1.1A bill for an act1.2relating to financing of state and local government; making changes to individual
         1.3income and corporate franchise, property, sales and use, estate, mineral, tobacco,
         1.4special, local, and other taxes and tax-related provisions; providing for and 1.5expanding credits; modifying local government aids; modifying exclusions, 1.6exemptions, and levy deadlines; modifying sales and use tax exemptions; 1.7changing sales, use, and excise tax remittances; modifying certain local sales and
         1.8use taxes; modifying income tax credits; modifying the payment in lieu of tax 1.9provisions; clarifying estate tax provisions; providing for and modifying certain
         1.10local development projects; modifying electric generation machinery valuation; 1.11clarifying tax increment financing rules; modifying property tax interest rates; 1.12modifying valuation and taxation of railroad property; modifying the Sustainable 1.13Forest Incentive Act; modifying Iron Range fiscal disparities program; modifying 1.14certain county levy authority; allocating additional tax reductions for border 1.15cities; modifying the distribution of taconite production and occupation taxes; 1.16modifying and providing provisions for public finance; making conforming, 1.17policy, and technical changes to tax provisions; requiring reports; appropriating
         1.18money;amending Minnesota Statutes 2014, sections 13.51, subdivision 2; 1.1916A.152, subdivisions 2, 8; 16D.08, subdivision 2; 69.021, subdivision 5; 1.20126C.01, subdivision 3; 126C.40, subdivision 1; 136A.129, subdivision 3; 1.21138.053; 216B.1621, subdivision 2; 216B.164, subdivision 2a; 216B.2424, 1.22subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 270.072, 1.23subdivisions 2, 3, by adding a subdivision; 270.12, by adding a subdivision; 1.24270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1, 1.253, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 1.26270.87; 270A.03, subdivision 5; 270B.14, subdivision 1; 270C.03, subdivision 1.271; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.347, 1.28subdivision 1; 270C.35, subdivision 3, by adding a subdivision; 270C.38, 1.29subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision 1.305; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, 1.317; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10; 1.32272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, 1.33by adding a subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 1.34273.032; 273.061, subdivision 7; 273.08; 273.121, by adding a subdivision; 1.35273.124, subdivision 13; 273.13, subdivisions 23, 24; 273.1392; 273.1393; 1.36273.33, subdivisions 1, 2; 273.37, subdivision 1; 273.371; 273.372, subdivisions 1.372, 4, by adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 1.38274.135, subdivision 3; 275.025, subdivisions 1, 3; 275.065, subdivisions 1, 3; 1.39275.066; 275.07, subdivision 1; 275.62, subdivision 2; 276.04, subdivision 2; 2.1276A.06, subdivisions 3, 5; 278.01, subdivision 1; 279.01, subdivision 1; 279.37,
         2.2subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 287.2205; 2.3289A.02, subdivision 7, as amended; 289A.08, subdivisions 11, 16, by adding 2.4a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, 2.5subdivision 14; 289A.20, subdivision 4; 289A.38, subdivision 6; 289A.50, 2.6subdivision 7; 289A.60, subdivisions 15, 28; 290.01, subdivisions 4a, 7, 19, 2.7as amended, 19b, 19c, 19d, 31, as amended, by adding a subdivision; 290.06, 2.8by adding subdivisions; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 2.91; 290.0674, subdivisions 1, 2; 290.068, subdivisions 1, 2, 3, 6a, by adding 2.10a subdivision; 290.091, subdivision 3; 290.0921, subdivision 3; 290.0922, 2.11subdivision 2; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision
         2.124; 290A.03, subdivisions 13, 15, as amended; 290A.04, subdivision 2h; 290A.19; 2.13290B.03, subdivision 1; 290B.04, subdivision 1; 290C.01; 290C.02, subdivisions 2.141, 3, 6; 290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 2.151; 290C.10; 290C.11; 290C.13, subdivisions 3, 6; 291.005, subdivision 1; 2.16291.03, subdivision 10, by adding a subdivision; 291.031; 295.54, subdivision 2; 2.17295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; 2.18296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, 2.19subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; 2.20296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision 2.211; 296A.22, subdivision 9; 296A.26; 297A.62, subdivision 3; 297A.67, 2.22subdivision 7a, by adding subdivisions; 297A.68, subdivisions 5, 35a; 297A.70, 2.23subdivisions 4, 14, by adding a subdivision; 297A.82, subdivision 4a; 297A.994, 2.24subdivision 4; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision 2.251; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.05, subdivision 3; 2.26297F.09, subdivisions 1, 10; 297F.23; 297G.09, subdivisions 1, 9; 297G.22; 2.27297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, 2.28subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 2.29298.01, subdivisions 3b, 4c; 298.17; 298.227; 298.24, subdivision 1, by adding 2.30a subdivision; 298.28, subdivisions 3, 7a; 366.095, subdivision 1; 383B.117, 2.31subdivision 2; 410.32; 412.301; 469.034, subdivision 2; 469.101, subdivision 2.321; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175, 2.33subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision; 2.34469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 2.351, 7; 469.194, subdivision 1; 469.319, subdivision 5; 469.40, subdivision 2.3611, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 2.37469.47, subdivision 4, as amended; 473H.09; 475.58, subdivision 3b; 475.60, 2.38subdivision 2; 477A.0124, subdivision 4; 477A.013, subdivision 1, by adding a 2.39subdivision; 477A.014, subdivision 1; 477A.015; 477A.017, subdivisions 2, 3; 2.40477A.03, subdivisions 2a, 2b, 2c; 477A.12, subdivisions 1, 2; 477A.13; 477A.15; 2.41477A.19, by adding subdivisions; 477A.20; 524.3-916; 559.202, subdivision 2; 2.42Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; 2.43Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, 2.44as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 2001, 2.45First Special Session chapter 5, article 3, section 86; Laws 2006, chapter 257, 2.46section 2, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2013, 2.47chapter 143, article 8, sections 22, as amended; 23, as amended; Laws 2014, 2.48chapter 308, article 1, section 14, subdivision 2; article 7, section 7; proposing
         2.49coding for new law in Minnesota Statutes, chapters 103C; 116J; 270C; 273; 290; 2.50290B; 290C; 293; 383B; 465; 477A; repealing Minnesota Statutes 2014, sections 2.513.192; 270.81, subdivision 4; 270.83, subdivision 3; 272.02, subdivisions 23, 29,
         2.5233, 41, 44, 45, 47, 52, 54, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, 99; 2.53272.0211; 273.111, subdivision 9a; 275.025, subdivision 4; 281.22; 290C.02, 2.54subdivisions 5, 9; 469.194, subdivisions 2, 4; Minnesota Rules, parts 8092.2000; 2.558106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a, 18, 19, 20, 2.5621; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600; 8106.0700; 2.578106.0800; 8106.9900; 8125.1300, subpart 3.3.1BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:3.2ARTICLE 13.3INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES3.4    Section 1. Minnesota Statutes 2014, section 16D.08, subdivision 2, is amended to read:3.5    Subd. 2. Powers. (a) In addition to the collection remedies available to private 3.6collection agencies in this state, the commissioner, with legal assistance from the
         attorney 3.7general, may utilize any statutory authority granted to a referring agency for purposes
         of 3.8collecting debt owed to that referring agency. The commissioner may also use the tax
         3.9collection remedies in sections 
         270C.03, subdivision 1, clause (8) (9), 
         270C.31, 
         270C.32, 3.10270C.52
         , subdivisions 2 and 3, 
         270C.63, 
         270C.65, and 
         270C.67 to 
         270C.72. A debtor 3.11may take advantage of any administrative or appeal rights contained in the listed
         sections. 3.12For administrative and appeal rights for nontax debts, references to administrative
         3.13appeals or to the taxpayer rights advocate shall be construed to be references to
         the case 3.14reviewer, references to Tax Court shall be construed to mean district court, and offers
         3.15in compromise shall be submitted to the referring agency. A debtor who qualifies for
         3.16cancellation of collection costs under section 
         16D.11, subdivision 3, clause (1), can apply 3.17to the commissioner for reduction or release of a continuous wage levy, if the debtor
         3.18establishes that the debtor needs all or a portion of the wages being levied upon
         to pay 3.19for essential living expenses, such as food, clothing, shelter, medical care, or expenses
         3.20necessary for maintaining employment. The commissioner's determination not to reduce
         3.21or release a continuous wage levy is appealable to district court. The word "tax"
         or "taxes" 3.22when used in the tax collection statutes listed in this subdivision also means debts
         referred 3.23under this chapter.3.24(b) Before using the tax collection remedies listed in this subdivision, notice and
         3.25demand for payment of the amount due must be given to the person liable for the payment
         3.26or collection of the debt at least 30 days prior to the use of the remedies. The notice
         must 3.27be sent to the person's last known address and must include a brief statement that
         sets forth 3.28in simple and nontechnical terms the amount and source of the debt, the nature of
         the 3.29available collection remedies, and remedies available to the debtor.3.30EFFECTIVE DATE.This section is effective the day following final enactment.3.31    Sec. 2. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:4.1    Subd. 3. Program components. (a) An intern must be an eligible student who has 4.2been admitted to a major program that is related to the intern experience as determined
         4.3by the eligible institution.4.4(b) To participate in the program, an eligible institution must:4.5(1) enter into written agreements with eligible employers to provide internships that
         4.6are at least eight weeks long and located in greater Minnesota; and4.7(2) provide academic credit for the successful completion of the internship or ensure
         4.8that it fulfills requirements necessary to complete a vocational technical education
         program.4.9(c) To participate in the program, an eligible employer must enter into a written
         4.10agreement with an eligible institution specifying that the intern:4.11(1) would not have been hired without the tax credit described in subdivision 4;4.12(2) did not work for the employer in the same or a similar job prior to entering 4.13the agreement;4.14(3) (2) does not replace an existing employee;4.15(4) (3) has not previously participated in the program;4.16(5) (4) will be employed at a location in greater Minnesota;4.17(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week 4.18for a period of at least eight weeks; and4.19(7) (6) will be supervised and evaluated by the employer.4.20(d) The written agreement between the eligible institution and the eligible employer
         4.21must certify a credit amount to the employer, not to exceed $2,000 per intern. The
         total 4.22dollar amount of credits that an eligible institution certifies to eligible employers
         in a 4.23calendar year may not exceed the amount of its allocation under subdivision 4.4.24(e) Participating eligible institutions and eligible employers must report annually
         to 4.25the office. The report must include at least the following:4.26(1) the number of interns hired;4.27(2) the number of hours and weeks worked by interns; and4.28(3) the compensation paid to interns.4.29(f) An internship required to complete an academic program does not qualify for the
         4.30greater Minnesota internship program under this section.4.31EFFECTIVE DATE.This section is effective for taxable years beginning after 4.32December 31, 2014.4.33    Sec. 3. Minnesota Statutes 2014, section 270C.03, subdivision 1, is amended to read:4.34    Subdivision 1. Powers and duties. The commissioner shall have and exercise 4.35the following powers and duties:5.1    (1) administer and enforce the assessment and collection of taxes;5.2    (2) make determinations, corrections, and assessments with respect to taxes, 5.3including interest, additions to taxes, and assessable penalties;5.4    (3) disallow the tax effects of a transaction governed under chapter 290 that does
         not 5.5have economic substance;5.6    (3) (4) use statistical or other sampling techniques consistent with generally accepted 5.7auditing standards in examining returns or records and making assessments;5.8    (4) (5) investigate the tax laws of other states and countries, and formulate and 5.9submit to the legislature such legislation as the commissioner may deem expedient
         5.10to prevent evasions of state revenue laws and to secure just and equal taxation and
         5.11improvement in the system of state revenue laws;5.12    (5) (6) consult and confer with the governor upon the subject of taxation, the 5.13administration of the laws in regard thereto, and the progress of the work of the
         5.14department, and furnish the governor, from time to time, such assistance and information
         5.15as the governor may require relating to tax matters;5.16    (6) (7) execute and administer any agreement with the secretary of the treasury or the 5.17Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of
         the 5.18United States or a representative of another state regarding the exchange of information
         5.19and administration of the state revenue laws;5.20    (7) (8) require town, city, county, and other public officers to report information 5.21as to the collection of taxes received from licenses and other sources, and such other
         5.22information as may be needful in the work of the commissioner, in such form as the
         5.23commissioner may prescribe;5.24    (8) (9) authorize the use of unmarked motor vehicles to conduct seizures or criminal 5.25investigations pursuant to the commissioner's authority;5.26    (9) (10) authorize the participation in audits performed by the Multistate Tax 5.27Commission. For the purposes of chapter 270B, the Multistate Tax Commission will be
         5.28considered to be a state for the purposes of auditing corporate sales, excise, and
         income 5.29tax returns;5.30    (10) (11) maintain toll-free telephone access for taxpayer assistance for calls from 5.31locations within the state; and5.32    (11) (12) exercise other powers and authority and perform other duties required of or 5.33imposed upon the commissioner by law.5.34EFFECTIVE DATE.This section is effective for taxable years beginning after 5.35December 31, 2015.6.1    Sec. 4. [270C.331] ECONOMIC SUBSTANCE.6.2    Subdivision 1.Economic substance.(a) For the purposes of disallowing the 6.3tax effects of a transaction that does not have substance pursuant to section 270C.03,
         6.4subdivision 1, clause (3), a transaction shall be treated as having economic substance
         6.5only if:6.6(1) the transaction changes in a meaningful way, apart from tax effects, the taxpayer's
         6.7economic position; and6.8(2) the taxpayer has a substantial purpose, apart from tax effects, for entering into
         6.9the transaction.6.10(b) In determining whether the requirements of paragraph (a), clauses (1) and (2),
         6.11are met, the potential for profit of a transaction shall be taken into account only
         if the 6.12present value of the reasonable expected pretax profit from the transaction is substantial
         in 6.13relation to the present value of the expected net tax benefits that would be allowed
         if the 6.14transaction was respected. Fees and other transaction expenses shall be taken into
         account 6.15as expenses in determining pretax profit.6.16(c) For the purposes of paragraph (a), clause (2), achieving a financial accounting
         6.17benefit shall not be taken into account as a purpose for entering into a transaction
         if the 6.18origin of such financial accounting benefit is a reduction of federal, state, or local
         tax.6.19    Subd. 2.Apart from tax effects.For purposes of this section, "apart from tax 6.20effects" means without regard to the state and local tax effects arising from the
         application 6.21of the laws of any state or local unit of government to the form of the transaction,
         the 6.22federal tax effects, or both.6.23    Subd. 3.Transaction.For purposes of this section and section 270C.03, subdivision 6.241, clause (3), "transaction" includes a series of transactions.6.25    Subd. 4.Personal transactions of individuals.In the case of an individual, 6.26subdivision 1 shall only apply to transactions entered into in connection with the
         trade or 6.27business activity engaged in for the production of income.6.28    Subd. 5.Commissioner to issue guidance.(a) The commissioner shall promulgate 6.29guidance on how the provisions of this section will be applied.  The guidance must
         6.30include, at a minimum, types of transactions that will not be challenged as not having
         6.31economic substance, and types of transactions that would be challenged as not having
         6.32economic substance.6.33(b) The commissioner shall promulgate rules setting forth how the requirements 6.34of subdivision 1, paragraphs (a) and (b), would be determined, including definitions
         of 6.35relevant terms used in this section that the commissioner would apply in determining
         6.36whether a transaction has economic substance.7.1(c) The commissioner shall establish and publish a formal departmental procedure 7.2for uniform application of this section.7.3EFFECTIVE DATE.This section is effective for taxable years beginning after 7.4December 31, 2015, except that subdivision 5 is effective the day following final
         enactment.7.5    Sec. 5. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws 7.62015, chapter 1, section 1, is amended to read:7.7    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal 7.8Revenue Code" means the Internal Revenue Code of 1986, as amended through December 7.931, 2014 April 1, 2015.7.10EFFECTIVE DATE.This section is effective for taxable years beginning after 7.11December 31, 2014.7.12    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 4a, is amended to read:7.13    Subd. 4a. Financial institution. (a) "Financial institution" means:7.14(1) a holding company any corporation or other business entity registered (i) under 7.15state law as a bank holding company; (ii) under the federal Bank Holding Company Act
         7.16of 1956, as amended; or (iii) as a savings and loan holding company under the federal
         7.17National Housing Act, as amended;7.18(2) any regulated financial corporation; or a national bank organized and existing 7.19as a national bank association pursuant to the provisions of United States Code, title
         7.2012, chapter 2;7.21(3) any other corporation organized under the laws of the United States or organized 7.22under the laws of this state or any other state or country that is carrying on the
         business of 7.23a financial institution. a savings association or federal savings bank as defined in United 7.24States Code, title 12, section 1813(b)(1);7.25(4) any bank or thrift institution incorporated or organized under the laws of any
         state;7.26(5) any corporation organized under United States Code, title 12, sections 611 to
         631;7.27(6) any agency or branch of a foreign depository as defined under United States 7.28Code, title 12, section 3101;7.29(7) any corporation or other business entity that is more than 50 percent owned, 7.30directly or indirectly, by any person or business entity described in clauses (1)
         to (6), other 7.31than an insurance company taxable under chapter 297I;7.32(8) a corporation or other business entity that derives more than 50 percent of its
         7.33total gross income for financial accounting purposes from finance leases. For the
         purposes 8.1of this clause, "gross income" is the average from the current tax year and immediately
         8.2preceding two years and excludes gross income from incidental or occasional transactions.
