wayfinding
         <br/>
<a id="pl.183.13"></a><var>183.13</var>and signage, and other components of community infrastructure;<br/>
<a id="pl.183.14"></a><var>183.14</var>(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
         <br/>
<a id="pl.183.15"></a><var>183.15</var>to encourage intermodal transportation and public transit;<br/>
<a id="pl.183.16"></a><var>183.16</var>(6) install, construct or reconstruct, furnish, and equip parks, cultural, and <br/>
<a id="pl.183.17"></a><var>183.17</var>recreational facilities, facilities to promote tourism and hospitality, conferencing
         and <br/>
<a id="pl.183.18"></a><var>183.18</var>conventions, and broadcast and related multimedia infrastructure;<br/>
<a id="pl.183.19"></a><var>183.19</var>(7) make related site improvements including, without limitation, excavation, <br/>
<a id="pl.183.20"></a><var>183.20</var>earth retention, soil stabilization and correction, and site improvements to support
         the <br/>
<a id="pl.183.21"></a><var>183.21</var>destination medical center development district;<br/>
<a id="pl.183.22"></a><var>183.22</var>(8) prepare land for private development and to sell or lease land;<br/>
<a id="pl.183.23"></a><var>183.23</var>(9) provide costs of relocation benefits to occupants of acquired properties; and<br/>
<a id="pl.183.24"></a><var>183.24</var>(10) construct and equip all or a portion of one or more suitable structures on land
         <br/>
<a id="pl.183.25"></a><var>183.25</var>owned by the city for sale or lease to private development; provided, however, that
         the <br/>
<a id="pl.183.26"></a><var>183.26</var>portion of any structure directly financed by the city as a public infrastructure
         project must <br/>
<a id="pl.183.27"></a><var>183.27</var>not be sold or leased to a medical business entity.<br/>
<a id="pl.183.28"></a><var>183.28</var>(b) A public infrastructure project is not a business subsidy under section 
         <statute_ref>116J.993</statute_ref>.<br/>
<a id="pl.183.29"></a><var>183.29</var>(c) Public infrastructure project includes the planning, preparation, and modification <br/>
<a id="pl.183.30"></a><var>183.30</var>of the development plan under section 
         <statute_ref>469.43</statute_ref>, and.  The cost of that planning, preparation, <br/>
<a id="pl.183.31"></a><var>183.31</var>and any modification is a capital cost of the public infrastructure project.<br/>
<a id="pl.183.32"></a><var>183.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.183.33"></a><var>183.33</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.183.34"></a><var>183.34</var>645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of <br/>
<a id="pl.183.35"></a><var>183.35</var>the laws that are amended.<br/>
<br/>
<a id="bill.12.26.0"></a><a id="pl.184.1"></a><var>184.1</var>    Sec. 26. Minnesota Statutes 2014, section 469.43, is amended by adding a subdivision <br/>
<a id="pl.184.2"></a><var>184.2</var>to read:<br/>
<a id="pl.184.3"></a><var>184.3</var>    Subd. 6a. <b>Restriction on city funds to support nonprofit economic development </b><br/>
<a id="pl.184.4"></a><var>184.4</var><b>agency.</b> The nonprofit economic development agency shall not require the city to pay <br/>
<a id="pl.184.5"></a><var>184.5</var>any amounts to the nonprofit economic development agency that are unrelated to public
         <br/>
<a id="pl.184.6"></a><var>184.6</var>infrastructure project costs.<br/>
<a id="pl.184.7"></a><var>184.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.184.8"></a><var>184.8</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.184.9"></a><var>184.9</var>645.021, subdivisions 2 and 3, and applies retroactively from June 22, 2013.<br/>
<br/>
<a id="bill.12.27.0"></a><a id="pl.184.10"></a><var>184.10</var>    Sec. 27. Minnesota Statutes 2014, section 469.45, subdivision 1, is amended to read:<br/>
<a id="pl.184.11"></a><var>184.11</var>    Subdivision 1. <b>Rochester, other local taxes authorized.</b> (a) Notwithstanding <br/>
<a id="pl.184.12"></a><var>184.12</var>section 
         <statute_ref>477A.016</statute_ref> or any other contrary provision of law, ordinance, or city charter, and in <br/>
<a id="pl.184.13"></a><var>184.13</var>addition to any taxes the city may impose on these transactions under another statute
         or <br/>
<a id="pl.184.14"></a><var>184.14</var>law, the city of Rochester may, by ordinance, impose at a rate or rates, determined
         by the <br/>
<a id="pl.184.15"></a><var>184.15</var>city, any of the following taxes:<br/>
<a id="pl.184.16"></a><var>184.16</var>(1) a tax on the gross receipts from the furnishing for consideration of lodging and
         <br/>
<a id="pl.184.17"></a><var>184.17</var>related services as defined in section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause (2); the <br/>
<a id="pl.184.18"></a><var>184.18</var>city may choose to impose a differential tax based on the number of rooms in the facility;<br/>
<a id="pl.184.19"></a><var>184.19</var>(2) a tax on the gross receipts of food and beverages sold primarily for consumption
         <br/>
<a id="pl.184.20"></a><var>184.20</var>on the premises by restaurants and places of refreshment that occur in the city of
         <br/>
<a id="pl.184.21"></a><var>184.21</var>Rochester; the city may elect to impose the tax in a defined district of the city;
         and<br/>
<a id="pl.184.22"></a><var>184.22</var>(3) a tax on the admission receipts to entertainment and recreational facilities,
         as <br/>
<a id="pl.184.23"></a><var>184.23</var>defined by ordinance, in the city of Rochester.<br/>
<a id="pl.184.24"></a><var>184.24</var>(b) The provisions of section 
         <statute_ref>297A.99, subdivisions 4</statute_ref> to 13, govern the <br/>
<a id="pl.184.25"></a><var>184.25</var>administration, collection, and enforcement of any tax imposed by the city under <br/>
<a id="pl.184.26"></a><var>184.26</var>paragraph (a).<br/>
<a id="pl.184.27"></a><var>184.27</var>(c) The proceeds of any taxes imposed under this subdivision, less refunds and <br/>
<a id="pl.184.28"></a><var>184.28</var>costs of collection, must be used by the city only to meet its share of obligations
         for <br/>
<a id="pl.184.29"></a><var>184.29</var>public infrastructure projects contained in the development plan and approved by the
         <br/>
<a id="pl.184.30"></a><var>184.30</var>corporation, including any associated financing costs or to pay any other costs qualifying <br/>
<a id="pl.184.31"></a><var>184.31</var>as a local matching contribution under section 469.47, subdivision 4. Any tax imposed <br/>
<a id="pl.184.32"></a><var>184.32</var>under paragraph (a) expires at the earlier of December 31, 2049, or when the city
         council <br/>
<a id="pl.184.33"></a><var>184.33</var>determines that sufficient funds have been raised from the tax plus all other local
         funding <br/>
<a id="pl.184.34"></a><var>184.34</var>sources authorized in Laws 2013, chapter 143, article 10, to meet the city obligation
         for <br/>
<a id="pl.185.1"></a><var>185.1</var>financing public infrastructure projects contained in the development plan and approved
         <br/>
<a id="pl.185.2"></a><var>185.2</var>by the corporation, including any associated financing costs.<br/>
<a id="pl.185.3"></a><var>185.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.185.4"></a><var>185.4</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.185.5"></a><var>185.5</var>645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of <br/>
<a id="pl.185.6"></a><var>185.6</var>the laws that are amended.<br/>
<br/>
<a id="bill.12.28.0"></a><a id="pl.185.7"></a><var>185.7</var>    Sec. 28. Minnesota Statutes 2014, section 469.45, subdivision 2, is amended to read:<br/>
<a id="pl.185.8"></a><var>185.8</var>    Subd. 2. <b>General sales tax authority.</b> The city may elect to extend the existing <br/>
<a id="pl.185.9"></a><var>185.9</var>local sales and use tax under Laws 2013, chapter 143, article 10, section 13, or to
         impose <br/>
<a id="pl.185.10"></a><var>185.10</var>an additional rate of up to one quarter of one percent tax on sales and use under
         Laws <br/>
<a id="pl.185.11"></a><var>185.11</var>2013, chapter 143, article 10, section 11. The proceeds of any extended or additional
         taxes <br/>
<a id="pl.185.12"></a><var>185.12</var>imposed under this subdivision, less refunds and costs of collection, must be used
         by the <br/>
<a id="pl.185.13"></a><var>185.13</var>city only to meet its share of obligations for public infrastructure projects contained
         in the <br/>
<a id="pl.185.14"></a><var>185.14</var>development plan and approved by the corporation, including all financing costs. Revenues
         <br/>
<a id="pl.185.15"></a><var>185.15</var>collected in any year to meet the obligations must be used for payment of obligations
         or <br/>
<a id="pl.185.16"></a><var>185.16</var>expenses for public infrastructure projects approved by the corporation or of any other <br/>
<a id="pl.185.17"></a><var>185.17</var>costs qualifying as a local matching contribution under section 469.47, subdivision
         4.<br/>
<a id="pl.185.18"></a><var>185.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.185.19"></a><var>185.19</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.185.20"></a><var>185.20</var>645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of <br/>
<a id="pl.185.21"></a><var>185.21</var>the laws that are amended.<br/>
<br/>
<a id="bill.12.29.0"></a><a id="pl.185.22"></a><var>185.22</var>    Sec. 29. Minnesota Statutes 2014, section 469.47, subdivision 4, as amended by Laws <br/>
<a id="pl.185.23"></a><var>185.23</var>2015, chapter 1, section 10, is amended to read:<br/>
<a id="pl.185.24"></a><var>185.24</var>    Subd. 4. <b>General aid; local matching contribution.</b> In order to qualify for general <br/>
<a id="pl.185.25"></a><var>185.25</var>state infrastructure aid, the city must enter a written agreement with the commissioner
         that <br/>
<a id="pl.185.26"></a><var>185.26</var>requires the city to make a qualifying local matching contribution to pay for $128,000,000
         <br/>
<a id="pl.185.27"></a><var>185.27</var>of the cost of public infrastructure projects approved by the corporation, including
         <br/>
<a id="pl.185.28"></a><var>185.28</var>financing costs, using funds other than state aid received under this section. Through June <br/>
<a id="pl.185.29"></a><var>185.29</var>30, 2020, the $128,000,000 required local matching contribution is reduced by one-half of <br/>
<a id="pl.185.30"></a><var>185.30</var>the any amounts the city pays for operating and administrative costs out of funds other <br/>
<a id="pl.185.31"></a><var>185.31</var>than state aid received under this section for the support, administration, or operations of <br/>
<a id="pl.185.32"></a><var>185.32</var>the corporation and the economic development agency up to a maximum amount agreed <br/>
<a id="pl.185.33"></a><var>185.33</var>to by the board and the city. These amounts include any costs the city incurs in providing <br/>
<a id="pl.186.1"></a><var>186.1</var>services, goods, or other support to the corporation or agency. Beginning on July
         1, <br/>
<a id="pl.186.2"></a><var>186.2</var>2020, the required local matching contribution is reduced by one-half of the amounts
         <br/>
<a id="pl.186.3"></a><var>186.3</var>the city pays for support, operating, and administrative costs of the corporation
         up to a <br/>
<a id="pl.186.4"></a><var>186.4</var>maximum amount agreed to by the board and the city. The agreement must provide for the <br/>
<a id="pl.186.5"></a><var>186.5</var>manner, timing, and amounts of the city contributions, including the city's commitment
         <br/>
<a id="pl.186.6"></a><var>186.6</var>for each year. Notwithstanding any law to the contrary, the agreement may provide
         that <br/>
<a id="pl.186.7"></a><var>186.7</var>the city contributions for public infrastructure project principal costs may be made
         over a <br/>
<a id="pl.186.8"></a><var>186.8</var>20-year period at a rate not greater than $1 from the city for each $2.55 from the
         state. <br/>
<a id="pl.186.9"></a><var>186.9</var>The local match contribution may be provided by the city from any source identified
         in <br/>
<a id="pl.186.10"></a><var>186.10</var>section 
         <statute_ref>469.45</statute_ref> and any other local tax proceeds or other funds from the city and may <br/>
<a id="pl.186.11"></a><var>186.11</var>include providing funds to prepare the development plan, to assist developers undertaking
         <br/>
<a id="pl.186.12"></a><var>186.12</var>projects in accordance with the development plan, or by the city directly undertaking
         <br/>
<a id="pl.186.13"></a><var>186.13</var>public infrastructure projects in accordance with the development plan, provided the
         <br/>
<a id="pl.186.14"></a><var>186.14</var>projects have been approved by the corporation. City contributions that are in excess
         of <br/>
<a id="pl.186.15"></a><var>186.15</var>this ratio carry forward and are credited toward subsequent years. The commissioner
         and <br/>
<a id="pl.186.16"></a><var>186.16</var>city may agree to amend the agreement at any time in light of new information or other
         <br/>
<a id="pl.186.17"></a><var>186.17</var>appropriate factors. The city may enter into arrangements with the county to pay for
         or <br/>
<a id="pl.186.18"></a><var>186.18</var>otherwise meet the local matching contribution requirement. Any public infrastructure
         <br/>
<a id="pl.186.19"></a><var>186.19</var>project within the area that will be in the destination medical center development
         district <br/>
<a id="pl.186.20"></a><var>186.20</var>whose implementation is started or funded by the city after June 22, 2013, but before
         the <br/>
<a id="pl.186.21"></a><var>186.21</var>development plan is adopted, as provided by section 
         <statute_ref>469.43, subdivision 1</statute_ref>, will be included <br/>
<a id="pl.186.22"></a><var>186.22</var>for the purposes of determining the amount the city has contributed as required by
         this <br/>
<a id="pl.186.23"></a><var>186.23</var>section and the agreement with the commissioner, subject to approval by the corporation.<br/>
<a id="pl.186.24"></a><var>186.24</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.186.25"></a><var>186.25</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.186.26"></a><var>186.26</var>645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of <br/>
<a id="pl.186.27"></a><var>186.27</var>the laws that are amended.<br/>
<br/>
<a id="bill.12.30.0"></a><a id="pl.186.28"></a><var>186.28</var>    Sec. 30. Minnesota Statutes 2014, section 524.3-916, is amended to read:<br/>
<a id="pl.186.29"></a><var>186.29</var><b>524.3-916 APPORTIONMENT OF ESTATE TAXES AND </b><br/>
<a id="pl.186.30"></a><var>186.30</var><b>GENERATION-SKIPPING TAX.</b><br/>
<a id="pl.186.31"></a><var>186.31</var>(a) For purposes of this section:<br/>
<a id="pl.186.32"></a><var>186.32</var>(1) "estate" means the gross estate of a decedent as determined for the purpose of
         <br/>
<a id="pl.186.33"></a><var>186.33</var>federal estate tax or the estate tax payable to this state;<br/>
<a id="pl.187.1"></a><var>187.1</var>(2) "decedent's generation-skipping transfers" means all generation-skipping transfers
         <br/>
<a id="pl.187.2"></a><var>187.2</var>as determined for purposes of the federal generation-skipping tax which occur by reason
         <br/>
<a id="pl.187.3"></a><var>187.3</var>of the decedent's death which relate to property which is included in the decedent's
         estate;<br/>
<a id="pl.187.4"></a><var>187.4</var>(3) "person" means any individual, partnership, association, joint stock company,
         <br/>
<a id="pl.187.5"></a><var>187.5</var>corporation, limited liability company, government, political subdivision, governmental
         <br/>
<a id="pl.187.6"></a><var>187.6</var>agency, or local governmental agency;<br/>
<a id="pl.187.7"></a><var>187.7</var>(4) "person interested in the estate" means any person entitled to receive, or who
         has <br/>
<a id="pl.187.8"></a><var>187.8</var>received, from a decedent or by reason of the death of a decedent any property or
         interest <br/>
<a id="pl.187.9"></a><var>187.9</var>therein included in the decedent's estate. It includes a personal representative,
         guardian, <br/>
<a id="pl.187.10"></a><var>187.10</var>conservator, trustee, and custodian;<br/>
<a id="pl.187.11"></a><var>187.11</var>(5) "state" means any state, territory, or possession of the United States, the District
         <br/>
<a id="pl.187.12"></a><var>187.12</var>of Columbia, and the Commonwealth of Puerto Rico;<br/>
<a id="pl.187.13"></a><var>187.13</var>(6) "estate tax" means the federal estate tax and the state estate tax determined
         by the <br/>
<a id="pl.187.14"></a><var>187.14</var>commissioner of revenue pursuant to chapter 291 and interest and penalties imposed
         in <br/>
<a id="pl.187.15"></a><var>187.15</var>addition to the tax;<br/>
<a id="pl.187.16"></a><var>187.16</var>(7) "decedent's generation-skipping tax" means the federal generation-skipping <br/>
<a id="pl.187.17"></a><var>187.17</var>tax imposed on the decedent's generation-skipping transfers and interest and penalties
         <br/>
<a id="pl.187.18"></a><var>187.18</var>imposed in addition to the tax;<br/>
<a id="pl.187.19"></a><var>187.19</var>(8) "fiduciary" means personal representative or trustee.<br/>
<a id="pl.187.20"></a><var>187.20</var>(b) Unless the will or other governing instrument otherwise provides: Any tax <br/>
<a id="pl.187.21"></a><var>187.21</var>occasioned by a decedent's death shall be apportioned as set forth in clauses (1)
         to (4).<br/>
<a id="pl.187.22"></a><var>187.22</var>(1) the Estate tax taxes shall be apportioned among all persons interested in the <br/>
<a id="pl.187.23"></a><var>187.23</var>estate. The apportionment is to be made in the proportion that the value of the interest of <br/>
<a id="pl.187.24"></a><var>187.24</var>each person interested in the estate bears to the total value of the interests of
         all persons <br/>
<a id="pl.187.25"></a><var>187.25</var>interested in the estate. The values used in determining the tax are to shall be used for <br/>
<a id="pl.187.26"></a><var>187.26</var>that purpose; and in apportioning the tax.<br/>
<a id="pl.187.27"></a><var>187.27</var>(2) Notwithstanding the general rule set forth in clause (1), if property is included
         in <br/>
<a id="pl.187.28"></a><var>187.28</var>the decedent's gross estate pursuant to section 2044 of the Internal Revenue Code
         of 1986, <br/>
<a id="pl.187.29"></a><var>187.29</var>as amended, or any similar provision of any state estate tax law, the difference between
         the <br/>
<a id="pl.187.30"></a><var>187.30</var>total estate tax payable by the decedent's estate and the amount of estate tax that
         would <br/>
<a id="pl.187.31"></a><var>187.31</var>have been payable by the decedent's estate if the property had not been included in
         the <br/>
<a id="pl.187.32"></a><var>187.32</var>decedent's gross estate shall be apportioned ratably among the holders of interests
         in the <br/>
<a id="pl.187.33"></a><var>187.33</var>property. The values used in determining the tax shall be used in apportioning the
         tax. The <br/>
<a id="pl.187.34"></a><var>187.34</var>balance of the tax, if any, shall be apportioned as provided in clause (1).<br/>
<a id="pl.187.35"></a><var>187.35</var>(3) The decedent's generation-skipping tax shall be apportioned as provided by <br/>
<a id="pl.187.36"></a><var>187.36</var>federal law. To the extent not provided by federal law, the decedent's generation-skipping
         <br/>
<a id="pl.188.1"></a><var>188.1</var>tax shall be apportioned among all persons receiving the decedent's generation-skipping
         <br/>
<a id="pl.188.2"></a><var>188.2</var>transfers whose tax apportionment is not provided by federal law in the proportion
         that the <br/>
<a id="pl.188.3"></a><var>188.3</var>value of the transfer to each person bears to the total value of all such transfers.<br/>
<a id="pl.188.4"></a><var>188.4</var>(4) If the decedent's will or other written instrument directs a method of <br/>
<a id="pl.188.5"></a><var>188.5</var>apportionment of estate tax or of the decedent's generation-skipping tax different
         from <br/>
<a id="pl.188.6"></a><var>188.6</var>the method methods described in this section, the method described in the will or other <br/>
<a id="pl.188.7"></a><var>188.7</var>written instrument controls shall control; provided, however, that:<br/>
<a id="pl.188.8"></a><var>188.8</var>(i) unless the decedent's will or other written instrument specifically indicates
         an <br/>
<a id="pl.188.9"></a><var>188.9</var>intent to waive any right of recovery under section 2207A of the Internal Revenue
         Code of <br/>
<a id="pl.188.10"></a><var>188.10</var>1986, as amended, estate taxes on property described in clause (2) must be apportioned <br/>
<a id="pl.188.11"></a><var>188.11</var>under the method described in this section to property included in the decedent's estate <br/>
<a id="pl.188.12"></a><var>188.12</var>under section 2044 of the Internal Revenue Code of 1986, as amended clause (2); and<br/>
<a id="pl.188.13"></a><var>188.13</var>(ii) unless the decedent's will or other written instrument specifically indicates
         an <br/>
<a id="pl.188.14"></a><var>188.14</var>intent to waive any right of recovery under section 2207B of the Internal Revenue
         Code of <br/>
<a id="pl.188.15"></a><var>188.15</var>1986, as amended, estate taxes must be apportioned under the method described in this <br/>
<a id="pl.188.16"></a><var>188.16</var>section to on property included in the decedent's estate under section 2036 of the Internal <br/>
<a id="pl.188.17"></a><var>188.17</var>Revenue Code of 1986, as amended, must be apportioned under the method described <br/>
<a id="pl.188.18"></a><var>188.18</var>in clause (1).<br/>
<a id="pl.188.19"></a><var>188.19</var>(c)(1) The court in which venue lies for the administration of the estate of a decedent,
         <br/>
<a id="pl.188.20"></a><var>188.20</var>on petition for the purpose may determine the apportionment of the estate tax or of
         the <br/>
<a id="pl.188.21"></a><var>188.21</var>decedent's generation-skipping tax.<br/>
<a id="pl.188.22"></a><var>188.22</var>(2) If the court finds that it is inequitable to apportion interest and penalties
         in <br/>
<a id="pl.188.23"></a><var>188.23</var>the manner provided in subsection (b), because of special circumstances, it may direct
         <br/>
<a id="pl.188.24"></a><var>188.24</var>apportionment thereof in the manner it finds equitable.<br/>
<a id="pl.188.25"></a><var>188.25</var>(3) If the court finds that the assessment of penalties and interest assessed in relation
         <br/>
<a id="pl.188.26"></a><var>188.26</var>to the estate tax or the decedent's generation-skipping tax is due to delay caused
         by the <br/>
<a id="pl.188.27"></a><var>188.27</var>negligence of the fiduciary, the court may charge the fiduciary with the amount of
         the <br/>
<a id="pl.188.28"></a><var>188.28</var>assessed penalties and interest.<br/>
<a id="pl.188.29"></a><var>188.29</var>(4) In any action to recover from any person interested in the estate the amount of
         <br/>
<a id="pl.188.30"></a><var>188.30</var>the estate tax or of the decedent's generation-skipping tax apportioned to the person
         in <br/>
<a id="pl.188.31"></a><var>188.31</var>accordance with this section the determination of the court in respect thereto shall
         be <br/>
<a id="pl.188.32"></a><var>188.32</var>prima facie correct.<br/>
<a id="pl.188.33"></a><var>188.33</var>(d)(1) The personal representative or other person in possession of the property <br/>
<a id="pl.188.34"></a><var>188.34</var>of the decedent required to pay the estate tax or the decedent's generation-skipping
         tax <br/>
<a id="pl.188.35"></a><var>188.35</var>may withhold from any property distributable to any person interested in the estate,
         <br/>
<a id="pl.188.36"></a><var>188.36</var>upon its distribution, the amount of any taxes attributable to the person's interest.
         If the <br/>
<a id="pl.189.1"></a><var>189.1</var>property in possession of the personal representative or other person required to
         pay any <br/>
<a id="pl.189.2"></a><var>189.2</var>taxes and distributable to any person interested in the estate is insufficient to
         satisfy the <br/>
<a id="pl.189.3"></a><var>189.3</var>proportionate amount of the taxes determined to be due from the person, the personal
         <br/>
<a id="pl.189.4"></a><var>189.4</var>representative or other person required to pay any taxes may recover the deficiency
         from <br/>
<a id="pl.189.5"></a><var>189.5</var>the person interested in the estate. If the property is not in the possession of the
         personal <br/>
<a id="pl.189.6"></a><var>189.6</var>representative or the other person required to pay any taxes, the personal representative
         or <br/>
<a id="pl.189.7"></a><var>189.7</var>the other person required to pay any taxes may recover from any person interested
         in the <br/>
<a id="pl.189.8"></a><var>189.8</var>estate the amount of any taxes apportioned to the person in accordance with this section.<br/>
<a id="pl.189.9"></a><var>189.9</var>(2) If property held by the personal representative or other person in possession
         <br/>
<a id="pl.189.10"></a><var>189.10</var>of the property of the decedent required to pay the estate tax or the decedent's <br/>
<a id="pl.189.11"></a><var>189.11</var>generation-skipping tax is distributed prior to final apportionment of the estate
         tax or <br/>
<a id="pl.189.12"></a><var>189.12</var>the decedent's generation-skipping tax, the distributee shall provide a bond or other
         <br/>
<a id="pl.189.13"></a><var>189.13</var>security for the apportionment liability in the form and amount prescribed by the
         personal <br/>
<a id="pl.189.14"></a><var>189.14</var>representative or other person, as the case may be.<br/>
<a id="pl.189.15"></a><var>189.15</var>(e)(1) In making an apportionment, allowances shall be made for any exemptions <br/>
<a id="pl.189.16"></a><var>189.16</var>granted, any classification made of persons interested in the estate and for any deductions
         <br/>
<a id="pl.189.17"></a><var>189.17</var>and credits allowed by the law imposing the tax.<br/>
<a id="pl.189.18"></a><var>189.18</var>(2) Any exemption or deduction allowed by reason of the relationship of any person
         <br/>
<a id="pl.189.19"></a><var>189.19</var>to the decedent, by reason of the purposes of the gift, or by allocation to the gift
         (either <br/>
<a id="pl.189.20"></a><var>189.20</var>by election by the fiduciary or by operation of federal law), inures to the benefit
         of the <br/>
<a id="pl.189.21"></a><var>189.21</var>person bearing such relationship or receiving the gift; but if an interest is subject
         to a prior <br/>
<a id="pl.189.22"></a><var>189.22</var>present interest which is not allowable as a deduction, the tax apportionable against
         the <br/>
<a id="pl.189.23"></a><var>189.23</var>present interest shall be paid from principal.<br/>
<a id="pl.189.24"></a><var>189.24</var>(3) Any deduction for property previously taxed and any credit for gift taxes or <br/>
<a id="pl.189.25"></a><var>189.25</var>death taxes of a foreign country paid by the decedent or the decedent's estate inures
         to the <br/>
<a id="pl.189.26"></a><var>189.26</var>proportionate benefit of all persons liable to apportionment.<br/>
<a id="pl.189.27"></a><var>189.27</var>(4) Any credit for inheritance, succession or estate taxes or taxes in the nature
         <br/>
<a id="pl.189.28"></a><var>189.28</var>thereof applicable to property or interests includable in the estate, inures to the
         benefit of <br/>
<a id="pl.189.29"></a><var>189.29</var>the persons or interests chargeable with the payment thereof to the extent proportionately
         <br/>
<a id="pl.189.30"></a><var>189.30</var>that the credit reduces the tax.<br/>
<a id="pl.189.31"></a><var>189.31</var>(5) To the extent that property passing to or in trust for a surviving spouse or any
         <br/>
<a id="pl.189.32"></a><var>189.32</var>charitable, public or similar gift or devise is not an allowable deduction for purposes
         of <br/>
<a id="pl.189.33"></a><var>189.33</var>the estate tax solely by reason of an estate tax imposed upon and deductible from
         the <br/>
<a id="pl.189.34"></a><var>189.34</var>property, the property is not included in the computation provided for in subsection
         (b)(1) <br/>
<a id="pl.189.35"></a><var>189.35</var>hereof, and to that extent no apportionment is made against the property. The sentence
         <br/>
<a id="pl.189.36"></a><var>189.36</var>immediately preceding does not apply to any case if the result would be to deprive
         the <br/>
<a id="pl.190.1"></a><var>190.1</var>estate of a deduction otherwise allowable under section 2053(d) of the Internal Revenue
         <br/>
<a id="pl.190.2"></a><var>190.2</var>Code of 1986, as amended, of the United States, relating to deduction for state death
         taxes <br/>
<a id="pl.190.3"></a><var>190.3</var>on transfers for public, charitable, or religious uses.<br/>
<a id="pl.190.4"></a><var>190.4</var>(f) No interest in income and no estate for years or for life or other temporary interest
         <br/>
<a id="pl.190.5"></a><var>190.5</var>in any property or fund is subject to apportionment as between the temporary interest
         <br/>
<a id="pl.190.6"></a><var>190.6</var>and the remainder. The estate tax on the temporary interest and the estate tax, if
         any, on <br/>
<a id="pl.190.7"></a><var>190.7</var>the remainder is chargeable against the corpus of the property or funds subject to
         the <br/>
<a id="pl.190.8"></a><var>190.8</var>temporary interest and remainder. The decedent's generation-skipping tax is chargeable
         <br/>
<a id="pl.190.9"></a><var>190.9</var>against the property which constitutes the decedent's generation-skipping transfer.<br/>
<a id="pl.190.10"></a><var>190.10</var>(g) Neither the personal representative nor other person required to pay the tax is
         <br/>
<a id="pl.190.11"></a><var>190.11</var>under any duty to institute any action to recover from any person interested in the
         estate <br/>
<a id="pl.190.12"></a><var>190.12</var>the amount of the estate tax or of the decedent's generation-skipping tax apportioned
         to the <br/>
<a id="pl.190.13"></a><var>190.13</var>person until the final determination of the tax. A personal representative or other
         person <br/>
<a id="pl.190.14"></a><var>190.14</var>required to pay the estate tax or decedent's generation-skipping tax who institutes
         the <br/>
<a id="pl.190.15"></a><var>190.15</var>action within a reasonable time after final determination of the tax is not subject
         to any <br/>
<a id="pl.190.16"></a><var>190.16</var>liability or surcharge because any portion of the tax apportioned to any person interested
         <br/>
<a id="pl.190.17"></a><var>190.17</var>in the estate was collectible at a time following the death of the decedent but thereafter
         <br/>
<a id="pl.190.18"></a><var>190.18</var>became uncollectible. If the personal representative or other person required to pay
         the <br/>
<a id="pl.190.19"></a><var>190.19</var>estate tax or decedent's generation-skipping tax cannot collect from any person interested
         <br/>
<a id="pl.190.20"></a><var>190.20</var>in the estate the amount of the tax apportioned to the person, the amount not recoverable
         <br/>
<a id="pl.190.21"></a><var>190.21</var>shall be equitably apportioned among the other persons interested in the estate who
         are <br/>
<a id="pl.190.22"></a><var>190.22</var>subject to apportionment of the tax involved.<br/>
<a id="pl.190.23"></a><var>190.23</var>(h) A personal representative acting in another state or a person required to pay
         the <br/>
<a id="pl.190.24"></a><var>190.24</var>estate tax or decedent's generation-skipping tax domiciled in another state may institute
         an <br/>
<a id="pl.190.25"></a><var>190.25</var>action in the courts of this state and may recover a proportionate amount of the federal
         <br/>
<a id="pl.190.26"></a><var>190.26</var>estate tax, of an estate tax payable to another state or of a death duty due by a
         decedent's <br/>
<a id="pl.190.27"></a><var>190.27</var>estate to another state, or of the decedent's generation-skipping tax, from a person
         <br/>
<a id="pl.190.28"></a><var>190.28</var>interested in the estate who is either domiciled in this state or who owns property
         in this <br/>
<a id="pl.190.29"></a><var>190.29</var>state subject to attachment or execution. For the purposes of the action the determination
         <br/>
<a id="pl.190.30"></a><var>190.30</var>of apportionment by the court having jurisdiction of the administration of the decedent's
         <br/>
<a id="pl.190.31"></a><var>190.31</var>estate in the other state is prima facie correct.<br/>
<br/>
<a id="bill.12.31.0"></a><a id="pl.190.32"></a><var>190.32</var>    Sec. 31. <b>ADMINISTRATIVE APPROPRIATIONS.</b><br/>
<a id="pl.190.33"></a><var>190.33</var>(a) $300,000 in fiscal year 2017 is appropriated from the general fund to the <br/>
<a id="pl.190.34"></a><var>190.34</var>commissioner of natural resources for administering this act. The funding base for
         this <br/>
<a id="pl.190.35"></a><var>190.35</var>appropriation in fiscal year 2018 and thereafter is $200,000.<br/>
<a id="pl.191.1"></a><var>191.1</var>(b) $1,000,000 in fiscal year 2016 and $700,000 in fiscal year 2017 are appropriated
         <br/>
<a id="pl.191.2"></a><var>191.2</var>from the general fund to the commissioner of revenue for administering this act. The
         <br/>
<a id="pl.191.3"></a><var>191.3</var>funding base for this appropriation in fiscal year 2018 and thereafter is $600,000.<br/>
<a id="pl.191.4"></a><var>191.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.32.0"></a><a id="pl.191.5"></a><var>191.5</var>    Sec. 32. <b>APPROPRIATION CANCELLATIONS.</b><br/>
<a id="pl.191.6"></a><var>191.6</var>All unspent funds, estimated to be $2,380,000, to provide the 20 percent local match
         <br/>
<a id="pl.191.7"></a><var>191.7</var>funding required to obtain Federal Highway Administration emergency relief funds to
         <br/>
<a id="pl.191.8"></a><var>191.8</var>repair local roads and bridges damaged by June 2014 flooding, under Laws 2015, chapter
         <br/>
<a id="pl.191.9"></a><var>191.9</var>2, section 3, are canceled to the general fund on June 30, 2015.<br/>
<br/>
<a id="bill.12.33.0"></a><a id="pl.191.10"></a><var>191.10</var>    Sec. 33. <b>DEPARTMENT OF TRANSPORTATION; APPROPRIATION.</b><br/>
<a id="pl.191.11"></a><var>191.11</var>$2,380,000 is appropriated from the general fund to the commissioner of <br/>
<a id="pl.191.12"></a><var>191.12</var>transportation in fiscal year 2016 to provide the 20 percent local match funding required
         to <br/>
<a id="pl.191.13"></a><var>191.13</var>obtain Federal Highway Administration emergency relief funds to repair local roads
         and <br/>
<a id="pl.191.14"></a><var>191.14</var>bridges damaged by flooding in June 2014. This is a onetime appropriation.<br/>
<br/>
<a id="bill.12.34.0"></a><a id="pl.191.15"></a><var>191.15</var>    Sec. 34. <b> REPEALER.</b><br/>
<a id="pl.191.16"></a><var>191.16</var>(a) Minnesota Statutes 2014, section 3.192, is repealed.<br/>
<a id="pl.191.17"></a><var>191.17</var>(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.<br/>
<a id="pl.191.18"></a><var>191.18</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective retroactively from January 1, 2014. <br/>
<a id="pl.191.19"></a><var>191.19</var>Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="pl.191.22"></a><var>191.22</var><b>CORPORATE FRANCHISE, AND ESTATE TAXES</b><br/>

<a id="bill.13.1.0"></a><a id="pl.191.23"></a><var>191.23</var>    Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to <br/>
<a id="pl.191.24"></a><var>191.24</var>read:<br/>
<a id="pl.191.25"></a><var>191.25</var>    Subd. 11. <b>Information included in income tax return.</b> (a) The return must state:<br/>
<a id="pl.191.26"></a><var>191.26</var>    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
         <br/>
<a id="pl.191.27"></a><var>191.27</var>address of the taxpayer in the same name or names and same address as the taxpayer
         has <br/>
<a id="pl.191.28"></a><var>191.28</var>used in making the taxpayer's income tax return to the United States;<br/>
<a id="pl.191.29"></a><var>191.29</var>    (2) the date or dates of birth of the taxpayer or taxpayers;<br/>
<a id="pl.191.30"></a><var>191.30</var>    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
         <br/>
<a id="pl.191.31"></a><var>191.31</var>number has been issued by the United States with respect to the taxpayers; and<br/>
<a id="pl.192.1"></a><var>192.1</var>    (4) the amount of the taxable income of the taxpayer as it appears on the federal
         <br/>
<a id="pl.192.2"></a><var>192.2</var>return for the taxable year to which the Minnesota state return applies.<br/>
<a id="pl.192.3"></a><var>192.3</var>    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return <br/>
<a id="pl.192.4"></a><var>192.4</var>a copy of the federal income tax return that the taxpayer has filed or is about to
         file for <br/>
<a id="pl.192.5"></a><var>192.5</var>the period, unless the taxpayer is eligible to telefile the federal return and does file the
         <br/>
<a id="pl.192.6"></a><var>192.6</var>Minnesota return by telefiling.<br/>
<a id="pl.192.7"></a><var>192.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.192.8"></a><var>192.8</var>    Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:<br/>
<a id="pl.192.9"></a><var>192.9</var>    Subd. 16. <b>Tax refund or return preparers; electronic filing; paper filing fee </b><br/>
<a id="pl.192.10"></a><var>192.10</var><b>imposed.</b> (a) A "tax refund or return preparer," as defined in section 
         <statute_ref>289A.60, subdivision <br/>
<a id="pl.192.11"></a><var>192.11</var>13
         </statute_ref>, paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the
         <br/>
<a id="pl.192.12"></a><var>192.12</var>Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota
         <br/>
<a id="pl.192.13"></a><var>192.13</var>individual income, corporate franchise, S corporation, partnership, or fiduciary income tax <br/>
<a id="pl.192.14"></a><var>192.14</var>returns for the prior calendar year must file all Minnesota individual income, corporate <br/>
<a id="pl.192.15"></a><var>192.15</var>franchise, S corporation, partnership, or fiduciary income tax returns prepared for that <br/>
<a id="pl.192.16"></a><var>192.16</var>calendar year by electronic means.<br/>
<a id="pl.192.17"></a><var>192.17</var>(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the
         return <br/>
<a id="pl.192.18"></a><var>192.18</var>that the taxpayer did not want the return filed by electronic means.<br/>
<a id="pl.192.19"></a><var>192.19</var>(c) For each return that is not filed electronically by a tax refund or return preparer
         <br/>
<a id="pl.192.20"></a><var>192.20</var>under this subdivision, including returns filed under paragraph (b), a paper filing
         fee <br/>
<a id="pl.192.21"></a><var>192.21</var>of $5 is imposed upon the preparer. The fee is collected from the preparer in the
         same <br/>
<a id="pl.192.22"></a><var>192.22</var>manner as income tax. The fee does not apply to returns that the commissioner requires
         <br/>
<a id="pl.192.23"></a><var>192.23</var>to be filed in paper form.<br/>
<a id="pl.192.24"></a><var>192.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.192.25"></a><var>192.25</var>December 31, 2014.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.192.26"></a><var>192.26</var>    Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:<br/>
<a id="pl.192.27"></a><var>192.27</var>    Subd. 2. <b>Withholding statement.</b> (a) A person required to deduct and withhold <br/>
<a id="pl.192.28"></a><var>192.28</var>from an employee a tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br/>
<a id="pl.192.29"></a><var>192.29</var>2
         </statute_ref>, or who would have been required to deduct and withhold a tax under section 
         <statute_ref>290.92, <br/>
<a id="pl.192.30"></a><var>192.30</var>subdivision 2a
         </statute_ref> or 3, or persons required to withhold tax under section 
         <statute_ref>290.923, subdivision <br/>
<a id="pl.192.31"></a><var>192.31</var>2
         </statute_ref>, determined without regard to section 
         <statute_ref>290.92, subdivision 19</statute_ref>, if the employee or payee <br/>
<a id="pl.192.32"></a><var>192.32</var>had claimed no more than one withholding exemption, or who paid wages or made <br/>
<a id="pl.192.33"></a><var>192.33</var>payments not subject to withholding under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, <br/>
<a id="pl.193.1"></a><var>193.1</var>subdivision 2
         </statute_ref>, to an employee or person receiving royalty payments in excess of $600, <br/>
<a id="pl.193.2"></a><var>193.2</var>or who has entered into a voluntary withholding agreement with a payee under section
         <br/>
<statute_ref><a id="pl.193.3"></a><var>193.3</var>290.92, subdivision 20
         </statute_ref>, must give every employee or person receiving royalty payments in <br/>
<a id="pl.193.4"></a><var>193.4</var>respect to the remuneration paid by the person to the employee or person receiving
         royalty <br/>
<a id="pl.193.5"></a><var>193.5</var>payments during the calendar year, on or before January 31 of the succeeding year,
         or, if <br/>
<a id="pl.193.6"></a><var>193.6</var>employment is terminated before the close of the calendar year, within 30 days after
         the <br/>
<a id="pl.193.7"></a><var>193.7</var>date of receipt of a written request from the employee if the 30-day period ends before
         <br/>
<a id="pl.193.8"></a><var>193.8</var>January 31, a written statement showing the following:<br/>
<a id="pl.193.9"></a><var>193.9</var>    (1) name of the person;<br/>
<a id="pl.193.10"></a><var>193.10</var>    (2) the name of the employee or payee and the employee's or payee's Social Security
         <br/>
<a id="pl.193.11"></a><var>193.11</var>account number;<br/>