         8.3For purposes of this clause, "finance lease" means any lease transaction which is
         the 8.4functional equivalent of an extension of credit, and that transfers substantially
         all of the 8.5benefits and risks incident to the ownership of property, including any direct financing
         8.6lease or leverage lease that meets the criteria of Financial Accounting Standards
         Board 8.7Statement No. 13, accounting for leases, or any other lease that is accounted for
         as 8.8financing by a lessor under generally accepted accounting principles; or8.9(9) any other person or business entity, other than an insurance company taxable under
         8.10chapter 297I, which derives more than 50 percent of its gross income from activities
         that an 8.11entity described in clauses (2) to (6), or (8), is authorized to transact. For the
         purposes of 8.12this clause, gross income does not include income from nonrecurring, extraordinary
         items.8.13(b) "Holding company" means any corporation registered under the Federal Bank 8.14Holding Company Act of 1956, as amended, or registered as a savings and loan holding
         8.15company under the Federal National Housing Act, as amended, or a federal savings 8.16bank holding company. The commissioner is authorized to exclude any person from the 8.17application of paragraph (a), clause (9), if the person proves by clear and convincing
         8.18evidence that the person's income-producing activity is not in substantial competition
         with 8.19any person described in paragraph (a), clauses (2) to (6), or (8).8.20(c) "Regulated financial corporation" means an institution, the deposits or accounts
         8.21of which are insured under the Federal Deposit Insurance Act or by the Federal Savings
         8.22and Loan Insurance Corporation, any institution which is a member of a Federal Home
         8.23Loan Bank, any other bank or thrift institution incorporated or organized under the
         laws of 8.24any state or any foreign country which is engaged in the business of receiving deposits,
         8.25any corporation organized under the provisions of United States Code, title 12, sections
         8.26611 to 631 (Edge Act Corporations), and any agency of a foreign depository as defined
         in 8.27United States Code, title 12, section 3101.8.28(d) "Business of a financial institution" means:8.29(1) the business that any corporation organized under the authority of the United
         8.30States or organized under the laws of this state or any other state or country does
         or has 8.31authority to do which is substantially similar to the business which a corporation
         may be 8.32created to do under chapters 46 to 55 or any business which a corporation is authorized
         8.33to do by those laws; or8.34(2) the business that any corporation organized under the authority of the United
         8.35States or organized under the laws of this state or any other state or country does
         or has 8.36authority to do if the corporation derives more than 50 percent of its gross income
         from 9.1lending activities (including discounting obligations) in substantial competition
         with the 9.2businesses described in clause (1). For purposes of this clause, the computation of
         the gross 9.3income of a corporation does not include income from nonrecurring, extraordinary items.9.4EFFECTIVE DATE.This section is effective for taxable years beginning after 9.5December 31, 2014.9.6    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:9.7    Subd. 7. Resident. (a) The term "resident" means any individual domiciled 9.8in Minnesota, except that an individual is not a "resident" for the period of time
         that 9.9the individual is a "qualified individual" as defined in section 911(d)(1) of the
         Internal 9.10Revenue Code, if the qualified individual notifies the county within three months
         of 9.11moving out of the country that homestead status be revoked for the Minnesota residence
         9.12of the qualified individual, and the property is not classified as a homestead while
         the 9.13individual remains a qualified individual.9.14(b) "Resident" also means any individual domiciled outside the state who maintains
         9.15a place of abode in the state and spends in the aggregate more than one-half of the
         tax 9.16year in Minnesota, unless:9.17(1) the individual or the spouse of the individual is in the armed forces of the United
         9.18States; or9.19(2) the individual is covered under the reciprocity provisions in section 
         290.081.9.20For purposes of this subdivision, presence within the state for any part of a calendar
         9.21day constitutes a day spent in the state. Individuals shall keep adequate records
         to 9.22substantiate the days spent outside the state, except that a day spent in Minnesota for the 9.23primary purpose of receiving medical treatment by the taxpayer, or the spouse, child,
         or 9.24parent of the taxpayer, is not treated as a day spent in Minnesota. "Medical treatment"
         9.25means treatment as defined in section 213(d)(1)(A) of the Internal Revenue Code.9.26The term "abode" means a dwelling maintained by an individual, whether or not 9.27owned by the individual and whether or not occupied by the individual, and includes
         a 9.28dwelling place owned or leased by the individual's spouse.9.29(c) In determining where an individual is domiciled, neither the commissioner nor 9.30any court shall consider:9.31(1) charitable contributions made by an the individual within or without the state in 9.32determining if the individual is domiciled in Minnesota;9.33(2) the location of the individual's attorney, certified public accountant, or financial
         9.34advisor; or10.1(3) the place of business of a financial institution at which the individual applies
         for 10.2any new type of credit or at which the individual opens or maintains any type of account.10.3(d) For purposes of this subdivision, the following terms have the meanings given
         10.4them:10.5(1) "financial advisor" means an individual, financial institution, or other firm
         10.6engaged in the business of providing services related to trust and estate administration;
         10.7financial advice and budgeting; investment selection or allocation; or purchase of
         life, 10.8disability, long-term care, annuities, or similar insurance products; and includes
         certified 10.9financial planners, registered investment advisors, securities broker-dealers, associated
         10.10persons and representatives of registered investment advisors and securities broker-dealers,
         10.11agents licensed to sell life insurance or annuities, and similar regulated products;
         and10.12(2) "financial institution" means a financial institution as that term is defined
         in 10.13section 47.015, subdivision 1, a state or nationally chartered credit union, and a
         registered 10.14broker-dealer under the Securities and Exchange Act of 1934.10.15EFFECTIVE DATE.Changes to paragraph (b) are effective for taxable years 10.16beginning after December 31, 2014. Changes to paragraphs (c) and (d) are effective
         the 10.17day following final enactment, but apply to any case for which an appeal, petition,
         or 10.18complaint has been filed in tax court or district court on or after April 28, 2015.10.19    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19, as amended by Laws 10.202015, chapter 1, section 2, is amended to read:10.21    Subd. 19. Net income. The term "net income" means the federal taxable income, 10.22as defined in section 63 of the Internal Revenue Code of 1986, as amended through
         the 10.23date named in this subdivision, incorporating the federal effective dates of changes
         to the 10.24Internal Revenue Code and any elections made by the taxpayer in accordance with the
         10.25Internal Revenue Code in determining federal taxable income for federal income tax
         10.26purposes, and with the modifications provided in subdivisions 19a to 19f.10.27    In the case of a regulated investment company or a fund thereof, as defined in section
         10.28851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
         10.29company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
         10.30except that:10.31    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
         10.32Revenue Code does not apply;10.33    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 10.34Revenue Code must be applied by allowing a deduction for capital gain dividends and
         11.1exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the
         Internal 11.2Revenue Code; and11.3    (3) the deduction for dividends paid must also be applied in the amount of any 11.4undistributed capital gains which the regulated investment company elects to have
         treated 11.5as provided in section 852(b)(3)(D) of the Internal Revenue Code.11.6    The net income of a real estate investment trust as defined and limited by section
         11.7856(a), (b), and (c) of the Internal Revenue Code means the real estate investment
         trust 11.8taxable income as defined in section 857(b)(2) of the Internal Revenue Code.11.9    The net income of a designated settlement fund as defined in section 468B(d) of 11.10the Internal Revenue Code means the gross income as defined in section 468B(b) of
         the 11.11Internal Revenue Code.11.12    The Internal Revenue Code of 1986, as amended through December 31, 2014 April 11.131, 2015, shall be in effect for taxable years beginning after December 31, 1996.11.14    Except as otherwise provided, references to the Internal Revenue Code in 11.15subdivisions 19 to 19f mean the code in effect for purposes of determining net income
         for 11.16the applicable year.11.17EFFECTIVE DATE.This section is effective the day following final enactment, 11.18except the changes incorporated by federal changes are effective retroactively at
         the same 11.19time the changes were effective for federal purposes.11.20    Sec. 9. Minnesota Statutes 2014, section 290.01, is amended by adding a subdivision 11.21to read:11.22    Subd. 19i.Accelerated recognition of certain installment sale gains.(a) For the 11.23purposes of this subdivision, the following definitions apply:11.24(1) "realized" means realized as defined by section 1001(b) of the Internal Revenue
         11.25Code;11.26(2) "installment sale" means any installment sale under section 453 of the Internal
         11.27Revenue Code, and any other sale which is reported utilizing a method of accounting
         11.28authorized under subchapter E of the Internal Revenue Code, which allows taxpayers
         to 11.29delay reporting or recognition of a realized gain until a future year; and11.30(3) "allocable amount" means the full amount to be apportioned to Minnesota under
         11.31section 290.191, or the full amount to be assigned under section 290.17.11.32(b) In the case of a nonresident individual or a person who becomes a nonresident
         11.33individual during the tax year, net income includes the allocable amount realized
         upon a 11.34sale of the assets of, or the sale of any interest in, an S corporation or partnership
         which 11.35operated in Minnesota during the taxable year of sale, including any income or gain
         to be 12.1recognized in future years pursuant to an installment sale method of reporting under
         the 12.2Internal Revenue Code.12.3(c) An individual who becomes a nonresident of Minnesota in any year after an 12.4installment sale is required to recognize the full amount of any income or gain not
         12.5recognized in a prior year on the individual's final Minnesota resident tax return.12.6(d) Notwithstanding paragraphs (b) and (c), taxpayers may elect to defer the 12.7recognition of installment sale gains by making an election under this paragraph.
         The 12.8election must be filed on a form prescribed by the commissioner and must be filed
         by 12.9the due date of the individual tax return, including any extension. Electing taxpayers
         12.10are required to:12.11(1) file Minnesota tax returns in all subsequent years when gains from the installment
         12.12sale are recognized and reported to the Internal Revenue Service;12.13(2) allocate gains to the state of Minnesota as though the gains were incurred in
         the 12.14year of sale under section 290.191 or 290.17; and12.15(3) include all relevant federal tax documents reporting the installment sale with
         12.16subsequent Minnesota tax returns.12.17(e) Income or gain recognized for Minnesota purposes under paragraphs (b) and (c)
         12.18and subjected to tax, is excluded from net income in future years.12.19EFFECTIVE DATE.This section is effective for taxable years beginning after 12.20December 31, 2014.12.21    Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 31, as amended by Laws 12.222015, chapter 1, section 3, is amended to read:12.23    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal 12.24Revenue Code" means the Internal Revenue Code of 1986, as amended through December 12.2531, 2014 April 1, 2015. Internal Revenue Code also includes any uncodified provision in 12.26federal law that relates to provisions of the Internal Revenue Code that are incorporated
         12.27into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter
         1, 12.28subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code
         as 12.29amended through March 18, 2010.12.30EFFECTIVE DATE.This section is effective the day following final enactment, 12.31except the changes incorporated by federal changes are effective retroactively at
         the same 12.32time the changes were effective for federal purposes.13.1    Sec. 11. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision 13.2to read:13.3    Subd. 37.Refundable film production credit.(a) A taxpayer is allowed a 13.4credit against the taxes due under this chapter equal to 25 percent of film production
         13.5and postproduction expenditures made in Minnesota that are directly attributable to
         film 13.6production in Minnesota.13.7(b) For purposes of this subdivision, "film" has the meaning given in section 116U.26.13.8    (c) Expenditures that qualify for the credit under this subdivision must be 13.9"production costs" as that term is defined in section 116U.26 and must be subject
         to 13.10taxation in Minnesota.13.11    (d) If the amount of the credit under this subdivision exceeds the taxpayer's tax
         13.12liability under this chapter for the taxable year, the amount of the excess must be
         refunded 13.13to the taxpayer. The amount necessary to pay the refunds under this subdivision is
         13.14appropriated annually from the general fund to the commissioner of revenue.13.15EFFECTIVE DATE.This section is effective for taxable years beginning after 13.16December 31, 2015.13.17    Sec. 12. Minnesota Statutes 2014, section 290.0671, subdivision 1, is amended to read:13.18    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 13.19allowed a credit against the tax imposed by this chapter equal to a percentage of
         earned 13.20income. To receive a credit, a taxpayer must be eligible for a credit under section
         32 of the 13.21Internal Revenue Code.13.22(b) For individuals with no qualifying children, the credit equals 2.10 percent of
         the 13.23first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income
         13.24or adjusted gross income, whichever is greater, in excess of $8,130, but in no case
         is 13.25the credit less than zero.13.26(c) For individuals with one qualifying child, the credit equals 9.35 percent of the
         13.27first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income
         13.28or adjusted gross income, whichever is greater, in excess of $21,190, but in no case
         is 13.29the credit less than zero.13.30(d) For individuals with two or more qualifying children, the credit equals 11 percent
         13.31of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
         13.32income or adjusted gross income, whichever is greater, in excess of $25,130, but in
         no 13.33case is the credit less than zero.13.34(e) For a nonresident or part-year resident, the credit must be allocated based on the 13.35percentage calculated under section 
         290.06, subdivision 2c, paragraph (e).14.1(f) For a person who was a resident for the entire tax year and has earned income
         14.2not subject to tax under this chapter, including income excluded under section 
         290.01, 14.3subdivision 19b
         , clause (9), the credit must be allocated based on the ratio of federal 14.4adjusted gross income reduced by the earned income not subject to tax under this chapter
         14.5over federal adjusted gross income. For purposes of this paragraph, the subtractions
         14.6for military pay under section 
         290.01, subdivision 19b, clauses (10) and (11), are not 14.7considered "earned income not subject to tax under this chapter."14.8For the purposes of this paragraph, the exclusion of combat pay under section 112
         14.9of the Internal Revenue Code is not considered "earned income not subject to tax under
         14.10this chapter."14.11(g) For tax years beginning after December 31, 2007, and before December 31, 14.122010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph
         (b), 14.13the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted
         for 14.14inflation under subdivision 7, are each increased by $3,000 for married taxpayers
         filing joint 14.15returns. For tax years beginning after December 31, 2008, the commissioner shall annually
         14.16adjust the $3,000 by the percentage determined pursuant to the provisions of section
         1(f) 14.17of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall
         be 14.18substituted for the word "1992." For 2009, the commissioner shall then determine the
         14.19percent change from the 12 months ending on August 31, 2007, to the 12 months ending
         on 14.20August 31, 2008, and in each subsequent year, from the 12 months ending on August
         31, 14.212007, to the 12 months ending on August 31 of the year preceding the taxable year.
         The 14.22earned income thresholds as adjusted for inflation must be rounded to the nearest
         $10. If the 14.23amount ends in $5, the amount is rounded up to the nearest $10. The determination
         of the 14.24commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.14.25(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
         14.26the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
         (d), 14.27after being adjusted for inflation under subdivision 7, are increased by $5,340 for
         married 14.28taxpayers filing joint returns; and (2) for tax years beginning after December 31,
         2013, and 14.29before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c),
         and the 14.30$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7,
         are each 14.31increased by $5,000 for married taxpayers filing joint returns. For tax years beginning
         14.32after December 31, 2010, and before January 1, 2012, and for tax years beginning after
         14.33December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust
         14.34the $5,000 by the percentage determined pursuant to the provisions of section 1(f)
         of 14.35the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall
         be 14.36substituted for the word "1992." For 2011, the commissioner shall then determine the
         15.1percent change from the 12 months ending on August 31, 2008, to the 12 months ending
         on 15.2August 31, 2010, and in each subsequent year, from the 12 months ending on August
         31, 15.32008, to the 12 months ending on August 31 of the year preceding the taxable year.
         The 15.4earned income thresholds as adjusted for inflation must be rounded to the nearest
         $10. If the 15.5amount ends in $5, the amount is rounded up to the nearest $10. The determination
         of the 15.6commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.15.7(i) The commissioner shall construct tables showing the amount of the credit at 15.8various income levels and make them available to taxpayers. The tables shall follow
         15.9the schedule contained in this subdivision, except that the commissioner may graduate
         15.10the transition between income brackets.15.11EFFECTIVE DATE.This section is effective for taxable years beginning after 15.12December 31, 2014.15.13    Sec. 13. Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:15.14    Subd. 6a. TANF appropriation for working family credit expansion. (a) On 15.15an annual basis the commissioner of revenue, with the assistance of the commissioner
         15.16of human services, shall calculate the value of the refundable portion of the Minnesota
         15.17Working Family Credit provided under this section that qualifies for payment with
         funds 15.18from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this
         15.19total amount, the commissioner of revenue shall estimate the portion entailed by the
         15.20expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, 15.21for individuals with qualifying children over the rates provided in Laws 1999, chapter
         15.22243, article 2, section 12.15.23(b) An amount sufficient to pay the refunds entailed by the expansion of the credit
         15.24rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with 15.25qualifying children over the rates provided in Laws 1999, chapter 243, article 2,
         section 15.2612, as estimated in paragraph (a), is appropriated to the commissioner of human services
         15.27from the federal Temporary Assistance for Needy Families (TANF) block grant funds,
         for 15.28transfer to the commissioner of revenue for deposit in the general fund.15.29EFFECTIVE DATE.This section is effective only for transfers in fiscal year 2015.15.30    Sec. 14. Minnesota Statutes 2014, section 290.0674, subdivision 1, is amended to read:15.31    Subdivision 1. Credit allowed. An individual is allowed a credit against the 15.32tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
         16.1education-related expenses for a qualifying child in kindergarten preschool through grade 16.212. For purposes of this section, "education-related expenses" means:16.3(1) fees or tuition for instruction by an instructor under section 
         120A.22, subdivision 16.410
         , clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers 16.5Association, and who is not a lineal ancestor or sibling of the dependent for instruction
         16.6outside the regular school day or school year, including tutoring, driver's education
         16.7offered as part of school curriculum, regardless of whether it is taken from a public
         or 16.8private entity or summer camps, in grade or age appropriate curricula that supplement
         16.9curricula and instruction available during the regular school year, that assists a
         dependent 16.10to improve knowledge of core curriculum areas or to expand knowledge and skills under
         16.11the required academic standards under section 
         120B.021, subdivision 1, and the elective 16.12standard under section 
         120B.022, subdivision 1, clause (2), and that do not include the 16.13teaching of religious tenets, doctrines, or worship, the purpose of which is to instill
         such 16.14tenets, doctrines, or worship;16.15(2) expenses for textbooks, including books and other instructional materials and
         16.16equipment purchased or leased for use in preschool, elementary, and secondary schools 16.17in teaching only those subjects legally and commonly taught in public elementary and
         16.18secondary schools in this state. "Textbooks" does not include instructional books
         and 16.19materials used in the teaching of religious tenets, doctrines, or worship, the purpose
         of 16.20which is to instill such tenets, doctrines, or worship, nor does it include books
         or materials 16.21for extracurricular activities including sporting events, musical or dramatic events,
         speech 16.22activities, driver's education, or similar programs;16.23(3) a maximum expense of $200 per family for personal computer hardware, 16.24excluding single purpose processors, and educational software that assists a dependent
         to 16.25improve knowledge of core curriculum areas or to expand knowledge and skills under
         16.26the required academic standards under section 
         120B.021, subdivision 1, and the elective 16.27standard under section 
         120B.022, subdivision 1, clause (2), purchased for use in the 16.28taxpayer's home and not used in a trade or business regardless of whether the computer
         is 16.29required by the dependent's school; and16.30(4) the amount paid to others for transportation of a qualifying child attending an a 16.31preschool, elementary, or secondary school situated in Minnesota, North Dakota, South 16.32Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the
         state's 16.33compulsory attendance laws, which is not operated for profit, and which adheres to
         the 16.34provisions of the Civil Rights Act of 1964 and chapter 363A.16.35For purposes of this section, "qualifying child" has the meaning given in section
         16.3632(c)(3) of the Internal Revenue Code who is at least four years old when the expenses 17.1are incurred. "Preschool" means the Head Start program under section 119A.50 or a
         17.2school district prekindergarten program.17.3EFFECTIVE DATE.This section is effective for taxable years beginning after 17.4December 31, 2014.17.5    Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:17.6    Subd. 2. Limitations. (a) For claimants with income not greater than $33,500 17.7$45,000, the maximum credit allowed for a family is $1,000 multiplied by the number 17.8of qualifying children in kindergarten preschool through grade 12 in the family. The 17.9maximum credit for families with one qualifying child in kindergarten preschool through 17.10grade 12 is reduced by $1 for each $4 of household income over $33,500 $45,000, and 17.11the maximum credit for families with two or more qualifying children in kindergarten
         17.12through grade 12 is reduced by $2 for each $4 of household income over $33,500 $45,000, 17.13but in no case is the credit less than zero.17.14For purposes of this section "income" has the meaning given in section 
         290.067, 17.15subdivision 2a
         . In the case of a married claimant, a credit is not allowed unless a joint 17.16income tax return is filed.17.17(b) For a nonresident or part-year resident, the credit determined under subdivision
         1 17.18and the maximum credit amount in paragraph (a) must be allocated using the percentage
         17.19calculated in section 
         290.06, subdivision 2c, paragraph (e).17.20EFFECTIVE DATE.This section is effective for taxable years beginning after 17.21December 31, 2014.17.22    Sec. 16. Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:17.23    Subdivision 1. Credit allowed.Subject to the requirements in subdivision 8, a 17.24corporation, partners in a partnership, or shareholders in a corporation treated as an "S" 17.25corporation under section 290.9725 are individual, trust, or estate is allowed a credit 17.26against the tax computed under this chapter for the taxable year equal to:17.27    (a) ten percent of the first $2,000,000 of the excess (if any) of17.28    (1) the qualified research expenses for the taxable year, over17.29    (2) the base amount; and17.30    (b) 2.5 percent on all of such excess expenses over $2,000,000.17.31EFFECTIVE DATE.This section is effective for taxable years beginning after 17.32December 31, 2014.18.1    Sec. 17. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:18.2    Subd. 2. Definitions. For purposes of this section, the following terms have the 18.3meanings given.18.4    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         18.5research payments as defined in section 41(b) and (e) of the Internal Revenue Code,
         except 18.6it does not include expenses incurred for qualified research or basic research conducted
         18.7outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
         18.8Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
         18.9to the provisions of chapter 317A for the purpose of promoting the establishment and
         18.10expansion of business in this state, provided the contributions are invested by the
         nonprofit 18.11corporation for the purpose of providing funds for small, technologically innovative
         18.12enterprises in Minnesota during the early stages of their development.18.13    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         18.14Internal Revenue Code, except that the term does not include qualified research conducted
         18.15outside the state of Minnesota.18.16    (c) "Base amount" means base amount as defined in section 41(c) of the Internal 18.17Revenue Code, except that the average annual gross receipts must be calculated using
         18.18Minnesota sales or receipts under section 
         290.191 and the definitions contained in clauses 18.19(a) and (b) shall apply. If there are inadequate records or the records are unavailable to 18.20compute or verify the base percentage, a fixed base percentage of 16 percent must
         be used.18.21EFFECTIVE DATE.This section is effective for taxable years beginning after 18.22December 31, 2014.18.23    Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 3, is amended to read:18.24    Subd. 3. Limitation; carryover. (a) Except as provided in subdivision 6a, 18.25paragraph (b), the credit for a taxable year beginning before January 1, 2010, and after 18.26December 31, 2012, shall not exceed the liability for tax. "Liability for tax" for purposes 18.27of this section means the sum of the tax imposed under section 
         290.06, subdivisions 1 and 18.282c
         , for the taxable year reduced by the sum of the nonrefundable credits allowed under
         18.29this chapter, on all of the entities required to be included on the combined report
         of the 18.30unitary business. If the amount of the credit allowed exceeds the liability for tax
         of the 18.31taxpayer, but is allowed as a result of the liability for tax of other members of
         the unitary 18.32group for the taxable year, the taxpayer must allocate the excess as a research credit
         18.33to another member of the unitary group.18.34    (b) In the case of a corporation which is a partner in a partnership, the credit allowed
         18.35for the taxable year shall not exceed the lesser of the amount determined under paragraph
         19.1(a) for the taxable year or an amount (separately computed with respect to the corporation's
         19.2interest in the trade or business or entity) equal to the amount of tax attributable
         to that 19.3portion of taxable income which is allocable or apportionable to the corporation's
         interest 19.4in the trade or business or entity.19.5    (c) If the amount of the credit determined under this section for any taxable year
         19.6exceeds the limitation under paragraph (a) or (b), including amounts allowed as a refund 19.7under subdivision 6a, paragraph (b), or allocated to other members of the unitary group, 19.8the excess shall be a research credit carryover to each of the 15 succeeding taxable
         years. 19.9The entire amount of the excess unused credit for the taxable year shall be carried
         first 19.10to the earliest of the taxable years to which the credit may be carried and then to
         each 19.11successive year to which the credit may be carried. The amount of the unused credit
         19.12which may be added under this clause shall not exceed the taxpayer's liability for
         tax 19.13less the research credit for the taxable year.19.14EFFECTIVE DATE.This section is effective for taxable years beginning after 19.15December 31, 2014.19.16    Sec. 19. Minnesota Statutes 2014, section 290.068, subdivision 6a, is amended to read:19.17    Subd. 6a. Credit to be refundable.(a) If the amount of credit allowed in this 19.18section for qualified research expenses incurred in taxable years beginning after
         December 19.1931, 2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this
         19.20chapter, the commissioner shall refund the excess amount. The credit allowed for qualified
         19.21research expenses incurred in taxable years beginning after December 31, 2009, and
         before 19.22January 1, 2013, must be used before any research credit earned under subdivision
         3.19.23(b) If the first $15,000 of the credit allowed in this section for qualified research
         19.24expenses incurred in taxable years beginning after December 31, 2014, exceeds the
         19.25taxpayer's tax liability under this chapter, the commissioner shall refund the excess
         19.26amount. The $15,000 limit must be applied at the corporation, partnership, or other
         entity 19.27level, including sole proprietorships. The credit allowed for qualified research expenses
         19.28incurred in taxable years beginning before January 1, 2015, must be used before any
         19.29research credit earned under subdivision 3.19.30EFFECTIVE DATE.This section is effective for taxable years beginning after 19.31December 31, 2014.19.32    Sec. 20. Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision 19.33to read:20.1    Subd. 8.Application and certification requirement for sole proprietors.(a) A 20.2taxpayer who is a sole proprietor claiming a credit under this section must submit
         an 20.3application to the commissioner for determination that the expenses for which the
         credit is 20.4claimed are qualified research expenses. The application must be submitted by September
         20.515 of the calendar year following the taxable year in which the qualified research
         20.6expenses were incurred.  The application must be in a form and manner prescribed by
         the 20.7commissioner and must contain information sufficient to verify that the expenses for
         20.8which the credit is claimed under this section are qualified research expenses.20.9(b) The commissioner must notify the sole proprietor of the determination of the 20.10application under paragraph (a) no later than 60 days after the application is received.20.11(c) Upon approving an application for credit under paragraph (a), the commissioner
         20.12must issue a credit certificate to the sole proprietor that verifies eligibility for
         the credit 20.13and states the amount of credit and the taxable year to which the credit applies.20.14(d) The sole proprietor must claim the credit under this section in the return for
         the 20.15taxable year immediately following the taxable year to which the credit applies. The
         20.16return must contain a copy of the credit certificate issued under paragraph (c).20.17(e) A credit must not be issued under this section unless the commissioner has 20.18received the certification required under paragraph (c).20.19EFFECTIVE DATE.This section is effective for taxable years beginning after 20.20December 31, 2014.20.21    Sec. 21. [290.0693] MINNESOTA COLLEGE SAVINGS PLAN CREDIT.20.22    Subdivision 1.Definitions.For purposes of this section, the terms "Minnesota 20.23college savings plan," "account," "nonqualified distribution," and "plan administrator"
         20.24have the meanings given them in chapter 136G.20.25    Subd. 2.Credit allowed.(a) A credit of up to $500 is allowed against the tax 20.26imposed by this chapter, subject to the limitations in paragraph (b).20.27(b) The credit allowed must be calculated by applying the following rates to the 20.28amount contributed to a Minnesota college savings plan, as established in chapter
         136G, 20.29in a taxable year:20.30(1) 200 percent for individual filers and married couples filing a joint return who
         20.31have federal adjusted gross income of not more than 150 percent of the federal poverty
         20.32guideline for a household size of four;20.33(2) 100 percent for individual filers and married couples filing a joint return who
         20.34have federal adjusted gross income over 150 percent, but not more than 200 percent
         of 20.35the federal poverty guideline for a household size of four;21.1(3) 50 percent for individual filers who have federal adjusted gross income over 21.2200 percent of the federal poverty guideline for a household size of four, but not
         more 21.3than $80,000; and21.4(4) 50 percent for married couples filing a joint return who have federal adjusted
         21.5gross income over 200 percent of the federal poverty guideline for a household size
         of 21.6four, except that the credit is reduced by $1 for every $160 over $80,000 in federal
         21.7adjusted gross income.21.8(c) For a nonresident or a part-year resident, the credit under this subdivision 21.9must be allocated based on the percentage calculated under section 290.06, subdivision
         21.102c, paragraph (e).21.11(d) The $80,000 in paragraph (b), clauses (3) and (4), used to calculate the credit
         and 21.12phaseout must be adjusted for inflation. The commissioner shall adjust by the percentage
         21.13determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except 21.14that in section 1(f)(3)(B) the word "2014" shall be substituted for the word "1992."