<a id="pl.193.12"></a><var>193.12</var>    (3) the total amount of wages as that term is defined in section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.193.13"></a><var>193.13</var>1
         </statute_ref>, paragraph (1); the total amount of remuneration subject to withholding under section
         <br/>
<statute_ref><a id="pl.193.14"></a><var>193.14</var>290.92, subdivision 20
         </statute_ref>; the amount of sick pay as required under section 6051(f) of the <br/>
<a id="pl.193.15"></a><var>193.15</var>Internal Revenue Code; and the amount of royalties subject to withholding under section
         <br/>
<statute_ref><a id="pl.193.16"></a><var>193.16</var>290.923, subdivision 2
         </statute_ref>; and<br/>
<a id="pl.193.17"></a><var>193.17</var>    (4) the total amount deducted and withheld as tax under section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.193.18"></a><var>193.18</var>2a
         </statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>.<br/>
<a id="pl.193.19"></a><var>193.19</var>    (b) The statement required to be furnished by paragraph (a) with respect to any <br/>
<a id="pl.193.20"></a><var>193.20</var>remuneration must be furnished at those times, must contain the information required,
         and <br/>
<a id="pl.193.21"></a><var>193.21</var>must be in the form the commissioner prescribes.<br/>
<a id="pl.193.22"></a><var>193.22</var>    (c) The commissioner may prescribe rules providing for reasonable extensions of <br/>
<a id="pl.193.23"></a><var>193.23</var>time, not in excess of 30 days, to employers or payers required to give the statements
         to <br/>
<a id="pl.193.24"></a><var>193.24</var>their employees or payees under this subdivision.<br/>
<a id="pl.193.25"></a><var>193.25</var>    (d) A duplicate of any statement made under this subdivision and in accordance <br/>
<a id="pl.193.26"></a><var>193.26</var>with rules prescribed by the commissioner, along with a reconciliation in the form the <br/>
<a id="pl.193.27"></a><var>193.27</var>commissioner prescribes of the statements for the calendar year, including a reconciliation
         <br/>
<a id="pl.193.28"></a><var>193.28</var>of the quarterly returns required to be filed under subdivision 1, must be filed with the <br/>
<a id="pl.193.29"></a><var>193.29</var>commissioner on or before February 28 of the year after the payments were made.<br/>
<a id="pl.193.30"></a><var>193.30</var>    (e) If an employer cancels the employer's Minnesota withholding account number <br/>
<a id="pl.193.31"></a><var>193.31</var>required by section 
         <statute_ref>290.92, subdivision 24</statute_ref>, the information required by paragraph (d), <br/>
<a id="pl.193.32"></a><var>193.32</var>must be filed with the commissioner within 30 days of the end of the quarter in which
         <br/>
<a id="pl.193.33"></a><var>193.33</var>the employer cancels its account number.<br/>
<a id="pl.193.34"></a><var>193.34</var>    (f) The employer must submit the statements required to be sent to the commissioner
         <br/>
<a id="pl.193.35"></a><var>193.35</var>in the same manner required to satisfy the federal reporting requirements of section
         <br/>
<a id="pl.193.36"></a><var>193.36</var>6011(e) of the Internal Revenue Code and the regulations issued under it. An employer
         <br/>
<a id="pl.194.1"></a><var>194.1</var>must submit statements to the commissioner required by this section by electronic
         means <br/>
<a id="pl.194.2"></a><var>194.2</var>if the employer is required to send more than 25 statements to the commissioner, even
         <br/>
<a id="pl.194.3"></a><var>194.3</var>though the employer is not required to submit the returns federally by electronic
         means. <br/>
<a id="pl.194.4"></a><var>194.4</var>For statements issued for wages paid in 2011 and after, the threshold is ten. All
         statements <br/>
<a id="pl.194.5"></a><var>194.5</var>issued for withholding required under section 
<statute_ref>290.92</statute_ref> are aggregated for purposes of <br/>
<a id="pl.194.6"></a><var>194.6</var>determining whether the electronic submission threshold is met. The commissioner shall <br/>
<a id="pl.194.7"></a><var>194.7</var>prescribe the content, format, and manner of the statement pursuant to section 270C.30.<br/>
<a id="pl.194.8"></a><var>194.8</var>    (g) A "third-party bulk filer" as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph <br/>
<a id="pl.194.9"></a><var>194.9</var>(a), clause (2), must submit the returns required by this subdivision and subdivision
         1, <br/>
<a id="pl.194.10"></a><var>194.10</var>paragraph (a), with the commissioner by electronic means.<br/>
<a id="pl.194.11"></a><var>194.11</var><b>EFFECTIVE DATE.</b>This section is effective for statements required to be sent to <br/>
<a id="pl.194.12"></a><var>194.12</var>the commissioner after December 31, 2015.<br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.194.13"></a><var>194.13</var>    Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:<br/>
<a id="pl.194.14"></a><var>194.14</var>    Subd. 14. <b>Regulated investment companies;</b><b> Reporting </b><b>exempt interest and </b><br/>
<a id="pl.194.15"></a><var>194.15</var><b>exempt-interest dividends.</b> (a) A regulated investment company paying $10 or more in <br/>
<a id="pl.194.16"></a><var>194.16</var>exempt-interest dividends to an individual who is a resident of Minnesota, or any person <br/>
<a id="pl.194.17"></a><var>194.17</var>receiving $10 or more of exempt interest or exempt-interest dividends and paying as
         <br/>
<a id="pl.194.18"></a><var>194.18</var>nominee to an individual who is a resident of Minnesota, must make a return indicating <br/>
<a id="pl.194.19"></a><var>194.19</var>the amount of the exempt interest or exempt-interest dividends, the name, address, and <br/>
<a id="pl.194.20"></a><var>194.20</var>Social Security number of the recipient, and any other information that the commissioner
         <br/>
<a id="pl.194.21"></a><var>194.21</var>specifies. The return must be provided to the shareholder recipient by February 15 of the <br/>
<a id="pl.194.22"></a><var>194.22</var>year following the year of the payment. The return provided to the shareholder recipient <br/>
<a id="pl.194.23"></a><var>194.23</var>must include a clear statement, in the form prescribed by the commissioner, that the
         <br/>
<a id="pl.194.24"></a><var>194.24</var>exempt interest or exempt-interest dividends must be included in the computation of <br/>
<a id="pl.194.25"></a><var>194.25</var>Minnesota taxable income. By June 1 of each year, the regulated investment company <br/>
<a id="pl.194.26"></a><var>194.26</var>payor must file a copy of the return with the commissioner.<br/>
<a id="pl.194.27"></a><var>194.27</var>    (b) For purposes of this subdivision, the following definitions apply.<br/>
<a id="pl.194.28"></a><var>194.28</var>    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in <br/>
<a id="pl.194.29"></a><var>194.29</var>section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
         <br/>
<a id="pl.194.30"></a><var>194.30</var>exempt-interest dividends that are not required to be added to federal taxable income
         <br/>
<a id="pl.194.31"></a><var>194.31</var>under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1)(ii).<br/>
<a id="pl.194.32"></a><var>194.32</var>    (2) "Regulated investment company" means regulated investment company as <br/>
<a id="pl.194.33"></a><var>194.33</var>defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
         <br/>
<a id="pl.194.34"></a><var>194.34</var>investment company as defined in section 851(g) of the Internal Revenue Code.<br/>
<a id="pl.195.1"></a><var>195.1</var>    (3) "Exempt interest" means income on obligations of any state other than <br/>
<a id="pl.195.2"></a><var>195.2</var>Minnesota, or a political or governmental subdivision, municipality, or governmental
         <br/>
<a id="pl.195.3"></a><var>195.3</var>agency or instrumentality of any state other than Minnesota, and exempt from federal
         <br/>
<a id="pl.195.4"></a><var>195.4</var>income taxes under the Internal Revenue Code or any other federal statute.<br/>
<a id="pl.195.5"></a><var>195.5</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed after <br/>
<a id="pl.195.6"></a><var>195.6</var>December 31, 2015.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.195.7"></a><var>195.7</var>    Sec. 5. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:<br/>
<a id="pl.195.8"></a><var>195.8</var>    Subd. 28. <b>Preparer identification number.</b> Any Minnesota individual income tax <br/>
<a id="pl.195.9"></a><var>195.9</var>return or claim for refund prepared by a "tax refund or return preparer" as defined
         in <br/>
<a id="pl.195.10"></a><var>195.10</var>subdivision 13, paragraph (f), shall bear the identification number the preparer is
         required <br/>
<a id="pl.195.11"></a><var>195.11</var>to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund
         or <br/>
<a id="pl.195.12"></a><var>195.12</var>return preparer who prepares a Minnesota tax return for an individual income tax return, <br/>
<a id="pl.195.13"></a><var>195.13</var>corporation, S corporation, partnership, fiduciary, or claim for refund and fails to include <br/>
<a id="pl.195.14"></a><var>195.14</var>the required number on the return or claim is subject to a penalty of $50 for each
         failure.<br/>
<a id="pl.195.15"></a><var>195.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.195.16"></a><var>195.16</var>December 31, 2014.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.195.17"></a><var>195.17</var>    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.195.18"></a><var>195.18</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.195.19"></a><var>195.19</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.195.20"></a><var>195.20</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.195.21"></a><var>195.21</var>instrumentality of the United States to the extent includable in taxable income for
         federal <br/>
<a id="pl.195.22"></a><var>195.22</var>income tax purposes but exempt from state income tax under the laws of the United
         States;<br/>
<a id="pl.195.23"></a><var>195.23</var>    (2) if included in federal taxable income, the amount of any overpayment of income
         <br/>
<a id="pl.195.24"></a><var>195.24</var>tax to Minnesota or to any other state, for any previous taxable year, whether the
         amount <br/>
<a id="pl.195.25"></a><var>195.25</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.195.26"></a><var>195.26</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under
         <br/>
<a id="pl.195.27"></a><var>195.27</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.195.28"></a><var>195.28</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks,
         and <br/>
<a id="pl.195.29"></a><var>195.29</var>transportation of each qualifying child in attending an elementary or secondary school
         <br/>
<a id="pl.195.30"></a><var>195.30</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.195.31"></a><var>195.31</var>resident of this state may legally fulfill the state's compulsory attendance laws,
         which <br/>
<a id="pl.195.32"></a><var>195.32</var>is not operated for profit, and which adheres to the provisions of the Civil Rights
         Act <br/>
<a id="pl.195.33"></a><var>195.33</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees
         or <br/>
<a id="pl.196.1"></a><var>196.1</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.196.2"></a><var>196.2</var>"textbooks" includes books and other instructional materials and equipment purchased
         <br/>
<a id="pl.196.3"></a><var>196.3</var>or leased for use in elementary and secondary schools in teaching only those subjects
         <br/>
<a id="pl.196.4"></a><var>196.4</var>legally and commonly taught in public elementary and secondary schools in this state.
         <br/>
<a id="pl.196.5"></a><var>196.5</var>Equipment expenses qualifying for deduction includes expenses as defined and limited
         in <br/>
<a id="pl.196.6"></a><var>196.6</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.196.7"></a><var>196.7</var>books and materials used in the teaching of religious tenets, doctrines, or worship,
         the <br/>
<a id="pl.196.8"></a><var>196.8</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include
         books <br/>
<a id="pl.196.9"></a><var>196.9</var>or materials for, or transportation to, extracurricular activities including sporting
         events, <br/>
<a id="pl.196.10"></a><var>196.10</var>musical or dramatic events, speech activities, driver's education, or similar programs.
         No <br/>
<a id="pl.196.11"></a><var>196.11</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's
         or <br/>
<a id="pl.196.12"></a><var>196.12</var>the qualifying child's vehicle to provide such transportation for a qualifying child.
         For <br/>
<a id="pl.196.13"></a><var>196.13</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning
         <br/>
<a id="pl.196.14"></a><var>196.14</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.196.15"></a><var>196.15</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.196.16"></a><var>196.16</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.196.17"></a><var>196.17</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.196.18"></a><var>196.18</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
         <br/>
<a id="pl.196.19"></a><var>196.19</var>of the Internal Revenue Code in determining federal taxable income by an individual
         <br/>
<a id="pl.196.20"></a><var>196.20</var>who does not itemize deductions for federal income tax purposes for the taxable year,
         an <br/>
<a id="pl.196.21"></a><var>196.21</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable
         <br/>
<a id="pl.196.22"></a><var>196.22</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
         <br/>
<a id="pl.196.23"></a><var>196.23</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.196.24"></a><var>196.24</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do
         not <br/>
<a id="pl.196.25"></a><var>196.25</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.196.26"></a><var>196.26</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational
         <br/>
<a id="pl.196.27"></a><var>196.27</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
         <br/>
<a id="pl.196.28"></a><var>196.28</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal
         <br/>
<a id="pl.196.29"></a><var>196.29</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
         <br/>
<a id="pl.196.30"></a><var>196.30</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes
         to <br/>
<a id="pl.196.31"></a><var>196.31</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.196.32"></a><var>196.32</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.196.33"></a><var>196.33</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12) (11), in the case of <br/>
<a id="pl.196.34"></a><var>196.34</var>a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
         of the <br/>
<a id="pl.196.35"></a><var>196.35</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the
         amount <br/>
<a id="pl.196.36"></a><var>196.36</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision
         19c, <br/>
<a id="pl.197.1"></a><var>197.1</var>clause (12) (11), in the case of a shareholder of an S corporation, minus the positive value <br/>
<a id="pl.197.2"></a><var>197.2</var>of any net operating loss under section 172 of the Internal Revenue Code generated
         for the <br/>
<a id="pl.197.3"></a><var>197.3</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.197.4"></a><var>197.4</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.197.5"></a><var>197.5</var>    (10) to the extent included in federal taxable income, the amount of compensation
         <br/>
<a id="pl.197.6"></a><var>197.6</var>paid to members of the Minnesota National Guard or other reserve components of the
         <br/>
<a id="pl.197.7"></a><var>197.7</var>United States military for active service, including compensation for services performed
         <br/>
<a id="pl.197.8"></a><var>197.8</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
         <br/>
<a id="pl.197.9"></a><var>197.9</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.197.10"></a><var>197.10</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.197.11"></a><var>197.11</var>5b
         </statute_ref>, and "active service" includes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.197.12"></a><var>197.12</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.197.13"></a><var>197.13</var>    (11) to the extent included in federal taxable income, the amount of compensation
         <br/>
<a id="pl.197.14"></a><var>197.14</var>paid to Minnesota residents who are members of the armed forces of the United States
         <br/>
<a id="pl.197.15"></a><var>197.15</var>or United Nations for active duty performed under United States Code, title 10; or
         the <br/>
<a id="pl.197.16"></a><var>197.16</var>authority of the United Nations;<br/>
<a id="pl.197.17"></a><var>197.17</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.197.18"></a><var>197.18</var>qualified donor's donation, while living, of one or more of the qualified donor's
         organs <br/>
<a id="pl.197.19"></a><var>197.19</var>to another person for human organ transplantation. For purposes of this clause, "organ"
         <br/>
<a id="pl.197.20"></a><var>197.20</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or
         bone marrow; <br/>
<a id="pl.197.21"></a><var>197.21</var>"human organ transplantation" means the medical procedure by which transfer of a human
         <br/>
<a id="pl.197.22"></a><var>197.22</var>organ is made from the body of one person to the body of another person; "qualified
         <br/>
<a id="pl.197.23"></a><var>197.23</var>expenses" means unreimbursed expenses for both the individual and the qualified donor
         <br/>
<a id="pl.197.24"></a><var>197.24</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such
         expenses <br/>
<a id="pl.197.25"></a><var>197.25</var>may be subtracted under this clause only once; and "qualified donor" means the individual
         <br/>
<a id="pl.197.26"></a><var>197.26</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code.
         An <br/>
<a id="pl.197.27"></a><var>197.27</var>individual may claim the subtraction in this clause for each instance of organ donation
         for <br/>
<a id="pl.197.28"></a><var>197.28</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.197.29"></a><var>197.29</var>    (13) in each of the five tax years immediately following the tax year in which an
         <br/>
<a id="pl.197.30"></a><var>197.30</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13) (12), in the case <br/>
<a id="pl.197.31"></a><var>197.31</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
         of <br/>
<a id="pl.197.32"></a><var>197.32</var>the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
         (13) <br/>
<a id="pl.197.33"></a><var>197.33</var>(12), in the case of a shareholder of a corporation that is an S corporation, minus the
         <br/>
<a id="pl.197.34"></a><var>197.34</var>positive value of any net operating loss under section 172 of the Internal Revenue
         Code <br/>
<a id="pl.197.35"></a><var>197.35</var>generated for the tax year of the addition. If the net operating loss exceeds the
         addition for <br/>
<a id="pl.197.36"></a><var>197.36</var>the tax year, a subtraction is not allowed under this clause;<br/>
<a id="pl.198.1"></a><var>198.1</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.198.2"></a><var>198.2</var>Minnesota, compensation paid to a service member as defined in United States Code,
         title <br/>
<a id="pl.198.3"></a><var>198.3</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil
         Relief <br/>
<a id="pl.198.4"></a><var>198.4</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.198.5"></a><var>198.5</var>    (15) to the extent included in federal taxable income, the amount of national service
         <br/>
<a id="pl.198.6"></a><var>198.6</var>educational awards received from the National Service Trust under United States Code,
         <br/>
<a id="pl.198.7"></a><var>198.7</var>title 42, sections 12601 to 12604, for service in an approved Americorps National
         Service <br/>
<a id="pl.198.8"></a><var>198.8</var>program;<br/>
<a id="pl.198.9"></a><var>198.9</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.198.10"></a><var>198.10</var>income resulting from reacquisition of business indebtedness included in federal taxable
         <br/>
<a id="pl.198.11"></a><var>198.11</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies
         only <br/>
<a id="pl.198.12"></a><var>198.12</var>to the extent that the income was included in net income in a prior year as a result
         of the <br/>
<a id="pl.198.13"></a><var>198.13</var>addition under subdivision 19a, clause (13);<br/>
<a id="pl.198.14"></a><var>198.14</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.198.15"></a><var>198.15</var>11
         </statute_ref>, paragraph (c);<br/>
<a id="pl.198.16"></a><var>198.16</var>(18) the amount of expenses not allowed for federal income tax purposes due <br/>
<a id="pl.198.17"></a><var>198.17</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal
         <br/>
<a id="pl.198.18"></a><var>198.18</var>Revenue Code;<br/>
<a id="pl.198.19"></a><var>198.19</var>(19) the amount of the limitation on itemized deductions under section 68(b) of the
         <br/>
<a id="pl.198.20"></a><var>198.20</var>Internal Revenue Code;<br/>
<a id="pl.198.21"></a><var>198.21</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of <br/>
<a id="pl.198.22"></a><var>198.22</var>the Internal Revenue Code; and<br/>
<a id="pl.198.23"></a><var>198.23</var>(21) to the extent included in federal taxable income, the amount of qualified <br/>
<a id="pl.198.24"></a><var>198.24</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
         <br/>
<a id="pl.198.25"></a><var>198.25</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified
         <br/>
<a id="pl.198.26"></a><var>198.26</var>transportation fringe benefits received in excess of the limitations under section
         <br/>
<a id="pl.198.27"></a><var>198.27</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
         <br/>
<a id="pl.198.28"></a><var>198.28</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
         <br/>
<a id="pl.198.29"></a><var>198.29</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
         <br/>
<a id="pl.198.30"></a><var>198.30</var>of the Internal Revenue Code.<br/>
<a id="pl.198.31"></a><var>198.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.198.32"></a><var>198.32</var>    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:<br/>
<a id="pl.198.33"></a><var>198.33</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.198.34"></a><var>198.34</var>there shall be added to federal taxable income:<br/>
<a id="pl.199.1"></a><var>199.1</var>    (1) the amount of any deduction taken for federal income tax purposes for income,
         <br/>
<a id="pl.199.2"></a><var>199.2</var>excise, or franchise taxes based on net income or related minimum taxes, including
         but not <br/>
<a id="pl.199.3"></a><var>199.3</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.199.4"></a><var>199.4</var>another state, a political subdivision of another state, the District of Columbia,
         or any <br/>
<a id="pl.199.5"></a><var>199.5</var>foreign country or possession of the United States;<br/>
<a id="pl.199.6"></a><var>199.6</var>    (2) interest not subject to federal tax upon obligations of: the United States, its
         <br/>
<a id="pl.199.7"></a><var>199.7</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any
         other <br/>
<a id="pl.199.8"></a><var>199.8</var>state, any of its political or governmental subdivisions, any of its municipalities,
         or any <br/>
<a id="pl.199.9"></a><var>199.9</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian
         <br/>
<a id="pl.199.10"></a><var>199.10</var>tribal governments;<br/>
<a id="pl.199.11"></a><var>199.11</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
         <br/>
<a id="pl.199.12"></a><var>199.12</var>Revenue Code;<br/>
<a id="pl.199.13"></a><var>199.13</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.199.14"></a><var>199.14</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations
         loss <br/>
<a id="pl.199.15"></a><var>199.15</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.199.16"></a><var>199.16</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.199.17"></a><var>199.17</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.199.18"></a><var>199.18</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.199.19"></a><var>199.19</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.199.20"></a><var>199.20</var>    (7) the amount of any capital losses deducted for federal income tax purposes under
         <br/>
<a id="pl.199.21"></a><var>199.21</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.199.22"></a><var>199.22</var>    (8) the amount of percentage depletion deducted under sections 611 through 614 and
         <br/>
<a id="pl.199.23"></a><var>199.23</var>291 of the Internal Revenue Code;<br/>
<a id="pl.199.24"></a><var>199.24</var>    (9) for certified pollution control facilities placed in service in a taxable year
         <br/>
<a id="pl.199.25"></a><var>199.25</var>beginning before December 31, 1986, and for which amortization deductions were elected
         <br/>
<a id="pl.199.26"></a><var>199.26</var>under section 169 of the Internal Revenue Code of 1954, as amended through December
         <br/>
<a id="pl.199.27"></a><var>199.27</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable
         <br/>
<a id="pl.199.28"></a><var>199.28</var>income for those facilities;<br/>
<a id="pl.199.29"></a><var>199.29</var>    (10) (9) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.199.30"></a><var>199.30</var>through to the partner because the partnership elected to pay the tax on the income
         under <br/>
<a id="pl.199.31"></a><var>199.31</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.199.32"></a><var>199.32</var>    (11) (10) any increase in subpart F income, as defined in section 952(a) of the <br/>
<a id="pl.199.33"></a><var>199.33</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without
         <br/>
<a id="pl.199.34"></a><var>199.34</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.199.35"></a><var>199.35</var>    (12) (11) 80 percent of the depreciation deduction allowed under section <br/>
<a id="pl.199.36"></a><var>199.36</var>168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause,
         if <br/>
<a id="pl.200.1"></a><var>200.1</var>the taxpayer has an activity that in the taxable year generates a deduction for depreciation
         <br/>
<a id="pl.200.2"></a><var>200.2</var>under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the
         taxable <br/>
<a id="pl.200.3"></a><var>200.3</var>year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
         <br/>
<a id="pl.200.4"></a><var>200.4</var>allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited
         to excess <br/>
<a id="pl.200.5"></a><var>200.5</var>of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
         <br/>
<a id="pl.200.6"></a><var>200.6</var>over the amount of the loss from the activity that is not allowed in the taxable year.
         In <br/>
<a id="pl.200.7"></a><var>200.7</var>succeeding taxable years when the losses not allowed in the taxable year are allowed,
         the <br/>
<a id="pl.200.8"></a><var>200.8</var>depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.200.9"></a><var>200.9</var>    (13) (12) 80 percent of the amount by which the deduction allowed by section 179 of <br/>
<a id="pl.200.10"></a><var>200.10</var>the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
         <br/>
<a id="pl.200.11"></a><var>200.11</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.200.12"></a><var>200.12</var>    (14) (13) to the extent deducted in computing federal taxable income, the amount of <br/>
<a id="pl.200.13"></a><var>200.13</var>the deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.200.14"></a><var>200.14</var>    (15) (14) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>; and<br/>
<a id="pl.200.15"></a><var>200.15</var>(16) (15) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.200.16"></a><var>200.16</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br/>
<a id="pl.200.17"></a><var>200.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.200.18"></a><var>200.18</var>    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:<br/>
<a id="pl.200.19"></a><var>200.19</var>    Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br/>
<a id="pl.200.20"></a><var>200.20</var>corporations, there shall be subtracted from federal taxable income after the increases
         <br/>
<a id="pl.200.21"></a><var>200.21</var>provided in subdivision 19c:<br/>
<a id="pl.200.22"></a><var>200.22</var>    (1) the amount of foreign dividend gross-up added to gross income for federal <br/>
<a id="pl.200.23"></a><var>200.23</var>income tax purposes under section 78 of the Internal Revenue Code;<br/>
<a id="pl.200.24"></a><var>200.24</var>    (2) the amount of salary expense not allowed for federal income tax purposes due to
         <br/>
<a id="pl.200.25"></a><var>200.25</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br/>
<a id="pl.200.26"></a><var>200.26</var>    (3) any dividend (not including any distribution in liquidation) paid within the <br/>
<a id="pl.200.27"></a><var>200.27</var>taxable year by a national or state bank to the United States, or to any instrumentality
         of <br/>
<a id="pl.200.28"></a><var>200.28</var>the United States exempt from federal income taxes, on the preferred stock of the
         bank <br/>
<a id="pl.200.29"></a><var>200.29</var>owned by the United States or the instrumentality;<br/>
<a id="pl.200.30"></a><var>200.30</var>    (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br/>
<a id="pl.200.31"></a><var>200.31</var>Internal Revenue Code, except that:<br/>
<a id="pl.200.32"></a><var>200.32</var>    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
         <br/>
<a id="pl.200.33"></a><var>200.33</var>capital loss carrybacks shall not be allowed;<br/>
<a id="pl.201.1"></a><var>201.1</var>    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
         <br/>
<a id="pl.201.2"></a><var>201.2</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year
         shall be <br/>
<a id="pl.201.3"></a><var>201.3</var>allowed;<br/>
<a id="pl.201.4"></a><var>201.4</var>    (iii) for capital losses incurred in taxable years beginning before January 1, 1987,
         a <br/>
<a id="pl.201.5"></a><var>201.5</var>capital loss carryback to each of the three taxable years preceding the loss year,
         subject to <br/>
<a id="pl.201.6"></a><var>201.6</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br/>
<a id="pl.201.7"></a><var>201.7</var>    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
         <br/>
<a id="pl.201.8"></a><var>201.8</var>a capital loss carryover to each of the five taxable years succeeding the loss year
         to the <br/>
<a id="pl.201.9"></a><var>201.9</var>extent such loss was not used in a prior taxable year and subject to the provisions
         of <br/>
<a id="pl.201.10"></a><var>201.10</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br/>
<a id="pl.201.11"></a><var>201.11</var>    (5) an amount for interest and expenses relating to income not taxable for federal
         <br/>
<a id="pl.201.12"></a><var>201.12</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the
         interest and <br/>
<a id="pl.201.13"></a><var>201.13</var>expenses were disallowed as deductions under the provisions of section 171(a)(2),
         265 or <br/>
<a id="pl.201.14"></a><var>201.14</var>291 of the Internal Revenue Code in computing federal taxable income;<br/>
<a id="pl.201.15"></a><var>201.15</var>    (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
         <br/>
<a id="pl.201.16"></a><var>201.16</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (8),
         a <br/>
<a id="pl.201.17"></a><var>201.17</var>reasonable allowance for depletion based on actual cost. In the case of leases the
         deduction <br/>
<a id="pl.201.18"></a><var>201.18</var>must be apportioned between the lessor and lessee in accordance with rules prescribed
         <br/>
<a id="pl.201.19"></a><var>201.19</var>by the commissioner. In the case of property held in trust, the allowable deduction
         must <br/>
<a id="pl.201.20"></a><var>201.20</var>be apportioned between the income beneficiaries and the trustee in accordance with
         the <br/>
<a id="pl.201.21"></a><var>201.21</var>pertinent provisions of the trust, or if there is no provision in the instrument,
         on the basis <br/>
<a id="pl.201.22"></a><var>201.22</var>of the trust's income allocable to each;<br/>
<a id="pl.201.23"></a><var>201.23</var>    (7) for certified pollution control facilities placed in service in a taxable year
         <br/>
<a id="pl.201.24"></a><var>201.24</var>beginning before December 31, 1986, and for which amortization deductions were elected
         <br/>
<a id="pl.201.25"></a><var>201.25</var>under section 169 of the Internal Revenue Code of 1954, as amended through December
         <br/>
<a id="pl.201.26"></a><var>201.26</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
         <br/>
<a id="pl.201.27"></a><var>201.27</var>1986, section 
<statute_ref>290.09, subdivision 7</statute_ref>;<br/>
<a id="pl.201.28"></a><var>201.28</var>    (8) (7) amounts included in federal taxable income that are due to refunds of <br/>
<a id="pl.201.29"></a><var>201.29</var>income, excise, or franchise taxes based on net income or related minimum taxes paid
         <br/>
<a id="pl.201.30"></a><var>201.30</var>by the corporation to Minnesota, another state, a political subdivision of another
         state, <br/>
<a id="pl.201.31"></a><var>201.31</var>the District of Columbia, or a foreign country or possession of the United States
         to the <br/>
<a id="pl.201.32"></a><var>201.32</var>extent that the taxes were added to federal taxable income under subdivision 19c,
         clause <br/>
<a id="pl.201.33"></a><var>201.33</var>(1), in a prior taxable year;<br/>
<a id="pl.201.34"></a><var>201.34</var>    (9) (8) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br/>
<a id="pl.201.35"></a><var>201.35</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br/>
<a id="pl.202.1"></a><var>202.1</var>    (10) (9) the amount of disability access expenditures in the taxable year which are not <br/>
<a id="pl.202.2"></a><var>202.2</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue
         Code;<br/>
<a id="pl.202.3"></a><var>202.3</var>    (11) (10) the amount of qualified research expenses not allowed for federal income <br/>
<a id="pl.202.4"></a><var>202.4</var>tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
         <br/>
<a id="pl.202.5"></a><var>202.5</var>that the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br/>
<a id="pl.202.6"></a><var>202.6</var>    (12) (11) the amount of salary expenses not allowed for federal income tax purposes <br/>
<a id="pl.202.7"></a><var>202.7</var>due to claiming the Indian employment credit under section 45A(a) of the Internal
         <br/>
<a id="pl.202.8"></a><var>202.8</var>Revenue Code;<br/>
<a id="pl.202.9"></a><var>202.9</var>    (13) (12) any decrease in subpart F income, as defined in section 952(a) of the <br/>
<a id="pl.202.10"></a><var>202.10</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without
         <br/>
<a id="pl.202.11"></a><var>202.11</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.202.12"></a><var>202.12</var>    (14) (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.202.13"></a><var>202.13</var>addition is required under subdivision 19c, clause (12) (11), an amount equal to one-fifth <br/>
<a id="pl.202.14"></a><var>202.14</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
         the <br/>
<a id="pl.202.15"></a><var>202.15</var>amount of the addition made by the taxpayer under subdivision 19c, clause (12) (11). The <br/>
<a id="pl.202.16"></a><var>202.16</var>resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.202.17"></a><var>202.17</var>    (15) (14) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.202.18"></a><var>202.18</var>addition is required under subdivision 19c, clause (13) (12), an amount equal to one-fifth <br/>
<a id="pl.202.19"></a><var>202.19</var>of the amount of the addition;<br/>
<a id="pl.202.20"></a><var>202.20</var>(16) (15) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.202.21"></a><var>202.21</var>income resulting from reacquisition of business indebtedness included in federal taxable
         <br/>
<a id="pl.202.22"></a><var>202.22</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies
         only <br/>
<a id="pl.202.23"></a><var>202.23</var>to the extent that the income was included in net income in a prior year as a result
         of the <br/>
<a id="pl.202.24"></a><var>202.24</var>addition under subdivision 19c, clause (16) (15); and<br/>
<a id="pl.202.25"></a><var>202.25</var>(17) (16) the amount of expenses not allowed for federal income tax purposes due <br/>
<a id="pl.202.26"></a><var>202.26</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal
         <br/>
<a id="pl.202.27"></a><var>202.27</var>Revenue Code.<br/>
<a id="pl.202.28"></a><var>202.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.9.0"></a><a id="pl.202.29"></a><var>202.29</var>    Sec. 9. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:<br/>
<a id="pl.202.30"></a><var>202.30</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.202.31"></a><var>202.31</var>have the meanings given.<br/>
<a id="pl.202.32"></a><var>202.32</var>(b) "Long-term care insurance" means a policy that:<br/>
<a id="pl.202.33"></a><var>202.33</var>(1) qualifies for a deduction under section 213 of the Internal Revenue Code, <br/>
<a id="pl.202.34"></a><var>202.34</var>disregarding the 7.5 percent adjusted gross income test; or meets the requirements <br/>
<a id="pl.203.1"></a><var>203.1</var>given in section 
         <statute_ref>62A.46</statute_ref>; or provides similar coverage issued under the laws of another <br/>
<a id="pl.203.2"></a><var>203.2</var>jurisdiction; and<br/>
<a id="pl.203.3"></a><var>203.3</var>(2) has a lifetime long-term care benefit limit of not less than $100,000; and<br/>
<a id="pl.203.4"></a><var>203.4</var>(3) has been offered in compliance with the inflation protection requirements of <br/>
<a id="pl.203.5"></a><var>203.5</var>section 
         <statute_ref>62S.23</statute_ref>.<br/>
<a id="pl.203.6"></a><var>203.6</var>(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.<br/>
<a id="pl.203.7"></a><var>203.7</var>(d) "Premiums deducted in determining federal taxable income" means the lesser of
         <br/>
<a id="pl.203.8"></a><var>203.8</var>(1) long-term care insurance premiums that qualify as deductions under section 213
         of <br/>
<a id="pl.203.9"></a><var>203.9</var>the Internal Revenue Code; and (2) the total amount deductible for medical care under
         <br/>
<a id="pl.203.10"></a><var>203.10</var>section 213 of the Internal Revenue Code.<br/>
<a id="pl.203.11"></a><var>203.11</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years <br/>
<a id="pl.203.12"></a><var>203.12</var>beginning after December 31, 2012.<br/>
<br/>
<a id="bill.13.10.0"></a><a id="pl.203.13"></a><var>203.13</var>    Sec. 10. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:<br/>
<a id="pl.203.14"></a><var>203.14</var>    Subd. 3. <b>Exemption amount.</b> (a) For purposes of computing the alternative <br/>
<a id="pl.203.15"></a><var>203.15</var>minimum tax, the exemption amount is, for taxable years beginning after December 31,
         <br/>
<a id="pl.203.16"></a><var>203.16</var>2005, $60,000 for married couples filing joint returns, $30,000 for married individuals
         <br/>
<a id="pl.203.17"></a><var>203.17</var>filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.<br/>
<a id="pl.203.18"></a><var>203.18</var>    (b) The exemption amount determined under this subdivision is subject to the phase
         <br/>
<a id="pl.203.19"></a><var>203.19</var>out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
         <br/>
<a id="pl.203.20"></a><var>203.20</var>taxable income as determined under this section must be substituted in the computation
         of <br/>
<a id="pl.203.21"></a><var>203.21</var>the phase out.<br/>
<a id="pl.203.22"></a><var>203.22</var>    (c) For taxable years beginning after December 31, 2006, the exemption amount <br/>
<a id="pl.203.23"></a><var>203.23</var>under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall <br/>
<a id="pl.203.24"></a><var>203.24</var>adjust the exemption amount by the percentage determined pursuant to the provisions
         of <br/>
<a id="pl.203.25"></a><var>203.25</var>section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word
         "2005" <br/>
<a id="pl.203.26"></a><var>203.26</var>shall be substituted for the word "1992." For 2007, the commissioner shall then determine
         <br/>
<a id="pl.203.27"></a><var>203.27</var>the percent change from the 12 months ending on August 31, 2005, to the 12 months
         <br/>
<a id="pl.203.28"></a><var>203.28</var>ending on August 31, 2006, and in each subsequent year, from the 12 months ending
         on <br/>
<a id="pl.203.29"></a><var>203.29</var>August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
         <br/>
<a id="pl.203.30"></a><var>203.30</var>year. The exemption amount as adjusted must be rounded to the nearest $10. If the
         amount <br/>
<a id="pl.203.31"></a><var>203.31</var>ends in $5, it must be rounded up to the nearest $10 amount. The determination of
         the <br/>
<a id="pl.203.32"></a><var>203.32</var>commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.<br/>
<a id="pl.203.33"></a><var>203.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.11.0"></a><a id="pl.204.1"></a><var>204.1</var>    Sec. 11. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:<br/>
<a id="pl.204.2"></a><var>204.2</var>    Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br/>
<a id="pl.204.3"></a><var>204.3</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br/>
<a id="pl.204.4"></a><var>204.4</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d),
         (e), <br/>
<a id="pl.204.5"></a><var>204.5</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
         <br/>
<a id="pl.204.6"></a><var>204.6</var>Minnesota tax return, the minimum tax must be computed on a separate company basis.