         For 21.152016, the commissioner shall then determine the percent change from the 12 months
         ending 21.16on August 31, 2014, to the 12 months ending on August 31, 2015, and in each subsequent
         21.17year, from the 12 months ending on August 31, 2014, to the 12 months ending on August
         21.1831 of the year preceding the taxable year. The earned income thresholds as adjusted
         for 21.19inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the
         amount 21.20is rounded up to the nearest $10 amount. The determination of the commissioner under
         this 21.21subdivision is not a rule under the Administrative Procedure Act including section
         14.386.21.22    Subd. 3.Credit transfer.(a) The credit allowed under this section must be 21.23calculated after applying all other credits to the taxpayer's tax liability. If the
         amount of 21.24credit that the taxpayer is eligible to receive under this section exceeds the taxpayer's
         tax 21.25liability after applying all other credits, the commissioner shall transfer the excess
         amount 21.26pursuant to the requirements of paragraph (b).21.27(b) The commissioner shall transfer the excess amount calculated under paragraph 21.28(a) to the plan administrator to be deposited to the taxpayer's Minnesota college
         savings 21.29plan account. If the taxpayer made contributions to more than one account, the credit
         21.30amount must be allocated based on the contributions to each account as a percentage
         21.31of the total contributions to all accounts.21.32    Subd. 4.Verification of contribution amounts.The commissioner of the Office of 21.33Higher Education must provide sufficient information to the commissioner of revenue
         to 21.34verify the taxpayer's annual contribution amounts to an account.22.1    Subd. 5.Recapture of credit.In the case of a nonqualified distribution, the 22.2taxpayer is liable to the commissioner for the lesser of: ten percent of the amount
         of the 22.3nonqualified distribution, or the sum of credits received under this section for all
         years.22.4    Subd. 6.Appropriation.An amount sufficient to pay the refunds required by this 22.5section is appropriated to the commissioner from the general fund.22.6EFFECTIVE DATE.This section is effective for taxable years beginning after 22.7December 31, 2015.22.8    Sec. 22. [290.0694] VETERANS JOBS TAX CREDIT.22.9    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms 22.10have the meanings given.22.11(b)(1) "Qualified employee" means an employee as defined in section 290.92, 22.12subdivision 1, who meets the following criteria:22.13(i) the employee is a resident of Minnesota on the date of hire;22.14(ii) the employee is paid wages as defined in section 290.92, subdivision 1; and22.15(iii) the employee's wages are attributable to Minnesota under section 290.191, 22.16subdivision 12;22.17(2) "Qualified employee" does not include:22.18(i) any employee who bears any of the relationships to the employer described in 22.19subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code;22.20(ii) if the employer is a corporation, an employee who owns, directly or indirectly,
         22.21more than 50 percent in value of the outstanding stock of the corporation, or if the
         22.22employer is an entity other than a corporation, an employee who owns, directly or
         22.23indirectly, more than 50 percent of the capital and profits interests in the entity,
         as 22.24determined with the application of section 267(c) of the Internal Revenue Code; or22.25(iii) if the employer is an estate or trust, any employee who is a fiduciary of the
         estate 22.26or trust, or is an individual who bears any of the relationships described in subparagraphs
         22.27(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary,
         22.28or fiduciary of the estate or trust.22.29(c) "Qualified employer" means: (i) an employer that hired an unemployed veteran 22.30as a qualified employee; and (ii) an employer not eligible to receive a grant under
         the 22.31veterans jobs grant program in section 31.22.32(d) "Unemployed veteran" is a veteran who was unemployed on the date of hire.22.33(e) "Veteran" has the meaning given in section 197.447.22.34(f) "Date of hire" means the day that the qualified employee begins performing 22.35services as an employee of the qualified employer.23.1    Subd. 2.Credit for hiring unemployed veterans.A qualified employer who 23.2is required to file a return under section 289A.08, subdivision 1, 2, or 3, and hires
         an 23.3unemployed veteran as a qualified employee, is allowed a credit against the tax imposed
         23.4by this chapter equal to ten percent of the wages paid to the qualified employee during
         the 23.5taxable year, but the amount of the credit shall not exceed $2,500. The credit is
         limited 23.6to the liability for tax under this chapter for the taxable year. A qualified employer
         is 23.7not eligible for the credit if the qualified employer currently employs or has previously
         23.8employed the qualified veteran.23.9    Subd. 3.Appropriation.An amount sufficient to pay the refunds required by this 23.10section is appropriated to the commissioner from the general fund.23.11    Subd. 4.Flow-through entities.Credits granted to a partnership, limited liability 23.12company taxed as a partnership, S corporation, or multiple owners of a business are
         passed 23.13through to the partners, members, shareholders, or owners, respectively, pro rata
         to each 23.14partner, member, shareholder, or owner based on their share of the entity's assets
         or as 23.15specially allocated in their organizational documents, as of the last day of the taxable
         year.23.16EFFECTIVE DATE.This section is effective for taxable years beginning after 23.17December 31, 2015.23.18    Sec. 23. [290.0695] EMPLOYEE CREDIT FOR CERTAIN 23.19EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.23.20    Subdivision 1.Credit allowed.(a) A taxpayer is allowed a credit against the tax 23.21imposed by this chapter, subject to the requirements of this section. The credit shall
         not 23.22exceed the taxpayer's tax liability. For married taxpayers filing a joint return,
         the credit is 23.23$60. For all other taxpayers, the credit is $30.23.24(b) The credit is allowed to an employee whose employer either:23.25(1) pays a portion of any fees, dues, or membership expenses on behalf of the 23.26employee to a fitness facility; or23.27(2) reimburses the employee for direct payment of fees, dues, or membership 23.28expenses made by the employee to a fitness facility.23.29(c) The credit under this section is only allowed to individuals who use the fitness
         23.30facility for the preservation, maintenance, encouragement, or development of physical
         23.31fitness an average of four days per month, but if the fitness facility is used fewer
         than three 23.32days per month, the credit is not allowed. The commissioner shall prescribe the form
         and 23.33manner in which eligibility for the credit is determined.23.34(d) For purposes of this section, "fitness facility" means a facility located in the
         state:24.1(1) that provides instruction in a program of physical exercise; offers facilities
         for 24.2the preservation, maintenance, encouragement, or development of physical fitness;
         or is 24.3the site of such a program of a state or local government;24.4(2) that is not a private club owned and operated by its members;24.5(3) that does not offer golf, hunting, sailing, or horseback riding facilities;24.6(4) whose fitness facility is not incidental to its overall function and purpose;24.7(5) that is compliant with antidiscrimination laws under chapter 363A and applicable
         24.8federal antidiscrimination laws; and24.9(6) is located off the employer's premises.24.10    Subd. 2.Limitation.The credit under this section applies only if the employer's 24.11payment of fees, dues, or membership expenses to a fitness facility is available on
         24.12substantially the same terms to each member of a group of employees defined under
         a 24.13reasonable classification by the employer, but no classification may include only
         highly 24.14compensated employees, as defined under section 414(q) of the Internal Revenue Code,
         or 24.15any other group that includes only executives, directors, or other managerial employees.
         24.16    Subd. 3.Nonresidents and part-year residents; flow-through entities.For a 24.17nonresident or part-year resident, the credit must be allocated based on the percentage
         24.18calculated under section 290.06, subdivision 2c, paragraph (e).24.19EFFECTIVE DATE.This section is effective for taxable years beginning after 24.20December 31, 2014.24.21    Sec. 24. Minnesota Statutes 2014, section 290.17, subdivision 4, is amended to read:24.22    Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly 24.23within this state or partly within and partly without this state is part of a unitary
         business, 24.24the entire income of the unitary business is subject to apportionment pursuant to
         section 24.25290.191
         . Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary 24.26business is considered to be derived from any particular source and none may be allocated
         24.27to a particular place except as provided by the applicable apportionment formula.
         The 24.28provisions of this subdivision do not apply to business income subject to subdivision
         5, 24.29income of an insurance company, or income of an investment company determined under
         24.30section 
         290.36.24.31(b) The term "unitary business" means business activities or operations which 24.32result in a flow of value between them. The term may be applied within a single legal
         24.33entity or between multiple entities and without regard to whether each entity is a
         sole 24.34proprietorship, a corporation, a partnership or a trust.25.1(c) Unity is presumed whenever there is unity of ownership, operation, and use, 25.2evidenced by centralized management or executive force, centralized purchasing, 25.3advertising, accounting, or other controlled interaction, but the absence of these
         25.4centralized activities will not necessarily evidence a nonunitary business. Unity
         is also 25.5presumed when business activities or operations are of mutual benefit, dependent upon
         or 25.6contributory to one another, either individually or as a group.25.7(d) Where a business operation conducted in Minnesota is owned by a business 25.8entity that carries on business activity outside the state different in kind from
         that 25.9conducted within this state, and the other business is conducted entirely outside
         the state, it 25.10is presumed that the two business operations are unitary in nature, interrelated,
         connected, 25.11and interdependent unless it can be shown to the contrary.25.12(e) Unity of ownership does not exist when two or more corporations are involved 25.13unless more than 50 percent of the voting stock of each corporation is directly or
         indirectly 25.14owned by a common owner or by common owners, either corporate or noncorporate, or
         25.15by one or more of the member corporations of the group. For this purpose, the term
         25.16"voting stock" shall include membership interests of mutual insurance holding companies
         25.17formed under section 
         66A.40.25.18(f) The net income and apportionment factors under section 
         290.191 or 
         290.20 of 25.19foreign corporations and other foreign entities which are part of a unitary business
         shall 25.20not be included in the net income or the apportionment factors of the unitary business;
         25.21except that the income and apportionment factors of a foreign entity, other than an
         entity 25.22treated as a C corporation for federal income tax purposes, that are included in the
         federal 25.23taxable income, as defined in section 63 of the Internal Revenue Code as amended through
         25.24the date named in section 
         290.01, subdivision 19, of a domestic corporation, domestic 25.25entity, or individual must be included in determining net income and the factors to
         be used 25.26in the apportionment of net income pursuant to section 
         290.191 or 
         290.20. A foreign 25.27corporation or other foreign entity which is not included on a combined report and
         which 25.28is required to file a return under this chapter shall file on a separate return basis.25.29(g) For purposes of determining the net income of a unitary business and the factors
         25.30to be used in the apportionment of net income pursuant to section 
         290.191 or 
         290.20, there 25.31must be included only the income and apportionment factors of domestic corporations
         25.32or other domestic entities that are determined to be part of the unitary business
         pursuant 25.33to this subdivision, notwithstanding that foreign corporations or other foreign entities
         25.34might be included in the unitary business; except that the income and apportionment
         25.35factors of a foreign entity, other than an entity treated as a C corporation for federal
         25.36income tax purposes, that is included in the federal taxable income, as defined in
         section 26.163 of the Internal Revenue Code as amended through the date named in section 
         290.01, 26.2subdivision 19
         , of a domestic corporation, domestic entity, or individual must be included 26.3in determining net income and the factors to be used in the apportionment of net income
         26.4pursuant to section 
         290.191 or 
         290.20.26.5(h) Each corporation or other entity, except a sole proprietorship, that is part of
         a 26.6unitary business must file combined reports as the commissioner determines. On the
         26.7reports, all intercompany transactions between entities included pursuant to paragraph
         26.8(g) must be eliminated and the entire net income of the unitary business determined
         in 26.9accordance with this subdivision is apportioned among the entities by using each entity's
         26.10Minnesota factors for apportionment purposes in the numerators of the apportionment
         26.11formula and the total factors for apportionment purposes of all entities included
         pursuant 26.12to paragraph (g) in the denominators of the apportionment formula. Except as otherwise
         26.13provided by paragraph (f), all sales of the unitary business made within this state
         pursuant 26.14to section 
         290.191 or 
         290.20 must be included on the combined report of a corporation or 26.15other entity that is a member of the unitary business and is subject to the jurisdiction
         of 26.16this state to impose tax under this chapter.26.17(i) If a corporation has been divested from a unitary business and is included in
         a 26.18combined report for a fractional part of the common accounting period of the combined
         26.19report:26.20(1) its income includable in the combined report is its income incurred for that part
         26.21of the year determined by proration or separate accounting; and26.22(2) its sales, property, and payroll included in the apportionment formula must 26.23be prorated or accounted for separately.26.24(j) For purposes of this subdivision, "insurance company" means any company that is:26.25(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
         26.2660A; or26.27(2) domiciled and licensed to engage in the business of insurance in another state
         26.28or country that imposes retaliatory taxes, and that does not grant, on a reciprocal
         basis, 26.29exemption from such retaliatory taxes to insurance companies or their agents domiciled
         26.30in Minnesota.26.31(k) For the purposes of this subdivision, "retaliatory taxes" means taxes imposed
         on 26.32insurance companies organized in another state or country that result from the fact
         that an 26.33insurance company organized in the taxing jurisdiction and doing business in the other
         26.34jurisdiction is subject to taxes, fines, deposits, penalties, licenses, or fees in
         an amount 26.35exceeding that imposed by the taxing jurisdiction upon an insurance company organized
         in 26.36the other state or country and doing business to the same extent in the taxing jurisdiction.27.1EFFECTIVE DATE.This section is effective for taxable years beginning after 27.2December 31, 2014.27.3    Sec. 25. Minnesota Statutes 2014, section 290.191, subdivision 5, is amended to read:27.4    Subd. 5. Determination of sales factor. For purposes of this section, the following 27.5rules apply in determining the sales factor.27.6    (a) The sales factor includes all sales, gross earnings, or receipts received in the
         27.7ordinary course of the business, except that the following types of income are not
         included 27.8in the sales factor:27.9    (1) interest;27.10    (2) dividends;27.11    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;27.12    (4) sales of property used in the trade or business, except sales of leased property
         of 27.13a type which is regularly sold as well as leased; and27.14    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
         27.15Code or sales of stock.; and27.16    (6) sales of derivatives including, but not limited to, swaps, options, futures, and
         27.17forwards.27.18    (b) Sales of tangible personal property are made within this state if the property
         is 27.19received by a purchaser at a point within this state, regardless of the f.o.b. point,
         other 27.20conditions of the sale, or the ultimate destination of the property.27.21    (c) Tangible personal property delivered to a common or contract carrier or foreign
         27.22vessel for delivery to a purchaser in another state or nation is a sale in that state
         or nation, 27.23regardless of f.o.b. point or other conditions of the sale.27.24    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 27.25fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser
         who is 27.26licensed by a state or political subdivision to resell this property only within the
         state of 27.27ultimate destination, the sale is made in that state.27.28    (e) Sales made by or through a corporation that is qualified as a domestic 27.29international sales corporation under section 992 of the Internal Revenue Code are
         not 27.30considered to have been made within this state.27.31    (f) Sales, rents, royalties, and other income in connection with real property is
         27.32attributed to the state in which the property is located.27.33    (g) Receipts from the lease or rental of tangible personal property, including finance
         27.34leases and true leases, must be attributed to this state if the property is located
         in this 27.35state and to other states if the property is not located in this state. Receipts from
         the 28.1lease or rental of moving property including, but not limited to, motor vehicles,
         rolling 28.2stock, aircraft, vessels, or mobile equipment are included in the numerator of the
         receipts 28.3factor to the extent that the property is used in this state. The extent of the use
         of moving 28.4property is determined as follows:28.5    (1) A motor vehicle is used wholly in the state in which it is registered.28.6    (2) The extent that rolling stock is used in this state is determined by multiplying
         28.7the receipts from the lease or rental of the rolling stock by a fraction, the numerator
         of 28.8which is the miles traveled within this state by the leased or rented rolling stock
         and the 28.9denominator of which is the total miles traveled by the leased or rented rolling stock.28.10    (3) The extent that an aircraft is used in this state is determined by multiplying
         the 28.11receipts from the lease or rental of the aircraft by a fraction, the numerator of
         which is 28.12the number of landings of the aircraft in this state and the denominator of which
         is the 28.13total number of landings of the aircraft.28.14    (4) The extent that a vessel, mobile equipment, or other mobile property is used in
         28.15the state is determined by multiplying the receipts from the lease or rental of the
         property 28.16by a fraction, the numerator of which is the number of days during the taxable year
         the 28.17property was in this state and the denominator of which is the total days in the taxable
         year.28.18    (h) Royalties and other income received for the use of or for the privilege of using
         28.19intangible property, including patents, know-how, formulas, designs, processes, patterns,
         28.20copyrights, trade names, service names, franchises, licenses, contracts, customer
         lists, or 28.21similar items, must be attributed to the state in which the property is used by the
         purchaser. 28.22If the property is used in more than one state, the royalties or other income must
         be 28.23apportioned to this state pro rata according to the portion of use in this state.