         <br/>
<a id="pl.204.7"></a><var>204.7</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must
         be <br/>
<a id="pl.204.8"></a><var>204.8</var>computed on a unitary basis. The following adjustments must be made.<br/>
<a id="pl.204.9"></a><var>204.9</var>(1) The portion of the depreciation deduction allowed for federal income tax <br/>
<a id="pl.204.10"></a><var>204.10</var>purposes under section 168(k) of the Internal Revenue Code that is required as an
         addition <br/>
<a id="pl.204.11"></a><var>204.11</var>under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (12) (11), is disallowed in determining <br/>
<a id="pl.204.12"></a><var>204.12</var>alternative minimum taxable income.<br/>
<a id="pl.204.13"></a><var>204.13</var>(2) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.204.14"></a><var>204.14</var>19d
         </statute_ref>, clause (14) (13), is allowed as a depreciation deduction in determining alternative <br/>
<a id="pl.204.15"></a><var>204.15</var>minimum taxable income.<br/>
<a id="pl.204.16"></a><var>204.16</var>(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
         <br/>
<a id="pl.204.17"></a><var>204.17</var>of the Internal Revenue Code does not apply.<br/>
<a id="pl.204.18"></a><var>204.18</var>(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
         <br/>
<a id="pl.204.19"></a><var>204.19</var>Revenue Code does not apply.<br/>
<a id="pl.204.20"></a><var>204.20</var>(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
         <br/>
<a id="pl.204.21"></a><var>204.21</var>Code does not apply.<br/>
<a id="pl.204.22"></a><var>204.22</var>(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
         <br/>
<a id="pl.204.23"></a><var>204.23</var>Revenue Code does not apply.<br/>
<a id="pl.204.24"></a><var>204.24</var>(7) The tax preference for charitable contributions of appreciated property under
         <br/>
<a id="pl.204.25"></a><var>204.25</var>section 57(a)(6) of the Internal Revenue Code does not apply.<br/>
<a id="pl.204.26"></a><var>204.26</var>(8) For purposes of calculating the adjustment for adjusted current earnings in <br/>
<a id="pl.204.27"></a><var>204.27</var>section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
         <br/>
<a id="pl.204.28"></a><var>204.28</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
         <br/>
<a id="pl.204.29"></a><var>204.29</var>minimum taxable income as defined in this subdivision, determined without regard to
         the <br/>
<a id="pl.204.30"></a><var>204.30</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue
         Code.<br/>
<a id="pl.204.31"></a><var>204.31</var>(9) For purposes of determining the amount of adjusted current earnings under <br/>
<a id="pl.204.32"></a><var>204.32</var>section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
         <br/>
<a id="pl.204.33"></a><var>204.33</var>56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
         <br/>
<a id="pl.204.34"></a><var>204.34</var>gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), or (ii) the <br/>
<a id="pl.204.35"></a><var>204.35</var>amount of refunds of income, excise, or franchise taxes subtracted as provided in
         section <br/>
<statute_ref><a id="pl.204.36"></a><var>204.36</var>290.01, subdivision 19d
         </statute_ref>, clause (8) (7).<br/>
<a id="pl.205.1"></a><var>205.1</var>(10) Alternative minimum taxable income excludes the income from operating in a <br/>
<a id="pl.205.2"></a><var>205.2</var>job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br/>
<a id="pl.205.3"></a><var>205.3</var>Items of tax preference must not be reduced below zero as a result of the <br/>
<a id="pl.205.4"></a><var>205.4</var>modifications in this subdivision.<br/>
<a id="pl.205.5"></a><var>205.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.12.0"></a><a id="pl.205.6"></a><var>205.6</var>    Sec. 12. Minnesota Statutes 2014, section 290A.19, is amended to read:<br/>
<a id="pl.205.7"></a><var>205.7</var><b>290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT </b><br/>
<a id="pl.205.8"></a><var>205.8</var><b>CERTIFICATE.</b><br/>
<a id="pl.205.9"></a><var>205.9</var>(a) The owner or managing agent of any property for which rent is paid for <br/>
<a id="pl.205.10"></a><var>205.10</var>occupancy as a homestead must furnish a certificate of rent paid to a person who is
         a <br/>
<a id="pl.205.11"></a><var>205.11</var>renter on December 31, in the form prescribed by the commissioner. If the renter moves
         <br/>
<a id="pl.205.12"></a><var>205.12</var>before December 31, the owner or managing agent may give the certificate to the renter
         <br/>
<a id="pl.205.13"></a><var>205.13</var>at the time of moving, or mail the certificate to the forwarding address if an address
         has <br/>
<a id="pl.205.14"></a><var>205.14</var>been provided by the renter. The certificate must be made available to the renter
         before <br/>
<a id="pl.205.15"></a><var>205.15</var>February 1 of the year following the year in which the rent was paid. The owner or
         <br/>
<a id="pl.205.16"></a><var>205.16</var>managing agent must retain a duplicate of each certificate or an equivalent record
         showing <br/>
<a id="pl.205.17"></a><var>205.17</var>the same information for a period of three years. The duplicate or other record must
         be <br/>
<a id="pl.205.18"></a><var>205.18</var>made available to the commissioner upon request.<br/>
<a id="pl.205.19"></a><var>205.19</var>(b) The commissioner may require the owner or managing agent, through a <br/>
<a id="pl.205.20"></a><var>205.20</var>simple process, to furnish to the commissioner on or before March 1 a copy of each
         <br/>
<a id="pl.205.21"></a><var>205.21</var>certificate of rent paid furnished to a renter for rent paid in the prior year, in
         the content, <br/>
<a id="pl.205.22"></a><var>205.22</var>format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior
         <br/>
<a id="pl.205.23"></a><var>205.23</var>to implementation, the commissioner, after consulting with representatives of owners
         <br/>
<a id="pl.205.24"></a><var>205.24</var>or managing agents, shall develop an implementation and administration plan for the
         <br/>
<a id="pl.205.25"></a><var>205.25</var>requirements of this paragraph that attempts to minimize financial burdens, administration
         <br/>
<a id="pl.205.26"></a><var>205.26</var>and compliance costs, and takes into consideration existing systems of owners and
         <br/>
<a id="pl.205.27"></a><var>205.27</var>managing agents.<br/>
<a id="pl.205.28"></a><var>205.28</var>(c) For the purposes of this section, "owner" includes a park owner as defined under
         <br/>
<a id="pl.205.29"></a><var>205.29</var>section 
         <statute_ref>327C.01, subdivision 6</statute_ref>, and "property" includes a lot as defined under section <br/>
<statute_ref><a id="pl.205.30"></a><var>205.30</var>327C.01, subdivision 3
         </statute_ref>.<br/>
<a id="pl.205.31"></a><var>205.31</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of rent paid for rent <br/>
<a id="pl.205.32"></a><var>205.32</var>paid after December 31, 2014.<br/>
<br/>
<a id="bill.13.13.0"></a><a id="pl.205.33"></a><var>205.33</var>    Sec. 13. Minnesota Statutes 2014, section 291.03, subdivision 10, is amended to read:<br/>
<a id="pl.206.1"></a><var>206.1</var>    Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br/>
<a id="pl.206.2"></a><var>206.2</var>requirements is qualified farm property:<br/>
<a id="pl.206.3"></a><var>206.3</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.206.4"></a><var>206.4</var>(2) The property consists of agricultural land and is owned by a person or entity
         that <br/>
<a id="pl.206.5"></a><var>206.5</var>is either not subject to or is in compliance with section 
         <statute_ref>500.24</statute_ref>.<br/>
<a id="pl.206.6"></a><var>206.6</var>(3) For property taxes payable in the taxable year of the decedent's death, the <br/>
<a id="pl.206.7"></a><var>206.7</var>property is classified as class 2a property under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, and is <br/>
<a id="pl.206.8"></a><var>206.8</var>classified as agricultural homestead, agricultural relative homestead, or special
         agricultural <br/>
<a id="pl.206.9"></a><var>206.9</var>homestead under section 
         <statute_ref>273.124</statute_ref>.<br/>
<a id="pl.206.10"></a><var>206.10</var>(4) The decedent continuously owned the property, including property the decedent
         <br/>
<a id="pl.206.11"></a><var>206.11</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,
         for <br/>
<a id="pl.206.12"></a><var>206.12</var>the three-year period ending on the date of death of the decedent either by ownership
         of <br/>
<a id="pl.206.13"></a><var>206.13</var>the agricultural land or pursuant to holding an interest in an entity that is not
         subject to <br/>
<a id="pl.206.14"></a><var>206.14</var>or is in compliance with section 
         <statute_ref>500.24</statute_ref>.<br/>
<a id="pl.206.15"></a><var>206.15</var>(5) The property is classified for property tax purposes as class 2a property under
         <br/>
<a id="pl.206.16"></a><var>206.16</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, for three years following the date of death of the decedent. <br/>
<a id="pl.206.17"></a><var>206.17</var>No property shall cease to be qualified farm property solely because a residence existing
         <br/>
<a id="pl.206.18"></a><var>206.18</var>at the time of the decedent's death is reclassified as class 4bb property under section
         <br/>
<a id="pl.206.19"></a><var>206.19</var>273.13, subdivision 25, during the three-year period. No property shall cease to be
         <br/>
<a id="pl.206.20"></a><var>206.20</var>qualified farm property solely because a portion consisting of no more than one-fifth
         is <br/>
<a id="pl.206.21"></a><var>206.21</var>reclassified as 2b property under section 273.13, subdivision 23, during the three-year
         <br/>
<a id="pl.206.22"></a><var>206.22</var>period, so long as the qualified heir has not substantially altered the reclassified
         property <br/>
<a id="pl.206.23"></a><var>206.23</var>during the holding period.<br/>
<a id="pl.206.24"></a><var>206.24</var>(6) The estate and the qualified heir elect to treat the property as qualified farm
         <br/>
<a id="pl.206.25"></a><var>206.25</var>property and agree, in a form prescribed by the commissioner, to pay the recapture
         tax <br/>
<a id="pl.206.26"></a><var>206.26</var>under subdivision 11, if applicable.<br/>
<a id="pl.206.27"></a><var>206.27</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.206.28"></a><var>206.28</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.13.14.0"></a><a id="pl.206.29"></a><var>206.29</var>    Sec. 14. Minnesota Statutes 2014, section 291.031, is amended to read:<br/>
<a id="pl.206.30"></a><var>206.30</var><b>291.031 CREDIT.</b><br/>
<a id="pl.206.31"></a><var>206.31</var>(a) The estate of a nonresident decedent that is subject to tax under this chapter
         on <br/>
<a id="pl.206.32"></a><var>206.32</var>the value of Minnesota situs property held in a pass-through entity is allowed a credit
         <br/>
<a id="pl.206.33"></a><var>206.33</var>against the tax due under section 
         <statute_ref>291.03 </statute_ref>equal to the lesser of:<br/>
<a id="pl.207.1"></a><var>207.1</var>(1) the amount of estate or inheritance tax paid to another state that is attributable
         to <br/>
<a id="pl.207.2"></a><var>207.2</var>the Minnesota situs property held in the pass-through entity; or<br/>
<a id="pl.207.3"></a><var>207.3</var>(2) the amount of tax paid under this section due under section 291.03 attributable to <br/>
<a id="pl.207.4"></a><var>207.4</var>the Minnesota situs property held in the pass-through entity.<br/>
<a id="pl.207.5"></a><var>207.5</var>(b) The amount of tax attributable to the Minnesota situs property held in the <br/>
<a id="pl.207.6"></a><var>207.6</var>pass-through entity must be determined by the increase in the estate or inheritance
         tax that <br/>
<a id="pl.207.7"></a><var>207.7</var>results from including the market value of the property in the estate or treating
         the value <br/>
<a id="pl.207.8"></a><var>207.8</var>as a taxable inheritance to the recipient of the property.<br/>
<a id="pl.207.9"></a><var>207.9</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.207.10"></a><var>207.10</var>dying after December 31, 2013.<br/>
<br/>
<a id="bill.13.15.0"></a><a id="pl.207.11"></a><var>207.11</var>    Sec. 15. <b> REPEALER.</b><br/>
<a id="pl.207.12"></a><var>207.12</var>Minnesota Rules, part 8092.2000, is repealed.<br/>
<a id="pl.207.13"></a><var>207.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="pl.207.16"></a><var>207.16</var><b>SPECIAL TAXES AND SALES TAXES</b><br/>

<a id="bill.14.1.0"></a><a id="pl.207.17"></a><var>207.17</var>    Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:<br/>
<a id="pl.207.18"></a><var>207.18</var>    Subd. 5. <b>Calculation of state aid.</b> (a) The amount of fire state aid available for <br/>
<a id="pl.207.19"></a><var>207.19</var>apportionment, before the addition of the minimum fire state aid allocation amount
         under <br/>
<a id="pl.207.20"></a><var>207.20</var>subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
         state <br/>
<a id="pl.207.21"></a><var>207.21</var>upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported
         to <br/>
<a id="pl.207.22"></a><var>207.22</var>the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
         <br/>
<a id="pl.207.23"></a><var>207.23</var>must be reduced by the amount required to pay the state auditor's costs and expenses
         of <br/>
<a id="pl.207.24"></a><var>207.24</var>the audits or exams of the firefighters relief associations.<br/>
<a id="pl.207.25"></a><var>207.25</var>The total amount for apportionment in respect to fire state aid must not be less than
         <br/>
<a id="pl.207.26"></a><var>207.26</var>two percent of the premiums reported to the commissioner by insurers on the Minnesota
         <br/>
<a id="pl.207.27"></a><var>207.27</var>Firetown Premium Report after subtracting the following amounts:<br/>
<a id="pl.207.28"></a><var>207.28</var>(1) the amount required to pay the state auditor's costs and expenses of the audits
         or <br/>
<a id="pl.207.29"></a><var>207.29</var>exams of the firefighters relief associations; and<br/>
<a id="pl.207.30"></a><var>207.30</var>(2) one percent of the premiums reported by town and farmers' township mutual <br/>
<a id="pl.207.31"></a><var>207.31</var>insurance companies and mutual property and casualty companies with total assets of
         <br/>
<a id="pl.207.32"></a><var>207.32</var>$5,000,000 or less.<br/>
<a id="pl.208.1"></a><var>208.1</var>(b) The total amount for apportionment as police state aid is equal to 104 percent
         <br/>
<a id="pl.208.2"></a><var>208.2</var>of the amount of premium taxes paid to the state on the premiums reported to the <br/>
<a id="pl.208.3"></a><var>208.3</var>commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
         <br/>
<a id="pl.208.4"></a><var>208.4</var>amount for apportionment in respect to the police state aid program must not be less
         than <br/>
<a id="pl.208.5"></a><var>208.5</var>two percent of the amount of premiums reported to the commissioner by insurers on
         the <br/>
<a id="pl.208.6"></a><var>208.6</var>Minnesota Aid to Police Premium Report.<br/>
<a id="pl.208.7"></a><var>208.7</var>(c) The commissioner shall calculate the percentage of increase or decrease reflected
         <br/>
<a id="pl.208.8"></a><var>208.8</var>in the apportionment over or under the previous year's available state aid using the
         same <br/>
<a id="pl.208.9"></a><var>208.9</var>premiums as a basis for comparison.<br/>
<a id="pl.208.10"></a><var>208.10</var>(d) In addition to the amount for apportionment of police state aid under paragraph
         <br/>
<a id="pl.208.11"></a><var>208.11</var>(b), each year $100,000 must be apportioned for police state aid. An amount sufficient
         to <br/>
<a id="pl.208.12"></a><var>208.12</var>pay this increase is annually appropriated from the general fund.<br/>
<a id="pl.208.13"></a><var>208.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.208.14"></a><var>208.14</var>    Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:<br/>
<a id="pl.208.15"></a><var>208.15</var>    Subd. 6. <b>Omission in excess of 25 percent.</b> Additional taxes may be assessed <br/>
<a id="pl.208.16"></a><var>208.16</var>within 6-1/2 years after the due date of the return or the date the return was filed,
         <br/>
<a id="pl.208.17"></a><var>208.17</var>whichever is later, if:<br/>
<a id="pl.208.18"></a><var>208.18</var>(1) the taxpayer omits from gross income an amount properly includable in it that
         is <br/>
<a id="pl.208.19"></a><var>208.19</var>in excess of 25 percent of the amount of gross income stated in the return;<br/>
<a id="pl.208.20"></a><var>208.20</var>(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a <br/>
<a id="pl.208.21"></a><var>208.21</var>tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the <br/>
<a id="pl.208.22"></a><var>208.22</var>taxes reported in the return; or<br/>
<a id="pl.208.23"></a><var>208.23</var>(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
         <br/>
<a id="pl.208.24"></a><var>208.24</var>gross estate reported in the return.<br/>
<a id="pl.208.25"></a><var>208.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.208.26"></a><var>208.26</var>    Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:<br/>
<a id="pl.208.27"></a><var>208.27</var>    Subd. 2. <b>Exemptions.</b> The following entities are exempt from the tax imposed <br/>
<a id="pl.208.28"></a><var>208.28</var>by this section:<br/>
<a id="pl.208.29"></a><var>208.29</var>(1) corporations exempt from tax under section 
         <statute_ref>290.05</statute_ref>;<br/>
<a id="pl.208.30"></a><var>208.30</var>(2) real estate investment trusts;<br/>
<a id="pl.208.31"></a><var>208.31</var>(3) regulated investment companies or a fund thereof; and<br/>
<a id="pl.208.32"></a><var>208.32</var>(4) entities having a valid election in effect under section 860D(b) of the Internal
         <br/>
<a id="pl.208.33"></a><var>208.33</var>Revenue Code;<br/>
<a id="pl.209.1"></a><var>209.1</var>(5) town and farmers' township mutual insurance companies;<br/>
<a id="pl.209.2"></a><var>209.2</var>(6) cooperatives organized under chapter 308A or 308B that provide housing <br/>
<a id="pl.209.3"></a><var>209.3</var>exclusively to persons age 55 and over and are classified as homesteads under section
         <br/>
<statute_ref><a id="pl.209.4"></a><var>209.4</var>273.124, subdivision 3
         </statute_ref>; and<br/>
<a id="pl.209.5"></a><var>209.5</var>(7) a qualified business as defined under section 
         <statute_ref>469.310, subdivision 11</statute_ref>, if for the <br/>
<a id="pl.209.6"></a><var>209.6</var>taxable year all of its property is located in a job opportunity building zone designated
         <br/>
<a id="pl.209.7"></a><var>209.7</var>under section 
         <statute_ref>469.314</statute_ref> and all of its payroll is a job opportunity building zone payroll <br/>
<a id="pl.209.8"></a><var>209.8</var>under section 
         <statute_ref>469.310</statute_ref>.<br/>
<a id="pl.209.9"></a><var>209.9</var>Entities not specifically exempted by this subdivision are subject to tax under this
         <br/>
<a id="pl.209.10"></a><var>209.10</var>section, notwithstanding section 
         <statute_ref>290.05</statute_ref>.<br/>
<a id="pl.209.11"></a><var>209.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.4.0"></a><a id="pl.209.12"></a><var>209.12</var>    Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:<br/>
<a id="pl.209.13"></a><var>209.13</var>    Subd. 2. <b>Pharmacy refund.</b> A pharmacy may claim an annual refund against <br/>
<a id="pl.209.14"></a><var>209.14</var>the total amount of tax, if any, the pharmacy owes during that calendar year under
         <br/>
<a id="pl.209.15"></a><var>209.15</var>section 
         <statute_ref>295.52, subdivision</statute_ref> 4. The refund shall equal the amount paid by the pharmacy <br/>
<a id="pl.209.16"></a><var>209.16</var>to a wholesale drug distributor subject to tax under section 
         <statute_ref>295.52, subdivision 3</statute_ref>, for <br/>
<a id="pl.209.17"></a><var>209.17</var>legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
         <br/>
<a id="pl.209.18"></a><var>209.18</var>percentage specified in section 
         <statute_ref>295.52</statute_ref>, subdivision 3. If the amount of the refund exceeds <br/>
<a id="pl.209.19"></a><var>209.19</var>the tax liability of the pharmacy under section 
         <statute_ref>295.52, subdivision</statute_ref> 4, the commissioner <br/>
<a id="pl.209.20"></a><var>209.20</var>shall provide the pharmacy with a refund equal to the excess amount. Each qualifying
         <br/>
<a id="pl.209.21"></a><var>209.21</var>pharmacy must apply for the refund on the annual return as provided under section <br/>
<a id="pl.209.22"></a><var>209.22</var><statute_ref>295.55, subdivision 5</statute_ref> prescribed by the commissioner, on or before March 15 of the year <br/>
<a id="pl.209.23"></a><var>209.23</var>following the calendar year the legend drugs were delivered outside Minnesota. The <br/>
<a id="pl.209.24"></a><var>209.24</var>refund must be claimed within 18 months from the date the drugs were delivered outside <br/>
<a id="pl.209.25"></a><var>209.25</var>of Minnesota shall not be allowed if the initial claim for refund is filed more than one year
         <br/>
<a id="pl.209.26"></a><var>209.26</var>after the original due date of the return. Interest on refunds paid under this subdivision <br/>
<a id="pl.209.27"></a><var>209.27</var>will begin to accrue 60 days after the date a claim for refund is filed. For purposes
         of this <br/>
<a id="pl.209.28"></a><var>209.28</var>subdivision, the date a claim is filed is the due date of the return if a return is
         due or the <br/>
<a id="pl.209.29"></a><var>209.29</var>date of the actual claim for refund, whichever is later.<br/>
<a id="pl.209.30"></a><var>209.30</var><b>EFFECTIVE DATE.</b>This section is effective for qualifying legend drugs delivered <br/>
<a id="pl.209.31"></a><var>209.31</var>outside Minnesota after December 31, 2014.<br/>
<br/>
<a id="bill.14.5.0"></a><a id="pl.209.32"></a><var>209.32</var>    Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision <br/>
<a id="pl.209.33"></a><var>209.33</var>to read:<br/>
<a id="pl.210.1"></a><var>210.1</var>    Subd. 9a. <b>Bulk storage or bulk storage facility.</b> "Bulk storage" or "bulk storage <br/>
<a id="pl.210.2"></a><var>210.2</var>facility" means a single property, or contiguous or adjacent properties used for a
         common <br/>
<a id="pl.210.3"></a><var>210.3</var>purpose and owned or operated by the same person, on or in which are located one or
         more <br/>
<a id="pl.210.4"></a><var>210.4</var>stationary tanks that are used singularly or in combination for the storage or containment
         <br/>
<a id="pl.210.5"></a><var>210.5</var>of more than 1,100 gallons of petroleum.<br/>
<a id="pl.210.6"></a><var>210.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.6.0"></a><a id="pl.210.7"></a><var>210.7</var>    Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:<br/>
<a id="pl.210.8"></a><var>210.8</var>    Subd. 33. <b>Motor fuel.</b> "Motor fuel" means a liquid or gaseous form of fuel, <br/>
<a id="pl.210.9"></a><var>210.9</var>regardless of its composition or properties, used to propel a motor vehicle.<br/>
<a id="pl.210.10"></a><var>210.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.7.0"></a><a id="pl.210.11"></a><var>210.11</var>    Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:<br/>
<a id="pl.210.12"></a><var>210.12</var>    Subd. 42. <b>Petroleum products.</b> "Petroleum products" means all of the products <br/>
<a id="pl.210.13"></a><var>210.13</var>defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.<br/>
<a id="pl.210.14"></a><var>210.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.8.0"></a><a id="pl.210.15"></a><var>210.15</var>    Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:<br/>
<a id="pl.210.16"></a><var>210.16</var>    Subdivision 1. <b>Tax imposed.</b> There is imposed an excise tax on gasoline, gasoline <br/>
<a id="pl.210.17"></a><var>210.17</var>blended with ethanol, and agricultural alcohol gasoline used in producing and generating
         <br/>
<a id="pl.210.18"></a><var>210.18</var>power for propelling motor vehicles used on the public highways of this state. The
         tax <br/>
<a id="pl.210.19"></a><var>210.19</var>is imposed on the first licensed distributor who received the product in Minnesota.
         For <br/>
<a id="pl.210.20"></a><var>210.20</var>purposes of this section, gasoline is defined in section 
         <statute_ref>296A.01, subdivisions 8b, 10, 18, <br/>
<a id="pl.210.21"></a><var>210.21</var>20, 23, 24, 25, 32, and 34
         </statute_ref>. The tax is payable at the time and in the form and manner <br/>
<a id="pl.210.22"></a><var>210.22</var>prescribed by the commissioner. The tax is payable at the rates specified in subdivision
         3, <br/>
<a id="pl.210.23"></a><var>210.23</var>subject to the exceptions and reductions specified in section 
         <statute_ref>296A.17</statute_ref>.<br/>
<a id="pl.210.24"></a><var>210.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.9.0"></a><a id="pl.210.25"></a><var>210.25</var>    Sec. 9. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:<br/>
<a id="pl.210.26"></a><var>210.26</var>    Subd. 4a. <b>Deposit in state airports fund.</b> Tax revenue, including interest and <br/>
<a id="pl.210.27"></a><var>210.27</var>penalties, collected from the sale or purchase of an aircraft taxable under this chapter must
         <br/>
<a id="pl.210.28"></a><var>210.28</var>be deposited in the state airports fund established in section 
         <statute_ref>360.017</statute_ref>. For purposes of this <br/>
<a id="pl.210.29"></a><var>210.29</var>subdivision, "revenue" does not include the revenue, including interest and penalties,
         <br/>
<a id="pl.211.1"></a><var>211.1</var>generated by the sales tax imposed under section 297A.62, subdivision 1a, which must
         be <br/>
<a id="pl.211.2"></a><var>211.2</var>deposited as provided under the Minnesota Constitution, article XI, section 15.<br/>
<a id="pl.211.3"></a><var>211.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.10.0"></a><a id="pl.211.4"></a><var>211.4</var>    Sec. 10. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:<br/>
<a id="pl.211.5"></a><var>211.5</var>    Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal <br/>
<a id="pl.211.6"></a><var>211.6</var>sanctions imposed by this chapter, a person, organization, or business entity possessing
         or <br/>
<a id="pl.211.7"></a><var>211.7</var>selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed
         by <br/>
<a id="pl.211.8"></a><var>211.8</var>this chapter has not been paid is liable for a tax of six percent of the ideal gross
         of each <br/>
<a id="pl.211.9"></a><var>211.9</var>pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be
         assessed <br/>
<a id="pl.211.10"></a><var>211.10</var>as if it were a full deal.<br/>
<a id="pl.211.11"></a><var>211.11</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
         <br/>
<a id="pl.211.12"></a><var>211.12</var>(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
         <br/>
<a id="pl.211.13"></a><var>211.13</var>raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections <br/>
<a id="pl.211.14"></a><var>211.14</var>609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a <br/>
<a id="pl.211.15"></a><var>211.15</var>tax of six percent of the gross receipts from that activity.<br/>
<a id="pl.211.16"></a><var>211.16</var>(c) The tax must may be assessed by the commissioner. An assessment must be <br/>
<a id="pl.211.17"></a><var>211.17</var>considered a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. <br/>
<a id="pl.211.18"></a><var>211.18</var>The commissioner shall assess the tax based on personal knowledge or information <br/>
<a id="pl.211.19"></a><var>211.19</var>available to the commissioner. The commissioner shall mail to the taxpayer at the
         <br/>
<a id="pl.211.20"></a><var>211.20</var>taxpayer's last known address, or serve in person, a written notice of the amount
         of tax, <br/>
<a id="pl.211.21"></a><var>211.21</var>demand its immediate payment, and, if payment is not immediately made, collect the
         tax <br/>
<a id="pl.211.22"></a><var>211.22</var>by any method described in chapter 270C, except that the commissioner need not await
         the <br/>
<a id="pl.211.23"></a><var>211.23</var>expiration of the times specified in chapter 270C. The tax assessed by the commissioner
         <br/>
<a id="pl.211.24"></a><var>211.24</var>is presumed to be valid and correctly determined and assessed. The burden is upon
         the <br/>
<a id="pl.211.25"></a><var>211.25</var>taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
         <br/>
<a id="pl.211.26"></a><var>211.26</var>does not apply to gambling that is exempt from taxation under subdivision 2.<br/>
<a id="pl.211.27"></a><var>211.27</var>(d) A person, organization, or business entity conducting gambling activity under
         <br/>
<a id="pl.211.28"></a><var>211.28</var>this subdivision must file monthly tax returns with the commissioner, in the form
         required <br/>
<a id="pl.211.29"></a><var>211.29</var>by the commissioner. The returns must be filed on or before the 20th day of the month
         <br/>
<a id="pl.211.30"></a><var>211.30</var>following the month in which the gambling activity occurred. The tax imposed by this
         <br/>
<a id="pl.211.31"></a><var>211.31</var>section is due and payable at the time when the returns are required to be filed.<br/>
<a id="pl.211.32"></a><var>211.32</var>(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
         <br/>
<a id="pl.211.33"></a><var>211.33</var>employee may reveal facts contained in a tax return filed with the commissioner of
         <br/>
<a id="pl.211.34"></a><var>211.34</var>revenue as required by this subdivision, nor can any information contained in the
         report or <br/>
<a id="pl.211.35"></a><var>211.35</var>return be used against the tax obligor in any criminal proceeding, unless independently
         <br/>
<a id="pl.212.1"></a><var>212.1</var>obtained, except in connection with a proceeding involving taxes due under this section,
         <br/>
<a id="pl.212.2"></a><var>212.2</var>or as provided in section 270C.055, subdivision 1. However, this paragraph does not
         <br/>
<a id="pl.212.3"></a><var>212.3</var>prohibit the commissioner from publishing statistics that do not disclose the identity
         of <br/>
<a id="pl.212.4"></a><var>212.4</var>tax obligors or the contents of particular returns or reports. Any person violating
         this <br/>
<a id="pl.212.5"></a><var>212.5</var>paragraph is guilty of a gross misdemeanor.<br/>
<a id="pl.212.6"></a><var>212.6</var><b>EFFECTIVE DATE.</b>This section is effective for games played or purchased after <br/>
<a id="pl.212.7"></a><var>212.7</var>June 30, 2015.<br/>
<br/>
<a id="bill.14.11.0"></a><a id="pl.212.8"></a><var>212.8</var>    Sec. 11. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:<br/>
<a id="pl.212.9"></a><var>212.9</var>    Subd. 2. <b>Materials.</b> The tax is not imposed upon charges to generators of mixed <br/>
<a id="pl.212.10"></a><var>212.10</var>municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
         <br/>
<a id="pl.212.11"></a><var>212.11</var>management services to manage the following materials:<br/>
<a id="pl.212.12"></a><var>212.12</var>(1) mixed municipal solid waste and nonmixed municipal solid waste generated <br/>
<a id="pl.212.13"></a><var>212.13</var>outside of Minnesota;<br/>
<a id="pl.212.14"></a><var>212.14</var>(2) recyclable materials that are separated for recycling by the generator, collected
         <br/>
<a id="pl.212.15"></a><var>212.15</var>separately from other waste, and recycled, to the extent the price of the service
         for <br/>
<a id="pl.212.16"></a><var>212.16</var>handling recyclable material is separately itemized on a bill to the generator;<br/>
<a id="pl.212.17"></a><var>212.17</var>(3) recyclable nonmixed municipal solid waste that is separated for recycling by <br/>
<a id="pl.212.18"></a><var>212.18</var>the generator, collected separately from other waste, delivered to a waste facility
         for the <br/>
<a id="pl.212.19"></a><var>212.19</var>purpose of recycling, and recycled;<br/>
<a id="pl.212.20"></a><var>212.20</var>(4) industrial waste, when it is transported to a facility owned and operated by <br/>
<a id="pl.212.21"></a><var>212.21</var>the same person that generated it;<br/>
<a id="pl.212.22"></a><var>212.22</var>(5) mixed municipal solid waste from a recycling facility that separates or processes
         <br/>
<a id="pl.212.23"></a><var>212.23</var>recyclable materials and reduces the volume of the waste by at least 85 percent, provided
         <br/>
<a id="pl.212.24"></a><var>212.24</var>that the exempted waste is managed separately from other waste;<br/>
<a id="pl.212.25"></a><var>212.25</var>(6) recyclable materials that are separated from mixed municipal solid waste by the
         <br/>
<a id="pl.212.26"></a><var>212.26</var>generator, collected and delivered to a waste facility that recycles at least 85 percent
         of its <br/>
<a id="pl.212.27"></a><var>212.27</var>waste, and are collected with mixed municipal solid waste that is segregated in leakproof
         <br/>
<a id="pl.212.28"></a><var>212.28</var>bags, provided that the mixed municipal solid waste does not exceed five percent of
         the <br/>
<a id="pl.212.29"></a><var>212.29</var>total weight of the materials delivered to the facility and is ultimately delivered
         to a waste <br/>
<a id="pl.212.30"></a><var>212.30</var>facility identified as a preferred waste management facility in county solid waste
         plans <br/>
<a id="pl.212.31"></a><var>212.31</var>under section 
         <statute_ref>115A.46</statute_ref>;<br/>
<a id="pl.212.32"></a><var>212.32</var>(7) source-separated compostable waste materials, if the waste is materials are <br/>
<a id="pl.212.33"></a><var>212.33</var>delivered to a facility exempted as described in this clause. To initially qualify
         for an <br/>
<a id="pl.212.34"></a><var>212.34</var>exemption, a facility must apply for an exemption in its application for a new or
         amended <br/>
<a id="pl.212.35"></a><var>212.35</var>solid waste permit to the Pollution Control Agency. The first time a facility applies
         to the <br/>
<a id="pl.213.1"></a><var>213.1</var>agency it must certify in its application that it will comply with the criteria in
         items (i) to (v) <br/>
<a id="pl.213.2"></a><var>213.2</var>and the commissioner of the agency shall so certify to the commissioner of revenue
         who <br/>
<a id="pl.213.3"></a><var>213.3</var>must grant the exemption. The facility must annually apply to the agency for certification
         <br/>
<a id="pl.213.4"></a><var>213.4</var>to renew its exemption for the following year. The application must be filed according
         to <br/>
<a id="pl.213.5"></a><var>213.5</var>the procedures of, and contain the information required by, the agency. The commissioner
         <br/>
<a id="pl.213.6"></a><var>213.6</var>of revenue shall grant the exemption if the commissioner of the Pollution Control
         Agency <br/>
<a id="pl.213.7"></a><var>213.7</var>finds and certifies to the commissioner of revenue that based on an evaluation of
         the <br/>
<a id="pl.213.8"></a><var>213.8</var>composition of incoming waste and residuals and the quality and use of the product:<br/>
<a id="pl.213.9"></a><var>213.9</var>(i) generators separate materials at the source;<br/>
<a id="pl.213.10"></a><var>213.10</var>(ii) the separation is performed in a manner appropriate to the technology specific
         <br/>
<a id="pl.213.11"></a><var>213.11</var>to the facility that:<br/>
<a id="pl.213.12"></a><var>213.12</var>(A) maximizes the quality of the product;<br/>
<a id="pl.213.13"></a><var>213.13</var>(B) minimizes the toxicity and quantity of residuals rejects; and<br/>
<a id="pl.213.14"></a><var>213.14</var>(C) provides an opportunity for significant improvement in the environmental <br/>
<a id="pl.213.15"></a><var>213.15</var>efficiency of the operation;<br/>
<a id="pl.213.16"></a><var>213.16</var>(iii) the operator of the facility educates generators, in coordination with each
         county <br/>
<a id="pl.213.17"></a><var>213.17</var>using the facility, about separating the waste to maximize the quality of the waste
         stream <br/>
<a id="pl.213.18"></a><var>213.18</var>for technology specific to the facility;<br/>
<a id="pl.213.19"></a><var>213.19</var>(iv) process residuals rejects do not exceed 15 percent of the weight of the total <br/>
<a id="pl.213.20"></a><var>213.20</var>material delivered to the facility; and<br/>
<a id="pl.213.21"></a><var>213.21</var>(v) the final product is accepted for use;<br/>
<a id="pl.213.22"></a><var>213.22</var>(8) waste and waste by-products for which the tax has been paid; and<br/>
<a id="pl.213.23"></a><var>213.23</var>(9) daily cover for landfills that has been approved in writing by the Minnesota <br/>
<a id="pl.213.24"></a><var>213.24</var>Pollution Control Agency.<br/>
<a id="pl.213.25"></a><var>213.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.12.0"></a><a id="pl.213.26"></a><var>213.26</var>    Sec. 12. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:<br/>
<a id="pl.213.27"></a><var>213.27</var>    Subd. 2. <b>Town and farmers'</b><b> Township</b><b> mutual insurance.</b> A tax is imposed on <br/>
<a id="pl.213.28"></a><var>213.28</var>town and farmers' township mutual insurance companies. The rate of tax is equal to one <br/>
<a id="pl.213.29"></a><var>213.29</var>percent of gross premiums less return premiums on all direct business received by
         the <br/>
<a id="pl.213.30"></a><var>213.30</var>insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.<br/>
<a id="pl.213.31"></a><var>213.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.13.0"></a><a id="pl.213.32"></a><var>213.32</var>    Sec. 13. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:<br/>
<a id="pl.214.1"></a><var>214.1</var>    Subdivision 1. <b>Cities of the first class.</b> (a) The commissioner shall order and direct <br/>
<a id="pl.214.2"></a><var>214.2</var>a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage
         gross <br/>