         If the portion 28.24of use in this state cannot be determined, the royalties or other income must be excluded
         28.25from both the numerator and the denominator. Intangible property is used in this state
         if 28.26the purchaser uses the intangible property or the rights therein in the regular course
         of its 28.27business operations in this state, regardless of the location of the purchaser's customers.28.28    (i) Sales of intangible property are made within the state in which the property is
         28.29used by the purchaser. If the property is used in more than one state, the sales must
         be 28.30apportioned to this state pro rata according to the portion of use in this state.
         If the 28.31portion of use in this state cannot be determined, the sale must be excluded from
         both the 28.32numerator and the denominator of the sales factor. Intangible property is used in
         this 28.33state if the purchaser used the intangible property in the regular course of its business
         28.34operations in this state.28.35    (j) Receipts from the performance of services must be attributed to the state where
         28.36the services are received. For the purposes of this section, receipts from the performance
         29.1of services provided to a corporation, partnership, or trust may only be attributed
         to a 29.2state where it has a fixed place of doing business. If the state where the services
         are 29.3received is not readily determinable or is a state where the corporation, partnership,
         or 29.4trust receiving the service does not have a fixed place of doing business, the services
         29.5shall be deemed to be received at the location of the office of the customer from
         which 29.6the services were ordered in the regular course of the customer's trade or business.
         If the 29.7ordering office cannot be determined, the services shall be deemed to be received
         at the 29.8office of the customer to which the services are billed. Receipts received as compensation 29.9by a nonresident individual for the performance of services as a member of a board
         of 29.10directors, or similar body, are attributed to Minnesota based on the ratio of the
         time spent 29.11in Minnesota providing services as a member of that board divided by the time spent
         29.12everywhere providing services as a member of that board.29.13    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
         29.14from management, distribution, or administrative services performed by a corporation
         29.15or trust for a fund of a corporation or trust regulated under United States Code,
         title 15, 29.16sections 80a-1 through 80a-64, must be attributed to the state where the shareholder
         of 29.17the fund resides. Under this paragraph, receipts for services attributed to shareholders
         are 29.18determined on the basis of the ratio of: (1) the average of the outstanding shares
         in the 29.19fund owned by shareholders residing within Minnesota at the beginning and end of each
         29.20year; and (2) the average of the total number of outstanding shares in the fund at
         the 29.21beginning and end of each year. Residence of the shareholder, in the case of an individual,
         29.22is determined by the mailing address furnished by the shareholder to the fund. Residence
         29.23of the shareholder, when the shares are held by an insurance company as a depositor
         for 29.24the insurance company policyholders, is the mailing address of the policyholders.
         In 29.25the case of an insurance company holding the shares as a depositor for the insurance
         29.26company policyholders, if the mailing address of the policyholders cannot be determined
         29.27by the taxpayer, the receipts must be excluded from both the numerator and denominator.
         29.28Residence of other shareholders is the mailing address of the shareholder.29.29EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after 29.30December 31, 2014. Paragraph (j) is effective the day following final enactment and
         29.31applies retroactively to all open taxable years and returns.29.32    Sec. 26. Minnesota Statutes 2014, section 290.21, subdivision 4, is amended to read:29.33    Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent 29.34of dividends received by a corporation during the taxable year from another corporation,
         29.35in which the recipient owns 20 percent or more of the stock, by vote and value, not
         30.1including stock described in section 1504(a)(4) of the Internal Revenue Code when
         the 30.2corporate stock with respect to which dividends are paid does not constitute the stock
         in 30.3trade of the taxpayer or would not be included in the inventory of the taxpayer, or
         does not 30.4constitute property held by the taxpayer primarily for sale to customers in the ordinary
         30.5course of the taxpayer's trade or business, or when the trade or business of the taxpayer
         30.6does not consist principally of the holding of the stocks and the collection of the
         income 30.7and gains therefrom; and30.8    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock
         in 30.9an affiliated company transferred in an overall plan of reorganization and the dividend
         30.10is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a),
         as 30.11amended through December 31, 1989;30.12    (ii) the remaining 20 percent of dividends if the dividends are received from a 30.13corporation which is subject to tax under section 
         290.36 and which is a member of an 30.14affiliated group of corporations as defined by the Internal Revenue Code and the dividend
         30.15is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a),
         as 30.16amended through December 31, 1989, or is deducted under an election under section
         30.17243(b) of the Internal Revenue Code; or30.18    (iii) the remaining 20 percent of the dividends if the dividends are received from
         a 30.19property and casualty insurer as defined under section 
         60A.60, subdivision 8, which is a 30.20member of an affiliated group of corporations as defined by the Internal Revenue Code
         30.21and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
         30.221.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
         30.23under an election under section 243(b) of the Internal Revenue Code.30.24    (b) Seventy percent of dividends received by a corporation during the taxable year
         30.25from another corporation in which the recipient owns less than 20 percent of the stock,
         30.26by vote or value, not including stock described in section 1504(a)(4) of the Internal
         30.27Revenue Code when the corporate stock with respect to which dividends are paid does
         not 30.28constitute the stock in trade of the taxpayer, or does not constitute property held
         by the 30.29taxpayer primarily for sale to customers in the ordinary course of the taxpayer's
         trade or 30.30business, or when the trade or business of the taxpayer does not consist principally
         of the 30.31holding of the stocks and the collection of income and gain therefrom.30.32    (c) The dividend deduction provided in this subdivision shall be allowed only with
         30.33respect to dividends that are included in a corporation's Minnesota taxable net income
         30.34for the taxable year.30.35    The dividend deduction provided in this subdivision does not apply to a dividend 30.36from a corporation which, for the taxable year of the corporation in which the distribution
         31.1is made or for the next preceding taxable year of the corporation, is a corporation
         exempt 31.2from tax under section 501 of the Internal Revenue Code.31.3The dividend deduction provided in this subdivision does not apply to a dividend 31.4received from a real estate investment trust as defined in section 856 of the Internal
         31.5Revenue Code.31.6    The dividend deduction provided in this subdivision applies to the amount of 31.7regulated investment company dividends only to the extent determined under section
         31.8854(b) of the Internal Revenue Code.31.9    The dividend deduction provided in this subdivision shall not be allowed with 31.10respect to any dividend for which a deduction is not allowed under the provisions
         of 31.11section 246(c) or 246A of the Internal Revenue Code.31.12    (d) If dividends received by a corporation that does not have nexus with Minnesota
         31.13under the provisions of Public Law 86-272 are included as income on the return of
         31.14an affiliated corporation permitted or required to file a combined report under section
         31.15290.17, subdivision 4
         , or 
         290.34, subdivision 2, then for purposes of this subdivision the 31.16determination as to whether the trade or business of the corporation consists principally
         31.17of the holding of stocks and the collection of income and gains therefrom shall be
         made 31.18with reference to the trade or business of the affiliated corporation having a nexus
         with 31.19Minnesota.31.20    (e) The deduction provided by this subdivision does not apply if the dividends are
         31.21paid by a FSC as defined in section 922 of the Internal Revenue Code.31.22    (f) If one or more of the members of the unitary group whose income is included on
         31.23the combined report received a dividend, the deduction under this subdivision for
         each 31.24member of the unitary business required to file a return under this chapter is the
         product 31.25of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
         31.26allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's
         business 31.27income apportionable to this state for the taxable year under section 
         290.191 or 
         290.20.31.28EFFECTIVE DATE.This section is effective for taxable years beginning after 31.29December 31, 2014.31.30    Sec. 27. Minnesota Statutes 2014, section 290A.03, subdivision 15, as amended by 31.31Laws 2015, chapter 1, section 4, is amended to read:31.32    Subd. 15. Internal Revenue Code.  "Internal Revenue Code" means the Internal 31.33Revenue Code of 1986, as amended through December 31, 2014 April 1, 2015.32.1EFFECTIVE DATE.This section is effective for property tax refunds based on 32.2property taxes payable after December 31, 2015, and rent paid after December 31, 2014.32.3    Sec. 28. Minnesota Statutes 2014, section 291.005, subdivision 1, is amended to read:32.4    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 32.5terms used in this chapter shall have the following meanings:32.6    (1) "Commissioner" means the commissioner of revenue or any person to whom the 32.7commissioner has delegated functions under this chapter.32.8    (2) "Federal gross estate" means the gross estate of a decedent as required to be
         valued 32.9and otherwise determined for federal estate tax purposes under the Internal Revenue
         Code, 32.10increased by the value of any property in which the decedent had a qualifying income
         32.11interest for life and for which an election was made under section 
         291.03, subdivision 1d, 32.12for Minnesota estate tax purposes, but was not made for federal estate tax purposes.32.13    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 32.141986, as amended through March 26, 2014.32.15    (4) "Minnesota gross estate" means the federal gross estate of a decedent after 32.16(a) excluding therefrom any property included in the estate which has its situs outside
         32.17Minnesota, and (b) including any property omitted from the federal gross estate which
         32.18is includable in the estate, has its situs in Minnesota, and was not disclosed to
         federal 32.19taxing authorities.32.20    (5) "Nonresident decedent" means an individual whose domicile at the time of 32.21death was not in Minnesota.32.22    (6) "Personal representative" means the executor, administrator or other person 32.23appointed by the court to administer and dispose of the property of the decedent.
         If there 32.24is no executor, administrator or other person appointed, qualified, and acting within
         this 32.25state, then any person in actual or constructive possession of any property having
         a situs in 32.26this state which is included in the federal gross estate of the decedent shall be
         deemed 32.27to be a personal representative to the extent of the property and the Minnesota estate
         tax 32.28due with respect to the property.32.29    (7) "Resident decedent" means an individual whose domicile at the time of death 32.30was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and 32.31(d), apply to determinations of domicile under this chapter.32.32    (8) "Situs of property" means, with respect to:32.33    (i) real property, the state or country in which it is located;32.34    (ii) tangible personal property, the state or country in which it was normally kept
         32.35or located at the time of the decedent's death or for a gift of tangible personal
         property 33.1within three years of death, the state or country in which it was normally kept or
         located 33.2when the gift was executed;33.3    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
         33.4Code, owned by a nonresident decedent and that is normally kept or located in this
         state 33.5because it is on loan to an organization, qualifying as exempt from taxation under
         section 33.6501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of
         the art is 33.7deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and33.8    (iv) intangible personal property, the state or country in which the decedent was
         33.9domiciled at death or for a gift of intangible personal property within three years
         of death, 33.10the state or country in which the decedent was domiciled when the gift was executed.33.11    For a nonresident decedent with an ownership interest in a pass-through entity with
         33.12assets that include real or tangible personal property, situs of the real or tangible
         personal 33.13property, including qualified works of art, is determined as if the pass-through entity
         does 33.14not exist and the real or tangible personal property is personally owned by the decedent.
         33.15If the pass-through entity is owned by a person or persons in addition to the decedent,
         33.16ownership of the property is attributed to the decedent in proportion to the decedent's
         33.17capital ownership share of the pass-through entity.33.18(9) "Pass-through entity" includes the following:33.19(i) an entity electing S corporation status under section 1362 of the Internal Revenue
         33.20Code;33.21(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;33.22(iii) a single-member limited liability company or similar entity, regardless of 33.23whether it is taxed as an association or is disregarded for federal income tax purposes
         33.24under Code of Federal Regulations, title 26, section 301.7701-3; or33.25(iv) a trust to the extent the property is includible in the decedent's federal gross
         33.26estate; but excludes33.27    (v) an entity whose ownership interest securities are traded on an exchange regulated
         33.28by the Securities and Exchange Commission as a national securities exchange under
         33.29section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.33.30EFFECTIVE DATE.This section is effective for estates of decedents dying after 33.31December 31, 2014.33.32    Sec. 29. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision 33.33to read:33.34    Subd. 12.Certain dispositions to government entities.Notwithstanding any 33.35provision of this section, no taxpayer shall be disqualified for the subtraction provided
         34.1under section 291.016, subdivision 3, nor shall any taxpayer be liable for the recapture
         tax 34.2provided in subdivision 11, solely because the state, any local government unit, or
         any 34.3other entity that has the power of eminent domain acquires title or possession of
         the land 34.4for a public purpose within the three-year holding period.34.5EFFECTIVE DATE.This section is effective retroactively for estates of decedents 34.6dying after June 30, 2011.34.7    Sec. 30. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL 34.8INCOME TAX RETURNS.34.9(a) By March 16, 2016, the commissioner of revenue must provide a written 34.10report to the chairs and ranking minority members of the legislative committees with
         34.11jurisdiction over taxes regarding free electronic filing options for individual income
         tax 34.12filing, including a vendor-based solution.  The report must include responses from
         a 34.13commissioner's request for information to consumer-based tax filing software vendors.
         34.14The request for information may include, but is not limited to, seeking information
         on 34.15the following aspects of a free electronic filing solution:34.16(1) costs, on a per return basis, that would be charged to the state of Minnesota
         to 34.17provide an electronic individual income tax return preparation, submission, and payment
         34.18remittance process;34.19(2) vendor capability to provide customer service and issue resolution to taxpayers
         34.20using the software;34.21(3) vendor capability to provide and maintain an appropriate link between the 34.22Department of Revenue and the Internal Revenue Service Modernized Electronic Filing
         34.23Program;34.24(4) vendor security capabilities to ensure that taxpayer return information is 34.25maintained and protected as required by Minnesota Statutes, chapters 13 and 270B,
         34.26Internal Revenue Service Publication 1075, and any other applicable requirements;34.27(5) products for the free filing and submitting of both Minnesota and federal returns
         34.28offered to customers and the thresholds for using those products; and34.29(6) add-on products offered to customers and their costs.34.30(b) The report must address the possibility of implementing free electronic filing
         34.31while maintaining annual preparation of the income tax sample required under Minnesota
         34.32Statutes, section 270C.12, and must include a report on how other states with income
         tax 34.33samples manage federal data on federal income tax returns.34.34(c) The report required under paragraph (a) must comply with Minnesota Statutes, 34.35sections 3.195 and 3.197. 35.1EFFECTIVE DATE.This section is effective the day following final enactment.35.2    Sec. 31. VETERANS JOBS GRANT.35.3    Subdivision 1.Establishment.The commissioner of revenue shall establish a 35.4program to award a grant to a qualified employer for hiring an unemployed veteran
         as 35.5a qualified employee.  A qualified employer is eligible for a grant of $2,500 for
         each 35.6qualified employee hired.35.7    Subd. 2.Definitions.(a) For purposes of this section, the following terms have 35.8the meanings given.35.9(b) "Local government" means statutory or home rule charter cities, counties, and
         35.10townships; special districts as defined under Minnesota Statutes, section 6.465; any
         35.11instrumentality of a statutory or home rule charter city, county, or township as defined
         in 35.12Minnesota Statutes, section 471.59; and any joint powers board or organization created
         35.13under Minnesota Statutes, section 471.59.35.14(c) "Nonprofit organization" means an organization that has a current federal 35.15determination letter stating that the nonprofit organization qualifies as an exempt
         35.16organization under section 501(c)(3) of the Internal Revenue Code and is exempt from
         tax 35.17under section 501(a) of the Internal Revenue Code.35.18(d) "Qualified veteran employee" means any individual performing services within 35.19the state of Minnesota for an employer that is a local government or nonprofit organization;
         35.20the performance of which services constitute, establish, and determine the relationship
         35.21between the parties as that of employer and employee; and who meets the following
         criteria:35.22(1) the employee is a resident of Minnesota on the date of hire;35.23(2) the employee is paid wages as defined in Minnesota Statutes, section 290.92, 35.24subdivision 1;35.25(3) the employee's wages are attributable to Minnesota under Minnesota Statutes, 35.26section 290.191, subdivision 12;35.27(4) the employee is employed for a period of at least 6 of the 12 months immediately
         35.28following the date of hire; and35.29(5) the employee is an unemployed veteran.35.30(e) "Qualified veteran employee" does not include any employee who, in the 35.31preceding 12 months before the employee's date of hire was, and in the calendar year
         in 35.32which the grant is paid, is:35.33(1) a member of the board of the nonprofit organization employer that hired the 35.34qualified employee; or36.1(2) an elected or appointed official of the local government that hired the qualified
         36.2employee.36.3(f) "Qualified employer" means: (i) a local government or nonprofit organization 36.4that hires a qualified employee; and (ii) an employer not eligible to receive the
         veterans 36.5jobs credit under Minnesota Statutes, section 290.0894.36.6(g) "Unemployed veteran" is a veteran who was unemployed on the date of hire.36.7(h) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.36.8(i) "Date of hire" means the day that the qualified veteran employee begins 36.9performing services as an employee of the qualified employer.36.10    Subd. 3.Application.The commissioner must develop forms and procedures for 36.11soliciting and reviewing applications for grants under this section.  At a minimum:36.12(1) a local government must include a resolution of its governing body affirming the
         36.13number of qualified employees hired in the year for which the grant is applied; and36.14(2) a nonprofit organization must include a resolution of its board affirming the
         36.15number of qualified employees hired in the year for which the grant is applied.36.16    Subd. 4.Aid payment and calculation.The commissioner of revenue shall remit 36.17grants to qualified employers.  The amount of the grant equals $2,500 multiplied by
         the 36.18number of qualified veteran employees hired by the qualified employer.  A qualified
         36.19employer must not claim a grant for hiring an unemployed veteran as a qualified veteran
         36.20employee if the unemployed veteran is currently employed or was previously employed
         by 36.21the qualified employer. The commissioner of revenue shall pay the aid to the treasurer
         or 36.22designated treasurer of each qualified employer by July 15 of the calendar year following
         36.23the year in which the qualified veteran employee was hired.36.24EFFECTIVE DATE.This section is effective January 1, 2016.36.25    Sec. 32. APPROPRIATION.36.26$175,000 in fiscal year 2016 is appropriated from the general fund to the 36.27commissioner of revenue for administering the free electronic filing study provided
         in 36.28this article.36.29EFFECTIVE DATE.This section is effective the day following final enactment.36.30    Sec. 33. APPROPRIATION.36.31The following amounts are appropriated from the general fund to the commissioner 36.32of revenue to make grants under the veteran jobs grant program provided in this article:36.33(1) $7,600,000 in fiscal year 2016;37.1(2) $7,200,000 in fiscal year 2017; and37.2(3) $6,900,000 in each fiscal year thereafter.37.3EFFECTIVE DATE.This section is effective the day following final enactment.37.4ARTICLE 237.5PROPERTY TAX37.6    Section 1. [103C.333] COUNTY LEVY AUTHORITY.37.7Notwithstanding any other law to the contrary, a county levying a tax under section
         37.8103C.331 shall not include any taxes levied under those authorities in the levy certified
         37.9under section 275.07, subdivision 1, paragraph (a). A county levying under section
         37.10103C.331 shall separately certify that amount, and the auditor shall extend that levy
         as a 37.11special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph
         (b).37.12EFFECTIVE DATE.This section is effective for certifications made in 2015 and 37.13thereafter.37.14    Sec. 2. Minnesota Statutes 2014, section 126C.01, subdivision 3, is amended to read:37.15    Subd. 3. Referendum market value. "Referendum market value" means the market 37.16value of all taxable property, excluding property classified as class 2, or 4c(4), or 4c(12) 37.17under section 
         273.13. The portion of class 2a property consisting of the house, garage, and 37.18surrounding one acre of land of an agricultural homestead is included in referendum
         market 37.19value. For the purposes of this subdivision, in the case of class 1a, 1b, or 2a property,
         37.20"market value" means the value prior to the exclusion under section 
         273.13, subdivision 37.2135
         . In the case of class 4c(12) property, "market value" means the market value exceeding
         37.22$300,000 for taxes payable in 2016 and thereafter. Any class of property, or any portion of 37.23a class of property, that is included in the definition of referendum market value
         and that has 37.24a classification rate of less than one percent under section 
         273.13 shall have a referendum 37.25market value equal to its market value times its classification rate, multiplied by
         100.37.26EFFECTIVE DATE.This section is effective for taxes payable in 2016 and 37.27thereafter.37.28    Sec. 3. Minnesota Statutes 2014, section 138.053, is amended to read:37.29138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 37.30TOWNS.38.1    The governing body of any home rule charter or statutory city or town may annually
         38.2appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
         38.3market value, derived from ad valorem taxes on property or other revenues, to be paid
         to 38.4the historical society of its respective city, town, or county to be used for the promotion of 38.5historical work and to aid in defraying the expenses of carrying on the historical
         work in the 38.6county. No city or town may appropriate any funds for the benefit of any historical
         society 38.7unless the society is affiliated with and approved by the Minnesota Historical Society.38.8EFFECTIVE DATE.This section is effective the day following final enactment.38.9    Sec. 4. Minnesota Statutes 2014, section 273.13, subdivision 23, is amended to read:38.10    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 38.11land that is homesteaded, along with any class 2b rural vacant land that is contiguous
         to 38.12the class 2a land under the same ownership. The market value of the house and garage
         38.13and immediately surrounding one acre of land has the same classification rates as
         class 38.141a or 1b property under subdivision 22. The value of the remaining land including
         38.15improvements up to the first tier valuation limit of agricultural homestead property
         has a 38.16classification rate of 0.5 percent of market value. The remaining property over the
         first tier 38.17has a classification rate of one percent of market value. For purposes of this subdivision,
         38.18the "first tier valuation limit of agricultural homestead property" and "first tier"
         means 38.19the limit certified under section 
         273.11, subdivision 23.38.20    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
         that 38.21are agricultural land and buildings. Class 2a property has a classification rate of
         one percent 38.22of market value, unless it is part of an agricultural homestead under paragraph (a).
         Class 38.232a property must also include any property that would otherwise be classified as 2b,
         but is 38.24interspersed with class 2a property, including but not limited to sloughs, wooded
         wind 38.25shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
         requirement, 38.26and other similar land that is impractical for the assessor to value separately from
         the rest of 38.27the property or that is unlikely to be able to be sold separately from the rest of
         the property.38.28    An assessor may classify the part of a parcel described in this subdivision that is
         used 38.29for agricultural purposes as class 2a and the remainder in the class appropriate to
         its use.38.30    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
         38.31that are unplatted real estate, rural in character and not used for agricultural purposes,
         38.32including land used for growing trees for timber, lumber, and wood and wood products,
         38.33that is not improved with a structure. The presence of a minor, ancillary nonresidential
         38.34structure as defined by the commissioner of revenue does not disqualify the property
         from 38.35classification under this paragraph. Any parcel of 20 acres or more improved with
         a 39.1structure that is not a minor, ancillary nonresidential structure must be split-classified,
         and 39.2ten acres must be assigned to the split parcel containing the structure. Class 2b
         property 39.3has a classification rate of one percent of market value unless it is part of an agricultural
         39.4homestead under paragraph (a), or qualifies as class 2c under paragraph (d).39.5    (d) Class 2c managed forest land consists of no less than 20 and no more than 39.61,920 acres statewide per taxpayer that is being managed under a forest management
         39.7plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable
         39.8forest resource management incentive program. It has a classification rate of .65
         percent, 39.9provided that the owner of the property must apply to the assessor in order for the
         39.10property to initially qualify for the reduced rate and provide the information required
         39.11by the assessor to verify that the property qualifies for the reduced rate. If the
         assessor 39.12receives the application and information before May 1 in an assessment year, the property
         39.13qualifies beginning with that assessment year. If the assessor receives the application
         39.14and information after April 30 in an assessment year, the property may not qualify
         until 39.15the next assessment year. The commissioner of natural resources must concur that the
         39.16land is qualified. The commissioner of natural resources shall annually provide county
         39.17assessors verification information on a timely basis. The presence of a minor, ancillary
         39.18nonresidential structure as defined by the commissioner of revenue does not disqualify
         the 39.19property from classification under this paragraph.39.20    (e) Agricultural land as used in this section means:39.21    (1) contiguous acreage of ten acres or more, used during the preceding year for 39.22agricultural purposes; or39.23    (2) contiguous acreage used during the preceding year for an intensive livestock or
         39.24poultry confinement operation, provided that land used only for pasturing or grazing
         39.25does not qualify under this clause.39.26    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
         39.27or storage of agricultural products for sale, or the storage of machinery or equipment
         used 39.28in support of agricultural production by the same farm entity. For a property to be
         classified 39.29as agricultural based only on the drying or storage of agricultural products, the
         products 39.30being dried or stored must have been produced by the same farm entity as the entity
         39.31operating the drying or storage facility. "Agricultural purposes" also includes enrollment
         39.32in the Reinvest in Minnesota program under sections 
         103F.501 to 
         103F.535or the federal 39.33Conservation Reserve Program as contained in Public Law 99-198 or a similar state or 39.34federal conservation program, excluding the federal Conservation Reserve Program, if 39.35the property was classified as agricultural (i) under this subdivision for taxes payable
         in 39.362003 because of its enrollment in a qualifying program and the land remains enrolled
         or 40.1(ii) in the year prior to its enrollment. Enrollment in the federal Conservation Reserve 40.2Program, as contained in Public Law 98-198, shall be considered an agricultural purpose
         40.3under this section. Agricultural classification shall not be based upon the market value of 40.4any residential structures on the parcel or contiguous parcels under the same ownership.40.5    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
         40.6portion of, a tax parcel as described in section 
         272.193, or all of, or a contiguous portion 40.7of, a set of contiguous tax parcels under that section that are owned by the same
         person.40.8    (f) Agricultural land under this section also includes:40.9    (1) contiguous acreage that is less than ten acres in size and exclusively used in
         the 40.10preceding year for raising or cultivating agricultural products; or40.11    (2) contiguous acreage that contains a residence and is less than 11 acres in size,
         if 40.12the contiguous acreage exclusive of the house, garage, and surrounding one acre of
         land 40.13was used in the preceding year for one or more of the following three uses:40.14    (i) for an intensive grain drying or storage operation, or for intensive machinery
         or 40.15equipment storage activities used to support agricultural activities on other parcels
         of 40.16property operated by the same farming entity;40.17    (ii) as a nursery, provided that only those acres used intensively to produce nursery
         40.18stock are considered agricultural land; or40.19    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
         40.20means the cultivation of one or more fruits or vegetables or production of animal
         or other 40.21agricultural products for sale to local markets by the farmer or an organization with
         which 40.22the farmer is affiliated.40.23    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
         40.24described in section 
         272.193, or all of a set of contiguous tax parcels under that section 40.25that are owned by the same person.40.26    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
         40.27use of that property is the leasing to, or use by another person for agricultural
         purposes.40.28    Classification under this subdivision is not determinative for qualifying under 40.29section 
         273.111.40.30    (h) The property classification under this section supersedes, for property tax 40.31purposes only, any locally administered agricultural policies or land use restrictions
         that 40.32define minimum or maximum farm acreage.40.33    (i) The term "agricultural products" as used in this subdivision includes production
         40.34for sale of:41.1    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
         41.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage,
         grains, 41.3bees, and apiary products by the owner;41.4    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 41.5for agricultural use;41.6    (3) the commercial boarding of horses, which may include related horse training and
         41.7riding instruction, if the boarding is done on property that is also used for raising
         pasture 41.8to graze horses or raising or cultivating other agricultural products as defined in
         clause (1);41.9    (4) property which is owned and operated by nonprofit organizations used for 41.10equestrian activities, excluding racing;41.11    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under 41.12section 
         97A.105, provided that the annual licensing report to the Department of Natural 41.13Resources, which must be submitted annually by March 30 to the assessor, indicates
         41.14that at least 500 birds were raised or used for breeding stock on the property during
         the 41.15preceding year and that the owner provides a copy of the owner's most recent schedule
         F; 41.16or (ii) for use on a shooting preserve licensed under section 
         97A.115;41.17    (6) insects primarily bred to be used as food for animals;41.18    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
         41.19sold for timber, lumber, wood, or wood products; and41.20    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 41.21Department of Agriculture under chapter 28A as a food processor.41.22    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
         41.23purposes, including but not limited to:41.24    (1) wholesale and retail sales;41.25    (2) processing of raw agricultural products or other goods;41.26    (3) warehousing or storage of processed goods; and41.27    (4) office facilities for the support of the activities enumerated in clauses (1),
         (2), 41.28and (3),41.29the assessor shall classify the part of the parcel used for agricultural purposes
         as class 41.301b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate
         to its 41.31use. The grading, sorting, and packaging of raw agricultural products for first sale
         is 41.32considered an agricultural purpose. A greenhouse or other building where horticultural
         41.33or nursery products are grown that is also used for the conduct of retail sales must
         be 41.34classified as agricultural if it is primarily used for the growing of horticultural
         or nursery 41.35products from seed, cuttings, or roots and occasionally as a showroom for the retail
         sale of 42.1those products. Use of a greenhouse or building only for the display of already grown
         42.2horticultural or nursery products does not qualify as an agricultural purpose.42.3    (k) The assessor shall determine and list separately on the records the market value
         42.4of the homestead dwelling and the one acre of land on which that dwelling is located.