<a id="pl.214.3"></a><var>214.3</var>premiums, less return premiums, on all direct business received by any licensed foreign
         or <br/>
<a id="pl.214.4"></a><var>214.4</var>domestic fire insurance company on property in a city of the first class, or by its
         agents for <br/>
<a id="pl.214.5"></a><var>214.5</var>it, in cash or otherwise.<br/>
<a id="pl.214.6"></a><var>214.6</var>(b) By July 31 and December 31 of each year, the commissioner of management <br/>
<a id="pl.214.7"></a><var>214.7</var>and budget shall pay to each city of the first class a warrant for an amount equal to the <br/>
<a id="pl.214.8"></a><var>214.8</var>total amount of the surcharge on the premiums collected within that city since the
         previous <br/>
<a id="pl.214.9"></a><var>214.9</var>payment.<br/>
<a id="pl.214.10"></a><var>214.10</var>(c) The treasurer of the city shall place the money received under this subdivision
         <br/>
<a id="pl.214.11"></a><var>214.11</var>in a special account or fund to defray all or a portion of the employer contribution
         <br/>
<a id="pl.214.12"></a><var>214.12</var>requirement of public employees police and fire plan coverage for city firefighters.<br/>
<a id="pl.214.13"></a><var>214.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.14.0"></a><a id="pl.214.14"></a><var>214.14</var>    Sec. 14. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:<br/>
<a id="pl.214.15"></a><var>214.15</var>    Subd. 3. <b>Appropriation.</b> The amount necessary to make the payments required <br/>
<a id="pl.214.16"></a><var>214.16</var>under this section is appropriated to the commissioner of management and budget from <br/>
<a id="pl.214.17"></a><var>214.17</var>the general fund.<br/>
<a id="pl.214.18"></a><var>214.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.15.0"></a><a id="pl.214.19"></a><var>214.19</var>    Sec. 15. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:<br/>
<a id="pl.214.20"></a><var>214.20</var>    Subd. 3b. <b>Deductions.</b> (a) For purposes of determining taxable income under <br/>
<a id="pl.214.21"></a><var>214.21</var>subdivision 3, the deductions from gross income include only those expenses necessary
         <br/>
<a id="pl.214.22"></a><var>214.22</var>to convert raw ores to marketable quality. Such expenses include costs associated
         with <br/>
<a id="pl.214.23"></a><var>214.23</var>refinement but do not include expenses such as transportation, stockpiling, marketing,
         or <br/>
<a id="pl.214.24"></a><var>214.24</var>marine insurance that are incurred after marketable ores are produced, unless the
         expenses <br/>
<a id="pl.214.25"></a><var>214.25</var>are included in gross income. The allowable deductions from a mine or plant that mines
         <br/>
<a id="pl.214.26"></a><var>214.26</var>and produces more than one mineral, metal, or energy resource must be determined <br/>
<a id="pl.214.27"></a><var>214.27</var>separately for the purposes of computing the deduction in section 
         <statute_ref>290.01</statute_ref>, subdivision 19c, <br/>
<a id="pl.214.28"></a><var>214.28</var>clause (8). These deductions may be combined on one occupation tax return to arrive
         at <br/>
<a id="pl.214.29"></a><var>214.29</var>the deduction from gross income for all production.<br/>
<a id="pl.214.30"></a><var>214.30</var>(b) The provisions of section 
         <statute_ref>290.01, subdivisions 19c, clauses (6)</statute_ref> and (8), and 19d, <br/>
<a id="pl.214.31"></a><var>214.31</var>clauses (6) and (9) (8), are not used to determine taxable income.<br/>
<a id="pl.214.32"></a><var>214.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.16.0"></a><a id="pl.215.1"></a><var>215.1</var>    Sec. 16. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:<br/>
<a id="pl.215.2"></a><var>215.2</var>    Subd. 4c. <b>Special deductions; net operating loss.</b> (a) For purposes of determining <br/>
<a id="pl.215.3"></a><var>215.3</var>taxable income under subdivision 4, the provisions of section 
         <statute_ref>290.01, subdivisions 19c, <br/>
<a id="pl.215.4"></a><var>215.4</var>clauses (6)
         </statute_ref> and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable <br/>
<a id="pl.215.5"></a><var>215.5</var>income.<br/>
<a id="pl.215.6"></a><var>215.6</var>(b) The amount of net operating loss incurred in a taxable year beginning before <br/>
<a id="pl.215.7"></a><var>215.7</var>January 1, 1990, that may be carried over to a taxable year beginning after December
         31, <br/>
<a id="pl.215.8"></a><var>215.8</var>1989, is the amount of net operating loss carryover determined in the calculation
         of the <br/>
<a id="pl.215.9"></a><var>215.9</var>hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 
<statute_ref>298.40 <br/>
<a id="pl.215.10"></a><var>215.10</var></statute_ref>and 
<statute_ref>298.402</statute_ref>.<br/>
<a id="pl.215.11"></a><var>215.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="pl.215.14"></a><var>215.14</var><b>PROPERTY TAX PROVISIONS</b><br/>

<a id="bill.15.1.0"></a><a id="pl.215.15"></a><var>215.15</var>    Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:<br/>
<a id="pl.215.16"></a><var>215.16</var>    Subd. 2. <b>Income property assessment data.</b> The following data collected by <br/>
<a id="pl.215.17"></a><var>215.17</var>political subdivisions and the state from individuals or business entities concerning <br/>
<a id="pl.215.18"></a><var>215.18</var>income properties are classified as private or nonpublic data pursuant to section
         
         <statute_ref>13.02, <br/>
<a id="pl.215.19"></a><var>215.19</var>subdivisions 9
         </statute_ref> and 12:<br/>
<a id="pl.215.20"></a><var>215.20</var>(a) detailed income and expense figures;<br/>
<a id="pl.215.21"></a><var>215.21</var>(b) average vacancy factors;<br/>
<a id="pl.215.22"></a><var>215.22</var>(c) verified net rentable areas or net usable areas, whichever is appropriate;<br/>
<a id="pl.215.23"></a><var>215.23</var>(d) anticipated income and expenses;<br/>
<a id="pl.215.24"></a><var>215.24</var>(e) projected vacancy factors; and<br/>
<a id="pl.215.25"></a><var>215.25</var>(f) lease information.<br/>
<a id="pl.215.26"></a><var>215.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.2.0"></a><a id="pl.215.27"></a><var>215.27</var>    Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:<br/>
<a id="pl.215.28"></a><var>215.28</var>    Subd. 2. <b>Air commerce.</b> (a) "Air commerce" means the transportation by aircraft <br/>
<a id="pl.215.29"></a><var>215.29</var>of persons or property for hire in interstate, intrastate, or international transportation
         <br/>
<a id="pl.215.30"></a><var>215.30</var>on regularly scheduled flights or on intermittent or irregularly timed flights by
         airline <br/>
<a id="pl.215.31"></a><var>215.31</var>companies and includes transportation by any airline company making three or more <br/>
<a id="pl.215.32"></a><var>215.32</var>flights in or out of Minnesota, or within Minnesota, during a calendar year.<br/>
<a id="pl.216.1"></a><var>216.1</var>(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
         <br/>
<a id="pl.216.2"></a><var>216.2</var>flight, a flight arranged at the convenience of an airline and the person contracting
         for the <br/>
<a id="pl.216.3"></a><var>216.3</var>transportation, or a charter flight. It includes any airline company making three
         or more <br/>
<a id="pl.216.4"></a><var>216.4</var>flights in or out of Minnesota during a calendar year.<br/>
<a id="pl.216.5"></a><var>216.5</var>(c) "Air commerce" does not include casual transportation for hire by aircraft <br/>
<a id="pl.216.6"></a><var>216.6</var>commonly owned and used for private air flight purposes if the person furnishing the
         <br/>
<a id="pl.216.7"></a><var>216.7</var>transportation does not hold out to be engaged regularly in transportation for hire.<br/>
<a id="pl.216.8"></a><var>216.8</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.216.9"></a><var>216.9</var>thereafter.<br/>
<br/>
<a id="bill.15.3.0"></a><a id="pl.216.10"></a><var>216.10</var>    Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:<br/>
<a id="pl.216.11"></a><var>216.11</var>    Subd. 7. <b>Flight property.</b> "Flight property" means all aircraft and flight equipment <br/>
<a id="pl.216.12"></a><var>216.12</var>used in connection therewith, including spare flight equipment. Flight property also
         <br/>
<a id="pl.216.13"></a><var>216.13</var>includes computers and computer software used in operating, controlling, or regulating
         <br/>
<a id="pl.216.14"></a><var>216.14</var>aircraft and flight equipment. Flight property does not include aircraft with a maximum <br/>
<a id="pl.216.15"></a><var>216.15</var>takeoff weight of less than 30,000 pounds.<br/>
<a id="pl.216.16"></a><var>216.16</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.216.17"></a><var>216.17</var>thereafter.<br/>
<br/>
<a id="bill.15.4.0"></a><a id="pl.216.18"></a><var>216.18</var>    Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:<br/>
<a id="pl.216.19"></a><var>216.19</var>    Subd. 8. <b>Person.</b> "Person" means any an individual, corporation, firm, <br/>
<a id="pl.216.20"></a><var>216.20</var>copartnership, company, or association, and includes any guardian, trustee, executor,
         <br/>
<a id="pl.216.21"></a><var>216.21</var>administrator, receiver, conservator, or any person acting in any fiduciary capacity
         therefor <br/>
<a id="pl.216.22"></a><var>216.22</var>trust, estate, fiduciary, partnership, company, corporation, limited liability company,
         <br/>
<a id="pl.216.23"></a><var>216.23</var>association, governmental unit or agency, public or private organization of any kind,
         <br/>
<a id="pl.216.24"></a><var>216.24</var>or other legal entity.<br/>
<a id="pl.216.25"></a><var>216.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.216.26"></a><var>216.26</var>thereafter.<br/>
<br/>
<a id="bill.15.5.0"></a><a id="pl.216.27"></a><var>216.27</var>    Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision <br/>
<a id="pl.216.28"></a><var>216.28</var>to read:<br/>
<a id="pl.216.29"></a><var>216.29</var>    Subd. 10. <b>Intermittent or irregularly timed flights.</b> "Intermittently or irregularly <br/>
<a id="pl.216.30"></a><var>216.30</var>timed flights" means any flight in which the departure time, departure location, and
         arrival <br/>
<a id="pl.216.31"></a><var>216.31</var>location are specifically negotiated with the customer or the customer's representative,
         <br/>
<a id="pl.216.32"></a><var>216.32</var>including but not limited to charter flights.<br/>
<a id="pl.217.1"></a><var>217.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.217.2"></a><var>217.2</var>thereafter.<br/>
<br/>
<a id="bill.15.6.0"></a><a id="pl.217.3"></a><var>217.3</var>    Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:<br/>
<a id="pl.217.4"></a><var>217.4</var>    Subd. 2. <b>Assessment of flight property.</b>  Flight property that is owned by, or is <br/>
<a id="pl.217.5"></a><var>217.5</var>leased, loaned, or otherwise made available to an airline company operating in Minnesota
         <br/>
<a id="pl.217.6"></a><var>217.6</var>shall be assessed and appraised annually by the commissioner with reference to its
         value <br/>
<a id="pl.217.7"></a><var>217.7</var>on January 2 of the assessment year in the manner prescribed by sections 
         <statute_ref>270.071</statute_ref> to <br/>
<statute_ref><a id="pl.217.8"></a><var>217.8</var>270.079
         </statute_ref>. Aircraft with a gross weight of less than 30,000 pounds and used on intermittent <br/>
<a id="pl.217.9"></a><var>217.9</var>or irregularly timed flights shall be excluded from the provisions of sections 
<statute_ref>270.071</statute_ref> to <br/>
<a id="pl.217.10"></a><var>217.10</var><statute_ref>270.079</statute_ref>.<br/>
<a id="pl.217.11"></a><var>217.11</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.217.12"></a><var>217.12</var>thereafter.<br/>
<br/>
<a id="bill.15.7.0"></a><a id="pl.217.13"></a><var>217.13</var>    Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:<br/>
<a id="pl.217.14"></a><var>217.14</var>    Subd. 3. <b>Report by airline company.</b> (a) Each year, on or before July 1, every <br/>
<a id="pl.217.15"></a><var>217.15</var>airline company engaged in air commerce in this state shall file with the commissioner
         a <br/>
<a id="pl.217.16"></a><var>217.16</var>report under oath setting forth specifically the information prescribed by the commissioner
         <br/>
<a id="pl.217.17"></a><var>217.17</var>to enable the commissioner to make the assessment required in sections 
         <statute_ref>270.071</statute_ref> to <br/>
<statute_ref><a id="pl.217.18"></a><var>217.18</var>270.079
         </statute_ref>, unless the commissioner determines that the airline company or person should be <br/>
<a id="pl.217.19"></a><var>217.19</var>excluded from is exempt from filing because its activities do not constitute air commerce <br/>
<a id="pl.217.20"></a><var>217.20</var>as defined herein.<br/>
<a id="pl.217.21"></a><var>217.21</var>    (b) The commissioner shall prescribe the content, format, and manner of the report
         <br/>
<a id="pl.217.22"></a><var>217.22</var>pursuant to section 270C.30, except that a "law administered by the commissioner"
         <br/>
<a id="pl.217.23"></a><var>217.23</var>includes the property tax laws. If a report is made by electronic means, the taxpayer's
         <br/>
<a id="pl.217.24"></a><var>217.24</var>signature is defined pursuant to section 270C.304, except that a "law administered
         by the <br/>
<a id="pl.217.25"></a><var>217.25</var>commissioner" includes the property tax laws.<br/>
<a id="pl.217.26"></a><var>217.26</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a) is effective for reports <br/>
<a id="pl.217.27"></a><var>217.27</var>filed in 2016 and thereafter. The amendment adding paragraph (b) is effective the
         day <br/>
<a id="pl.217.28"></a><var>217.28</var>following final enactment.<br/>
<br/>
<a id="bill.15.8.0"></a><a id="pl.217.29"></a><var>217.29</var>    Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision <br/>
<a id="pl.217.30"></a><var>217.30</var>to read:<br/>
<a id="pl.217.31"></a><var>217.31</var>    Subd. 3a. <b>Commissioner filed reports.</b> If an airline company fails to file a report <br/>
<a id="pl.217.32"></a><var>217.32</var>required by subdivision 3, the commissioner may, from information in the commissioner's
         <br/>
<a id="pl.218.1"></a><var>218.1</var>possession or obtainable by the commissioner, make and file a report for the airline
         <br/>
<a id="pl.218.2"></a><var>218.2</var>company, or may issue a notice of net tax capacity and tax under section 270.075,
         <br/>
<a id="pl.218.3"></a><var>218.3</var>subdivision 2.<br/>
<a id="pl.218.4"></a><var>218.4</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.218.5"></a><var>218.5</var>thereafter.<br/>
<br/>
<a id="bill.15.9.0"></a><a id="pl.218.6"></a><var>218.6</var>    Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision <br/>
<a id="pl.218.7"></a><var>218.7</var>to read:<br/>
<a id="pl.218.8"></a><var>218.8</var>    Subd. 6. <b>Reassessment orders.</b> If the State Board of Equalization determines that a <br/>
<a id="pl.218.9"></a><var>218.9</var>considerable amount of property has been undervalued or overvalued compared to like
         <br/>
<a id="pl.218.10"></a><var>218.10</var>property such that the assessment is grossly unfair or inequitable, the State Board
         of <br/>
<a id="pl.218.11"></a><var>218.11</var>Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue
         orders <br/>
<a id="pl.218.12"></a><var>218.12</var>to the county assessor to reassess all or any part of a parcel in a county.<br/>
<a id="pl.218.13"></a><var>218.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.218.14"></a><var>218.14</var>thereafter.<br/>
<br/>
<a id="bill.15.10.0"></a><a id="pl.218.15"></a><var>218.15</var>    Sec. 10. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:<br/>
<a id="pl.218.16"></a><var>218.16</var>    Subdivision 1. <b>Annual report required.</b> Every railroad company doing business <br/>
<a id="pl.218.17"></a><var>218.17</var>in Minnesota shall annually file with the commissioner on or before March 31 a report
         <br/>
<a id="pl.218.18"></a><var>218.18</var>under oath setting forth the information prescribed by the commissioner to enable
         the <br/>
<a id="pl.218.19"></a><var>218.19</var>commissioner to make the valuation and equalization required by sections 
         <statute_ref>270.80</statute_ref> to <br/>
<statute_ref><a id="pl.218.20"></a><var>218.20</var>270.87
         </statute_ref>. The commissioner shall prescribe the content, format, and manner of the report <br/>
<a id="pl.218.21"></a><var>218.21</var>pursuant to section 270C.30, except that a "law administered by the commissioner"
         <br/>
<a id="pl.218.22"></a><var>218.22</var>includes the property tax laws. If a report is made by electronic means, the taxpayer's
         <br/>
<a id="pl.218.23"></a><var>218.23</var>signature is defined pursuant to section 270C.304, except that a "law administered
         by the <br/>
<a id="pl.218.24"></a><var>218.24</var>commissioner" includes the property tax laws.<br/>
<a id="pl.218.25"></a><var>218.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.11.0"></a><a id="pl.218.26"></a><var>218.26</var>    Sec. 11. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:<br/>
<a id="pl.218.27"></a><var>218.27</var>    Subdivision 1. <b>Initial report.</b> Each county assessor shall file by April 1 with the <br/>
<a id="pl.218.28"></a><var>218.28</var>commissioner a copy of the abstract that will be acted upon by the local and county
         <br/>
<a id="pl.218.29"></a><var>218.29</var>boards of review. The abstract must list the real and personal property in the county
         <br/>
<a id="pl.218.30"></a><var>218.30</var>itemized by assessment districts. The assessor of each county in the state shall file
         with <br/>
<a id="pl.218.31"></a><var>218.31</var>the commissioner, within ten working days following final action of the local board
         of <br/>
<a id="pl.218.32"></a><var>218.32</var>review or equalization and within five days following final action of the county board
         of <br/>
<a id="pl.219.1"></a><var>219.1</var>equalization, any changes made by the local or county board. The information must
         be <br/>
<a id="pl.219.2"></a><var>219.2</var>filed in the manner prescribed by the commissioner. It must be accompanied by a printed <br/>
<a id="pl.219.3"></a><var>219.3</var>or typewritten copy of the proceedings of the appropriate board.<br/>
<a id="pl.219.4"></a><var>219.4</var><b>EFFECTIVE DATE.</b>This section is effective for county boards of appeal and <br/>
<a id="pl.219.5"></a><var>219.5</var>equalization meetings held in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.12.0"></a><a id="pl.219.6"></a><var>219.6</var>    Sec. 12. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:<br/>
<a id="pl.219.7"></a><var>219.7</var>    Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br/>
<a id="pl.219.8"></a><var>219.8</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br/>
<a id="pl.219.9"></a><var>219.9</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br/>
<a id="pl.219.10"></a><var>219.10</var>The following personal property shall be taxable:<br/>
<a id="pl.219.11"></a><var>219.11</var>(a) personal property which is part of (i) an electric generating, transmission, or <br/>
<a id="pl.219.12"></a><var>219.12</var>distribution system or; (ii) a pipeline system transporting or distributing water, gas, crude <br/>
<a id="pl.219.13"></a><var>219.13</var>oil, or petroleum products; or (iii) mains and pipes used in the distribution of steam or hot <br/>
<a id="pl.219.14"></a><var>219.14</var>or chilled water for heating or cooling buildings and structures;<br/>
<a id="pl.219.15"></a><var>219.15</var>(b) railroad docks and wharves which are part of the operating property of a railroad
         <br/>
<a id="pl.219.16"></a><var>219.16</var>company as defined in section 
         <statute_ref>270.80</statute_ref>;<br/>
<a id="pl.219.17"></a><var>219.17</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br/>
<a id="pl.219.18"></a><var>219.18</var>(d) leasehold or other personal property interests which are taxed pursuant to section
         <br/>
<statute_ref><a id="pl.219.19"></a><var>219.19</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br/>
<a id="pl.219.20"></a><var>219.20</var>providing the property is taxable as if the lessee or user were the fee owner;<br/>
<a id="pl.219.21"></a><var>219.21</var>(e) manufactured homes and sectional structures, including storage sheds, decks, <br/>
<a id="pl.219.22"></a><var>219.22</var>and similar removable improvements constructed on the site of a manufactured home,
         <br/>
<a id="pl.219.23"></a><var>219.23</var>sectional structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision <br/>
<a id="pl.219.24"></a><var>219.24</var>8
         </statute_ref>, paragraph (f); and<br/>
<a id="pl.219.25"></a><var>219.25</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br/>
<a id="pl.219.26"></a><var>219.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.13.0"></a><a id="pl.219.27"></a><var>219.27</var>    Sec. 13. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:<br/>
<a id="pl.219.28"></a><var>219.28</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br/>
<a id="pl.219.29"></a><var>219.29</var>(1) "wind energy conversion system" has the meaning given in section 216C.06, <br/>
<a id="pl.219.30"></a><var>219.30</var>subdivision 19, and also includes a substation that is used and owned by one or more
         <br/>
<a id="pl.219.31"></a><var>219.31</var>wind energy conversion facilities;<br/>
<a id="pl.220.1"></a><var>220.1</var>(2) "large scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.220.2"></a><var>220.2</var>system of more than 12 megawatts, as measured by the nameplate capacity of the system
         <br/>
<a id="pl.220.3"></a><var>220.3</var>or as combined with other systems as provided in paragraph (b);<br/>
<a id="pl.220.4"></a><var>220.4</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.220.5"></a><var>220.5</var>system of over two and not more than 12 megawatts, as measured by the nameplate <br/>
<a id="pl.220.6"></a><var>220.6</var>capacity of the system or as combined with other systems as provided in paragraph
         (b); and<br/>
<a id="pl.220.7"></a><var>220.7</var>(4) "small scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.220.8"></a><var>220.8</var>system of two megawatts and under, as measured by the nameplate capacity of the system
         <br/>
<a id="pl.220.9"></a><var>220.9</var>or as combined with other systems as provided in paragraph (b).<br/>
<a id="pl.220.10"></a><var>220.10</var>(b) For systems installed and contracted for after January 1, 2002, the total size
         of a <br/>
<a id="pl.220.11"></a><var>220.11</var>wind energy conversion system under this subdivision shall be determined according
         to <br/>
<a id="pl.220.12"></a><var>220.12</var>this paragraph. Unless the systems are interconnected with different distribution
         systems, <br/>
<a id="pl.220.13"></a><var>220.13</var>the nameplate capacity of one wind energy conversion system shall be combined with
         the <br/>
<a id="pl.220.14"></a><var>220.14</var>nameplate capacity of any other wind energy conversion system that is:<br/>
<a id="pl.220.15"></a><var>220.15</var>(1) located within five miles of the wind energy conversion system;<br/>
<a id="pl.220.16"></a><var>220.16</var>(2) constructed within the same calendar year 12-month period as the wind energy <br/>
<a id="pl.220.17"></a><var>220.17</var>conversion system; and<br/>
<a id="pl.220.18"></a><var>220.18</var>(3) under common ownership.<br/>
<a id="pl.220.19"></a><var>220.19</var>In the case of a dispute, the commissioner of commerce shall determine the total size
         <br/>
<a id="pl.220.20"></a><var>220.20</var>of the system, and shall draw all reasonable inferences in favor of combining the
         systems.<br/>
<a id="pl.220.21"></a><var>220.21</var>(c) In making a determination under paragraph (b), the commissioner of commerce <br/>
<a id="pl.220.22"></a><var>220.22</var>may determine that two wind energy conversion systems are under common ownership <br/>
<a id="pl.220.23"></a><var>220.23</var>when the underlying ownership structure contains similar persons or entities, even
         if the <br/>
<a id="pl.220.24"></a><var>220.24</var>ownership shares differ between the two systems. Wind energy conversion systems are
         <br/>
<a id="pl.220.25"></a><var>220.25</var>not under common ownership solely because the same person or entity provided equity
         <br/>
<a id="pl.220.26"></a><var>220.26</var>financing for the systems.<br/>
<a id="pl.220.27"></a><var>220.27</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.14.0"></a><a id="pl.220.28"></a><var>220.28</var>    Sec. 14. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:<br/>
<a id="pl.220.29"></a><var>220.29</var>    Subd. 4. <b>Reports.</b> (a) An owner of a wind energy conversion system subject to tax <br/>
<a id="pl.220.30"></a><var>220.30</var>under subdivision 3 shall file a report with the commissioner of revenue annually
         on <br/>
<a id="pl.220.31"></a><var>220.31</var>or before February 1 January 15 detailing the amount of electricity in kilowatt-hours <br/>
<a id="pl.220.32"></a><var>220.32</var>that was produced by the wind energy conversion system for the previous calendar year.
         <br/>
<a id="pl.220.33"></a><var>220.33</var>The commissioner shall prescribe the form of the report. The report must contain the
         <br/>
<a id="pl.220.34"></a><var>220.34</var>information required by the commissioner to determine the tax due to each county under
         <br/>
<a id="pl.220.35"></a><var>220.35</var>this section for the current year. If an owner of a wind energy conversion system
         subject <br/>
<a id="pl.221.1"></a><var>221.1</var>to taxation under this section fails to file the report by the due date, the commissioner
         <br/>
<a id="pl.221.2"></a><var>221.2</var>of revenue shall determine the tax based upon the nameplate capacity of the system
         <br/>
<a id="pl.221.3"></a><var>221.3</var>multiplied by a capacity factor of 60 percent.<br/>
<a id="pl.221.4"></a><var>221.4</var>(b) On or before February 28, the commissioner of revenue shall notify the owner of
         <br/>
<a id="pl.221.5"></a><var>221.5</var>the wind energy conversion systems of the tax due to each county for the current year
         and <br/>
<a id="pl.221.6"></a><var>221.6</var>shall certify to the county auditor of each county in which the systems are located
         the tax <br/>
<a id="pl.221.7"></a><var>221.7</var>due from each owner for the current year.<br/>
<a id="pl.221.8"></a><var>221.8</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.15.0"></a><a id="pl.221.9"></a><var>221.9</var>    Sec. 15. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision <br/>
<a id="pl.221.10"></a><var>221.10</var>to read:<br/>
<a id="pl.221.11"></a><var>221.11</var>    Subd. 8. <b>Extension.</b> The commissioner may, for good cause, extend the time for <br/>
<a id="pl.221.12"></a><var>221.12</var>filing the report required by subdivision 4. The extension must not exceed 15 days.<br/>
<a id="pl.221.13"></a><var>221.13</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.16.0"></a><a id="pl.221.14"></a><var>221.14</var>    Sec. 16. Minnesota Statutes 2014, section 273.032, is amended to read:<br/>
<a id="pl.221.15"></a><var>221.15</var><b>273.032 MARKET VALUE DEFINITION.</b><br/>
<a id="pl.221.16"></a><var>221.16</var>    (a) Unless otherwise provided, for the purpose of determining any property tax <br/>
<a id="pl.221.17"></a><var>221.17</var>levy limitation based on market value or any limit on net debt, the issuance of bonds,
         <br/>
<a id="pl.221.18"></a><var>221.18</var>certificates of indebtedness, or capital notes based on market value, any qualification
         to <br/>
<a id="pl.221.19"></a><var>221.19</var>receive state aid based on market value, or any state aid amount based on market value,
         <br/>
<a id="pl.221.20"></a><var>221.20</var>the terms "market value," "estimated market value," and "market valuation," whether
         <br/>
<a id="pl.221.21"></a><var>221.21</var>equalized or unequalized, mean the estimated market value of taxable property within
         the <br/>
<a id="pl.221.22"></a><var>221.22</var>local unit of government before any of the following or similar adjustments for:<br/>
<a id="pl.221.23"></a><var>221.23</var>    (1) the market value exclusions under:<br/>
<a id="pl.221.24"></a><var>221.24</var>    (i) section 
         <statute_ref>273.11, subdivisions 14a</statute_ref> and 14c (vacant platted land);<br/>
<a id="pl.221.25"></a><var>221.25</var>    (ii) section 
         <statute_ref>273.11, subdivision 16</statute_ref> (certain improvements to homestead property);<br/>
<a id="pl.221.26"></a><var>221.26</var>    (iii) section 
         <statute_ref>273.11, subdivisions 19</statute_ref> and 20 (certain improvements to business <br/>
<a id="pl.221.27"></a><var>221.27</var>properties);<br/>
<a id="pl.221.28"></a><var>221.28</var>    (iv) section 
         <statute_ref>273.11, subdivision 21</statute_ref> (homestead property damaged by mold);<br/>
<a id="pl.221.29"></a><var>221.29</var>    (v) section 
<statute_ref>273.11, subdivision 22</statute_ref> (qualifying lead hazardous reduction projects);<br/>
<a id="pl.221.30"></a><var>221.30</var>    (vi) (v) section 
         <statute_ref>273.13, subdivision 34</statute_ref> (homestead of a disabled veteran or family <br/>
<a id="pl.221.31"></a><var>221.31</var>caregiver); or<br/>
<a id="pl.221.32"></a><var>221.32</var>    (vii) (vi) section 
         <statute_ref>273.13, subdivision 35</statute_ref> (homestead market value exclusion); or<br/>
<a id="pl.221.33"></a><var>221.33</var>    (2) the deferment of value under:<br/>
<a id="pl.222.1"></a><var>222.1</var>    (i) the Minnesota Agricultural Property Tax Law, section 
         <statute_ref>273.111</statute_ref>;<br/>
<a id="pl.222.2"></a><var>222.2</var>    (ii) the Aggregate Resource Preservation Law, section 
         <statute_ref>273.1115</statute_ref>;<br/>
<a id="pl.222.3"></a><var>222.3</var>    (iii) the Minnesota Open Space Property Tax Law, section 
         <statute_ref>273.112</statute_ref>;<br/>
<a id="pl.222.4"></a><var>222.4</var>    (iv) the rural preserves property tax program, section 
         <statute_ref>273.114</statute_ref>; or<br/>
<a id="pl.222.5"></a><var>222.5</var>    (v) the Metropolitan Agricultural Preserves Act, section 
         <statute_ref>473H.10</statute_ref>; or<br/>
<a id="pl.222.6"></a><var>222.6</var>    (3) the adjustments to tax capacity for:<br/>
<a id="pl.222.7"></a><var>222.7</var>    (i) tax increment financing under sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.1794</statute_ref>;<br/>
<a id="pl.222.8"></a><var>222.8</var>    (ii) fiscal disparities under chapter 276A or 473F; or<br/>
<a id="pl.222.9"></a><var>222.9</var>    (iii) powerline credit under section 
         <statute_ref>273.425</statute_ref>.<br/>
<a id="pl.222.10"></a><var>222.10</var>    (b) Estimated market value under paragraph (a) also includes the market value <br/>
<a id="pl.222.11"></a><var>222.11</var>of tax-exempt property if the applicable law specifically provides that the limitation,
         <br/>
<a id="pl.222.12"></a><var>222.12</var>qualification, or aid calculation includes tax-exempt property.<br/>
<a id="pl.222.13"></a><var>222.13</var>    (c) Unless otherwise provided, "market value," "estimated market value," and <br/>
<a id="pl.222.14"></a><var>222.14</var>"market valuation" for purposes of property tax levy limitations and calculation of
         state <br/>
<a id="pl.222.15"></a><var>222.15</var>aid, refer to the estimated market value for the previous assessment year and for
         purposes <br/>
<a id="pl.222.16"></a><var>222.16</var>of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital
         notes <br/>
<a id="pl.222.17"></a><var>222.17</var>refer to the estimated market value as last finally equalized.<br/>
<a id="pl.222.18"></a><var>222.18</var>    (d) For purposes of a provision of a home rule charter or of any special law that
         is not <br/>
<a id="pl.222.19"></a><var>222.19</var>codified in the statutes and that imposes a levy limitation based on market value
         or any limit <br/>
<a id="pl.222.20"></a><var>222.20</var>on debt, the issuance of bonds, certificates of indebtedness, or capital notes based
         on market <br/>
<a id="pl.222.21"></a><var>222.21</var>value, the terms "market value," "taxable market value," and "market valuation," whether
         <br/>
<a id="pl.222.22"></a><var>222.22</var>equalized or unequalized, mean "estimated market value" as defined in paragraph (a).<br/>
<a id="pl.222.23"></a><var>222.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.17.0"></a><a id="pl.222.24"></a><var>222.24</var>    Sec. 17. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:<br/>
<a id="pl.222.25"></a><var>222.25</var>    Subd. 7. <b>Division of duties between local and county assessor.</b> The duty of the <br/>
<a id="pl.222.26"></a><var>222.26</var>duly appointed local assessor shall be to view and appraise the value of all property
         as <br/>
<a id="pl.222.27"></a><var>222.27</var>provided by law, but all the book work shall be done by the county assessor, or the
         <br/>
<a id="pl.222.28"></a><var>222.28</var>assessor's assistants, and the value of all property subject to assessment and taxation
         shall <br/>
<a id="pl.222.29"></a><var>222.29</var>be determined by the county assessor, except as otherwise hereinafter provided. If
         directed <br/>
<a id="pl.222.30"></a><var>222.30</var>by the county assessor, the local assessor shall must perform the duties enumerated in <br/>
<a id="pl.222.31"></a><var>222.31</var>subdivision 8, clause (16), and must enter construction and valuation data into the records <br/>
<a id="pl.222.32"></a><var>222.32</var>in the manner prescribed by the county auditor.<br/>
<a id="pl.222.33"></a><var>222.33</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.222.34"></a><var>222.34</var>thereafter.<br/>
<br/>
<a id="bill.15.18.0"></a><a id="pl.223.1"></a><var>223.1</var>    Sec. 18. Minnesota Statutes 2014, section 273.08, is amended to read:<br/>
<a id="pl.223.2"></a><var>223.2</var><b>273.08 ASSESSOR'S DUTIES.</b><br/>
<a id="pl.223.3"></a><var>223.3</var>The assessor shall actually view, and determine the market value of each tract or
         lot <br/>
<a id="pl.223.4"></a><var>223.4</var>of real property listed for taxation, including the value of all improvements and
         structures <br/>
<a id="pl.223.5"></a><var>223.5</var>thereon, at maximum intervals of five years and shall enter the value opposite each
         <br/>
<a id="pl.223.6"></a><var>223.6</var>description. When directed by the county assessor, local assessors must enter construction <br/>
<a id="pl.223.7"></a><var>223.7</var>and valuation data into the records in the manner prescribed by the county assessor.<br/>
<a id="pl.223.8"></a><var>223.8</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.223.9"></a><var>223.9</var>thereafter.<br/>
<br/>
<a id="bill.15.19.0"></a><a id="pl.223.10"></a><var>223.10</var>    Sec. 19. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision <br/>
<a id="pl.223.11"></a><var>223.11</var>to read:<br/>
<a id="pl.223.12"></a><var>223.12</var>    Subd. 3. <b>Compliance.</b> A county assessor, or a city assessor having the powers <br/>
<a id="pl.223.13"></a><var>223.13</var>of a county assessor, who does not comply with the timely notice requirement under
         <br/>
<a id="pl.223.14"></a><var>223.14</var>subdivision 1 must:<br/>
<a id="pl.223.15"></a><var>223.15</var>(1) mail an additional valuation notice to each person who was not provided timely
         <br/>
<a id="pl.223.16"></a><var>223.16</var>notice; and<br/>
<a id="pl.223.17"></a><var>223.17</var>(2) convene a supplemental local board of appeal and equalization or local review
         <br/>
<a id="pl.223.18"></a><var>223.18</var>session no sooner than ten days after sending the additional notices required by clause
         (1).<br/>
<a id="pl.223.19"></a><var>223.19</var><b>EFFECTIVE DATE.</b>This section is effective for valuation notices sent in 2016 <br/>
<a id="pl.223.20"></a><var>223.20</var>and thereafter.<br/>
<br/>
<a id="bill.15.20.0"></a><a id="pl.223.21"></a><var>223.21</var>    Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:<br/>
<a id="pl.223.22"></a><var>223.22</var>    Subdivision 1. <b>Listing and assessment in county.</b> The personal property of express, <br/>
<a id="pl.223.23"></a><var>223.23</var>stage and transportation companies, and of pipeline companies engaged in the business
         <br/>
<a id="pl.223.24"></a><var>223.24</var>of transporting natural gas, gasoline, crude oil, or other petroleum products, except as <br/>
<a id="pl.223.25"></a><var>223.25</var>otherwise provided by law, shall be listed and assessed in the county, town or district
         <br/>
<a id="pl.223.26"></a><var>223.26</var>where the same is usually kept.<br/>
<a id="pl.223.27"></a><var>223.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.21.0"></a><a id="pl.223.28"></a><var>223.28</var>    Sec. 21. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:<br/>
<a id="pl.223.29"></a><var>223.29</var>    Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, <br/>
<a id="pl.223.30"></a><var>223.30</var>consisting of the pipeline system of mains, pipes, and equipment attached thereto,
         of <br/>
<a id="pl.223.31"></a><var>223.31</var>pipeline companies and others engaged in the operations or business of transporting
         <br/>
<a id="pl.224.1"></a><var>224.1</var>natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed <br/>
<a id="pl.224.2"></a><var>224.2</var>with and assessed by the commissioner of revenue and the values provided to the <br/>
<a id="pl.224.3"></a><var>224.3</var>city or county assessor by order. This subdivision shall not apply to the assessment
         of <br/>
<a id="pl.224.4"></a><var>224.4</var>the products transported through the pipelines nor to the lines of local commercial
         gas <br/>
<a id="pl.224.5"></a><var>224.5</var>companies engaged primarily in the business of distributing gas products to consumers at <br/>
<a id="pl.224.6"></a><var>224.6</var>retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum <br/>
<a id="pl.224.7"></a><var>224.7</var>products exclusively for such owner's own consumption and not for resale to others.