         If 42.5any farm buildings or structures are located on this homesteaded acre of land, their
         market 42.6value shall not be included in this separate determination.42.7    (l) Class 2d airport landing area consists of a landing area or public access area
         of a 42.8privately owned public use airport. It has a classification rate of one percent of
         market 42.9value. To qualify for classification under this paragraph, a privately owned public
         use 42.10airport must be licensed as a public airport under section 
         360.018. For purposes of 42.11this paragraph, "landing area" means that part of a privately owned public use airport
         42.12properly cleared, regularly maintained, and made available to the public for use by
         aircraft 42.13and includes runways, taxiways, aprons, and sites upon which are situated landing
         or 42.14navigational aids. A landing area also includes land underlying both the primary surface
         42.15and the approach surfaces that comply with all of the following:42.16    (i) the land is properly cleared and regularly maintained for the primary purposes
         of 42.17the landing, taking off, and taxiing of aircraft; but that portion of the land that
         contains 42.18facilities for servicing, repair, or maintenance of aircraft is not included as a
         landing area;42.19    (ii) the land is part of the airport property; and42.20    (iii) the land is not used for commercial or residential purposes.42.21The land contained in a landing area under this paragraph must be described and certified
         42.22by the commissioner of transportation. The certification is effective until it is
         modified, 42.23or until the airport or landing area no longer meets the requirements of this paragraph.
         42.24For purposes of this paragraph, "public access area" means property used as an aircraft
         42.25parking ramp, apron, or storage hangar, or an arrival and departure building in connection
         42.26with the airport.42.27    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
         42.28being mined and is not otherwise classified as class 2a or 2b, provided that the land
         is not 42.29located in a county that has elected to opt-out of the aggregate preservation program
         as 42.30provided in section 
         273.1115, subdivision 6. It has a classification rate of one percent of 42.31market value. To qualify for classification under this paragraph, the property must
         be at 42.32least ten contiguous acres in size and the owner of the property must record with
         the 42.33county recorder of the county in which the property is located an affidavit containing:42.34    (1) a legal description of the property;42.35    (2) a disclosure that the property contains a commercial aggregate deposit that is
         not 42.36actively being mined but is present on the entire parcel enrolled;43.1    (3) documentation that the conditional use under the county or local zoning 43.2ordinance of this property is for mining; and43.3    (4) documentation that a permit has been issued by the local unit of government 43.4or the mining activity is allowed under local ordinance. The disclosure must include
         a 43.5statement from a registered professional geologist, engineer, or soil scientist delineating
         43.6the deposit and certifying that it is a commercial aggregate deposit.43.7    For purposes of this section and section 
         273.1115, "commercial aggregate deposit" 43.8means a deposit that will yield crushed stone or sand and gravel that is suitable
         for use 43.9as a construction aggregate; and "actively mined" means the removal of top soil and
         43.10overburden in preparation for excavation or excavation of a commercial deposit.43.11    (n) When any portion of the property under this subdivision or subdivision 22 begins
         43.12to be actively mined, the owner must file a supplemental affidavit within 60 days
         from 43.13the day any aggregate is removed stating the number of acres of the property that
         is 43.14actively being mined. The acres actively being mined must be (1) valued and classified
         43.15under subdivision 24 in the next subsequent assessment year, and (2) removed from
         the 43.16aggregate resource preservation property tax program under section 
         273.1115, if the 43.17land was enrolled in that program. Copies of the original affidavit and all supplemental
         43.18affidavits must be filed with the county assessor, the local zoning administrator,
         and the 43.19Department of Natural Resources, Division of Land and Minerals. A supplemental 43.20affidavit must be filed each time a subsequent portion of the property is actively
         mined, 43.21provided that the minimum acreage change is five acres, even if the actual mining
         activity 43.22constitutes less than five acres.43.23    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
         43.24not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
         43.25in section 
         14.386 concerning exempt rules do not apply.43.26EFFECTIVE DATE.This section is effective beginning with assessment year 2016.43.27    Sec. 5. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:43.28    Subd. 24. Class 3.  Commercial and industrial property and utility real and personal 43.29property is class 3a.43.30(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
         43.31real property has a classification rate of 1.5 1.55 percent of the first tier of market value, 43.32and 2.0 2.1 percent of the remaining market value. In the case of contiguous parcels of 43.33property owned by the same person or entity, only the value equal to the first-tier
         value of 43.34the contiguous parcels qualifies for the reduced classification rate, except that
         contiguous 43.35parcels owned by the same person or entity shall be eligible for the first-tier value
         44.1classification rate on each separate business operated by the owner of the property,
         provided 44.2the business is housed in a separate structure. For the purposes of this subdivision,
         the first 44.3tier means the first $150,000 of market value. Real property owned in fee by a utility
         for 44.4transmission line right-of-way shall be classified at the classification rate for
         the higher tier.44.5For purposes of this subdivision, parcels are considered to be contiguous even if
         44.6they are separated from each other by a road, street, waterway, or other similar intervening
         44.7type of property. Connections between parcels that consist of power lines or pipelines
         do 44.8not cause the parcels to be contiguous. Property owners who have contiguous parcels
         of 44.9property that constitute separate businesses that may qualify for the first-tier classification
         44.10rate shall notify the assessor by July 1, for treatment beginning in the following
         taxes 44.11payable year.44.12(2) All personal property that is: (i) part of an electric generation, transmission,
         or 44.13distribution system; or (ii) part of a pipeline system transporting or distributing
         water, gas, 44.14crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
         44.15operating property has a classification rate as provided under clause (1) for the
         first tier 44.16of market value and the remaining market value. In the case of multiple parcels in
         one 44.17county that are owned by one person or entity, only one first tier amount is eligible
         for the 44.18reduced rate.44.19(3) The entire market value of personal property that is: (i) tools, implements, and
         44.20machinery of an electric generation, transmission, or distribution system; (ii) tools,
         44.21implements, and machinery of a pipeline system transporting or distributing water,
         gas, 44.22crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution
         of 44.23steam or hot or chilled water for heating or cooling buildings, has a classification
         rate as 44.24provided under clause (1) for the remaining market value in excess of the first tier.44.25EFFECTIVE DATE.This section is effective for taxes payable in 2016 and 44.26thereafter.44.27    Sec. 6. Minnesota Statutes 2014, section 273.1392, is amended to read:44.28273.1392 PAYMENT; SCHOOL DISTRICTS.44.29The amounts of bovine tuberculosis credit reimbursements under section 
         273.113; 44.30conservation tax credits under section 
         273.119; disaster or emergency reimbursement 44.31under sections 
         273.1231 to 
         273.1235; homestead and agricultural credits under section 44.32sections273.1384 and 273.88; aids and credits under section 
         273.1398; enterprise zone 44.33property credit payments under section 
         469.171; and metropolitan agricultural preserve 44.34reduction under section 
         473H.10 for school districts, shall be certified to the Department 45.1of Education by the Department of Revenue. The amounts so certified shall be paid
         45.2according to section 
         127A.45, subdivisions 9 and 13.45.3EFFECTIVE DATE.This section is effective for property taxes payable in 2016 45.4and thereafter.45.5    Sec. 7. Minnesota Statutes 2014, section 273.1393, is amended to read:45.6273.1393 COMPUTATION OF NET PROPERTY TAXES.45.7    Notwithstanding any other provisions to the contrary, "net" property taxes are 45.8determined by subtracting the credits in the order listed from the gross tax:45.9    (1) disaster credit as provided in sections 
         273.1231 to 
         273.1235;45.10    (2) powerline credit as provided in section 
         273.42;45.11    (3) agricultural preserves credit as provided in section 
         473H.10;45.12    (4) enterprise zone credit as provided in section 
         469.171;45.13    (5) disparity reduction credit;45.14    (6) conservation tax credit as provided in section 
         273.119;45.15    (7) agricultural credit as provided in section 
         273.1384;45.16    (8) taconite homestead credit as provided in section 
         273.135;45.17    (9) supplemental homestead credit as provided in section 
         273.1391; and45.18    (10) the bovine tuberculosis zone credit, as provided in section 
         273.113; and45.19    (11) the targeted agricultural land credit, as provided in section 273.88.45.20    The combination of all property tax credits must not exceed the gross tax amount.45.21EFFECTIVE DATE.This section is effective for property taxes payable in 2016 45.22and thereafter.45.23    Sec. 8. [273.88] TARGETED AGRICULTURAL LAND TAX CREDIT.45.24    Subdivision 1.Eligibility; amount of credit.(a) Property classified in whole or 45.25in part as class 2a agricultural property under section 273.13, subdivision 23, paragraph
         45.26(b), in both the prior year and the current year, is eligible for a property tax credit
         if the 45.27gross property taxes payable on that portion of the property classified as agricultural
         45.28increase by more than eight percent over the property taxes payable in the prior year
         on the 45.29same property and the amount of that increase is $200 or more. The amount of the credit
         45.30shall equal the amount of the increase over the greater of eight percent of the prior
         year's 45.31property taxes payable or $200. The maximum credit allowed under this section is $2,000.46.1(b) For purposes of this subdivision, "gross property taxes payable" means property
         46.2taxes payable excluding special assessments, penalties and interest, and assessed
         fees upon 46.3the property determined without regard to the credit allowed under this section.46.4(c) Agricultural property shall not be eligible for the credit under this section
         if: (1) 46.5the property's boundaries have changed in the current payable year; (2) an improvement
         46.6was constructed upon the property; (3) valuation increases occurred relating to an
         46.7incremental value increase due to a plat law provision or based upon the termination
         of an 46.8exclusion under section 273.11, subdivision 14a, 14b, or 14c; or (4) in the prior
         payable 46.9year, the property was enrolled under section 273.111, 273.113, or 273.114, or chapter
         46.10473H or 40A, and that enrollment was removed for the current payable year.46.11(d) If the amount of the credit exceeds the total of the net tax capacity-based gross
         46.12property taxes on that portion of the property eligible for a credit under subdivision
         (a), 46.13the credit shall be limited to the net tax capacity-based gross property taxes payable
         on 46.14that part of the property classified under section 273.13, subdivision 23, paragraph
         (b).46.15    Subd. 2.Credit reimbursement.The county auditor shall determine the tax 46.16reductions allowed under subdivision 1 within the county for each taxes payable year
         and 46.17certify that amount to the commissioner of revenue as part of the abstracts of tax
         listings 46.18submitted by the county auditors under section 275.29. Any prior year adjustments
         46.19shall also be certified on the abstracts of tax lists. The commissioner shall review
         the 46.20certifications for accuracy and make changes as necessary, or return the certification
         to the 46.21county auditor for correction. The credit under this section must be used to proportionately
         46.22reduce the net tax capacity-based property tax payable to each local taxing jurisdiction
         46.23as provided in section 273.1393.46.24    Subd. 3.Payment.(a) The commissioner of revenue shall reimburse each local 46.25taxing jurisdiction, other than school districts, for the tax reductions granted under
         46.26subdivision 1 in two equal installments on October 31 and December 26 of the taxes
         46.27payable year for which the reductions are granted, including in each payment the prior
         46.28year adjustments certified on the abstracts for that taxes payable year. The reimbursements
         46.29related to tax increments shall be issued in one installment each year on December
         26.46.30(b) The commissioner of revenue shall certify the total of the tax reductions 46.31granted under subdivision 1 for each taxes payable year within each school district
         46.32to the commissioner of education, and the commissioner of education shall pay the
         46.33reimbursement amounts to each school district as provided in section 273.1392.46.34    Subd. 4.Appropriation.An amount sufficient to make the payments required by 46.35this section to taxing jurisdictions other than school districts is annually appropriated
         46.36from the general fund to the commissioner of revenue. An amount sufficient to make
         the 47.1payments required under this section for school districts is annually appropriated
         from the 47.2general fund to the commissioner of education.47.3EFFECTIVE DATE.This section is effective for property taxes payable in 2016 47.4and thereafter.47.5    Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:47.6    Subdivision 1. Levy amount. The state general levy is levied against 47.7commercial-industrial property and seasonal residential recreational property, as
         defined 47.8in this section. The state general levy base amount for commercial-industrial property is 47.9$592,000,000 $767,092,100 for taxes payable in 2002 2016. The state general levy base 47.10amount for seasonal residential recreational property is $34,057,500 for taxes payable
         in 47.112016. For taxes payable in subsequent years, the each levy base amount is increased each 47.12year by multiplying the levy base amount for the prior year by the sum of one plus
         the rate 47.13of increase, if any, in the implicit price deflator for government consumption expenditures
         47.14and gross investment for state and local governments prepared by the Bureau of Economic
         47.15Analysts of the United States Department of Commerce for the 12-month period ending
         47.16March 31 of the year prior to the year the taxes are payable. The tax under this section
         is 47.17not treated as a local tax rate under section 
         469.177 and is not the levy of a governmental 47.18unit under chapters 276A and 473F.47.19The commissioner shall increase or decrease the preliminary or final rate for a year
         47.20as necessary to account for errors and tax base changes that affected a preliminary
         or final 47.21rate for either of the two preceding years. Adjustments are allowed to the extent
         that the 47.22necessary information is available to the commissioner at the time the rates for a
         year must 47.23be certified, and for the following reasons:47.24(1) an erroneous report of taxable value by a local official;47.25(2) an erroneous calculation by the commissioner; and47.26(3) an increase or decrease in taxable value for commercial-industrial or seasonal