         If <br/>
<a id="pl.224.8"></a><var>224.8</var>more than 85 percent of the natural gas or other petroleum products actually transported <br/>
<a id="pl.224.9"></a><var>224.9</var>over the pipeline is used for the owner's own consumption and not for resale to others,
         <br/>
<a id="pl.224.10"></a><var>224.10</var>then this subdivision shall not apply; provided, however, that in that event, the
         pipeline <br/>
<a id="pl.224.11"></a><var>224.11</var>shall be assessed in proportion to the percentage of gas products actually transported over <br/>
<a id="pl.224.12"></a><var>224.12</var>such pipeline that is not used for the owner's own consumption. On or before August
         1, <br/>
<a id="pl.224.13"></a><var>224.13</var>the commissioner shall certify to the auditor of each county, the amount of such personal
         <br/>
<a id="pl.224.14"></a><var>224.14</var>property assessment against each company in each district in which such property is
         <br/>
<a id="pl.224.15"></a><var>224.15</var>located. If the commissioner determines that the amount of personal property assessment
         <br/>
<a id="pl.224.16"></a><var>224.16</var>certified on or before August 1 is in error, the commissioner may issue a corrected
         <br/>
<a id="pl.224.17"></a><var>224.17</var>certification on or before October 1. The commissioner may correct errors that are
         merely <br/>
<a id="pl.224.18"></a><var>224.18</var>clerical in nature until December 31.<br/>
<a id="pl.224.19"></a><var>224.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.22.0"></a><a id="pl.224.20"></a><var>224.20</var>    Sec. 22. Minnesota Statutes 2014, section 273.371, is amended to read:<br/>
<a id="pl.224.21"></a><var>224.21</var><b>273.371 REPORTS OF UTILITY COMPANIES.</b><br/>
<a id="pl.224.22"></a><var>224.22</var>    Subdivision 1. <b>Report required.</b> Every electric light, power, gas, water, express, <br/>
<a id="pl.224.23"></a><var>224.23</var>stage, and transportation company, and pipeline company doing business in Minnesota <br/>
<a id="pl.224.24"></a><var>224.24</var>shall annually file with the commissioner on or before March 31 a report under oath
         setting <br/>
<a id="pl.224.25"></a><var>224.25</var>forth the information prescribed by the commissioner to enable the commissioner to
         make <br/>
<a id="pl.224.26"></a><var>224.26</var>valuations, recommended valuations, and equalization required under sections 
         <statute_ref>273.33</statute_ref>, <br/>
<statute_ref><a id="pl.224.27"></a><var>224.27</var>273.35
         </statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, and 
         <statute_ref>273.3711</statute_ref>. If all the required information is not available on <br/>
<a id="pl.224.28"></a><var>224.28</var>March 31, the company or pipeline shall file the information that is available on
         or before <br/>
<a id="pl.224.29"></a><var>224.29</var>March 31, and the balance of the information as soon as it becomes available.<br/>
<a id="pl.224.30"></a><var>224.30</var>    Subd. 2. <b>Extension.</b> The commissioner for good cause may extend the time for <br/>
<a id="pl.224.31"></a><var>224.31</var>filing the report required by subdivision 1. The extension may must not exceed 15 days.<br/>
<a id="pl.224.32"></a><var>224.32</var>    Subd. 3. <b>Reports filed by the commissioner.</b> If a company fails to file a report <br/>
<a id="pl.224.33"></a><var>224.33</var>required by subdivision 1, the commissioner may, from information in the commissioner's
         <br/>
<a id="pl.224.34"></a><var>224.34</var>possession or obtainable by the commissioner, make and file a report for the company,
         or <br/>
<a id="pl.225.1"></a><var>225.1</var>make the valuations, recommended valuations, and equalizations required under sections
         <br/>
<a id="pl.225.2"></a><var>225.2</var>273.33, 273.35 to 273.37, and 273.3711.<br/>
<a id="pl.225.3"></a><var>225.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.225.4"></a><var>225.4</var>thereafter.<br/>
<br/>
<a id="bill.15.23.0"></a><a id="pl.225.5"></a><var>225.5</var>    Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:<br/>
<a id="pl.225.6"></a><var>225.6</var>    Subd. 2. <b>Contents and filing of petition.</b> (a) In all appeals to court that are required <br/>
<a id="pl.225.7"></a><var>225.7</var>to be brought against the commissioner under this section, the petition initiating
         the appeal <br/>
<a id="pl.225.8"></a><var>225.8</var>must be served on the commissioner and must be filed with the Tax Court in Ramsey
         <br/>
<a id="pl.225.9"></a><var>225.9</var>County, as provided in paragraph (b) or (c).<br/>
<a id="pl.225.10"></a><var>225.10</var>(b) If the appeal to court is from an order of the commissioner, it must be brought
         <br/>
<a id="pl.225.11"></a><var>225.11</var>under chapter 271 and filed within the time period prescribed in section 271.06, <br/>
<a id="pl.225.12"></a><var>225.12</var>subdivision 2, except that when the provisions of this section conflict with chapter <br/>
<a id="pl.225.13"></a><var>225.13</var>271 or 278, this section prevails. In addition, the petition must include all the parcels <br/>
<a id="pl.225.14"></a><var>225.14</var>encompassed by that order which the petitioner claims have been partially, unfairly,
         <br/>
<a id="pl.225.15"></a><var>225.15</var>or unequally assessed, assessed at a valuation greater than their real or actual value,
         <br/>
<a id="pl.225.16"></a><var>225.16</var>misclassified, or are exempt. For this purpose, an order of the commissioner is either
         (1) a <br/>
<a id="pl.225.17"></a><var>225.17</var>certification or notice of value by the commissioner for property described in subdivision
         <br/>
<a id="pl.225.18"></a><var>225.18</var>1, or (2) the final determination by the commissioner of either an administrative
         appeal <br/>
<a id="pl.225.19"></a><var>225.19</var>conference or informal administrative appeal described in subdivision 4.<br/>
<a id="pl.225.20"></a><var>225.20</var>(c) If the appeal is from the tax that results from implementation of the <br/>
<a id="pl.225.21"></a><var>225.21</var>commissioner's order, certification, or recommendation, it must be brought under <br/>
<a id="pl.225.22"></a><var>225.22</var>chapter 278, and the provisions in that chapter apply, except that service shall be
         on the <br/>
<a id="pl.225.23"></a><var>225.23</var>commissioner only and not on the local officials specified in section 
         <statute_ref>278.01, subdivision 1</statute_ref>, <br/>
<a id="pl.225.24"></a><var>225.24</var>and if any other provision of this section conflicts with chapter 278, this section
         prevails. <br/>
<a id="pl.225.25"></a><var>225.25</var>In addition, the petition must include either all the utility parcels or all the railroad
         parcels <br/>
<a id="pl.225.26"></a><var>225.26</var>in the state in which the petitioner claims an interest and which the petitioner claims
         have <br/>
<a id="pl.225.27"></a><var>225.27</var>been partially, unfairly, or unequally assessed, assessed at a valuation greater than
         their <br/>
<a id="pl.225.28"></a><var>225.28</var>real or actual value, misclassified, or are exempt.<br/>
<a id="pl.225.29"></a><var>225.29</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.225.30"></a><var>225.30</var>thereafter.<br/>
<br/>
<a id="bill.15.24.0"></a><a id="pl.225.31"></a><var>225.31</var>    Sec. 24. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:<br/>
<a id="pl.225.32"></a><var>225.32</var>    Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under <br/>
<a id="pl.225.33"></a><var>225.33</var>section 
         <statute_ref>270.82</statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified <br/>
<a id="pl.226.1"></a><var>226.1</var>by the commissioner in an extension, may appeal administratively to the commissioner
         <br/>
<a id="pl.226.2"></a><var>226.2</var>prior to bringing an action in court.<br/>
<a id="pl.226.3"></a><var>226.3</var>    (b) Companies that must submit reports under section 
<statute_ref>270.82</statute_ref> must submit file a <br/>
<a id="pl.226.4"></a><var>226.4</var>written request to for an appeal with the commissioner for a conference within ten 30 <br/>
<a id="pl.226.5"></a><var>226.5</var>days after the notice date of the commissioner's valuation certification or other notice <br/>
<a id="pl.226.6"></a><var>226.6</var>to the company, or by June 15, whichever is earlier. For purposes of this section, the <br/>
<a id="pl.226.7"></a><var>226.7</var>term "notice date" means the date of the valuation certification, commissioner's order,
         <br/>
<a id="pl.226.8"></a><var>226.8</var>recommendation, or other notice.<br/>
<a id="pl.226.9"></a><var>226.9</var>    (c) Companies that submit reports under section 
<statute_ref>273.371</statute_ref> must submit a written <br/>
<a id="pl.226.10"></a><var>226.10</var>request to the commissioner for a conference within ten days after the date of the
         <br/>
<a id="pl.226.11"></a><var>226.11</var>commissioner's valuation certification or notice to the company, or by July 1, whichever
         <br/>
<a id="pl.226.12"></a><var>226.12</var>is earlier. The appeal need not be in any particular form but must contain the following <br/>
<a id="pl.226.13"></a><var>226.13</var>information:<br/>
<a id="pl.226.14"></a><var>226.14</var>    (1) name and address of the company;<br/>
<a id="pl.226.15"></a><var>226.15</var>    (2) the date;<br/>
<a id="pl.226.16"></a><var>226.16</var>    (3) its Minnesota identification number;<br/>
<a id="pl.226.17"></a><var>226.17</var>    (4) the assessment year or period involved;<br/>
<a id="pl.226.18"></a><var>226.18</var>    (5) the findings in the valuation that the company disputes;<br/>
<a id="pl.226.19"></a><var>226.19</var>    (6) a summary statement specifying its reasons for disputing each item; and<br/>
<a id="pl.226.20"></a><var>226.20</var>    (7) the signature of the company's duly authorized agent or representative.<br/>
<a id="pl.226.21"></a><var>226.21</var>    (d) When requested in writing and within the time allowed for filing an <br/>
<a id="pl.226.22"></a><var>226.22</var>administrative appeal, the commissioner may extend the time for filing an appeal for
         a <br/>
<a id="pl.226.23"></a><var>226.23</var>period of not more than 15 days from the expiration of the time for filing the appeal.<br/>
<a id="pl.226.24"></a><var>226.24</var>    (d) (e) The commissioner shall conduct the conference either in person or by <br/>
<a id="pl.226.25"></a><var>226.25</var>telephone upon the commissioner's entire files and records and such further information as <br/>
<a id="pl.226.26"></a><var>226.26</var>may be offered. The conference must be held no later than 20 days after the date of
         the <br/>
<a id="pl.226.27"></a><var>226.27</var>commissioner's valuation certification or notice to the company, or by the date specified
         <br/>
<a id="pl.226.28"></a><var>226.28</var>by the commissioner in an extension request for an appeal. Within 60 30 days after the <br/>
<a id="pl.226.29"></a><var>226.29</var>conference the commissioner shall make a final determination of the matter and shall
         <br/>
<a id="pl.226.30"></a><var>226.30</var>notify the company promptly of the determination. The conference is not a contested
         <br/>
<a id="pl.226.31"></a><var>226.31</var>case hearing subject to chapter 14.<br/>
<a id="pl.226.32"></a><var>226.32</var>    (e) In addition to the opportunity for a conference under paragraph (a), the <br/>
<a id="pl.226.33"></a><var>226.33</var>commissioner shall also provide the railroad and utility companies the opportunity
         to <br/>
<a id="pl.226.34"></a><var>226.34</var>discuss any questions or concerns relating to the values established by the commissioner
         <br/>
<a id="pl.226.35"></a><var>226.35</var>through certification or notice in a less formal manner. This does not change or modify
         <br/>
<a id="pl.226.36"></a><var>226.36</var>the deadline for requesting a conference under paragraph (a), the deadline in section
         <br/>
<a id="pl.227.1"></a><var>227.1</var><statute_ref>271.06</statute_ref> for appealing an order of the commissioner, or the deadline in section 
<statute_ref>278.01</statute_ref> for <br/>
<a id="pl.227.2"></a><var>227.2</var>appealing property taxes in court.<br/>
<a id="pl.227.3"></a><var>227.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.227.4"></a><var>227.4</var>thereafter.<br/>
<br/>
<a id="bill.15.25.0"></a><a id="pl.227.5"></a><var>227.5</var>    Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision <br/>
<a id="pl.227.6"></a><var>227.6</var>to read:<br/>
<a id="pl.227.7"></a><var>227.7</var>    Subd. 5. <b>Agreement determining valuation.</b> When it appears to be in the best <br/>
<a id="pl.227.8"></a><var>227.8</var>interest of the state, the commissioner may settle any matter under consideration
         regarding <br/>
<a id="pl.227.9"></a><var>227.9</var>an appeal filed under this section. The agreement must be in writing and signed by
         <br/>
<a id="pl.227.10"></a><var>227.10</var>the commissioner and the company or the company's authorized representative. The <br/>
<a id="pl.227.11"></a><var>227.11</var>agreement is final and conclusive, and except upon a showing of fraud, malfeasance,
         <br/>
<a id="pl.227.12"></a><var>227.12</var>or misrepresentation of a material fact, the case may not be reopened as to the matters
         <br/>
<a id="pl.227.13"></a><var>227.13</var>agreed upon.<br/>
<a id="pl.227.14"></a><var>227.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2016 and <br/>
<a id="pl.227.15"></a><var>227.15</var>thereafter.<br/>
<br/>
<a id="bill.15.26.0"></a><a id="pl.227.16"></a><var>227.16</var>    Sec. 26. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision <br/>
<a id="pl.227.17"></a><var>227.17</var>to read:<br/>
<a id="pl.227.18"></a><var>227.18</var>    Subd. 6. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br/>
<a id="pl.227.19"></a><var>227.19</var>appeal from an order of the commissioner and also files an appeal to the tax court
         for <br/>
<a id="pl.227.20"></a><var>227.20</var>that same order of the commissioner, the administrative appeal is dismissed and the
         <br/>
<a id="pl.227.21"></a><var>227.21</var>commissioner is no longer required to make the determination of appeal under subdivision
         <br/>
<a id="pl.227.22"></a><var>227.22</var>4.<br/>
<a id="pl.227.23"></a><var>227.23</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2015.<br/>
<br/>
<a id="bill.15.27.0"></a><a id="pl.227.24"></a><var>227.24</var>    Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.227.25"></a><var>227.25</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br/>
<a id="pl.227.26"></a><var>227.26</var>board of a town, or the council or other governing body of a city, is the local board <br/>
<a id="pl.227.27"></a><var>227.27</var>of appeal and equalization except (1) in cities whose charters provide for a board
         of <br/>
<a id="pl.227.28"></a><var>227.28</var>equalization or (2) in any city or town that has transferred its local board of review
         power <br/>
<a id="pl.227.29"></a><var>227.29</var>and duties to the county board as provided in subdivision 3. The county assessor shall
         <br/>
<a id="pl.227.30"></a><var>227.30</var>fix a day and time when the board or the local board of equalization shall meet in the <br/>
<a id="pl.227.31"></a><var>227.31</var>assessment districts of the county. Notwithstanding any law or city charter to the
         contrary, <br/>
<a id="pl.227.32"></a><var>227.32</var>a city board of equalization shall be referred to as a local board of appeal and equalization. <br/>
<a id="pl.228.1"></a><var>228.1</var>On or before February 15 of each year the assessor shall give written notice of the
         time <br/>
<a id="pl.228.2"></a><var>228.2</var>to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
         <br/>
<a id="pl.228.3"></a><var>228.3</var>the meetings must be held between April 1 and May 31 each year. The clerk shall give
         <br/>
<a id="pl.228.4"></a><var>228.4</var>published and posted notice of the meeting at least ten days before the date of the
         meeting.<br/>
<a id="pl.228.5"></a><var>228.5</var>    The board shall meet either at a central location within the county or at the office
         of <br/>
<a id="pl.228.6"></a><var>228.6</var>the clerk to review the assessment and classification of property in the town or city.
         No <br/>
<a id="pl.228.7"></a><var>228.7</var>changes in valuation or classification which are intended to correct errors in judgment
         by <br/>
<a id="pl.228.8"></a><var>228.8</var>the county assessor may be made by the county assessor after the board has adjourned
         <br/>
<a id="pl.228.9"></a><var>228.9</var>in those cities or towns that hold a local board of review; however, corrections of
         errors <br/>
<a id="pl.228.10"></a><var>228.10</var>that are merely clerical in nature or changes that extend homestead treatment to property
         <br/>
<a id="pl.228.11"></a><var>228.11</var>are permitted after adjournment until the tax extension date for that assessment year.
         The <br/>
<a id="pl.228.12"></a><var>228.12</var>changes must be fully documented and maintained in the assessor's office and must
         be <br/>
<a id="pl.228.13"></a><var>228.13</var>available for review by any person. A copy of the changes made during this period
         in <br/>
<a id="pl.228.14"></a><var>228.14</var>those cities or towns that hold a local board of review must be sent to the county
         board no <br/>
<a id="pl.228.15"></a><var>228.15</var>later than December 31 of the assessment year.<br/>
<a id="pl.228.16"></a><var>228.16</var>    (b) The board shall determine whether the taxable property in the town or city has
         <br/>
<a id="pl.228.17"></a><var>228.17</var>been properly placed on the list and properly valued by the assessor. If real or personal
         <br/>
<a id="pl.228.18"></a><var>228.18</var>property has been omitted, the board shall place it on the list with its market value,
         and <br/>
<a id="pl.228.19"></a><var>228.19</var>correct the assessment so that each tract or lot of real property, and each article,
         parcel, <br/>
<a id="pl.228.20"></a><var>228.20</var>or class of personal property, is entered on the assessment list at its market value.
         No <br/>
<a id="pl.228.21"></a><var>228.21</var>assessment of the property of any person may be raised unless the person has been
         <br/>
<a id="pl.228.22"></a><var>228.22</var>duly notified of the intent of the board to do so. On application of any person feeling
         <br/>
<a id="pl.228.23"></a><var>228.23</var>aggrieved, the board shall review the assessment or classification, or both, and correct
         <br/>
<a id="pl.228.24"></a><var>228.24</var>it as appears just. The board may not make an individual market value adjustment or
         <br/>
<a id="pl.228.25"></a><var>228.25</var>classification change that would benefit the property if the owner or other person
         having <br/>
<a id="pl.228.26"></a><var>228.26</var>control over the property has refused the assessor access to inspect the property
         and the <br/>
<a id="pl.228.27"></a><var>228.27</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br/>
<a id="pl.228.28"></a><var>228.28</var>shall not participate in any actions of the board which result in market value adjustments
         <br/>
<a id="pl.228.29"></a><var>228.29</var>or classification changes to property owned by the board member, the spouse, parent,
         <br/>
<a id="pl.228.30"></a><var>228.30</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
         nephew, <br/>
<a id="pl.228.31"></a><var>228.31</var>or niece of a board member, or property in which a board member has a financial interest.
         <br/>
<a id="pl.228.32"></a><var>228.32</var>The relationship may be by blood or marriage.<br/>
<a id="pl.228.33"></a><var>228.33</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total
         <br/>
<a id="pl.228.34"></a><var>228.34</var>reductions must not reduce the aggregate assessment made by the county assessor by
         more <br/>
<a id="pl.228.35"></a><var>228.35</var>than one percent. If the total reductions would lower the aggregate assessments made
         by <br/>
<a id="pl.228.36"></a><var>228.36</var>the county assessor by more than one percent, none of the adjustments may be made.
         The <br/>
<a id="pl.229.1"></a><var>229.1</var>assessor shall correct any clerical errors or double assessments discovered by the
         board <br/>
<a id="pl.229.2"></a><var>229.2</var>without regard to the one percent limitation.<br/>
<a id="pl.229.3"></a><var>229.3</var>    (d) A local board does not have authority to grant an exemption or to order property
         <br/>
<a id="pl.229.4"></a><var>229.4</var>removed from the tax rolls.<br/>
<a id="pl.229.5"></a><var>229.5</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day
         <br/>
<a id="pl.229.6"></a><var>229.6</var>until they finish hearing the cases presented. The assessor shall attend and take
         part in <br/>
<a id="pl.229.7"></a><var>229.7</var>the proceedings, but must not vote. The county assessor, or an assistant delegated
         by the <br/>
<a id="pl.229.8"></a><var>229.8</var>county assessor shall attend the meetings. The board shall list separately all omitted
         <br/>
<a id="pl.229.9"></a><var>229.9</var>property added to the list by the board and all items of property increased or decreased,
         <br/>
<a id="pl.229.10"></a><var>229.10</var>with the market value of each item of property, added or changed by the board. The
         <br/>
<a id="pl.229.11"></a><var>229.11</var>county assessor shall enter all changes made by the board.<br/>
<a id="pl.229.12"></a><var>229.12</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
         <br/>
<a id="pl.229.13"></a><var>229.13</var>counsel, or by written communication before the board after being duly notified of
         the <br/>
<a id="pl.229.14"></a><var>229.14</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved
         by an <br/>
<a id="pl.229.15"></a><var>229.15</var>assessment or classification fails to apply for a review of the assessment or classification,
         <br/>
<a id="pl.229.16"></a><var>229.16</var>the person may not appear before the county board of appeal and equalization for a
         review. <br/>
<a id="pl.229.17"></a><var>229.17</var>This paragraph does not apply if an assessment was made after the local board meeting,
         as <br/>
<a id="pl.229.18"></a><var>229.18</var>provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can establish not having received notice of <br/>
<a id="pl.229.19"></a><var>229.19</var>market value at least five days before the local board meeting.<br/>
<a id="pl.229.20"></a><var>229.20</var>    (g) The local board must complete its work and adjourn within 20 days from the <br/>
<a id="pl.229.21"></a><var>229.21</var>time of convening stated in the notice of the clerk, unless a longer period is approved
         by <br/>
<a id="pl.229.22"></a><var>229.22</var>the commissioner of revenue. No action taken after that date is valid. All complaints
         <br/>
<a id="pl.229.23"></a><var>229.23</var>about an assessment or classification made after the meeting of the board must be
         heard <br/>
<a id="pl.229.24"></a><var>229.24</var>and determined by the county board of equalization. A nonresident may, at any time,
         <br/>
<a id="pl.229.25"></a><var>229.25</var>before the meeting of the board file written objections to an assessment or classification
         <br/>
<a id="pl.229.26"></a><var>229.26</var>with the county assessor. The objections must be presented to the board at its meeting
         by <br/>
<a id="pl.229.27"></a><var>229.27</var>the county assessor for its consideration.<br/>
<a id="pl.229.28"></a><var>229.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.28.0"></a><a id="pl.229.29"></a><var>229.29</var>    Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:<br/>
<a id="pl.229.30"></a><var>229.30</var>    Subdivision 1. <b>Members; meetings; rules for equalizing assessments.</b> The county <br/>
<a id="pl.229.31"></a><var>229.31</var>commissioners, or a majority of them, with the county auditor, or, if the auditor
         cannot be <br/>
<a id="pl.229.32"></a><var>229.32</var>present, the deputy county auditor, or, if there is no deputy, the court administrator
         of the <br/>
<a id="pl.229.33"></a><var>229.33</var>district court, shall form a board for the equalization of the assessment of the property
         <br/>
<a id="pl.229.34"></a><var>229.34</var>of the county, including the property of all cities whose charters provide for a board
         of <br/>
<a id="pl.229.35"></a><var>229.35</var>equalization. This board shall be referred to as the county board of appeal and equalization.
         <br/>
<a id="pl.230.1"></a><var>230.1</var>The board shall meet annually, on the date specified in section 
         <statute_ref>274.14</statute_ref>, at the office of the <br/>
<a id="pl.230.2"></a><var>230.2</var>auditor. Each member shall take an oath to fairly and impartially perform duties as
         a <br/>
<a id="pl.230.3"></a><var>230.3</var>member. Members shall not participate in any actions of the board which result in
         market <br/>
<a id="pl.230.4"></a><var>230.4</var>value adjustments or classification changes to property owned by the board member,
         the <br/>
<a id="pl.230.5"></a><var>230.5</var>spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister,
         uncle, <br/>
<a id="pl.230.6"></a><var>230.6</var>aunt, nephew, or niece of a board member, or property in which a board member has
         a <br/>
<a id="pl.230.7"></a><var>230.7</var>financial interest. The relationship may be by blood or marriage. The board shall
         examine <br/>
<a id="pl.230.8"></a><var>230.8</var>and compare the returns of the assessment of property of the towns or districts, and
         <br/>
<a id="pl.230.9"></a><var>230.9</var>equalize them so that each tract or lot of real property and each article or class
         of personal <br/>
<a id="pl.230.10"></a><var>230.10</var>property is entered on the assessment list at its market value, subject to the following
         rules:<br/>
<a id="pl.230.11"></a><var>230.11</var>    (1) The board shall raise the valuation of each tract or lot of real property which
         <br/>
<a id="pl.230.12"></a><var>230.12</var>in its opinion is returned below its market value to the sum believed to be its market
         <br/>
<a id="pl.230.13"></a><var>230.13</var>value. The board must first give notice of intention to raise the valuation to the
         person in <br/>
<a id="pl.230.14"></a><var>230.14</var>whose name it is assessed, if the person is a resident of the county. The notice must
         fix <br/>
<a id="pl.230.15"></a><var>230.15</var>a time and place for a hearing.<br/>
<a id="pl.230.16"></a><var>230.16</var>    (2) The board shall reduce the valuation of each tract or lot which in its opinion
         is <br/>
<a id="pl.230.17"></a><var>230.17</var>returned above its market value to the sum believed to be its market value.<br/>
<a id="pl.230.18"></a><var>230.18</var>    (3) The board shall raise the valuation of each class of personal property which <br/>
<a id="pl.230.19"></a><var>230.19</var>in its opinion is returned below its market value to the sum believed to be its market
         <br/>
<a id="pl.230.20"></a><var>230.20</var>value. It shall raise the aggregate value of the personal property of individuals,
         firms, or <br/>
<a id="pl.230.21"></a><var>230.21</var>corporations, when it believes that the aggregate valuation, as returned, is less
         than the <br/>
<a id="pl.230.22"></a><var>230.22</var>market value of the taxable personal property possessed by the individuals, firms,
         or <br/>
<a id="pl.230.23"></a><var>230.23</var>corporations, to the sum it believes to be the market value. The board must first
         give notice <br/>
<a id="pl.230.24"></a><var>230.24</var>to the persons of intention to do so. The notice must set a time and place for a hearing.<br/>
<a id="pl.230.25"></a><var>230.25</var>    (4) The board shall reduce the valuation of each class of personal property that <br/>
<a id="pl.230.26"></a><var>230.26</var>is returned above its market value to the sum it believes to be its market value.
         Upon <br/>
<a id="pl.230.27"></a><var>230.27</var>complaint of a party aggrieved, the board shall reduce the aggregate valuation of
         the <br/>
<a id="pl.230.28"></a><var>230.28</var>individual's personal property, or of any class of personal property for which the
         individual <br/>
<a id="pl.230.29"></a><var>230.29</var>is assessed, which in its opinion has been assessed at too large a sum, to the sum
         it believes <br/>
<a id="pl.230.30"></a><var>230.30</var>was the market value of the individual's personal property of that class.<br/>
<a id="pl.230.31"></a><var>230.31</var>    (5) The board must not reduce the aggregate value of all the property of its county,
         as <br/>
<a id="pl.230.32"></a><var>230.32</var>submitted to the county board of equalization, with the additions made by the auditor
         under <br/>
<a id="pl.230.33"></a><var>230.33</var>this chapter, by more than one percent of its whole valuation. The board may raise
         the <br/>
<a id="pl.230.34"></a><var>230.34</var>aggregate valuation of real property, and of each class of personal property, of the
         county, <br/>
<a id="pl.230.35"></a><var>230.35</var>or of any town or district of the county, when it believes it is below the market
         value of the <br/>
<a id="pl.230.36"></a><var>230.36</var>property, or class of property, to the aggregate amount it believes to be its market
         value.<br/>
<a id="pl.231.1"></a><var>231.1</var>    (6) The board shall change the classification of any property which in its opinion
         <br/>
<a id="pl.231.2"></a><var>231.2</var>is not properly classified.<br/>
<a id="pl.231.3"></a><var>231.3</var>    (7) The board does not have the authority to grant an exemption or to order property
         <br/>
<a id="pl.231.4"></a><var>231.4</var>removed from the tax rolls.<br/>
<a id="pl.231.5"></a><var>231.5</var>    (8) The board may not make an individual market value adjustment or classification
         <br/>
<a id="pl.231.6"></a><var>231.6</var>change that would benefit property if the owner or other person having control over
         the <br/>
<a id="pl.231.7"></a><var>231.7</var>property has refused the assessor access to inspect the property and the interior
         of any <br/>
<a id="pl.231.8"></a><var>231.8</var>buildings or structures as provided in section 273.20.<br/>
<a id="pl.231.9"></a><var>231.9</var><b>EFFECTIVE DATE.</b>This section is effective for county board of appeal and <br/>
<a id="pl.231.10"></a><var>231.10</var>equalization meetings in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.29.0"></a><a id="pl.231.11"></a><var>231.11</var>    Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:<br/>
<a id="pl.231.12"></a><var>231.12</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any county that conducts <br/>
<a id="pl.231.13"></a><var>231.13</var>county boards of appeal and equalization meetings must provide proof to the commissioner
         <br/>
<a id="pl.231.14"></a><var>231.14</var>by December 1, 2009, and each year thereafter, February 1  that it is in compliance with the <br/>
<a id="pl.231.15"></a><var>231.15</var>requirements of subdivision 2. Beginning in 2009, This notice must also verify that there <br/>
<a id="pl.231.16"></a><var>231.16</var>was a quorum of voting members at each meeting of the board of appeal and equalization
         <br/>
<a id="pl.231.17"></a><var>231.17</var>in the current previous year. A county that does not comply with these requirements is <br/>
<a id="pl.231.18"></a><var>231.18</var>deemed to have transferred its board of appeal and equalization powers to the special
         <br/>
<a id="pl.231.19"></a><var>231.19</var>board of equalization appointed pursuant to section 
         <statute_ref>274.13, subdivision 2</statute_ref>, beginning <br/>
<a id="pl.231.20"></a><var>231.20</var>with the following year's assessment and continuing unless the powers are reinstated
         <br/>
<a id="pl.231.21"></a><var>231.21</var>under paragraph (c). A county that does not comply with the requirements of subdivision
         <br/>
<a id="pl.231.22"></a><var>231.22</var>2 and has not appointed a special board of equalization shall appoint a special board
         of <br/>
<a id="pl.231.23"></a><var>231.23</var>equalization before the following year's assessment.<br/>
<a id="pl.231.24"></a><var>231.24</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization
         <br/>
<a id="pl.231.25"></a><var>231.25</var>for a county has been transferred to the special board of equalization under this
         subdivision <br/>
<a id="pl.231.26"></a><var>231.26</var>and, prior to the meeting time of the special board of equalization, the county shall
         make <br/>
<a id="pl.231.27"></a><var>231.27</var>available to those taxpayers a procedure for a review of the assessments, including,
         but <br/>
<a id="pl.231.28"></a><var>231.28</var>not limited to, open book meetings. This alternate review process must take place
         in <br/>
<a id="pl.231.29"></a><var>231.29</var>April and May.<br/>
<a id="pl.231.30"></a><var>231.30</var>    (c) A county board whose powers are transferred to the special board of equalization
         <br/>
<a id="pl.231.31"></a><var>231.31</var>under this subdivision may be reinstated by resolution of the county board and upon
         proof <br/>
<a id="pl.231.32"></a><var>231.32</var>of compliance with the requirements of subdivision 2. The resolution and proofs must
         <br/>
<a id="pl.231.33"></a><var>231.33</var>be provided to the commissioner by December February 1 in order to be effective for <br/>
<a id="pl.231.34"></a><var>231.34</var>the following current year's assessment.<br/>
<a id="pl.232.1"></a><var>232.1</var>(d) If a person who was entitled to appeal to the county board of appeal and <br/>
<a id="pl.232.2"></a><var>232.2</var>equalization or to the county special board of equalization is not able to do so in
         a <br/>
<a id="pl.232.3"></a><var>232.3</var>particular year because the county board or special board did not meet the quorum
         and <br/>
<a id="pl.232.4"></a><var>232.4</var>training requirements in this section and section 
         <statute_ref>274.13</statute_ref>, or because the special board <br/>
<a id="pl.232.5"></a><var>232.5</var>was not appointed, that person may instead appeal to the commissioner of revenue,
         <br/>
<a id="pl.232.6"></a><var>232.6</var>provided that the appeal is received by the commissioner prior to August 1. The appeal
         <br/>
<a id="pl.232.7"></a><var>232.7</var>is not subject to either chapter 14 or section 
         <statute_ref>270C.92</statute_ref>. The commissioner must issue <br/>
<a id="pl.232.8"></a><var>232.8</var>an appropriate order to the county assessor in response to each timely appeal, either
         <br/>
<a id="pl.232.9"></a><var>232.9</var>upholding or changing the valuation or classification of the property. Prior to October
         1 of <br/>
<a id="pl.232.10"></a><var>232.10</var>each year, the commissioner must charge and bill the county where the property is
         located <br/>
<a id="pl.232.11"></a><var>232.11</var>$500 for each tax parcel covered by an order issued under this paragraph in that year.
         <br/>
<a id="pl.232.12"></a><var>232.12</var>Amounts received by the commissioner under this paragraph must be deposited in the
         <br/>
<a id="pl.232.13"></a><var>232.13</var>state's general fund. If payment of a billed amount is not received by the commissioner
         <br/>
<a id="pl.232.14"></a><var>232.14</var>before December 1 of the year when billed, the commissioner must deduct that unpaid
         <br/>
<a id="pl.232.15"></a><var>232.15</var>amount from any state aid the commissioner would otherwise pay to the county under
         <br/>
<a id="pl.232.16"></a><var>232.16</var>chapter 477A in the next year. Late payments may either be returned to the county
         <br/>
<a id="pl.232.17"></a><var>232.17</var>uncashed and undeposited or may be accepted. If a late payment is accepted, the state
         aid <br/>
<a id="pl.232.18"></a><var>232.18</var>paid to the county under chapter 477A must be adjusted within 12 months to eliminate
         any <br/>
<a id="pl.232.19"></a><var>232.19</var>reduction that occurred because the payment was late. Amounts needed to make these
         <br/>
<a id="pl.232.20"></a><var>232.20</var>adjustments are included in the appropriation under section 
         <statute_ref>477A.03, subdivision 2</statute_ref>.<br/>
<a id="pl.232.21"></a><var>232.21</var><b>EFFECTIVE DATE.</b>This section is effective for county boards of appeal and <br/>
<a id="pl.232.22"></a><var>232.22</var>equalization meetings held in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.30.0"></a><a id="pl.232.23"></a><var>232.23</var>    Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.232.24"></a><var>232.24</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.232.25"></a><var>232.25</var>contrary, on or before September 30, each county and each home rule charter or statutory
         <br/>
<a id="pl.232.26"></a><var>232.26</var>city shall certify to the county auditor the proposed property tax levy for taxes
         payable in <br/>
<a id="pl.232.27"></a><var>232.27</var>the following year.<br/>
<a id="pl.232.28"></a><var>232.28</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         <br/>
<a id="pl.232.29"></a><var>232.29</var>each town and each special taxing district shall adopt and certify to the county auditor
         a <br/>
<a id="pl.232.30"></a><var>232.30</var>proposed property tax levy for taxes payable in the following year. For towns, the
         final <br/>
<a id="pl.232.31"></a><var>232.31</var>certified levy shall also be considered the proposed levy.<br/>
<a id="pl.232.32"></a><var>232.32</var>    (c) On or before September 30, each school district that has not mutually agreed <br/>
<a id="pl.232.33"></a><var>232.33</var>with its home county to extend this date shall certify to the county auditor the proposed
         <br/>
<a id="pl.232.34"></a><var>232.34</var>property tax levy for taxes payable in the following year. Each school district that
         has <br/>
<a id="pl.232.35"></a><var>232.35</var>agreed with its home county to delay the certification of its proposed property tax
         levy <br/>
<a id="pl.233.1"></a><var>233.1</var>must certify its proposed property tax levy for the following year no later than October
         <br/>
<a id="pl.233.2"></a><var>233.2</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.233.3"></a><var>233.3</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.233.4"></a><var>233.4</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.233.5"></a><var>233.5</var>and tax capacity levies; or<br/>
<a id="pl.233.6"></a><var>233.6</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.233.7"></a><var>233.7</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.233.8"></a><var>233.8</var>    (d) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.233.9"></a><var>233.9</var>maximum tax levies for taxing jurisdictions within a first class city certifies the
         maximum <br/>
<a id="pl.233.10"></a><var>233.10</var>property tax levies for funds under its jurisdiction by charter to the county auditor
         by the <br/>
<a id="pl.233.11"></a><var>233.11</var>date specified in paragraph (a), the city shall be deemed to have certified its levies
         for <br/>
<a id="pl.233.12"></a><var>233.12</var>those taxing jurisdictions.<br/>
<a id="pl.233.13"></a><var>233.13</var>    (e) For purposes of this section, "special taxing district" means a special taxing
         <br/>
<a id="pl.233.14"></a><var>233.14</var>district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax <br/>
<a id="pl.233.15"></a><var>233.15</var>under chapter 124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to <br/>
<statute_ref><a id="pl.233.16"></a><var>233.16</var>123A.446
         </statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are <br/>
<a id="pl.233.17"></a><var>233.17</var>also special taxing districts for purposes of this section.<br/>
<a id="pl.233.18"></a><var>233.18</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         <br/>
<a id="pl.233.19"></a><var>233.19</var>tax levy under this subdivision, the taxing authority shall announce the time and
         place <br/>
<a id="pl.233.20"></a><var>233.20</var>of its any subsequent regularly scheduled meetings at which the budget and levy will be <br/>
<a id="pl.233.21"></a><var>233.21</var>discussed and at which the public will be allowed to speak. The time and place of
         those <br/>
<a id="pl.233.22"></a><var>233.22</var>meetings must be included in the proceedings or summary of proceedings published in
         the <br/>
<a id="pl.233.23"></a><var>233.23</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.233.24"></a><var>233.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.31.0"></a><a id="pl.233.25"></a><var>233.25</var>    Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:<br/>
<a id="pl.233.26"></a><var>233.26</var>    Subd. 2. <b>Local governments required to report.</b> For purposes of this section, <br/>
<a id="pl.233.27"></a><var>233.27</var>"local governmental unit" means a county, home rule charter or statutory city with
         a <br/>
<a id="pl.233.28"></a><var>233.28</var>population greater than 2,500, a town with a population greater than 5,000, or a home rule <br/>
<a id="pl.233.29"></a><var>233.29</var>charter or statutory city or town that receives a distribution from the taconite municipal
         aid <br/>
<a id="pl.233.30"></a><var>233.30</var>account in the levy year.<br/>
<a id="pl.233.31"></a><var>233.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.32.0"></a><a id="pl.233.32"></a><var>233.32</var>    Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:<br/>
<a id="pl.234.1"></a><var>234.1</var>    Subdivision 1. <b>Determination of validity.</b> (a) Any person having personal property, <br/>
<a id="pl.234.2"></a><var>234.2</var>or any estate, right, title, or interest in or lien upon any parcel of land, who claims
         that <br/>
<a id="pl.234.3"></a><var>234.3</var>such property has been partially, unfairly, or unequally assessed in comparison with
         other <br/>
<a id="pl.234.4"></a><var>234.4</var>property in the (1) city, or (2) county, or (3) in the case of a county containing
         a city of the <br/>
<a id="pl.234.5"></a><var>234.5</var>first class, the portion of the county excluding the first class city, or that the
         parcel has <br/>
<a id="pl.234.6"></a><var>234.6</var>been assessed at a valuation greater than its real or actual value, or that the tax
         levied <br/>
<a id="pl.234.7"></a><var>234.7</var>against the same is illegal, in whole or in part, or has been paid, or that the property
         is <br/>
<a id="pl.234.8"></a><var>234.8</var>exempt from the tax so levied, may have the validity of the claim, defense, or objection
         <br/>
<a id="pl.234.9"></a><var>234.9</var>determined by the district court of the county in which the tax is levied or by the
         Tax <br/>
<a id="pl.234.10"></a><var>234.10</var>Court by serving one copy of a petition for such determination upon the county auditor,
         <br/>
<a id="pl.234.11"></a><var>234.11</var>one copy on the county attorney, one copy on the county treasurer, and three copies
         on the <br/>
<a id="pl.234.12"></a><var>234.12</var>county assessor. The county assessor shall immediately forward one copy of the petition
         <br/>
<a id="pl.234.13"></a><var>234.13</var>to the appropriate governmental authority in a home rule charter or statutory city
         or town <br/>
<a id="pl.234.14"></a><var>234.14</var>in which the property is located if that city or town employs its own certified assessor.
         <br/>
<a id="pl.234.15"></a><var>234.15</var>A copy of the petition shall also be forwarded by the assessor to the school board
         of the <br/>
<a id="pl.234.16"></a><var>234.16</var>school district in which the property is located.<br/>
<a id="pl.234.17"></a><var>234.17</var>(b) In counties where the office of county treasurer has been combined with the <br/>
<a id="pl.234.18"></a><var>234.18</var>office of county auditor, the county may elect to require the petitioner to serve
         the number <br/>
<a id="pl.234.19"></a><var>234.19</var>of copies as determined by the county. The county assessor shall immediately forward
         one <br/>
<a id="pl.234.20"></a><var>234.20</var>copy of the petition to the appropriate governmental authority in a home rule charter
         or <br/>
<a id="pl.234.21"></a><var>234.21</var>statutory city or town in which the property is located if that city or town employs
         its own <br/>
<a id="pl.234.22"></a><var>234.22</var>certified assessor. A list of petitioned properties, including the name of the petitioner,
         the <br/>
<a id="pl.234.23"></a><var>234.23</var>identification number of the property, and the estimated market value, shall be sent
         on <br/>
<a id="pl.234.24"></a><var>234.24</var>or before the first day of July by the county auditor/treasurer to the school board
         of the <br/>
<a id="pl.234.25"></a><var>234.25</var>school district in which the property is located.<br/>
<a id="pl.234.26"></a><var>234.26</var>(c) For all counties, the petitioner must file the copies with proof of service, in
         the <br/>
<a id="pl.234.27"></a><var>234.27</var>office of the court administrator of the district court on or before April 30 of the
         year in <br/>
<a id="pl.234.28"></a><var>234.28</var>which the tax becomes payable. A petition for determination under this section may
         be <br/>
<a id="pl.234.29"></a><var>234.29</var>transferred by the district court to the Tax Court. An appeal may also be taken to
         the Tax <br/>
<a id="pl.234.30"></a><var>234.30</var>Court under chapter 271 at any time following receipt of the valuation notice that county <br/>
<a id="pl.234.31"></a><var>234.31</var>assessors or city assessors having the powers of a county assessor are required by section <br/>
<statute_ref><a id="pl.234.32"></a><var>234.32</var>273.121
         </statute_ref> to send to persons whose property is to be included on the assessment roll that <br/>
<a id="pl.234.33"></a><var>234.33</var>year, but prior to May 1 of the year in which the taxes are payable.<br/>
<a id="pl.234.34"></a><var>234.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.33.0"></a><a id="pl.234.35"></a><var>234.35</var>    Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:<br/>
<a id="pl.235.1"></a><var>235.1</var>    Subd. 1a. <b>Conveyance to public entities.</b> (a) Upon written request from a state <br/>
<a id="pl.235.2"></a><var>235.2</var>agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited
         land <br/>
<a id="pl.235.3"></a><var>235.3</var>must be withheld from sale or lease to others for a maximum of six months. The request
         <br/>
<a id="pl.235.4"></a><var>235.4</var>must be submitted to the county auditor. Upon receipt, the county auditor must withhold
         <br/>
<a id="pl.235.5"></a><var>235.5</var>the parcel from sale or lease to any other party for six months, and must confirm
         the <br/>
<a id="pl.235.6"></a><var>235.6</var>starting date of the six-month withholding period to the requesting agency or subdivision.
         <br/>
<a id="pl.235.7"></a><var>235.7</var>If the request is from a governmental subdivision of the state, the governmental <br/>
<a id="pl.235.8"></a><var>235.8</var>subdivision must pay the maintenance costs incurred by the county during the period
         the <br/>
<a id="pl.235.9"></a><var>235.9</var>parcel is withheld. The county board may approve a sale or conveyance to the requesting
         <br/>
<a id="pl.235.10"></a><var>235.10</var>party during the withholding period. A conveyance of the property to the requesting
         <br/>
<a id="pl.235.11"></a><var>235.11</var>party terminates the withholding period.<br/>
<a id="pl.235.12"></a><var>235.12</var>A governmental subdivision of the state must not make, and a county auditor must <br/>
<a id="pl.235.13"></a><var>235.13</var>not act upon, a second request to withhold a parcel from sale or lease within 18 months
         <br/>
<a id="pl.235.14"></a><var>235.14</var>of a previous request for that parcel. A county may reject a request made under this
         <br/>
<a id="pl.235.15"></a><var>235.15</var>paragraph if the request is made more than 30 days after the county has given notice
         to the <br/>
<a id="pl.235.16"></a><var>235.16</var>requesting state agency or governmental subdivision of the state that the county intends
         to <br/>
<a id="pl.235.17"></a><var>235.17</var>sell or otherwise dispose of the property.<br/>
<a id="pl.235.18"></a><var>235.18</var>(b) Nonconservation tax-forfeited lands may be sold by the county board, for <br/>
<a id="pl.235.19"></a><var>235.19</var>their market value as determined by the county board, to an organized or incorporated
         <br/>
<a id="pl.235.20"></a><var>235.20</var>governmental subdivision of the state for any public purpose for which the subdivision
         is <br/>
<a id="pl.235.21"></a><var>235.21</var>authorized to acquire property. When the term "market value" is used in this section,
         it <br/>
<a id="pl.235.22"></a><var>235.22</var>means an estimate of the full and actual market value of the parcel as determined
         by the <br/>
<a id="pl.235.23"></a><var>235.23</var>county board, but in making this determination, the board and the persons employed
         by or <br/>
<a id="pl.235.24"></a><var>235.24</var>under contract with the board in order to perform, conduct, or assist in the determination,
         <br/>
<a id="pl.235.25"></a><var>235.25</var>are exempt from the licensure requirements of chapter 82B.<br/>
<a id="pl.235.26"></a><var>235.26</var>(c) Nonconservation tax-forfeited lands may be released from the trust in favor of <br/>
<a id="pl.235.27"></a><var>235.27</var>the taxing districts on application to  sold by the county board by, for their market value as <br/>
<a id="pl.235.28"></a><var>235.28</var>determined by the county board, to a state agency for an authorized use at not less than <br/>
<a id="pl.235.29"></a><var>235.29</var>their market value as determined by the county board any public purpose for which the <br/>
<a id="pl.235.30"></a><var>235.30</var>agency is authorized to acquire property.<br/>
<a id="pl.235.31"></a><var>235.31</var>(d) Nonconservation tax-forfeited lands may be sold by the county board to an <br/>
<a id="pl.235.32"></a><var>235.32</var>organized or incorporated governmental subdivision of the state or state agency for
         less <br/>
<a id="pl.235.33"></a><var>235.33</var>than their market value if:<br/>
<a id="pl.235.34"></a><var>235.34</var>(1) the county board determines that a sale at a reduced price is in the public interest
         <br/>
<a id="pl.235.35"></a><var>235.35</var>because a reduced price is necessary to provide an incentive to correct the blighted
         <br/>
<a id="pl.236.1"></a><var>236.1</var>conditions that make the lands undesirable in the open market, or the reduced price
         will <br/>
<a id="pl.236.2"></a><var>236.2</var>lead to the development of affordable housing; and<br/>
<a id="pl.236.3"></a><var>236.3</var>(2) the governmental subdivision or state agency has documented its specific plans
         <br/>
<a id="pl.236.4"></a><var>236.4</var>for correcting the blighted conditions or developing affordable housing, and the specific
         <br/>
<a id="pl.236.5"></a><var>236.5</var>law or laws that empower it to acquire real property in furtherance of the plans.<br/>
<a id="pl.236.6"></a><var>236.6</var>If the sale under this paragraph is to a governmental subdivision of the state, the
         <br/>
<a id="pl.236.7"></a><var>236.7</var>commissioner of revenue must convey the property on behalf of the state by quitclaim
         <br/>
<a id="pl.236.8"></a><var>236.8</var>deed. If the sale under this paragraph is to a state agency, the property is released from <br/>
<a id="pl.236.9"></a><var>236.9</var>the trust in favor of the taxing districts and the commissioner of revenue must issue a <br/>
<a id="pl.236.10"></a><var>236.10</var>conveyance document that releases the property from the trust in favor of the taxing
         <br/>
<a id="pl.236.11"></a><var>236.11</var>districts convey the property on behalf of the state by quitclaim deed to the agency.<br/>
<a id="pl.236.12"></a><var>236.12</var>(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
         <br/>
<a id="pl.236.13"></a><var>236.13</var>may be conveyed by the commissioner of revenue in the name of the state to a <br/>
<a id="pl.236.14"></a><var>236.14</var>governmental subdivision for an authorized public use, if an application is submitted
         to the <br/>
<a id="pl.236.15"></a><var>236.15</var>commissioner which includes a statement of facts as to the use to be made of the tract
         and <br/>
<a id="pl.236.16"></a><var>236.16</var>the favorable recommendation of the county board. For the purposes of this paragraph,
         <br/>
<a id="pl.236.17"></a><var>236.17</var>"authorized public use" means a use that allows an indefinite segment of the public
         to <br/>
<a id="pl.236.18"></a><var>236.18</var>physically use and enjoy the property in numbers appropriate to its size and use,
         or is for a <br/>
<a id="pl.236.19"></a><var>236.19</var>public service facility. Authorized public uses as defined in this paragraph are limited
         to:<br/>
<a id="pl.236.20"></a><var>236.20</var>(1) a road, or right-of-way for a road;<br/>
<a id="pl.236.21"></a><var>236.21</var>(2) a park that is both available to, and accessible by, the public that contains
         <br/>
<a id="pl.236.22"></a><var>236.22</var>improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;<br/>
<a id="pl.236.23"></a><var>236.23</var>(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
         <br/>
<a id="pl.236.24"></a><var>236.24</var>with a reasonable amount of surrounding land maintained in its natural state;<br/>
<a id="pl.236.25"></a><var>236.25</var>(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
         <br/>
<a id="pl.236.26"></a><var>236.26</var>including transit ways, park-and-ride lots, transit stations, maintenance and garage
         <br/>
<a id="pl.236.27"></a><var>236.27</var>facilities, and other facilities related to a public transit system;<br/>
<a id="pl.236.28"></a><var>236.28</var>(5) public beaches or boat launches;<br/>
<a id="pl.236.29"></a><var>236.29</var>(6) public parking;<br/>
<a id="pl.236.30"></a><var>236.30</var>(7) civic recreation or conference facilities; and<br/>
<a id="pl.236.31"></a><var>236.31</var>(8) public service facilities such as fire halls, police stations, lift stations,
         water <br/>
<a id="pl.236.32"></a><var>236.32</var>towers, sanitation facilities, water treatment facilities, and administrative offices.<br/>
<a id="pl.236.33"></a><var>236.33</var>No monetary compensation or consideration is required for the conveyance, except as
         <br/>
<a id="pl.236.34"></a><var>236.34</var>provided in subdivision 1g, but the conveyance is subject to the conditions provided
         in <br/>
<a id="pl.236.35"></a><var>236.35</var>law, including, but not limited to, the reversion provisions of subdivisions 1c and
         1d.<br/>
<a id="pl.237.1"></a><var>237.1</var>(f) The commissioner of revenue shall convey a parcel of nonconservation <br/>
<a id="pl.237.2"></a><var>237.2</var>tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
         <br/>
<a id="pl.237.3"></a><var>237.3</var>on behalf of the state upon the favorable recommendation of the county board if the
         <br/>
<a id="pl.237.4"></a><var>237.4</var>governmental subdivision has certified to the board that prior to forfeiture the subdivision
         <br/>
<a id="pl.237.5"></a><var>237.5</var>was entitled to the parcel under a written development agreement or instrument, but
         <br/>
<a id="pl.237.6"></a><var>237.6</var>the conveyance failed to occur prior to forfeiture. No compensation or consideration
         is <br/>
<a id="pl.237.7"></a><var>237.7</var>required for, and no conditions attach to, the conveyance.<br/>
<a id="pl.237.8"></a><var>237.8</var>(g) The commissioner of revenue shall convey a parcel of nonconservation <br/>
<a id="pl.237.9"></a><var>237.9</var>tax-forfeited land to the association of a common interest community by quitclaim
         deed <br/>
<a id="pl.237.10"></a><var>237.10</var>upon the favorable recommendation of the county board if the association certifies
         to the <br/>
<a id="pl.237.11"></a><var>237.11</var>board that prior to forfeiture the association was entitled to the parcel under a
         written <br/>
<a id="pl.237.12"></a><var>237.12</var>agreement, but the conveyance failed to occur prior to forfeiture. No compensation
         or <br/>
<a id="pl.237.13"></a><var>237.13</var>consideration is required for, and no conditions attach to, the conveyance.<br/>
<a id="pl.237.14"></a><var>237.14</var>(h) Conservation tax-forfeited land may be sold to a governmental subdivision of <br/>
<a id="pl.237.15"></a><var>237.15</var>the state for less than its market value for either: (1) creation or preservation
         of wetlands; <br/>
<a id="pl.237.16"></a><var>237.16</var>(2) drainage or storage of storm water under a storm water management plan; or (3)
         <br/>
<a id="pl.237.17"></a><var>237.17</var>preservation, or restoration and preservation, of the land in its natural state. The
         deed must <br/>
<a id="pl.237.18"></a><var>237.18</var>contain a restrictive covenant limiting the use of the land to one of these purposes
         for <br/>
<a id="pl.237.19"></a><var>237.19</var>30 years or until the property is reconveyed back to the state in trust. At any time,
         the <br/>
<a id="pl.237.20"></a><var>237.20</var>governmental subdivision may reconvey the property to the state in trust for the taxing
         <br/>
<a id="pl.237.21"></a><var>237.21</var>districts. The deed of reconveyance is subject to approval by the commissioner of
         revenue. <br/>
<a id="pl.237.22"></a><var>237.22</var>No part of a purchase price determined under this paragraph shall be refunded upon
         a <br/>
<a id="pl.237.23"></a><var>237.23</var>reconveyance, but the amount paid for a conveyance under this paragraph may be taken
         <br/>
<a id="pl.237.24"></a><var>237.24</var>into account by the county board when setting the terms of a future sale of the same
         <br/>
<a id="pl.237.25"></a><var>237.25</var>property to the same governmental subdivision under paragraph (b) or (d). If the lands
         <br/>
<a id="pl.237.26"></a><var>237.26</var>are unplatted and located outside of an incorporated municipality and the commissioner
         <br/>
<a id="pl.237.27"></a><var>237.27</var>of natural resources determines there is a mineral use potential, the sale is subject
         to the <br/>
<a id="pl.237.28"></a><var>237.28</var>approval of the commissioner of natural resources.<br/>
<a id="pl.237.29"></a><var>237.29</var>(i) A park and recreation board in a city of the first class is a governmental <br/>
<a id="pl.237.30"></a><var>237.30</var>subdivision for the purposes of this section.<br/>
<a id="pl.237.31"></a><var>237.31</var>(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
         <br/>
<a id="pl.237.32"></a><var>237.32</var>by the commissioner of revenue in the name of the state to a governmental subdivision
         for <br/>
<a id="pl.237.33"></a><var>237.33</var>a school forest under section 
         <statute_ref>89.41</statute_ref>. An application that includes a statement of facts as <br/>
<a id="pl.237.34"></a><var>237.34</var>to the use to be made of the tract and the favorable recommendation of the county
         board <br/>
<a id="pl.237.35"></a><var>237.35</var>and the commissioner of natural resources must be submitted to the commissioner of
         <br/>
<a id="pl.237.36"></a><var>237.36</var>revenue. No monetary compensation or consideration is required for the conveyance,
         but <br/>
<a id="pl.238.1"></a><var>238.1</var>the conveyance is subject to the conditional use and reversion provisions of subdivisions
         <br/>
<a id="pl.238.2"></a><var>238.2</var>1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
         <br/>
<a id="pl.238.3"></a><var>238.3</var>property back to the state in trust for the taxing districts. The deed of reconveyance
         is <br/>
<a id="pl.238.4"></a><var>238.4</var>subject to approval by the commissioner of revenue.<br/>
<a id="pl.238.5"></a><var>238.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.34.0"></a><a id="pl.238.6"></a><var>238.6</var>    Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:<br/>
<a id="pl.238.7"></a><var>238.7</var>    Subd. 1d. <b>Reverter for failure to use; conveyance to state.</b> (a) After three years <br/>
<a id="pl.238.8"></a><var>238.8</var>from the date of any conveyance of tax-forfeited land to a governmental subdivision
         for <br/>
<a id="pl.238.9"></a><var>238.9</var>an authorized public use as provided in this section, regardless of when the deed
         for the <br/>
<a id="pl.238.10"></a><var>238.10</var>authorized public use was executed, if the governmental subdivision has failed to
         put the <br/>
<a id="pl.238.11"></a><var>238.11</var>land to that use, or abandons that use, the governing body of the subdivision must:
         (1) <br/>
<a id="pl.238.12"></a><var>238.12</var>with the approval of the county board, purchase the property for an authorized public
         <br/>
<a id="pl.238.13"></a><var>238.13</var>purpose at the present market value as determined by the county board, or (2) authorize
         <br/>
<a id="pl.238.14"></a><var>238.14</var>the proper officers to convey the land, or the part of the land not required for an
         authorized <br/>
<a id="pl.238.15"></a><var>238.15</var>public use, to the state of Minnesota in trust for the taxing districts. If the governing
         body <br/>
<a id="pl.238.16"></a><var>238.16</var>purchases the property under clause (1), the commissioner of revenue shall, upon proper
         <br/>
<a id="pl.238.17"></a><var>238.17</var>application submitted by the county auditor and upon the reconveyance of the land subject <br/>
<a id="pl.238.18"></a><var>238.18</var>to the conditional use deed to the state, convey the property on behalf of the state by <br/>
<a id="pl.238.19"></a><var>238.19</var>quitclaim deed to the subdivision free of a use restriction and the possibility of
         reversion <br/>
<a id="pl.238.20"></a><var>238.20</var>or defeasement. If the governing body decides to reconvey the property to the state
         under <br/>
<a id="pl.238.21"></a><var>238.21</var>this clause, the officers shall execute a deed of conveyance immediately. The conveyance
         <br/>
<a id="pl.238.22"></a><var>238.22</var>is subject to the approval of the commissioner and its form must be approved by the
         <br/>
<a id="pl.238.23"></a><var>238.23</var>attorney general. For 15 years from the date of the conveyance, there is no failure
         to put <br/>
<a id="pl.238.24"></a><var>238.24</var>the land to the authorized public use and no abandonment of that use if a formal plan
         of <br/>
<a id="pl.238.25"></a><var>238.25</var>the governmental subdivision, including, but not limited to, a comprehensive plan
         or land <br/>
<a id="pl.238.26"></a><var>238.26</var>use plan, shows an intended future use of the land for the authorized public use.<br/>
<a id="pl.238.27"></a><var>238.27</var>(b) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.238.28"></a><var>238.28</var>deed executed under this section by the commissioner of revenue on or after January
         1, <br/>
<a id="pl.238.29"></a><var>238.29</var>2007, may be acquired by that governmental subdivision after 15 years from the date
         <br/>
<a id="pl.238.30"></a><var>238.30</var>of the conveyance if the commissioner determines upon written application from the
         <br/>
<a id="pl.238.31"></a><var>238.31</var>subdivision that the subdivision has in fact put the property to the authorized public
         use for <br/>
<a id="pl.238.32"></a><var>238.32</var>which it was conveyed, and the subdivision has made a finding that it has no current
         plans <br/>
<a id="pl.238.33"></a><var>238.33</var>to change the use of the lands. Prior to conveying the property, the commissioner
         shall <br/>
<a id="pl.238.34"></a><var>238.34</var>inquire whether the county board where the land is located objects to a conveyance
         of the <br/>
<a id="pl.238.35"></a><var>238.35</var>property to the subdivision without conditions and without further act by or obligation
         <br/>
<a id="pl.239.1"></a><var>239.1</var>of the subdivision. If the county does not object within 60 days, and the commissioner
         <br/>
<a id="pl.239.2"></a><var>239.2</var>makes a favorable determination, the commissioner shall issue a quitclaim deed on
         behalf <br/>
<a id="pl.239.3"></a><var>239.3</var>of the state unconditionally conveying the property to the governmental subdivision.
         For <br/>
<a id="pl.239.4"></a><var>239.4</var>purposes of this paragraph, demonstration of an intended future use for the authorized
         <br/>
<a id="pl.239.5"></a><var>239.5</var>public use in a formal plan of the governmental subdivision does not constitute use
         for <br/>
<a id="pl.239.6"></a><var>239.6</var>that authorized public use.<br/>
<a id="pl.239.7"></a><var>239.7</var>(c) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.239.8"></a><var>239.8</var>deed executed under this section by the commissioner of revenue before January 1,
         2007, <br/>
<a id="pl.239.9"></a><var>239.9</var>is released from the use restriction and possibility of reversion on January 1, 2022,
         if the <br/>
<a id="pl.239.10"></a><var>239.10</var>county board records a resolution describing the land and citing this paragraph. The
         <br/>
<a id="pl.239.11"></a><var>239.11</var>county board may authorize the county treasurer to deduct the amount of the recording
         <br/>
<a id="pl.239.12"></a><var>239.12</var>fees from future settlements of property taxes to the subdivision.<br/>
<a id="pl.239.13"></a><var>239.13</var>(d) Except for tax-forfeited land conveyed to establish a school forest under section
         <br/>
<statute_ref><a id="pl.239.14"></a><var>239.14</var>89.41
         </statute_ref>, property conveyed under a conditional use deed executed under this section by <br/>
<a id="pl.239.15"></a><var>239.15</var>the commissioner of revenue, regardless of when the deed for the authorized public
         use <br/>
<a id="pl.239.16"></a><var>239.16</var>was executed, is released from the use restriction and reverter, and any use restriction
         or <br/>
<a id="pl.239.17"></a><var>239.17</var>reverter for which no declaration of reversion has been recorded with the county recorder
         <br/>
<a id="pl.239.18"></a><var>239.18</var>or registrar of titles, as appropriate, is nullified on the later of: (1) January
         1, 2015; (2) 30 <br/>
<a id="pl.239.19"></a><var>239.19</var>years from the date the deed was acknowledged; or (3) final resolution of an appeal
         to <br/>
<a id="pl.239.20"></a><var>239.20</var>district court under subdivision 1e, if a lis pendens related to the appeal is recorded
         in the <br/>
<a id="pl.239.21"></a><var>239.21</var>office of the county recorder or registrar of titles, as appropriate, prior to January
         1, 2015.<br/>
<a id="pl.239.22"></a><var>239.22</var>(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish
         a <br/>
<a id="pl.239.23"></a><var>239.23</var>school forest under section 
         <statute_ref>89.41</statute_ref> is subject to a perpetual conditional use deed and reverter. <br/>
<a id="pl.239.24"></a><var>239.24</var>The property reverts to the state in trust for the taxing districts by operation of
         law if the <br/>
<a id="pl.239.25"></a><var>239.25</var>commissioner of natural resources determines and reports to the commissioner of revenue
         <br/>
<a id="pl.239.26"></a><var>239.26</var>under section 
         <statute_ref>89.41, subdivision 3</statute_ref>, that the governmental subdivision has failed to use the <br/>
<a id="pl.239.27"></a><var>239.27</var>land for school forest purposes for three consecutive years. The commissioner of revenue
         <br/>
<a id="pl.239.28"></a><var>239.28</var>shall record a declaration of reversion for land that has reverted under this paragraph.<br/>
<a id="pl.239.29"></a><var>239.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.35.0"></a><a id="pl.239.30"></a><var>239.30</var>    Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a <br/>
<a id="pl.239.31"></a><var>239.31</var>subdivision to read:<br/>
<a id="pl.239.32"></a><var>239.32</var>    Subd. 14. <b>Communication by electronic mail.</b> Prior to receiving aid pursuant to <br/>
<a id="pl.239.33"></a><var>239.33</var>this section, a city must register an official electronic mail address with the commissioner,
         <br/>
<a id="pl.239.34"></a><var>239.34</var>which the commissioner may use as an exclusive means to communicate with the city.
         <br/>
<a id="pl.240.1"></a><var>240.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2016 and thereafter.<br/>
<br/>
<a id="bill.15.36.0"></a><a id="pl.240.2"></a><var>240.2</var>    Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a <br/>
<a id="pl.240.3"></a><var>240.3</var>subdivision to read:<br/>
<a id="pl.240.4"></a><var>240.4</var>    Subd. 3a. <b>Certification.</b> On or before June 1 of each year, the commissioner of <br/>
<a id="pl.240.5"></a><var>240.5</var>natural resources shall certify to the commissioner of revenue the number of watercraft
         <br/>
<a id="pl.240.6"></a><var>240.6</var>launches and the number of watercraft trailer parking spaces in each county.<br/>
<a id="pl.240.7"></a><var>240.7</var><b>EFFECTIVE DATE.</b>This section is effective for transition aid payable in 2016 <br/>
<a id="pl.240.8"></a><var>240.8</var>and thereafter.<br/>
<br/>
<a id="bill.15.37.0"></a><a id="pl.240.9"></a><var>240.9</var>    Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a <br/>
<a id="pl.240.10"></a><var>240.10</var>subdivision to read:<br/>
<a id="pl.240.11"></a><var>240.11</var>    Subd. 3b. <b>Certification.</b> On or before June 1 of each year, the commissioner of <br/>
<a id="pl.240.12"></a><var>240.12</var>natural resources shall certify to the commissioner of revenue the counties that complied
         <br/>
<a id="pl.240.13"></a><var>240.13</var>with the requirements of subdivision 3 the prior year and are eligible to receive
         aid <br/>
<a id="pl.240.14"></a><var>240.14</var>under this section.<br/>
<a id="pl.240.15"></a><var>240.15</var><b>EFFECTIVE DATE.</b>This section is effective for transition aid payable in 2016 <br/>
<a id="pl.240.16"></a><var>240.16</var>and thereafter.<br/>
<br/>
<a id="bill.15.38.0"></a><a id="pl.240.17"></a><var>240.17</var>    Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:<br/>
<a id="pl.240.18"></a><var>240.18</var>    Subd. 2. <b>Exception.</b> This section does not apply to sales made under chapter 282 or <br/>
<a id="pl.240.19"></a><var>240.19</var>if the purchaser is represented throughout the transaction by either:<br/>
<a id="pl.240.20"></a><var>240.20</var>(1) a person licensed to practice law in this state; or<br/>
<a id="pl.240.21"></a><var>240.21</var>(2) a person licensed as a real estate broker or salesperson under chapter 82, <br/>
<a id="pl.240.22"></a><var>240.22</var>provided that the representation does not create a dual agency, as that term is defined
         <br/>
<a id="pl.240.23"></a><var>240.23</var>in section 
         <statute_ref>82.55, subdivision 6</statute_ref>.<br/>
<a id="pl.240.24"></a><var>240.24</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited land <br/>
<a id="pl.240.25"></a><var>240.25</var>occurring after the day following final enactment.<br/>
<br/>
<a id="bill.15.39.0"></a><a id="pl.240.26"></a><var>240.26</var>    Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:<br/>
<a id="pl.240.27"></a><var>240.27</var>    Subd. 2. <b>Payment of supplemental credit.</b> (a) The commissioner must pay <br/>
<a id="pl.240.28"></a><var>240.28</var>supplemental credit amounts to each qualifying taxpayer by October 15, 2014.<br/>
<a id="pl.240.29"></a><var>240.29</var>(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
         <br/>
<a id="pl.240.30"></a><var>240.30</var>or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant
         within <br/>
<a id="pl.241.1"></a><var>241.1</var>two years from the date the warrant was issued, the right to the credit shall lapse
         and the <br/>
<a id="pl.241.2"></a><var>241.2</var>warrant shall be deposited in the general fund.<br/>
<a id="pl.241.3"></a><var>241.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.40.0"></a><a id="pl.241.4"></a><var>241.4</var>    Sec. 40. <b> REPEALER. </b><br/>
<a id="pl.241.5"></a><var>241.5</var>Minnesota Statutes 2014, sections 273.111, subdivision 9a; and 281.22, are repealed.<br/>
<a id="pl.241.6"></a><var>241.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="bill.16.1.0"></a><a id="pl.241.9"></a><var>241.9</var>    Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:<br/>
<a id="pl.241.10"></a><var>241.10</var>    Subdivision 1. <b>Annual report required.</b> Every railroad company doing business <br/>
<a id="pl.241.11"></a><var>241.11</var>in Minnesota shall annually file with the commissioner on or before March 31 a report
         <br/>
<a id="pl.241.12"></a><var>241.12</var>under oath setting forth the information prescribed by the commissioner to enable
         the <br/>
<a id="pl.241.13"></a><var>241.13</var>commissioner to make the valuation and equalization required by sections 
         <statute_ref>270.80</statute_ref> to <br/>
<statute_ref><a id="pl.241.14"></a><var>241.14</var>270.87
         </statute_ref>. The commissioner shall prescribe the content, format, and manner of the report <br/>
<a id="pl.241.15"></a><var>241.15</var>pursuant to section 270C.30, except that a "law administered by the commissioner"
         <br/>
<a id="pl.241.16"></a><var>241.16</var>includes the property tax laws. If a report is made by electronic means, the taxpayer's
         <br/>
<a id="pl.241.17"></a><var>241.17</var>signature is defined pursuant to section 270C.304, except that a "law administered
         by the <br/>
<a id="pl.241.18"></a><var>241.18</var>commissioner" includes the property tax laws.<br/>
<a id="pl.241.19"></a><var>241.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.2.0"></a><a id="pl.241.20"></a><var>241.20</var>    Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:<br/>
<a id="pl.241.21"></a><var>241.21</var>    Subd. 5. <b>Debt.</b> (a) "Debt" means a legal obligation of a natural person to pay a fixed <br/>
<a id="pl.241.22"></a><var>241.22</var>and certain amount of money, which equals or exceeds $25 and which is due and payable
         <br/>
<a id="pl.241.23"></a><var>241.23</var>to a claimant agency. The term includes criminal fines imposed under section 
         <statute_ref>609.10</statute_ref> or <br/>
<statute_ref><a id="pl.241.24"></a><var>241.24</var>609.125
         </statute_ref>, fines imposed for petty misdemeanors as defined in section 
         <statute_ref>609.02, subdivision <br/>
<a id="pl.241.25"></a><var>241.25</var>4a
         </statute_ref>, and restitution. A debt may arise under a contractual or statutory obligation, a
         court <br/>
<a id="pl.241.26"></a><var>241.26</var>order, or other legal obligation, but need not have been reduced to judgment.<br/>
<a id="pl.241.27"></a><var>241.27</var>    A debt includes any legal obligation of a current recipient of assistance which is
         <br/>
<a id="pl.241.28"></a><var>241.28</var>based on overpayment of an assistance grant where that payment is based on a client
         <br/>
<a id="pl.241.29"></a><var>241.29</var>waiver or an administrative or judicial finding of an intentional program violation;
         <br/>
<a id="pl.241.30"></a><var>241.30</var>or where the debt is owed to a program wherein the debtor is not a client at the time
         <br/>
<a id="pl.242.1"></a><var>242.1</var>notification is provided to initiate recovery under this chapter and the debtor is
         not a <br/>
<a id="pl.242.2"></a><var>242.2</var>current recipient of food support, transitional child care, or transitional medical
         assistance.<br/>
<a id="pl.242.3"></a><var>242.3</var>    (b) A debt does not include any legal obligation to pay a claimant agency for medical
         <br/>
<a id="pl.242.4"></a><var>242.4</var>care, including hospitalization if the income of the debtor at the time when the medical
         <br/>
<a id="pl.242.5"></a><var>242.5</var>care was rendered does not exceed the following amount:<br/>
<a id="pl.242.6"></a><var>242.6</var>    (1) for an unmarried debtor, an income of $8,800 $12,360 or less;<br/>
<a id="pl.242.7"></a><var>242.7</var>    (2) for a debtor with one dependent, an income of $11,270 $15,830 or less;<br/>
<a id="pl.242.8"></a><var>242.8</var>    (3) for a debtor with two dependents, an income of $13,330 $18,730 or less;<br/>
<a id="pl.242.9"></a><var>242.9</var>    (4) for a debtor with three dependents, an income of $15,120 $21,240 or less;<br/>
<a id="pl.242.10"></a><var>242.10</var>    (5) for a debtor with four dependents, an income of $15,950 $22,410 or less; and<br/>
<a id="pl.242.11"></a><var>242.11</var>    (6) for a debtor with five or more dependents, an income of $16,630 $23,360 or less.<br/>
<a id="pl.242.12"></a><var>242.12</var>For purposes of this paragraph, "debtor" means the individual whose income, <br/>
<a id="pl.242.13"></a><var>242.13</var>together with the income of the individual's spouse if domiciled in the same household,
         <br/>
<a id="pl.242.14"></a><var>242.14</var>brings the individual within the income provisions of this paragraph. For purposes
         of this <br/>
<a id="pl.242.15"></a><var>242.15</var>paragraph, a spouse domiciled in the same household shall be considered a dependent.<br/>
<a id="pl.242.16"></a><var>242.16</var>    (c) The commissioner shall adjust the income amounts in paragraph (b) by the <br/>
<a id="pl.242.17"></a><var>242.17</var>percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
         <br/>
<a id="pl.242.18"></a><var>242.18</var>Code, except that in section 1(f)(3)(B) the word "1999 2013" shall be substituted for <br/>
<a id="pl.242.19"></a><var>242.19</var>the word "1992." For 2001 2015, the commissioner shall then determine the percent <br/>
<a id="pl.242.20"></a><var>242.20</var>change from the 12 months ending on August 31, 1999 2013, to the 12 months ending on <br/>
<a id="pl.242.21"></a><var>242.21</var>August 31, 2000 2014, and in each subsequent year, from the 12 months ending on August <br/>
<a id="pl.242.22"></a><var>242.22</var>31, 1999 2013, to the 12 months ending on August 31 of the year preceding the taxable <br/>
<a id="pl.242.23"></a><var>242.23</var>year. The determination of the commissioner pursuant to this subdivision shall not
         be <br/>
<a id="pl.242.24"></a><var>242.24</var>considered a "rule" and shall not be subject to the Administrative Procedure Act contained
         <br/>
<a id="pl.242.25"></a><var>242.25</var>in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
         <br/>
<a id="pl.242.26"></a><var>242.26</var>If the amount ends in $5, the amount is rounded up to the nearest $10 amount.<br/>
<a id="pl.242.27"></a><var>242.27</var>    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
         <br/>
<a id="pl.242.28"></a><var>242.28</var>the dollar amount of the premium authorized under section 
         <statute_ref>256L.15, subdivision 1a</statute_ref>.<br/>
<a id="pl.242.29"></a><var>242.29</var><b>EFFECTIVE DATE.</b>The section is effective retroactively for debts incurred after <br/>
<a id="pl.242.30"></a><var>242.30</var>December 31, 2013.<br/>
<br/>
<a id="bill.16.3.0"></a><a id="pl.242.31"></a><var>242.31</var>    Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:<br/>
<a id="pl.242.32"></a><var>242.32</var>    Subdivision 1. <b>Disclosure to commissioner of human services.</b> (a) On the request <br/>
<a id="pl.242.33"></a><var>242.33</var>of the commissioner of human services, the commissioner shall disclose return information
         <br/>
<a id="pl.242.34"></a><var>242.34</var>regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A,
         to <br/>
<a id="pl.242.35"></a><var>242.35</var>the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).<br/>
<a id="pl.243.1"></a><var>243.1</var>    (b) Data that may be disclosed are limited to data relating to the identity, <br/>
<a id="pl.243.2"></a><var>243.2</var>whereabouts, employment, income, and property of a person owing or alleged to be owing
         <br/>
<a id="pl.243.3"></a><var>243.3</var>an obligation of child support.<br/>
<a id="pl.243.4"></a><var>243.4</var>    (c) The commissioner of human services may request data only for the purposes of <br/>
<a id="pl.243.5"></a><var>243.5</var>carrying out the child support enforcement program and to assist in the location of
         parents <br/>
<a id="pl.243.6"></a><var>243.6</var>who have, or appear to have, deserted their children. Data received may be used only
         <br/>
<a id="pl.243.7"></a><var>243.7</var>as set forth in section 
         <statute_ref>256.978</statute_ref>.<br/>
<a id="pl.243.8"></a><var>243.8</var>    (d) The commissioner shall provide the records and information necessary to <br/>
<a id="pl.243.9"></a><var>243.9</var>administer the supplemental housing allowance to the commissioner of human services.<br/>
<a id="pl.243.10"></a><var>243.10</var>    (e) At the request of the commissioner of human services, the commissioner of <br/>
<a id="pl.243.11"></a><var>243.11</var>revenue shall electronically match the Social Security numbers and names of participants
         <br/>
<a id="pl.243.12"></a><var>243.12</var>in the telephone assistance plan operated under sections 
         <statute_ref>237.69</statute_ref> to 
         <statute_ref>237.71</statute_ref>, with those of <br/>
<a id="pl.243.13"></a><var>243.13</var>property tax refund filers, and determine whether each participant's household income
         is <br/>
<a id="pl.243.14"></a><var>243.14</var>within the eligibility standards for the telephone assistance plan.<br/>
<a id="pl.243.15"></a><var>243.15</var>    (f) The commissioner may provide records and information collected under sections
         <br/>
<statute_ref><a id="pl.243.16"></a><var>243.16</var>295.50
         </statute_ref> to 
         <statute_ref>295.59</statute_ref> to the commissioner of human services for purposes of the Medicaid <br/>
<a id="pl.243.17"></a><var>243.17</var>Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law <br/>
<a id="pl.243.18"></a><var>243.18</var>102-234. Upon the written agreement by the United States Department of Health and
         <br/>
<a id="pl.243.19"></a><var>243.19</var>Human Services to maintain the confidentiality of the data, the commissioner may provide
         <br/>
<a id="pl.243.20"></a><var>243.20</var>records and information collected under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref> to the Centers for <br/>
<a id="pl.243.21"></a><var>243.21</var>Medicare and Medicaid Services section of the United States Department of Health and
         <br/>
<a id="pl.243.22"></a><var>243.22</var>Human Services for purposes of meeting federal reporting requirements.<br/>
<a id="pl.243.23"></a><var>243.23</var>    (g) The commissioner may provide records and information to the commissioner of <br/>
<a id="pl.243.24"></a><var>243.24</var>human services as necessary to administer the early refund of refundable tax credits.<br/>
<a id="pl.243.25"></a><var>243.25</var>    (h) The commissioner may disclose information to the commissioner of human <br/>
<a id="pl.243.26"></a><var>243.26</var>services as necessary to verify income for welfare income verification for eligibility and <br/>
<a id="pl.243.27"></a><var>243.27</var>premium payment under the MinnesotaCare program, under section 
         <statute_ref>256L.05, subdivision <br/>
<a id="pl.243.28"></a><var>243.28</var>2
         </statute_ref>, as well as the medical assistance program under section 256B.<br/>
<a id="pl.243.29"></a><var>243.29</var>    (i) The commissioner may disclose information to the commissioner of human <br/>
<a id="pl.243.30"></a><var>243.30</var>services necessary to verify whether applicants or recipients for the Minnesota family
         <br/>
<a id="pl.243.31"></a><var>243.31</var>investment program, general assistance, food support, Minnesota supplemental aid <br/>
<a id="pl.243.32"></a><var>243.32</var>program, and child care assistance have claimed refundable tax credits under chapter
         290 <br/>
<a id="pl.243.33"></a><var>243.33</var>and the property tax refund under chapter 290A, and the amounts of the credits.<br/>
<a id="pl.243.34"></a><var>243.34</var>    (j) The commissioner may disclose information to the commissioner of human <br/>
<a id="pl.243.35"></a><var>243.35</var>services necessary to verify income for purposes of calculating parental contribution
         <br/>
<a id="pl.243.36"></a><var>243.36</var>amounts under section 
         <statute_ref>252.27, subdivision 2a</statute_ref>.<br/>
<a id="pl.244.1"></a><var>244.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.4.0"></a><a id="pl.244.2"></a><var>244.2</var>    Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:<br/>
<a id="pl.244.3"></a><var>244.3</var><b>270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.</b><br/>
<a id="pl.244.4"></a><var>244.4</var>Except as otherwise provided by law, the commissioner shall prescribe the content <br/>
<a id="pl.244.5"></a><var>244.5</var>and, format, and manner of all returns and other forms required to be filed under a law <br/>
<a id="pl.244.6"></a><var>244.6</var>administered by the commissioner, and may furnish them subject to charge on application.<br/>
<a id="pl.244.7"></a><var>244.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.5.0"></a><a id="pl.244.8"></a><var>244.8</var>    Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:<br/>
<a id="pl.244.9"></a><var>244.9</var>    Subd. 5. <b>Prohibition against collection during appeal period of an order.</b> No <br/>
<a id="pl.244.10"></a><var>244.10</var>collection action can be taken on an order of assessment, or any other order imposing
         a <br/>
<a id="pl.244.11"></a><var>244.11</var>liability, including the filing of liens under section 
         <statute_ref>270C.63</statute_ref>, and no late payment penalties <br/>
<a id="pl.244.12"></a><var>244.12</var>may be imposed when a return has been filed for the tax type and period upon which
         the <br/>
<a id="pl.244.13"></a><var>244.13</var>order is based, during the appeal period of an order. The appeal period of an order
         ends: <br/>
<a id="pl.244.14"></a><var>244.14</var>(1) 60 days after the order has been mailed to the taxpayer notice date designated by the <br/>
<a id="pl.244.15"></a><var>244.15</var>commissioner on the order; (2) if an administrative appeal is filed under section 
         <statute_ref>270C.35</statute_ref>, <br/>
<a id="pl.244.16"></a><var>244.16</var>60 days after the notice date designated by the commissioner on the written determination <br/>
<a id="pl.244.17"></a><var>244.17</var>of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter
         271, when <br/>
<a id="pl.244.18"></a><var>244.18</var>the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and
         the <br/>
<a id="pl.244.19"></a><var>244.19</var>appeal is based upon a constitutional challenge to the tax, 60 days after final determination
         <br/>
<a id="pl.244.20"></a><var>244.20</var>of the appeal. This subdivision does not apply to a jeopardy assessment under section
         <br/>
<statute_ref><a id="pl.244.21"></a><var>244.21</var>270C.36
         </statute_ref>, or a jeopardy collection under section 
         <statute_ref>270C.36</statute_ref>.<br/>
<a id="pl.244.22"></a><var>244.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.244.23"></a><var>244.23</var>30, 2015.<br/>
<br/>
<a id="bill.16.6.0"></a><a id="pl.244.24"></a><var>244.24</var>    Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:<br/>
<a id="pl.244.25"></a><var>244.25</var>    Subd. 8. <b>Sufficiency of notice.</b> An assessment of tax made by the commissioner, <br/>
<a id="pl.244.26"></a><var>244.26</var>sent postage prepaid by United States mail to the taxpayer at the taxpayer's last
         known <br/>
<a id="pl.244.27"></a><var>244.27</var>address, or sent by electronic mail to the taxpayer's last known electronic mailing
         address <br/>
<a id="pl.244.28"></a><var>244.28</var>as provided for in section 
         <statute_ref>325L.08</statute_ref>, is sufficient even if the taxpayer is deceased or is <br/>
<a id="pl.244.29"></a><var>244.29</var>under a legal disability, or, in the case of a corporation, has terminated its existence,
         unless <br/>
<a id="pl.244.30"></a><var>244.30</var>the commissioner has been provided with a new address by a party authorized to receive
         <br/>
<a id="pl.244.31"></a><var>244.31</var>notices of assessment. Notice of an assessment is sufficient if it is sent on or before the <br/>
<a id="pl.244.32"></a><var>244.32</var>notice date designated by the commissioner on the assessment.<br/>
<a id="pl.245.1"></a><var>245.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessments dated after <br/>
<a id="pl.245.2"></a><var>245.2</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.7.0"></a><a id="pl.245.3"></a><var>245.3</var>    Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:<br/>
<a id="pl.245.4"></a><var>245.4</var>    Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br/>
<a id="pl.245.5"></a><var>245.5</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br/>
<a id="pl.245.6"></a><var>245.6</var>charge, must be filed with the commissioner within 60 days of the notice date of the notice <br/>
<a id="pl.245.7"></a><var>245.7</var>was mailed to the taxpayer's last known address, stating that a penalty has been imposed <br/>
<a id="pl.245.8"></a><var>245.8</var>or additional tax charge. For purposes of this section, the term "notice date" means
         the <br/>
<a id="pl.245.9"></a><var>245.9</var>notice date designated by the commissioner on the order or other notice that a penalty
         or <br/>
<a id="pl.245.10"></a><var>245.10</var>additional tax charge has been imposed.<br/>
<a id="pl.245.11"></a><var>245.11</var>(b) If the commissioner issues an order denying a request for abatement of penalty,
         <br/>
<a id="pl.245.12"></a><var>245.12</var>interest, or additional tax charge, the taxpayer may file an administrative appeal
         as <br/>
<a id="pl.245.13"></a><var>245.13</var>provided in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.245.14"></a><var>245.14</var>(c) If the commissioner does not issue an order on the abatement request within <br/>
<a id="pl.245.15"></a><var>245.15</var>60 days from the date the request is received, the taxpayer may appeal to Tax Court
         as <br/>
<a id="pl.245.16"></a><var>245.16</var>provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.245.17"></a><var>245.17</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.245.18"></a><var>245.18</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.8.0"></a><a id="pl.245.19"></a><var>245.19</var>    Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:<br/>
<a id="pl.245.20"></a><var>245.20</var>    Subdivision 1. <b>Checks and warrants, authority to reissue.</b> Notwithstanding any <br/>
<a id="pl.245.21"></a><var>245.21</var>other provision of law, the commissioner may, based on a showing of reasonable cause,
         <br/>
<a id="pl.245.22"></a><var>245.22</var>reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant <br/>
<a id="pl.245.23"></a><var>245.23</var>or check that has lapsed under any provision of law relating to rebates or under section
         <br/>
<statute_ref><a id="pl.245.24"></a><var>245.24</var>290A.18, subdivision 2
         </statute_ref>. The authority to reissue warrants or checks under this subdivision <br/>
<a id="pl.245.25"></a><var>245.25</var>is limited to five years after the date of issuance of the original warrant or check.<br/>
<a id="pl.245.26"></a><var>245.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.9.0"></a><a id="pl.245.27"></a><var>245.27</var>    Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:<br/>
<a id="pl.245.28"></a><var>245.28</var>    Subd. 3. <b>Notice date.</b> For purposes of this section, the term "notice date" means the <br/>
<a id="pl.245.29"></a><var>245.29</var>date of designated by the commissioner on the order adjusting the tax or order denying a <br/>
<a id="pl.245.30"></a><var>245.30</var>request for abatement, or, in the case of a denied refund, the notice date of designated by <br/>
<a id="pl.245.31"></a><var>245.31</var>the commissioner on the notice of denial.<br/>
<a id="pl.246.1"></a><var>246.1</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.246.2"></a><var>246.2</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.10.0"></a><a id="pl.246.3"></a><var>246.3</var>    Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a <br/>
<a id="pl.246.4"></a><var>246.4</var>subdivision to read:<br/>
<a id="pl.246.5"></a><var>246.5</var>    Subd. 11. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br/>
<a id="pl.246.6"></a><var>246.6</var>appeal for an order of the commissioner and also files an appeal to the Tax Court
         for <br/>
<a id="pl.246.7"></a><var>246.7</var>that same order of the commissioner, the administrative appeal is dismissed and the
         <br/>
<a id="pl.246.8"></a><var>246.8</var>commissioner is no longer required to make a determination of appeal under subdivision
         6.<br/>
<a id="pl.246.9"></a><var>246.9</var><b>EFFECTIVE DATE.</b>This section is effective for all administrative appeals filed <br/>
<a id="pl.246.10"></a><var>246.10</var>after June 30, 2015.<br/>
<br/>
<a id="bill.16.11.0"></a><a id="pl.246.11"></a><var>246.11</var>    Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:<br/>
<a id="pl.246.12"></a><var>246.12</var>    Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br/>
<a id="pl.246.13"></a><var>246.13</var>determination or action of the commissioner is otherwise specifically provided for
         by <br/>
<a id="pl.246.14"></a><var>246.14</var>law, notice of the determination or action sent postage prepaid by United States mail
         to <br/>
<a id="pl.246.15"></a><var>246.15</var>the taxpayer or other person affected by the determination or action at the taxpayer's
         <br/>
<a id="pl.246.16"></a><var>246.16</var>or person's last known address, is sufficient. If the taxpayer or person being notified
         is <br/>
<a id="pl.246.17"></a><var>246.17</var>deceased or is under a legal disability, or, in the case of a corporation being notified
         that <br/>
<a id="pl.246.18"></a><var>246.18</var>has terminated its existence, notice to the last known address of the taxpayer, person,
         or <br/>
<a id="pl.246.19"></a><var>246.19</var>corporation is sufficient, unless the department has been provided with a new address
         by a <br/>
<a id="pl.246.20"></a><var>246.20</var>party authorized to receive notices from the commissioner.<br/>
<a id="pl.246.21"></a><var>246.21</var>(b) If a taxpayer or other person agrees to accept notification by electronic means,
         <br/>
<a id="pl.246.22"></a><var>246.22</var>notice of a determination or action of the commissioner sent by electronic mail to
         the <br/>
<a id="pl.246.23"></a><var>246.23</var>taxpayer's or person's last known electronic mailing address as provided for in section
         <br/>
<statute_ref><a id="pl.246.24"></a><var>246.24</var>325L.08
         </statute_ref> is sufficient.<br/>
<a id="pl.246.25"></a><var>246.25</var>(c) Notice of a determination or action of the commissioner is sufficient if it is
         sent <br/>
<a id="pl.246.26"></a><var>246.26</var>on or before the notice date designated by the commissioner on the notice.<br/>
<a id="pl.246.27"></a><var>246.27</var><b>EFFECTIVE DATE.</b>This section is effective for notices dated after September <br/>
<a id="pl.246.28"></a><var>246.28</var>30, 2015.<br/>
<br/>
<a id="bill.16.12.0"></a><a id="pl.246.29"></a><var>246.29</var>    Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a <br/>
<a id="pl.246.30"></a><var>246.30</var>subdivision to read:<br/>
<a id="pl.246.31"></a><var>246.31</var>    Subd. 9. <b>Enforcement; limitations.</b> (a) Notwithstanding any other law, the <br/>
<a id="pl.246.32"></a><var>246.32</var>imposition of a penalty or any other action against a tax return preparer authorized
         by <br/>
<a id="pl.247.1"></a><var>247.1</var>subdivision 6 with respect to a return may be taken by the commissioner within the
         period <br/>
<a id="pl.247.2"></a><var>247.2</var>provided by section 289A.38 to assess tax on that return.<br/>
<a id="pl.247.3"></a><var>247.3</var>(b) Imposition of a penalty or other action against a tax return preparer authorized
         <br/>
<a id="pl.247.4"></a><var>247.4</var>by subdivision 6 other than with respect to a return must be taken by the commissioner
         <br/>
<a id="pl.247.5"></a><var>247.5</var>within five years of the violation of statute.<br/>
<a id="pl.247.6"></a><var>247.6</var><b>EFFECTIVE DATE.</b>This section is effective for tax preparation services provided <br/>
<a id="pl.247.7"></a><var>247.7</var>after the day following final enactment.<br/>
<br/>
<a id="bill.16.13.0"></a><a id="pl.247.8"></a><var>247.8</var>    Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:<br/>
<a id="pl.247.9"></a><var>247.9</var>    Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax <br/>
<a id="pl.247.10"></a><var>247.10</var>preparer from the list of tax preparers published under this section:<br/>
<a id="pl.247.11"></a><var>247.11</var>(1) when the commissioner determines that the name was included on the list in error;<br/>
<a id="pl.247.12"></a><var>247.12</var>(2) within 90 days three years after the preparer has demonstrated to the commissioner <br/>
<a id="pl.247.13"></a><var>247.13</var>that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied <br/>
<a id="pl.247.14"></a><var>247.14</var>any sentence imposed, successfully completed any probationary period imposed, and <br/>
<a id="pl.247.15"></a><var>247.15</var>successfully completed any remedial actions required by the commissioner, the State
         <br/>
<a id="pl.247.16"></a><var>247.16</var>Board of Accountancy, or the Lawyers Board of Professional Responsibility; or<br/>
<a id="pl.247.17"></a><var>247.17</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br/>
<a id="pl.247.18"></a><var>247.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.14.0"></a><a id="pl.247.19"></a><var>247.19</var>    Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:<br/>
<a id="pl.247.20"></a><var>247.20</var>    Subd. 4. <b>Licensing authority; duties.</b> All licensing authorities must require <br/>
<a id="pl.247.21"></a><var>247.21</var>the applicant to provide the applicant's Social Security number or individual taxpayer <br/>
<a id="pl.247.22"></a><var>247.22</var>identification number and Minnesota business identification number, as applicable, on <br/>
<a id="pl.247.23"></a><var>247.23</var>all license applications. Upon request of the commissioner, the licensing authority
         <br/>
<a id="pl.247.24"></a><var>247.24</var>must provide the commissioner with a list of all applicants, including the name, <br/>
<a id="pl.247.25"></a><var>247.25</var>address, business name and address, and Social Security number, or individual taxpayer <br/>
<a id="pl.247.26"></a><var>247.26</var>identification number and business identification number, as applicable, of each applicant. <br/>
<a id="pl.247.27"></a><var>247.27</var>The commissioner may request from a licensing authority a list of the applicants no
         more <br/>
<a id="pl.247.28"></a><var>247.28</var>than once each calendar year.<br/>
<a id="pl.247.29"></a><var>247.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.15.0"></a><a id="pl.247.30"></a><var>247.30</var>    Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:<br/>
<a id="pl.247.31"></a><var>247.31</var>    Subd. 2. <b>Time; notice; intervention.</b> Except as otherwise provided by law, within <br/>
<a id="pl.247.32"></a><var>247.32</var>60 days after the notice of the making and filing date of an order of the commissioner of <br/>
<a id="pl.248.1"></a><var>248.1</var>revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal
         upon <br/>
<a id="pl.248.2"></a><var>248.2</var>the commissioner and file the original, with proof of such service, with the Tax Court
         <br/>
<a id="pl.248.3"></a><var>248.3</var>administrator or with the court administrator of district court acting as court administrator
         <br/>
<a id="pl.248.4"></a><var>248.4</var>of the Tax Court; provided, that the Tax Court, for cause shown, may by written order
         <br/>
<a id="pl.248.5"></a><var>248.5</var>extend the time for appealing for an additional period not exceeding 30 days. For purposes <br/>
<a id="pl.248.6"></a><var>248.6</var>of this section, the term "notice date" means the notice date designated by the commissioner
         <br/>
<a id="pl.248.7"></a><var>248.7</var>on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within <br/>
<a id="pl.248.8"></a><var>248.8</var>five days after receipt, the commissioner shall transmit a copy of the notice of appeal
         to <br/>
<a id="pl.248.9"></a><var>248.9</var>the attorney general. The attorney general shall represent the commissioner, if requested,
         <br/>
<a id="pl.248.10"></a><var>248.10</var>upon all such appeals except in cases where the attorney general has appealed in behalf
         of <br/>
<a id="pl.248.11"></a><var>248.11</var>the state, or in other cases where the attorney general deems it against the interests
         of the <br/>
<a id="pl.248.12"></a><var>248.12</var>state to represent the commissioner, in which event the attorney general may intervene
         or <br/>
<a id="pl.248.13"></a><var>248.13</var>be substituted as an appellant in behalf of the state at any stage of the proceedings.<br/>
<a id="pl.248.14"></a><var>248.14</var>Upon a final determination of any other matter over which the court is granted <br/>
<a id="pl.248.15"></a><var>248.15</var>jurisdiction under section 
         <statute_ref>271.01, subdivision 5</statute_ref>, the taxpayer or the taxpayer's attorney <br/>
<a id="pl.248.16"></a><var>248.16</var>shall file a petition or notice of appeal as provided by law with the court administrator
         of <br/>
<a id="pl.248.17"></a><var>248.17</var>district court, acting in the capacity of court administrator of the Tax Court, with
         proof of <br/>
<a id="pl.248.18"></a><var>248.18</var>service of the petition or notice of appeal as required by law and within the time
         required <br/>
<a id="pl.248.19"></a><var>248.19</var>by law. As used in this subdivision, "final determination" includes a notice of assessment
         <br/>
<a id="pl.248.20"></a><var>248.20</var>and equalization for the year in question received from the local assessor, an order
         of the <br/>
<a id="pl.248.21"></a><var>248.21</var>local board of equalization, or an order of a county board of equalization.<br/>
<a id="pl.248.22"></a><var>248.22</var>The Tax Court shall prescribe a filing system so that the notice of appeal or petition
         <br/>
<a id="pl.248.23"></a><var>248.23</var>filed with the district court administrator acting as court administrator of the Tax
         Court is <br/>
<a id="pl.248.24"></a><var>248.24</var>forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
         <br/>
<a id="pl.248.25"></a><var>248.25</var>property valuation for which the assessor, a local board of equalization, a county
         board of <br/>
<a id="pl.248.26"></a><var>248.26</var>equalization or the commissioner of revenue has issued an order, the officer issuing
         the <br/>
<a id="pl.248.27"></a><var>248.27</var>order shall be notified of the filing of the appeal. The notice of appeal or petition
         shall be <br/>
<a id="pl.248.28"></a><var>248.28</var>in the form prescribed by the Tax Court.<br/>
<a id="pl.248.29"></a><var>248.29</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.248.30"></a><var>248.30</var>30, 2015.<br/>
<br/>
<a id="bill.16.16.0"></a><a id="pl.248.31"></a><var>248.31</var>    Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:<br/>
<a id="pl.248.32"></a><var>248.32</var>    Subd. 7. <b>Rules.</b> Except as provided in section 
         <statute_ref>278.05, subdivision 6</statute_ref>, the Rules <br/>
<a id="pl.248.33"></a><var>248.33</var>of Evidence and Civil Procedure for the district court of Minnesota shall govern the
         <br/>
<a id="pl.248.34"></a><var>248.34</var>procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply <br/>
<a id="pl.248.35"></a><var>248.35</var>to alter the 60-day period of time to file a notice of appeal provided in subdivision
         2. The <br/>
<a id="pl.249.1"></a><var>249.1</var>Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
         <br/>
<a id="pl.249.2"></a><var>249.2</var>apply until superseded.<br/>
<a id="pl.249.3"></a><var>249.3</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.249.4"></a><var>249.4</var>30, 2015.<br/>
<br/>
<a id="bill.16.17.0"></a><a id="pl.249.5"></a><var>249.5</var>    Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.249.6"></a><var>249.6</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.249.7"></a><var>249.7</var>primarily for the abatement and control of air, water, or land pollution is exempt
         to the <br/>
<a id="pl.249.8"></a><var>249.8</var>extent that it is so used, and real property is exempt if it is used primarily for
         abatement <br/>
<a id="pl.249.9"></a><var>249.9</var>and control of air, water, or land pollution as part of an agricultural operation,
         as a part <br/>
<a id="pl.249.10"></a><var>249.10</var>of a centralized treatment and recovery facility operating under a permit issued by
         the <br/>
<a id="pl.249.11"></a><var>249.11</var>Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
         <br/>
<a id="pl.249.12"></a><var>249.12</var>Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater <br/>
<a id="pl.249.13"></a><var>249.13</var>treatment facility and for the treatment, recovery, and stabilization of metals, oils,
         <br/>
<a id="pl.249.14"></a><var>249.14</var>chemicals, water, sludges, or inorganic materials from hazardous industrial wastes,
         or as <br/>
<a id="pl.249.15"></a><var>249.15</var>part of an electric generation system. For purposes of this subdivision, personal
         property <br/>
<a id="pl.249.16"></a><var>249.16</var>includes ponderous machinery and equipment used in a business or production activity
         <br/>
<a id="pl.249.17"></a><var>249.17</var>that at common law is considered real property.<br/>
<a id="pl.249.18"></a><var>249.18</var>Any taxpayer requesting exemption of all or a portion of any real property or any
         <br/>
<a id="pl.249.19"></a><var>249.19</var>equipment or device, or part thereof, operated primarily for the control or abatement
         of air, <br/>
<a id="pl.249.20"></a><var>249.20</var>water, or land pollution shall file an application with the commissioner of revenue.
         The <br/>
<a id="pl.249.21"></a><var>249.21</var>commissioner shall develop an electronic means to notify interested parties when electric
         <br/>
<a id="pl.249.22"></a><var>249.22</var>power generation facilities have filed an application. The commissioner shall prescribe <br/>
<a id="pl.249.23"></a><var>249.23</var>the content, format, and manner of the application pursuant to section 270C.30, except
         <br/>
<a id="pl.249.24"></a><var>249.24</var>that a "law administered by the commissioner" includes the property tax laws, and
         if an <br/>
<a id="pl.249.25"></a><var>249.25</var>application is made by electronic means, the taxpayer's signature is defined pursuant
         to <br/>
<a id="pl.249.26"></a><var>249.26</var>section 270C.304, except that a "law administered by the commissioner" includes the
         <br/>
<a id="pl.249.27"></a><var>249.27</var>property tax laws. The Minnesota Pollution Control Agency shall upon request of the <br/>
<a id="pl.249.28"></a><var>249.28</var>commissioner furnish information and advice to the commissioner.<br/>
<a id="pl.249.29"></a><var>249.29</var>The information and advice furnished by the Minnesota Pollution Control <br/>
<a id="pl.249.30"></a><var>249.30</var>Agency must include statements as to whether the equipment, device, or real property
         <br/>
<a id="pl.249.31"></a><var>249.31</var>meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
         <br/>
<a id="pl.249.32"></a><var>249.32</var>Control Agency, and whether the equipment, device, or real property is installed or
         <br/>
<a id="pl.249.33"></a><var>249.33</var>operated in accordance with it. On determining that property qualifies for exemption,
         <br/>
<a id="pl.249.34"></a><var>249.34</var>the commissioner shall issue an order exempting the property from taxation. The <br/>
<a id="pl.249.35"></a><var>249.35</var>commissioner shall develop an electronic means to notify interested parties when <br/>
<a id="pl.250.1"></a><var>250.1</var>the commissioner has issued an order exempting property from taxation under this <br/>
<a id="pl.250.2"></a><var>250.2</var>subdivision. The equipment, device, or real property shall continue to be exempt from
         <br/>
<a id="pl.250.3"></a><var>250.3</var>taxation as long as the order issued by the commissioner remains in effect.<br/>
<a id="pl.250.4"></a><var>250.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.18.0"></a><a id="pl.250.5"></a><var>250.5</var>    Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:<br/>
<a id="pl.250.6"></a><var>250.6</var>    Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator <br/>
<a id="pl.250.7"></a><var>250.7</var>of a new or existing electric power generation facility, excluding wind energy conversion
         <br/>
<a id="pl.250.8"></a><var>250.8</var>systems, may apply to the commissioner of revenue for a market value exclusion on
         the <br/>
<a id="pl.250.9"></a><var>250.9</var>property as provided for in this section. This exclusion shall apply only to the market
         <br/>
<a id="pl.250.10"></a><var>250.10</var>value of the equipment of the facility, and shall not apply to the structures and
         the land <br/>
<a id="pl.250.11"></a><var>250.11</var>upon which the facility is located. The commissioner of revenue shall prescribe the
         forms <br/>
<a id="pl.250.12"></a><var>250.12</var>content, format, manner, and procedures for this application pursuant to section 270C.30, <br/>
<a id="pl.250.13"></a><var>250.13</var>except that a "law administered by the commissioner" includes the property tax laws.
         If <br/>
<a id="pl.250.14"></a><var>250.14</var>an application is made by electronic means, the taxpayer's signature is defined pursuant
         <br/>
<a id="pl.250.15"></a><var>250.15</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.250.16"></a><var>250.16</var>property tax laws. Upon receiving the application, the commissioner of revenue shall: (1) <br/>
<a id="pl.250.17"></a><var>250.17</var>request the commissioner of commerce to make a determination of the efficiency of
         the <br/>
<a id="pl.250.18"></a><var>250.18</var>applicant's electric power generation facility; and (2) shall develop an electronic
         means to <br/>
<a id="pl.250.19"></a><var>250.19</var>notify interested parties when electric power generation facilities have filed an
         application. <br/>
<a id="pl.250.20"></a><var>250.20</var>The commissioner of commerce shall calculate efficiency as the ratio of useful energy
         <br/>
<a id="pl.250.21"></a><var>250.21</var>outputs to energy inputs, expressed as a percentage, based on the performance of the
         <br/>
<a id="pl.250.22"></a><var>250.22</var>facility's equipment during normal full load operation. The commissioner must include
         in <br/>
<a id="pl.250.23"></a><var>250.23</var>this formula the energy used in any on-site preparation of materials necessary to
         convert <br/>
<a id="pl.250.24"></a><var>250.24</var>the materials into the fuel used to generate electricity, such as a process to gasify
         petroleum <br/>
<a id="pl.250.25"></a><var>250.25</var>coke. The commissioner shall use the Higher Heating Value (HHV) for all substances
         in <br/>
<a id="pl.250.26"></a><var>250.26</var>the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
         <br/>
<a id="pl.250.27"></a><var>250.27</var>project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the commissioner shall adjust the <br/>
<a id="pl.250.28"></a><var>250.28</var>heating value to allow for energy consumed for evaporation of the moisture in the
         wood. <br/>
<a id="pl.250.29"></a><var>250.29</var>The applicant shall provide the commissioner of commerce with whatever information
         the <br/>
<a id="pl.250.30"></a><var>250.30</var>commissioner deems necessary to make the determination. Within 30 days of the receipt
         <br/>
<a id="pl.250.31"></a><var>250.31</var>of the necessary information, the commissioner of commerce shall certify the findings
         of <br/>
<a id="pl.250.32"></a><var>250.32</var>the efficiency determination to the commissioner of revenue and to the applicant.
         The <br/>
<a id="pl.250.33"></a><var>250.33</var>commissioner of commerce shall determine the efficiency of the facility and certify
         the <br/>
<a id="pl.250.34"></a><var>250.34</var>findings of that determination to the commissioner of revenue every two years thereafter
         <br/>
<a id="pl.250.35"></a><var>250.35</var>from the date of the original certification.<br/>
<a id="pl.251.1"></a><var>251.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.19.0"></a><a id="pl.251.2"></a><var>251.2</var>    Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.251.3"></a><var>251.3</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned <br/>
<a id="pl.251.4"></a><var>251.4</var>by the state of Minnesota or any political subdivision thereof, and property exempt
         from <br/>
<a id="pl.251.5"></a><var>251.5</var>taxation under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at <br/>
<a id="pl.251.6"></a><var>251.6</var>the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
         <br/>
<a id="pl.251.7"></a><var>251.7</var>on property described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 2 to 33, must file a statement of <br/>
<a id="pl.251.8"></a><var>251.8</var>exemption with the assessor of the assessment district in which the property is located.<br/>
<a id="pl.251.9"></a><var>251.9</var>(b) A taxpayer claiming an exemption from taxation on property described in section
         <br/>
<statute_ref><a id="pl.251.10"></a><var>251.10</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of <br/>
<a id="pl.251.11"></a><var>251.11</var>revenue, on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.251.12"></a><var>251.12</var>(c) In case of sickness, absence or other disability or for good cause, the assessor
         <br/>
<a id="pl.251.13"></a><var>251.13</var>or the commissioner may extend the time for filing the statement of exemption for
         a <br/>
<a id="pl.251.14"></a><var>251.14</var>period not to exceed 60 days.<br/>
<a id="pl.251.15"></a><var>251.15</var>(d) The commissioner of revenue shall prescribe the form and contents content, <br/>
<a id="pl.251.16"></a><var>251.16</var>format, and manner of the statement of exemption pursuant to section 270C.30, except <br/>
<a id="pl.251.17"></a><var>251.17</var>that a "law administered by the commissioner" includes the property tax laws.<br/>
<a id="pl.251.18"></a><var>251.18</var>(e) If a statement is made by electronic means, the taxpayer's signature is defined
         <br/>
<a id="pl.251.19"></a><var>251.19</var>pursuant to section 270C.304, except that a "law administered by the commissioner"
         <br/>
<a id="pl.251.20"></a><var>251.20</var>includes the property tax laws.<br/>
<a id="pl.251.21"></a><var>251.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.20.0"></a><a id="pl.251.22"></a><var>251.22</var>    Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:<br/>
<a id="pl.251.23"></a><var>251.23</var>    Subd. 4. <b>Reports.</b> (a) An owner of a wind energy conversion system subject to tax <br/>
<a id="pl.251.24"></a><var>251.24</var>under subdivision 3 shall file a report with the commissioner of revenue annually
         on or <br/>
<a id="pl.251.25"></a><var>251.25</var>before February 1 detailing the amount of electricity in kilowatt-hours that was produced
         <br/>
<a id="pl.251.26"></a><var>251.26</var>by the wind energy conversion system for the previous calendar year. The commissioner
         <br/>
<a id="pl.251.27"></a><var>251.27</var>shall prescribe the form content, format, and manner of the report pursuant to section <br/>
<a id="pl.251.28"></a><var>251.28</var>270C.30, except that a "law administered by the commissioner" includes the property
         tax <br/>
<a id="pl.251.29"></a><var>251.29</var>laws. The report must contain the information required by the commissioner to determine
         <br/>
<a id="pl.251.30"></a><var>251.30</var>the tax due to each county under this section for the current year. If an owner of
         a wind <br/>
<a id="pl.251.31"></a><var>251.31</var>energy conversion system subject to taxation under this section fails to file the
         report <br/>
<a id="pl.251.32"></a><var>251.32</var>by the due date, the commissioner of revenue shall determine the tax based upon the
         <br/>
<a id="pl.251.33"></a><var>251.33</var>nameplate capacity of the system multiplied by a capacity factor of 60 percent.<br/>
<a id="pl.252.1"></a><var>252.1</var>(b) If a report is made by electronic means, the taxpayer's signature is defined <br/>
<a id="pl.252.2"></a><var>252.2</var>pursuant to section 270C.304, except that a "law administered by the commissioner"
         <br/>
<a id="pl.252.3"></a><var>252.3</var>includes the property tax laws.<br/>
<a id="pl.252.4"></a><var>252.4</var>(b) (c) On or before February 28, the commissioner of revenue shall notify the owner <br/>
<a id="pl.252.5"></a><var>252.5</var>of the wind energy conversion systems of the tax due to each county for the current
         year <br/>
<a id="pl.252.6"></a><var>252.6</var>and shall certify to the county auditor of each county in which the systems are located
         the <br/>
<a id="pl.252.7"></a><var>252.7</var>tax due from each owner for the current year.<br/>
<a id="pl.252.8"></a><var>252.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.21.0"></a><a id="pl.252.9"></a><var>252.9</var>    Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:<br/>
<a id="pl.252.10"></a><var>252.10</var>    Subd. 4. <b>Reports.</b> An owner of a solar energy generating system subject to tax <br/>
<a id="pl.252.11"></a><var>252.11</var>under this section shall file a report with the commissioner of revenue annually on
         or <br/>
<a id="pl.252.12"></a><var>252.12</var>before January 15 detailing the amount of electricity in megawatt-hours that was produced
         <br/>
<a id="pl.252.13"></a><var>252.13</var>by the system in the previous calendar year. The commissioner shall prescribe the
         form <br/>
<a id="pl.252.14"></a><var>252.14</var>content, format, and manner of the report pursuant to section 270C.30. The report must <br/>
<a id="pl.252.15"></a><var>252.15</var>contain the information required by the commissioner to determine the tax due to each
         <br/>
<a id="pl.252.16"></a><var>252.16</var>county under this section for the current year. If an owner of a solar energy generating
         <br/>
<a id="pl.252.17"></a><var>252.17</var>system subject to taxation under this section fails to file the report by the due
         date, the <br/>
<a id="pl.252.18"></a><var>252.18</var>commissioner of revenue shall determine the tax based upon the nameplate capacity
         of <br/>
<a id="pl.252.19"></a><var>252.19</var>the system multiplied by a capacity factor of 30 percent.<br/>
<a id="pl.252.20"></a><var>252.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.22.0"></a><a id="pl.252.21"></a><var>252.21</var>    Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:<br/>
<a id="pl.252.22"></a><var>252.22</var>    Subd. 2. <b>Form; information required.</b> The certificate of value shall require <br/>
<a id="pl.252.23"></a><var>252.23</var>such facts and information as may be determined by the commissioner to be reasonably
         <br/>
<a id="pl.252.24"></a><var>252.24</var>necessary in the administration of the state education aid formulas. The form <br/>
<a id="pl.252.25"></a><var>252.25</var>commissioner shall prescribe the content, format, and manner of the certificate of value <br/>
<a id="pl.252.26"></a><var>252.26</var>shall be prescribed by the Department of Revenue which shall provide an adequate <br/>
<a id="pl.252.27"></a><var>252.27</var>supply of forms to each county auditor pursuant to section 270C.30, except that a "law <br/>
<a id="pl.252.28"></a><var>252.28</var>administered by the commissioner" includes the property tax laws.<br/>
<a id="pl.252.29"></a><var>252.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.23.0"></a><a id="pl.252.30"></a><var>252.30</var>    Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.253.1"></a><var>253.1</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.253.2"></a><var>253.2</var>requirements under subdivision 1 must file a homestead application with the county
         <br/>
<a id="pl.253.3"></a><var>253.3</var>assessor to initially obtain homestead classification.<br/>
<a id="pl.253.4"></a><var>253.4</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.253.5"></a><var>253.5</var>by the commissioner of revenue.  The commissioner shall prescribe the content, format, <br/>
<a id="pl.253.6"></a><var>253.6</var>and manner of the homestead application required to be filed under this chapter pursuant
         <br/>
<a id="pl.253.7"></a><var>253.7</var>to section 270C.30. The application must clearly inform the taxpayer that this application <br/>
<a id="pl.253.8"></a><var>253.8</var>must be signed by all owners who occupy the property or by the qualifying relative
         and <br/>
<a id="pl.253.9"></a><var>253.9</var>returned to the county assessor in order for the property to receive homestead treatment.<br/>
<a id="pl.253.10"></a><var>253.10</var>    (c) Every property owner applying for homestead classification must furnish to the
         <br/>
<a id="pl.253.11"></a><var>253.11</var>county assessor the Social Security number of each occupant who is listed as an owner
         <br/>
<a id="pl.253.12"></a><var>253.12</var>of the property on the deed of record, the name and address of each owner who does
         not <br/>
<a id="pl.253.13"></a><var>253.13</var>occupy the property, and the name and Social Security number of each owner's spouse
         who <br/>
<a id="pl.253.14"></a><var>253.14</var>occupies the property. The application must be signed by each owner who occupies the
         <br/>
<a id="pl.253.15"></a><var>253.15</var>property and by each owner's spouse who occupies the property, or, in the case of
         property <br/>
<a id="pl.253.16"></a><var>253.16</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying
         relative.<br/>
<a id="pl.253.17"></a><var>253.17</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.253.18"></a><var>253.18</var>claim another property as a homestead unless the property owner and the property owner's
         <br/>
<a id="pl.253.19"></a><var>253.19</var>spouse file with the assessor an affidavit or other proof required by the assessor
         stating that <br/>
<a id="pl.253.20"></a><var>253.20</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.253.21"></a><var>253.21</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.253.22"></a><var>253.22</var>occupied with the other spouse, either of whom fail to include the other spouse's
         name <br/>
<a id="pl.253.23"></a><var>253.23</var>and Social Security number on the homestead application or provide the affidavits
         or <br/>
<a id="pl.253.24"></a><var>253.24</var>other proof requested, will be deemed to have elected to receive only partial homestead
         <br/>
<a id="pl.253.25"></a><var>253.25</var>treatment of their residence. The remainder of the residence will be classified as
         <br/>
<a id="pl.253.26"></a><var>253.26</var>nonhomestead residential. When an owner or spouse's name and Social Security number
         <br/>
<a id="pl.253.27"></a><var>253.27</var>appear on homestead applications for two separate residences and only one application
         is <br/>
<a id="pl.253.28"></a><var>253.28</var>signed, the owner or spouse will be deemed to have elected to homestead the residence
         for <br/>
<a id="pl.253.29"></a><var>253.29</var>which the application was signed.<br/>
<a id="pl.253.30"></a><var>253.30</var>    (d) If residential real estate is occupied and used for purposes of a homestead by
         a <br/>
<a id="pl.253.31"></a><var>253.31</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph
         (c), in <br/>
<a id="pl.253.32"></a><var>253.32</var>order for the property to receive homestead status, a homestead application must be
         filed <br/>
<a id="pl.253.33"></a><var>253.33</var>with the assessor. The Social Security number of each relative and spouse of a relative
         <br/>
<a id="pl.253.34"></a><var>253.34</var>occupying the property shall be required on the homestead application filed under
         this <br/>
<a id="pl.253.35"></a><var>253.35</var>subdivision. If a different relative of the owner subsequently occupies the property,
         the <br/>
<a id="pl.253.36"></a><var>253.36</var>owner of the property must notify the assessor within 30 days of the change in occupancy.
         <br/>
<a id="pl.254.1"></a><var>254.1</var>The Social Security number of a relative or relative's spouse occupying the property
         <br/>
<a id="pl.254.2"></a><var>254.2</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br/>
<a id="pl.254.3"></a><var>254.3</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under
         the <br/>
<a id="pl.254.4"></a><var>254.4</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.254.5"></a><var>254.5</var>    (e) The homestead application shall also notify the property owners that if the <br/>
<a id="pl.254.6"></a><var>254.6</var>property is granted homestead status for any assessment year, that same property shall
         <br/>
<a id="pl.254.7"></a><var>254.7</var>remain classified as homestead until the property is sold or transferred to another
         person, <br/>
<a id="pl.254.8"></a><var>254.8</var>or the owners, the spouse of the owner, or the relatives no longer use the property
         as their <br/>
<a id="pl.254.9"></a><var>254.9</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must <br/>
<a id="pl.254.10"></a><var>254.10</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.254.11"></a><var>254.11</var>notify the assessor within 30 days that the property has been sold, transferred, or
         that the <br/>
<a id="pl.254.12"></a><var>254.12</var>owner, the spouse of the owner, or the relative is no longer occupying the property
         as a <br/>
<a id="pl.254.13"></a><var>254.13</var>homestead, shall result in the penalty provided under this subdivision and the property
         <br/>
<a id="pl.254.14"></a><var>254.14</var>will lose its current homestead status.<br/>
<a id="pl.254.15"></a><var>254.15</var>    (f) If a homestead application has not been filed with the county by December 15,
         <br/>
<a id="pl.254.16"></a><var>254.16</var>the assessor shall classify the property as nonhomestead for the current assessment
         year <br/>
<a id="pl.254.17"></a><var>254.17</var>for taxes payable in the following year, provided that the owner may be entitled to
         receive <br/>
<a id="pl.254.18"></a><var>254.18</var>the homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.254.19"></a><var>254.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.24.0"></a><a id="pl.254.20"></a><var>254.20</var>    Sec. 24. Minnesota Statutes 2014, section 273.371, subdivision 1, is amended to read:<br/>
<a id="pl.254.21"></a><var>254.21</var>    Subdivision 1. <b>Report required.</b> Every electric light, power, gas, water, express, <br/>
<a id="pl.254.22"></a><var>254.22</var>stage, and transportation company and pipeline doing business in Minnesota shall <br/>
<a id="pl.254.23"></a><var>254.23</var>annually file with the commissioner on or before March 31 a report under oath setting
         <br/>
<a id="pl.254.24"></a><var>254.24</var>forth the information prescribed by the commissioner to enable the commissioner to
         <br/>
<a id="pl.254.25"></a><var>254.25</var>make valuations, recommended valuations, and equalization required under sections
         <br/>
<statute_ref><a id="pl.254.26"></a><var>254.26</var>273.33
         </statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, and 
         <statute_ref>273.3711</statute_ref>. The commissioner shall prescribe the <br/>
<a id="pl.254.27"></a><var>254.27</var>content, format, and manner of the report pursuant to section 270C.30, except that
         <br/>
<a id="pl.254.28"></a><var>254.28</var>a "law administered by the commissioner" includes the property tax laws. If all the <br/>
<a id="pl.254.29"></a><var>254.29</var>required information is not available on March 31, the company or pipeline shall file
         the <br/>
<a id="pl.254.30"></a><var>254.30</var>information that is available on or before March 31, and the balance of the information
         <br/>
<a id="pl.254.31"></a><var>254.31</var>as soon as it becomes available. If a report is made by electronic means, the taxpayer's <br/>
<a id="pl.254.32"></a><var>254.32</var>signature is defined pursuant to section 270C.304, except that a "law administered
         by the <br/>
<a id="pl.254.33"></a><var>254.33</var>commissioner" includes the property tax laws.<br/>
<a id="pl.254.34"></a><var>254.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.25.0"></a><a id="pl.255.1"></a><var>255.1</var>    Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:<br/>
<a id="pl.255.2"></a><var>255.2</var><b>287.2205 TAX-FORFEITED LAND.</b><br/>
<a id="pl.255.3"></a><var>255.3</var>    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
         <br/>
<a id="pl.255.4"></a><var>255.4</var>by the purchaser of tax-forfeited land whether the purchase is the result of a public
         <br/>
<a id="pl.255.5"></a><var>255.5</var>auction or private sale or a repurchase of tax-forfeited land. State agencies and
         local <br/>
<a id="pl.255.6"></a><var>255.6</var>units of government that acquire tax-forfeited land by purchase or any other means
         are <br/>
<a id="pl.255.7"></a><var>255.7</var>subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands
         to a <br/>
<a id="pl.255.8"></a><var>255.8</var>governmental subdivision for an authorized public use under section 
         <statute_ref>282.01, subdivision <br/>
<a id="pl.255.9"></a><var>255.9</var>1a
         </statute_ref>, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes <br/>
<a id="pl.255.10"></a><var>255.10</var>under section 
         <statute_ref>282.01, subdivision 1b</statute_ref>.<br/>
<a id="pl.255.11"></a><var>255.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.26.0"></a><a id="pl.255.12"></a><var>255.12</var>    Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a <br/>
<a id="pl.255.13"></a><var>255.13</var>subdivision to read:<br/>
<a id="pl.255.14"></a><var>255.14</var>    Subd. 17. <b>Format.</b> The commissioner shall prescribe the content, format, and <br/>
<a id="pl.255.15"></a><var>255.15</var>manner of the returns and other documents pursuant to section 270C.30. This does not
         <br/>
<a id="pl.255.16"></a><var>255.16</var>authorize the commissioner to require individual income taxpayers to file individual
         <br/>
<a id="pl.255.17"></a><var>255.17</var>income tax returns electronically.<br/>
<a id="pl.255.18"></a><var>255.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.27.0"></a><a id="pl.255.19"></a><var>255.19</var>    Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:<br/>
<a id="pl.255.20"></a><var>255.20</var>    Subdivision 1. <b>Returns.</b> (a) An employer who is required to deduct and withhold tax <br/>
<a id="pl.255.21"></a><var>255.21</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, and a person required to deduct and withhold <br/>
<a id="pl.255.22"></a><var>255.22</var>tax under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, must file a return with the commissioner for each <br/>
<a id="pl.255.23"></a><var>255.23</var>quarterly period unless otherwise prescribed by the commissioner.<br/>
<a id="pl.255.24"></a><var>255.24</var>(b) A person or corporation required to make deposits under section 
         <statute_ref>290.9201, <br/>
<a id="pl.255.25"></a><var>255.25</var>subdivision 8
         </statute_ref>, must file an entertainer withholding tax return with the commissioner.<br/>
<a id="pl.255.26"></a><var>255.26</var>(c) A person required to withhold an amount under section 
         <statute_ref>290.9705, subdivision 1</statute_ref>, <br/>
<a id="pl.255.27"></a><var>255.27</var>must file a return.<br/>
<a id="pl.255.28"></a><var>255.28</var>(d) A partnership required to deduct and withhold tax under section 
         <statute_ref>290.92, <br/>
<a id="pl.255.29"></a><var>255.29</var>subdivision 4b
         </statute_ref>, must file a return.<br/>
<a id="pl.255.30"></a><var>255.30</var>(e) An S corporation required to deduct and withhold tax under section 
         <statute_ref>290.92, <br/>
<a id="pl.255.31"></a><var>255.31</var>subdivision 4c
         </statute_ref>, must also file a return.<br/>
<a id="pl.255.32"></a><var>255.32</var>(f) Returns must be filed in the form and manner, and contain the information <br/>
<a id="pl.255.33"></a><var>255.33</var>prescribed by the commissioner The commissioner shall prescribe the content, format, <br/>
<a id="pl.256.1"></a><var>256.1</var>and manner of the returns pursuant to section 270C.30. Every return for taxes withheld <br/>
<a id="pl.256.2"></a><var>256.2</var>must be signed by the employer, entertainment entity, contract payor, partnership,
         or S <br/>
<a id="pl.256.3"></a><var>256.3</var>corporation, or a designee.<br/>
<a id="pl.256.4"></a><var>256.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.28.0"></a><a id="pl.256.5"></a><var>256.5</var>    Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:<br/>
<a id="pl.256.6"></a><var>256.6</var>    Subdivision 1. <b>Return required.</b> (a) Except as provided in section 
         <statute_ref>289A.18, <br/>
<a id="pl.256.7"></a><var>256.7</var>subdivision 4
         </statute_ref>, for the month in which taxes imposed by chapter 297A are payable, or for <br/>
<a id="pl.256.8"></a><var>256.8</var>which a return is due, a return for the preceding reporting period must be filed with
         the <br/>
<a id="pl.256.9"></a><var>256.9</var>commissioner in the form and manner the commissioner prescribes. The commissioner <br/>
<a id="pl.256.10"></a><var>256.10</var>shall prescribe the content, format, and manner of the returns pursuant to section
         270C.30. <br/>
<a id="pl.256.11"></a><var>256.11</var>A person making sales at retail at two or more places of business may file a consolidated
         <br/>
<a id="pl.256.12"></a><var>256.12</var>return subject to rules prescribed by the commissioner. In computing the dollar amount
         of <br/>
<a id="pl.256.13"></a><var>256.13</var>items on the return, the amounts are rounded off to the nearest whole dollar, disregarding
         <br/>
<a id="pl.256.14"></a><var>256.14</var>amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next
         <br/>
<a id="pl.256.15"></a><var>256.15</var>highest dollar.<br/>
<a id="pl.256.16"></a><var>256.16</var>(b) Notwithstanding this subdivision, a person who is not required to hold a sales
         tax <br/>
<a id="pl.256.17"></a><var>256.17</var>permit under chapter 297A and who makes annual purchases, for use in a trade or business,
         <br/>
<a id="pl.256.18"></a><var>256.18</var>of less than $18,500, or a person who is not required to hold a sales tax permit and
         who <br/>
<a id="pl.256.19"></a><var>256.19</var>makes purchases for personal use, that are subject to the use tax imposed by section
         <br/>
<statute_ref><a id="pl.256.20"></a><var>256.20</var>297A.63
         </statute_ref>, may file an annual use tax return on a form prescribed by the commissioner. <br/>
<a id="pl.256.21"></a><var>256.21</var>The commissioner shall prescribe the content, format, and manner of the return pursuant
         <br/>
<a id="pl.256.22"></a><var>256.22</var>to section 270C.30. If a person who qualifies for an annual use tax reporting period is <br/>
<a id="pl.256.23"></a><var>256.23</var>required to obtain a sales tax permit or makes use tax purchases, for use in a trade
         or <br/>
<a id="pl.256.24"></a><var>256.24</var>business, in excess of $18,500 during the calendar year, the reporting period must
         be <br/>
<a id="pl.256.25"></a><var>256.25</var>considered ended at the end of the month in which the permit is applied for or the
         purchase <br/>
<a id="pl.256.26"></a><var>256.26</var>in excess of $18,500 is made and a return must be filed for the preceding reporting
         period.<br/>
<a id="pl.256.27"></a><var>256.27</var>(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the <br/>
<a id="pl.256.28"></a><var>256.28</var>person's religious beliefs from using electronics shall be allowed to file by mail,
         without <br/>
<a id="pl.256.29"></a><var>256.29</var>any additional fees. The filer must notify the commissioner of revenue of the intent
         to file <br/>
<a id="pl.256.30"></a><var>256.30</var>by mail on a form prescribed by the commissioner. A return filed under this paragraph
         <br/>
<a id="pl.256.31"></a><var>256.31</var>must be postmarked no later than the day the return is due in order to be considered
         filed <br/>
<a id="pl.256.32"></a><var>256.32</var>on a timely basis.<br/>
<a id="pl.256.33"></a><var>256.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.29.0"></a><a id="pl.257.1"></a><var>257.1</var>    Sec. 29. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:<br/>
<a id="pl.257.2"></a><var>257.2</var>    Subd. 7. <b>Remedies.</b> (a) If the taxpayer is notified by the commissioner that the <br/>
<a id="pl.257.3"></a><var>257.3</var>refund claim is denied in whole or in part, the taxpayer may:<br/>
<a id="pl.257.4"></a><var>257.4</var>(1) file an administrative appeal as provided in section 
         <statute_ref>270C.35</statute_ref>, or an appeal <br/>
<a id="pl.257.5"></a><var>257.5</var>with the Tax Court, within 60 days after issuance the notice date of the commissioner's <br/>
<a id="pl.257.6"></a><var>257.6</var>notice of denial; or<br/>
<a id="pl.257.7"></a><var>257.7</var>(2) file an action in the district court to recover the refund.<br/>
<a id="pl.257.8"></a><var>257.8</var>(b) An action in the district court on a denied claim for refund must be brought <br/>
<a id="pl.257.9"></a><var>257.9</var>within 18 months of the notice date of the denial of the claim by the commissioner. For <br/>
<a id="pl.257.10"></a><var>257.10</var>the purposes of this section, "notice date" is defined in section 270C.35, subdivision
         3.<br/>
<a id="pl.257.11"></a><var>257.11</var>(c) No action in the district court or the Tax Court shall be brought within six months
         <br/>
<a id="pl.257.12"></a><var>257.12</var>of the filing of the refund claim unless the commissioner denies the claim within
         that period.<br/>
<a id="pl.257.13"></a><var>257.13</var>(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
         <br/>
<a id="pl.257.14"></a><var>257.14</var>of the claim, the taxpayer may bring an action in the district court or the Tax Court
         at any <br/>
<a id="pl.257.15"></a><var>257.15</var>time after the expiration of six months from the time the claim was filed.<br/>
<a id="pl.257.16"></a><var>257.16</var>(e) The commissioner and the taxpayer may agree to extend the period for bringing
         <br/>
<a id="pl.257.17"></a><var>257.17</var>an action in the district court.<br/>
<a id="pl.257.18"></a><var>257.18</var>(f) An action for refund of tax by the taxpayer must be brought in the district court
         <br/>
<a id="pl.257.19"></a><var>257.19</var>of the district in which lies the county of the taxpayer's residence or principal
         place of <br/>
<a id="pl.257.20"></a><var>257.20</var>business. In the case of an estate or trust, the action must be brought at the principal
         place <br/>
<a id="pl.257.21"></a><var>257.21</var>of its administration. Any action may be brought in the district court for Ramsey
         County.<br/>
<a id="pl.257.22"></a><var>257.22</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.257.23"></a><var>257.23</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.30.0"></a><a id="pl.257.24"></a><var>257.24</var>    Sec. 30. <b>[290B.11] FORMS. </b><br/>
<a id="pl.257.25"></a><var>257.25</var>The commissioner shall prescribe the content, format, and manner of all forms and
         <br/>
<a id="pl.257.26"></a><var>257.26</var>other documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.257.27"></a><var>257.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.31.0"></a><a id="pl.257.28"></a><var>257.28</var>    Sec. 31. Minnesota Statutes 2014, section 290C.13, subdivision 3, is amended to read:<br/>
<a id="pl.257.29"></a><var>257.29</var>    Subd. 3. <b>Notice date.</b> For purposes of this section, the term "notice date" means the <br/>
<a id="pl.257.30"></a><var>257.30</var>notice date designated by the commissioner on the order or notice of the determination <br/>
<a id="pl.257.31"></a><var>257.31</var>removing enrolled land or the notice date of designated by the commissioner on the notice <br/>
<a id="pl.257.32"></a><var>257.32</var>denying an application to enroll land or denying part or all of an incentive payment.<br/>
<a id="pl.258.1"></a><var>258.1</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.258.2"></a><var>258.2</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.32.0"></a><a id="pl.258.3"></a><var>258.3</var>    Sec. 32. <b>[293.15] FORMS. </b><br/>
<a id="pl.258.4"></a><var>258.4</var>The commissioner shall prescribe the content, format, and manner of all forms and
         <br/>
<a id="pl.258.5"></a><var>258.5</var>other documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.258.6"></a><var>258.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.33.0"></a><a id="pl.258.7"></a><var>258.7</var>    Sec. 33. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:<br/>
<a id="pl.258.8"></a><var>258.8</var>    Subd. 6. <b>Form of returns.</b> The estimated payments and annual return must contain <br/>
<a id="pl.258.9"></a><var>258.9</var>the information and be in the form prescribed by the commissioner. The commissioner <br/>
<a id="pl.258.10"></a><var>258.10</var>shall prescribe the content, format, and manner of the estimated payment forms and
         annual <br/>
<a id="pl.258.11"></a><var>258.11</var>return pursuant to section 270C.30.<br/>
<a id="pl.258.12"></a><var>258.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.34.0"></a><a id="pl.258.13"></a><var>258.13</var>    Sec. 34. Minnesota Statutes 2014, section 296A.02, is amended by adding a <br/>
<a id="pl.258.14"></a><var>258.14</var>subdivision to read:<br/>
<a id="pl.258.15"></a><var>258.15</var>    Subd. 5. <b>Forms.</b>  The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.258.16"></a><var>258.16</var>of all forms and other documents required to be filed under this chapter pursuant
         to section <br/>
<a id="pl.258.17"></a><var>258.17</var>270C.30.<br/>
<a id="pl.258.18"></a><var>258.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.35.0"></a><a id="pl.258.19"></a><var>258.19</var>    Sec. 35. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:<br/>
<a id="pl.258.20"></a><var>258.20</var>    Subd. 9. <b>Abatement of penalty.</b> (a) The commissioner may by written order <br/>
<a id="pl.258.21"></a><var>258.21</var>abate any penalty imposed under this section, if in the commissioner's opinion there
         is <br/>
<a id="pl.258.22"></a><var>258.22</var>reasonable cause to do so.<br/>
<a id="pl.258.23"></a><var>258.23</var>(b) A request for abatement of penalty must be filed with the commissioner within
         <br/>
<a id="pl.258.24"></a><var>258.24</var>60 days of the notice date of the notice stating that a penalty has been imposed was mailed <br/>
<a id="pl.258.25"></a><var>258.25</var>to the taxpayer's last known address. For purposes of this section, the term "notice date" <br/>
<a id="pl.258.26"></a><var>258.26</var>means the notice date designated by the commissioner on the order or other notice
         that a <br/>
<a id="pl.258.27"></a><var>258.27</var>penalty has been imposed.<br/>
<a id="pl.258.28"></a><var>258.28</var>(c) If the commissioner issues an order denying a request for abatement of penalty,
         <br/>
<a id="pl.258.29"></a><var>258.29</var>the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal
         to <br/>
<a id="pl.258.30"></a><var>258.30</var>Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>. If the commissioner does not issue an order on <br/>
<a id="pl.259.1"></a><var>259.1</var>the abatement request within 60 days from the date the request is received, the taxpayer
         <br/>
<a id="pl.259.2"></a><var>259.2</var>may appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.259.3"></a><var>259.3</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.259.4"></a><var>259.4</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.36.0"></a><a id="pl.259.5"></a><var>259.5</var>    Sec. 36. Minnesota Statutes 2014, section 296A.26, is amended to read:<br/>
<a id="pl.259.6"></a><var>259.6</var><b>296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.</b><br/>
<a id="pl.259.7"></a><var>259.7</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, any person aggrieved by <br/>
<a id="pl.259.8"></a><var>259.8</var>an order of the commissioner fixing a tax, penalty, or interest under this chapter
         may, within <br/>
<a id="pl.259.9"></a><var>259.9</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.259.10"></a><var>259.10</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means <br/>
<a id="pl.259.11"></a><var>259.11</var>the notice date designated by the commissioner on the order fixing a tax, penalty,
         or interest.<br/>
<a id="pl.259.12"></a><var>259.12</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.259.13"></a><var>259.13</var>30, 2015.<br/>
<br/>
<a id="bill.16.37.0"></a><a id="pl.259.14"></a><var>259.14</var>    Sec. 37. Minnesota Statutes 2014, section 297D.02, is amended to read:<br/>
<a id="pl.259.15"></a><var>259.15</var><b>297D.02 ADMINISTRATION.</b><br/>
<a id="pl.259.16"></a><var>259.16</var>The commissioner of revenue shall administer this chapter. The commissioner shall <br/>
<a id="pl.259.17"></a><var>259.17</var>prescribe the content, format, and manner of all forms and other documents required
         to be <br/>
<a id="pl.259.18"></a><var>259.18</var>filed under this chapter pursuant to section 270C.30. Payments required by this chapter <br/>
<a id="pl.259.19"></a><var>259.19</var>must be made to the commissioner on the form provided by the commissioner. Tax obligors
         <br/>
<a id="pl.259.20"></a><var>259.20</var>are not required to give their name, address, Social Security number, or other identifying
         <br/>
<a id="pl.259.21"></a><var>259.21</var>information on the form. The commissioner shall collect all taxes under this chapter.<br/>
<a id="pl.259.22"></a><var>259.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.38.0"></a><a id="pl.259.23"></a><var>259.23</var>    Sec. 38. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:<br/>
<a id="pl.259.24"></a><var>259.24</var>    Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section are due <br/>
<a id="pl.259.25"></a><var>259.25</var>and payable to the commissioner when the gambling tax return is required to be filed.
         <br/>
<a id="pl.259.26"></a><var>259.26</var>Distributors must file their monthly sales figures with the commissioner on a form
         <br/>
<a id="pl.259.27"></a><var>259.27</var>prescribed by the commissioner. Returns covering the taxes imposed under this section
         <br/>
<a id="pl.259.28"></a><var>259.28</var>must be filed with the commissioner on or before the 20th day of the month following
         the <br/>
<a id="pl.259.29"></a><var>259.29</var>close of the previous calendar month. The commissioner may require that the returns be <br/>
<a id="pl.259.30"></a><var>259.30</var>filed via magnetic media or electronic data transfer. The commissioner shall prescribe the <br/>
<a id="pl.259.31"></a><var>259.31</var>content, format, and manner of returns or other documents pursuant to section 270C.30.
         <br/>
<a id="pl.260.1"></a><var>260.1</var>The proceeds, along with the revenue received from all license fees and other fees
         under <br/>
<a id="pl.260.2"></a><var>260.2</var>sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, 
         <statute_ref>349.211</statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of <br/>
<a id="pl.260.3"></a><var>260.3</var>management and budget for deposit in the general fund.<br/>
<a id="pl.260.4"></a><var>260.4</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
         <br/>
<a id="pl.260.5"></a><var>260.5</var>the distributor is imposed on the retail sales price. The retail sale of pull-tabs
         or tipboards <br/>
<a id="pl.260.6"></a><var>260.6</var>by the organization is exempt from taxes imposed by chapter 297A and is exempt from
         all <br/>
<a id="pl.260.7"></a><var>260.7</var>local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, subdivision 8</statute_ref>.<br/>
<a id="pl.260.8"></a><var>260.8</var>(c) One-half of one percent of the revenue deposited in the general fund under <br/>
<a id="pl.260.9"></a><var>260.9</var>paragraph (a), is appropriated to the commissioner of human services for the compulsive
         <br/>
<a id="pl.260.10"></a><var>260.10</var>gambling treatment program established under section 
         <statute_ref>245.98</statute_ref>. One-half of one percent <br/>
<a id="pl.260.11"></a><var>260.11</var>of the revenue deposited in the general fund under paragraph (a), is appropriated
         to <br/>
<a id="pl.260.12"></a><var>260.12</var>the commissioner of human services for a grant to the state affiliate recognized by
         <br/>
<a id="pl.260.13"></a><var>260.13</var>the National Council on Problem Gambling to increase public awareness of problem <br/>
<a id="pl.260.14"></a><var>260.14</var>gambling, education and training for individuals and organizations providing effective
         <br/>
<a id="pl.260.15"></a><var>260.15</var>treatment services to problem gamblers and their families, and research relating to
         <br/>
<a id="pl.260.16"></a><var>260.16</var>problem gambling. Money appropriated by this paragraph must supplement and must not
         <br/>
<a id="pl.260.17"></a><var>260.17</var>replace existing state funding for these programs.<br/>
<a id="pl.260.18"></a><var>260.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.39.0"></a><a id="pl.260.19"></a><var>260.19</var>    Sec. 39. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:<br/>
<a id="pl.260.20"></a><var>260.20</var>    Subdivision 1. <b>Reports of sales.</b> A manufacturer who sells gambling product for <br/>
<a id="pl.260.21"></a><var>260.21</var>use or resale in this state, or for receipt by a person or entity in this state, shall
         file with the <br/>
<a id="pl.260.22"></a><var>260.22</var>commissioner, on a form prescribed by the commissioner, a report of gambling product
         <br/>
<a id="pl.260.23"></a><var>260.23</var>sold to any person in the state, including the established governing body of an Indian
         tribe <br/>
<a id="pl.260.24"></a><var>260.24</var>recognized by the United States Department of the Interior. The report must be filed
         <br/>
<a id="pl.260.25"></a><var>260.25</var>monthly on or before the 20th day of the month succeeding the month in which the sale
         <br/>
<a id="pl.260.26"></a><var>260.26</var>was made. The commissioner may require that the report be submitted via magnetic <br/>
<a id="pl.260.27"></a><var>260.27</var>media or electronic data transfer. The commissioner shall prescribe the content, format, <br/>
<a id="pl.260.28"></a><var>260.28</var>and manner of returns or other documents pursuant to section 270C.30. The commissioner <br/>
<a id="pl.260.29"></a><var>260.29</var>may inspect the premises, books, records, and inventory of a manufacturer without
         notice <br/>
<a id="pl.260.30"></a><var>260.30</var>during the normal business hours of the manufacturer. A person violating this section
         is <br/>
<a id="pl.260.31"></a><var>260.31</var>guilty of a misdemeanor.<br/>
<a id="pl.260.32"></a><var>260.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.40.0"></a><a id="pl.260.33"></a><var>260.33</var>    Sec. 40. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:<br/>
<a id="pl.261.1"></a><var>261.1</var>    Subd. 4. <b>Reports.</b> A distributor shall report monthly to the commissioner, on a form <br/>
<a id="pl.261.2"></a><var>261.2</var>the commissioner prescribes, its sales of each type of gambling product. This report
         must <br/>
<a id="pl.261.3"></a><var>261.3</var>be filed monthly on or before the 20th day of the month succeeding the month in which
         <br/>
<a id="pl.261.4"></a><var>261.4</var>the sale was made. The commissioner may require that a distributor submit the monthly <br/>
<a id="pl.261.5"></a><var>261.5</var>report and invoices required in this subdivision via magnetic media or electronic
         data <br/>
<a id="pl.261.6"></a><var>261.6</var>transfer. The commissioner shall prescribe the content, format, and manner of returns or <br/>
<a id="pl.261.7"></a><var>261.7</var>other documents pursuant to section 270C.30.<br/>
<a id="pl.261.8"></a><var>261.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.41.0"></a><a id="pl.261.9"></a><var>261.9</var>    Sec. 41. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:<br/>
<a id="pl.261.10"></a><var>261.10</var>    Subdivision 1. <b>Reports.</b> An organization must file with the commissioner, on a form <br/>
<a id="pl.261.11"></a><var>261.11</var>prescribed by the commissioner, a report showing all gambling activity conducted by
         that <br/>
<a id="pl.261.12"></a><var>261.12</var>organization for each month. Gambling activity includes all gross receipts, prizes,
         all <br/>
<a id="pl.261.13"></a><var>261.13</var>gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
         <br/>
<a id="pl.261.14"></a><var>261.14</var>purpose and board-approved expenditures. The report must be filed with the commissioner
         <br/>
<a id="pl.261.15"></a><var>261.15</var>on or before the 20th day of the month following the month in which the gambling activity
         <br/>
<a id="pl.261.16"></a><var>261.16</var>takes place. The commissioner may require that the reports be filed via magnetic media or <br/>
<a id="pl.261.17"></a><var>261.17</var>electronic data transfer. The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.261.18"></a><var>261.18</var>of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.261.19"></a><var>261.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.42.0"></a><a id="pl.261.20"></a><var>261.20</var>    Sec. 42. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:<br/>
<a id="pl.261.21"></a><var>261.21</var>    Subdivision 1. <b>Monthly return; cigarette distributor.</b> On or before the 18th day <br/>
<a id="pl.261.22"></a><var>261.22</var>of each calendar month, a distributor with a place of business in this state shall
         file a <br/>
<a id="pl.261.23"></a><var>261.23</var>return with the commissioner showing the quantity of cigarettes manufactured or brought
         <br/>
<a id="pl.261.24"></a><var>261.24</var>in from outside the state or purchased during the preceding calendar month and the
         <br/>
<a id="pl.261.25"></a><var>261.25</var>quantity of cigarettes sold or otherwise disposed of in this state and outside this
         state <br/>
<a id="pl.261.26"></a><var>261.26</var>during that month. A licensed distributor outside this state shall in like manner
         file a <br/>
<a id="pl.261.27"></a><var>261.27</var>return showing the quantity of cigarettes shipped or transported into this state during
         the <br/>
<a id="pl.261.28"></a><var>261.28</var>preceding calendar month. Returns must be made in the form and manner prescribed by <br/>
<a id="pl.261.29"></a><var>261.29</var>The commissioner  shall prescribe the content, format, and manner of returns pursuant to <br/>
<a id="pl.261.30"></a><var>261.30</var>section 270C.30, and the returns must contain any other information required by the <br/>
<a id="pl.261.31"></a><var>261.31</var>commissioner. The return must be accompanied by a remittance for the full unpaid tax
         <br/>
<a id="pl.261.32"></a><var>261.32</var>liability shown by it. For distributors subject to the accelerated tax payment requirements
         <br/>
<a id="pl.262.1"></a><var>262.1</var>in subdivision 10, the return for the May liability is due two business days before
         June 30th <br/>
<a id="pl.262.2"></a><var>262.2</var>of the year and the return for the June liability is due on or before August 18th
         of the year.<br/>
<a id="pl.262.3"></a><var>262.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.43.0"></a><a id="pl.262.4"></a><var>262.4</var>    Sec. 43. Minnesota Statutes 2014, section 297F.23, is amended to read:<br/>
<a id="pl.262.5"></a><var>262.5</var><b>297F.23 JUDICIAL REVIEW.</b><br/>
<a id="pl.262.6"></a><var>262.6</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, a person aggrieved by an <br/>
<a id="pl.262.7"></a><var>262.7</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within 60 <br/>
<a id="pl.262.8"></a><var>262.8</var>days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.262.9"></a><var>262.9</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means <br/>
<a id="pl.262.10"></a><var>262.10</var>the notice date designated by the commissioner on the order fixing a tax, penalty,
         or interest.<br/>
<a id="pl.262.11"></a><var>262.11</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.262.12"></a><var>262.12</var>30, 2015.<br/>
<br/>
<a id="bill.16.44.0"></a><a id="pl.262.13"></a><var>262.13</var>    Sec. 44. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:<br/>
<a id="pl.262.14"></a><var>262.14</var>    Subdivision 1. <b>Monthly returns; manufacturers, wholesalers, brewers, or </b><br/>
<a id="pl.262.15"></a><var>262.15</var><b>importers.</b> On or before the 18th day of each calendar month following the month in <br/>
<a id="pl.262.16"></a><var>262.16</var>which a licensed manufacturer or wholesaler first sells wine and distilled spirits
         within <br/>
<a id="pl.262.17"></a><var>262.17</var>the state, or a brewer or importer first sells or imports fermented malt beverages,
         or a <br/>
<a id="pl.262.18"></a><var>262.18</var>wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages,
         <br/>
<a id="pl.262.19"></a><var>262.19</var>the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax
         must <br/>
<a id="pl.262.20"></a><var>262.20</var>file a return with the commissioner, and in addition must keep records and render
         reports <br/>
<a id="pl.262.21"></a><var>262.21</var>as required by the commissioner. Returns must be made in a form and manner prescribed <br/>
<a id="pl.262.22"></a><var>262.22</var>by the commissioner, and  The commissioner shall prescribe the content, format, and <br/>
<a id="pl.262.23"></a><var>262.23</var>manner of returns pursuant to section 270C.30. The returns must contain any other <br/>
<a id="pl.262.24"></a><var>262.24</var>information required by the commissioner. Returns must be accompanied by a remittance
         <br/>
<a id="pl.262.25"></a><var>262.25</var>for the full unpaid tax liability. Returns must be filed regardless of whether a tax
         is due.<br/>
<a id="pl.262.26"></a><var>262.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.45.0"></a><a id="pl.262.27"></a><var>262.27</var>    Sec. 45. Minnesota Statutes 2014, section 297G.22, is amended to read:<br/>
<a id="pl.262.28"></a><var>262.28</var><b>297G.22 JUDICIAL REVIEW.</b><br/>
<a id="pl.262.29"></a><var>262.29</var>In lieu of an administrative appeal under this chapter, a person aggrieved by an order
         <br/>
<a id="pl.262.30"></a><var>262.30</var>of the commissioner fixing a tax, penalty, or interest under this chapter may, within
         60 days <br/>
<a id="pl.262.31"></a><var>262.31</var>from the date of the notice date of the order, appeal to the Tax Court in the manner provided <br/>
<a id="pl.263.1"></a><var>263.1</var>under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, the term "notice date" means the notice <br/>
<a id="pl.263.2"></a><var>263.2</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.263.3"></a><var>263.3</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after September <br/>
<a id="pl.263.4"></a><var>263.4</var>30, 2015.<br/>
<br/>
<a id="bill.16.46.0"></a><a id="pl.263.5"></a><var>263.5</var>    Sec. 46. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision <br/>
<a id="pl.263.6"></a><var>263.6</var>to read:<br/>
<a id="pl.263.7"></a><var>263.7</var>    Subd. 11. <b>Format.</b>  The commissioner shall prescribe the content, format, and <br/>
<a id="pl.263.8"></a><var>263.8</var>manner of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.263.9"></a><var>263.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.47.0"></a><a id="pl.263.10"></a><var>263.10</var>    Sec. 47. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:<br/>
<a id="pl.263.11"></a><var>263.11</var>    Subd. 2. <b>Remedies.</b> (a) If the taxpayer is notified that the refund claim is denied in <br/>
<a id="pl.263.12"></a><var>263.12</var>whole or in part, the taxpayer may contest the denial by:<br/>
<a id="pl.263.13"></a><var>263.13</var>(1) filing an administrative appeal with the commissioner under section 
         <statute_ref>270C.35</statute_ref>;<br/>
<a id="pl.263.14"></a><var>263.14</var>(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of <br/>
<a id="pl.263.15"></a><var>263.15</var>denial; or<br/>
<a id="pl.263.16"></a><var>263.16</var>(3) filing an action in the district court to recover the refund.<br/>
<a id="pl.263.17"></a><var>263.17</var>(b) An action in the district court must be brought within 18 months following of the <br/>
<a id="pl.263.18"></a><var>263.18</var>notice date of the notice of denial. For purposes of this section, "notice date" is defined in <br/>
<a id="pl.263.19"></a><var>263.19</var>section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought <br/>
<a id="pl.263.20"></a><var>263.20</var>in the district court of the district in which lies the taxpayer's principal place
         of business or <br/>
<a id="pl.263.21"></a><var>263.21</var>in the District Court for Ramsey County. If a taxpayer files a claim for refund and
         the <br/>
<a id="pl.263.22"></a><var>263.22</var>commissioner has not issued a denial of the claim, the taxpayer may bring an action
         in <br/>
<a id="pl.263.23"></a><var>263.23</var>the district court or the Tax Court at any time after the expiration of six months
         from the <br/>
<a id="pl.263.24"></a><var>263.24</var>time the claim was filed.<br/>
<a id="pl.263.25"></a><var>263.25</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.263.26"></a><var>263.26</var>September 30, 2015.<br/>
<br/>
<a id="bill.16.48.0"></a><a id="pl.263.27"></a><var>263.27</var>    Sec. 48. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:<br/>
<a id="pl.263.28"></a><var>263.28</var>    Subd. 5. <b>Waiver authority.</b> (a) The commissioner may waive all or part of a <br/>
<a id="pl.263.29"></a><var>263.29</var>repayment required under subdivision 1, if the commissioner, in consultation with
         <br/>
<a id="pl.263.30"></a><var>263.30</var>the commissioner of employment and economic development and appropriate officials
         <br/>
<a id="pl.263.31"></a><var>263.31</var>from the local government units in which the qualified business is located, determines
         <br/>
<a id="pl.263.32"></a><var>263.32</var>that requiring repayment of the tax is not in the best interest of the state or the
         local <br/>
<a id="pl.264.1"></a><var>264.1</var>government units and the business ceased operating as a result of circumstances beyond
         <br/>
<a id="pl.264.2"></a><var>264.2</var>its control including, but not limited to:<br/>
<a id="pl.264.3"></a><var>264.3</var>    (1) a natural disaster;<br/>
<a id="pl.264.4"></a><var>264.4</var>    (2) unforeseen industry trends; or<br/>
<a id="pl.264.5"></a><var>264.5</var>    (3) loss of a major supplier or customer.<br/>
<a id="pl.264.6"></a><var>264.6</var>    (b)(1) The commissioner shall waive repayment required under subdivision 1a if <br/>
<a id="pl.264.7"></a><var>264.7</var>the commissioner has waived repayment by the operating business under subdivision
         1, <br/>
<a id="pl.264.8"></a><var>264.8</var>unless the person that received benefits without having to operate a business in the
         zone <br/>
<a id="pl.264.9"></a><var>264.9</var>was a contributing factor in the qualified business becoming subject to repayment
         under <br/>
<a id="pl.264.10"></a><var>264.10</var>subdivision 1;<br/>
<a id="pl.264.11"></a><var>264.11</var>    (2) the commissioner shall waive the repayment required under subdivision 1a, even
         <br/>
<a id="pl.264.12"></a><var>264.12</var>if the repayment has not been waived for the operating business if:<br/>
<a id="pl.264.13"></a><var>264.13</var>    (i) the person that received benefits without having to operate a business in the
         zone <br/>
<a id="pl.264.14"></a><var>264.14</var>and the business that operated in the zone are not related parties as defined in section
         <br/>
<a id="pl.264.15"></a><var>264.15</var>267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007;
         and<br/>
<a id="pl.264.16"></a><var>264.16</var>    (ii) actions of the person were not a contributing factor in the qualified business
         <br/>
<a id="pl.264.17"></a><var>264.17</var>becoming subject to repayment under subdivision 1.<br/>
<a id="pl.264.18"></a><var>264.18</var>(c) Requests for waiver must be made no later than 60 days after the earlier of the
         <br/>
<a id="pl.264.19"></a><var>264.19</var>notice date of an order issued under subdivision 4, paragraph (d), or the date of
         a tax <br/>
<a id="pl.264.20"></a><var>264.20</var>statement issued under subdivision 4, paragraph (c). For purposes of this section, the term <br/>
<a id="pl.264.21"></a><var>264.21</var>"notice date" means the notice date designated by the commissioner on the order.<br/>
<a id="pl.264.22"></a><var>264.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders of the commissioner of <br/>
<a id="pl.264.23"></a><var>264.23</var>revenue dated after September 30, 2015.<br/>