         47.27residential recreational property reported on the abstracts of tax lists submitted
         under 47.28section 
         275.29 that was not reported on the abstracts of assessment submitted under 47.29section 
         270C.89 for the same year.47.30The commissioner may, but need not, make adjustments if the total difference in the
         tax 47.31levied for the year would be less than $100,000.47.32EFFECTIVE DATE.This section is effective for taxes payable in 2016 and 47.33thereafter.48.1    Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 3, is amended to read:48.2    Subd. 3. Seasonal residential recreational tax capacity. For the purposes of this 48.3section, "seasonal residential recreational tax capacity" means the tax capacity of
         tier III of 48.4class 1c under section 
         273.13, subdivision 22, and all class 4c(1), 4c(3)(ii), and 4c(12) 48.5property under section 
         273.13, subdivision 25, except that for each noncommercial class 48.64c(12) property: (i) the first $76,000 of market value of each noncommercial class 4c(12) 48.7property has a tax capacity for this purpose equal to 40 percent of its tax capacity under
         48.8section 
         273.13; and (ii) the market value exceeding $300,000 shall be excluded for taxes 48.9payable in 2016 and thereafter.48.10EFFECTIVE DATE.This section is effective for taxes payable in 2016 and 48.11thereafter.48.12    Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:48.13    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 48.14contrary, on or before September 30, each county and each, home rule charter or statutory 48.15city, and special taxing district, excluding the metropolitan council and the metropolitan
         48.16mosquito control commission, shall certify to the county auditor the proposed property 48.17tax levy for taxes payable in the following year. The proposed levy certification date for 48.18the metropolitan council shall be as prescribed in sections 473.249 and 473.446. The
         48.19proposed levy certification date for the metropolitan mosquito control district shall
         be 48.20as prescribed in section 473.711.48.21    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         48.22each town and each special taxing district shall adopt and certify to the county auditor a 48.23proposed property tax levy for taxes payable in the following year. For towns, the
         final 48.24certified levy shall also be considered the proposed levy.48.25    (c) On or before September 30, each school district that has not mutually agreed 48.26with its home county to extend this date shall certify to the county auditor the proposed
         48.27property tax levy for taxes payable in the following year. Each school district that
         has 48.28agreed with its home county to delay the certification of its proposed property tax
         levy 48.29must certify its proposed property tax levy for the following year no later than October
         48.307. The school district shall certify the proposed levy as:48.31    (1) a specific dollar amount by school district fund, broken down between 48.32voter-approved and non-voter-approved levies and between referendum market value 48.33and tax capacity levies; or48.34    (2) the maximum levy limitation certified by the commissioner of education 48.35according to section 
         126C.48, subdivision 1.49.1    (d) If the board of estimate and taxation or any similar board that establishes 49.2maximum tax levies for taxing jurisdictions within a first class city certifies the
         maximum 49.3property tax levies for funds under its jurisdiction by charter to the county auditor
         by the 49.4date specified in paragraph (a), the city shall be deemed to have certified its levies
         for 49.5those taxing jurisdictions.49.6    (e) For purposes of this section, "special taxing district" means a special taxing
         49.7district as defined in section 
         275.066. Intermediate school districts that levy a tax 49.8under chapter 124 or 136D, joint powers boards established under sections 
         123A.44 to 49.9123A.446
         , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 49.10also special taxing districts for purposes of this section.49.11(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         49.12tax levy under this subdivision, the taxing authority shall announce the time and
         place 49.13of its subsequent regularly scheduled meetings at which the budget and levy will be
         49.14discussed and at which the public will be allowed to speak. The time and place of
         those 49.15meetings must be included in the proceedings or summary of proceedings published in
         the 49.16official newspaper of the taxing authority under section 
         123B.09, 
         375.12, or 
         412.191.49.17EFFECTIVE DATE.This section is effective beginning with proposed levy 49.18certifications for taxes payable in 2016.49.19    Sec. 12. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:49.20    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 49.21and the county treasurer shall deliver after November 10 and on or before November
         24 49.22each year, by first class mail to each taxpayer at the address listed on the county's
         current 49.23year's assessment roll, a notice of proposed property taxes. Upon written request
         by 49.24the taxpayer, the treasurer may send the notice in electronic form or by electronic
         mail 49.25instead of on paper or by ordinary mail.49.26    (b) The commissioner of revenue shall prescribe the form of the notice.49.27    (c) The notice must inform taxpayers that it contains the amount of property taxes
         49.28each taxing authority proposes to collect for taxes payable the following year. In
         the case of 49.29a town, or in the case of the state general tax, the final tax amount will be its
         proposed tax. 49.30The notice must clearly state for each city that has a population over 500, county,
         school 49.31district, regional library authority established under section 
         134.201, and metropolitan 49.32taxing districts as defined in paragraph (i), the time and place of a meeting for
         each taxing 49.33authority in which the budget and levy will be discussed and public input allowed,
         prior to 49.34the final budget and levy determination. The taxing authorities must provide the county
         49.35auditor with the information to be included in the notice on or before the time it
         certifies 50.1its proposed levy under subdivision 1. The public must be allowed to speak at that
         50.2meeting, which must occur after November 24 and must not be held before 6:00 p.m.
         It 50.3must provide a telephone number for the taxing authority that taxpayers may call if
         they 50.4have questions related to the notice and an address where comments will be received
         by 50.5mail, except that no notice required under this section shall be interpreted as requiring
         the 50.6printing of a personal telephone number or address as the contact information for
         a taxing 50.7authority. If a taxing authority does not maintain public offices where telephone
         calls can 50.8be received by the authority, the authority may inform the county of the lack of a
         public 50.9telephone number and the county shall not list a telephone number for that taxing
         authority.50.10    (d) The notice must state for each parcel:50.11    (1) the market value of the property as determined under section 
         273.11, and used 50.12for computing property taxes payable in the following year and for taxes payable in
         the 50.13current year as each appears in the records of the county assessor on November 1 of
         the 50.14current year; and, in the case of residential property, whether the property is classified
         as 50.15homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
         50.16which the market values apply and that the values are final values;50.17    (2) the items listed below, shown separately by county, city or town, and state 50.18general tax, agricultural homestead credit under section 
         273.1384, targeted agricultural 50.19land credit under section 273.88, voter approved school levy, other local school levy, and 50.20the sum of the special taxing districts, and as a total of all taxing authorities:50.21    (i) the actual tax for taxes payable in the current year; and50.22    (ii) the proposed tax amount.50.23    If the county levy under clause (2) includes an amount for a lake improvement 50.24district as defined under sections 
         103B.501 to 
         103B.581, the amount attributable for that 50.25purpose must be separately stated from the remaining county levy amount.50.26    In the case of a town or the state general tax, the final tax shall also be its proposed
         50.27tax unless the town changes its levy at a special town meeting under section 
         365.52. If a 50.28school district has certified under section 
         126C.17, subdivision 9, that a referendum will 50.29be held in the school district at the November general election, the county auditor
         must 50.30note next to the school district's proposed amount that a referendum is pending and
         that, if 50.31approved by the voters, the tax amount may be higher than shown on the notice. In
         the 50.32case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall
         be 50.33listed separately from the remaining amount of the city's levy. In the case of the
         city of 50.34St. Paul, the levy for the St. Paul Library Agency must be listed separately from
         the 50.35remaining amount of the city's levy. In the case of Ramsey County, any amount levied
         50.36under section 
         134.07 may be listed separately from the remaining amount of the county's 51.1levy. In the case of a parcel where tax increment or the fiscal disparities areawide
         tax 51.2under chapter 276A or 473F applies, the proposed tax levy on the captured value or
         the 51.3proposed tax levy on the tax capacity subject to the areawide tax must each be stated
         51.4separately and not included in the sum of the special taxing districts; and51.5    (3) the increase or decrease between the total taxes payable in the current year and
         51.6the total proposed taxes, expressed as a percentage.51.7    For purposes of this section, the amount of the tax on homesteads qualifying under
         51.8the senior citizens' property tax deferral program under chapter 290B is the total
         amount 51.9of property tax before subtraction of the deferred property tax amount.51.10    (e) The notice must clearly state that the proposed or final taxes do not include
         51.11the following:51.12    (1) special assessments;51.13    (2) levies approved by the voters after the date the proposed taxes are certified,
         51.14including bond referenda and school district levy referenda;51.15    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         51.16Monday in November of the levy year as provided under section 
         275.73;51.17    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 51.18occurring after the date the proposed taxes are certified;51.19    (5) amounts necessary to pay tort judgments against the taxing authority that become
         51.20final after the date the proposed taxes are certified; and51.21    (6) the contamination tax imposed on properties which received market value 51.22reductions for contamination.51.23    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or 51.24the county treasurer to deliver the notice as required in this section does not invalidate
         the 51.25proposed or final tax levy or the taxes payable pursuant to the tax levy.51.26    (g) If the notice the taxpayer receives under this section lists the property as 51.27nonhomestead, and satisfactory documentation is provided to the county assessor by
         the 51.28applicable deadline, and the property qualifies for the homestead classification in
         that 51.29assessment year, the assessor shall reclassify the property to homestead for taxes
         payable 51.30in the following year.51.31    (h) In the case of class 4 residential property used as a residence for lease or rental
         51.32periods of 30 days or more, the taxpayer must either:51.33    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         51.34renter, or lessee; or51.35    (2) post a copy of the notice in a conspicuous place on the premises of the property.52.1    The notice must be mailed or posted by the taxpayer by November 27 or within 52.2three days of receipt of the notice, whichever is later. A taxpayer may notify the
         county 52.3treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises
         to 52.4which the notice must be mailed in order to fulfill the requirements of this paragraph.52.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         52.6districts" means the following taxing districts in the seven-county metropolitan area
         that 52.7levy a property tax for any of the specified purposes listed below:52.8    (1) Metropolitan Council under section 
         473.132, 
         473.167, 
         473.249, 
         473.325, 52.9473.446
         , 
         473.521, 
         473.547, or 
         473.834;52.10    (2) Metropolitan Airports Commission under section 
         473.667, 
         473.671, or 
         473.672; 52.11and52.12    (3) Metropolitan Mosquito Control Commission under section 
         473.711.52.13    For purposes of this section, any levies made by the regional rail authorities in
         the 52.14county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
         52.15398A shall be included with the appropriate county's levy.52.16    (j) The governing body of a county, city, or school district may, with the consent
         52.17of the county board, include supplemental information with the statement of proposed
         52.18property taxes about the impact of state aid increases or decreases on property tax
         52.19increases or decreases and on the level of services provided in the affected jurisdiction.
         52.20This supplemental information may include information for the following year, the
         current 52.21year, and for as many consecutive preceding years as deemed appropriate by the governing
         52.22body of the county, city, or school district. It may include only information regarding:52.23    (1) the impact of inflation as measured by the implicit price deflator for state and
         52.24local government purchases;52.25    (2) population growth and decline;52.26    (3) state or federal government action; and52.27    (4) other financial factors that affect the level of property taxation and local services
         52.28that the governing body of the county, city, or school district may deem appropriate
         to 52.29include.52.30    The information may be presented using tables, written narrative, and graphic 52.31representations and may contain instruction toward further sources of information
         or 52.32opportunity for comment.52.33EFFECTIVE DATE.This section is effective for property taxes payable in 2016 52.34and thereafter.53.1    Sec. 13. Minnesota Statutes 2014, section 275.066, is amended to read:53.2275.066 SPECIAL TAXING DISTRICTS; DEFINITION.53.3    For the purposes of property taxation and property tax state aids, the term "special
         53.4taxing districts" includes the following entities:53.5    (1) watershed districts under chapter 103D;53.6    (2) sanitary districts under sections 
         442A.01 to 
         442A.29;53.7    (3) regional sanitary sewer districts under sections 
         115.61 to 
         115.67;53.8    (4) regional public library districts under section 
         134.201;53.9    (5) park districts under chapter 398;53.10    (6) regional railroad authorities under chapter 398A;53.11    (7) hospital districts under sections 
         447.31 to 
         447.38;53.12    (8) St. Cloud Metropolitan Transit Commission under sections 
         458A.01 to 
         458A.15;53.13    (9) Duluth Transit Authority under sections 
         458A.21 to 
         458A.37;53.14    (10) regional development commissions under sections 
         462.381 to 
         462.398;53.15    (11) housing and redevelopment authorities under sections 
         469.001 to 
         469.047;53.16    (12) port authorities under sections 
         469.048 to 
         469.068;53.17    (13) economic development authorities under sections 
         469.090 to 
         469.1081;53.18    (14) Metropolitan Council under sections 
         473.123 to 
         473.549;53.19    (15) Metropolitan Airports Commission under sections 
         473.601 to 
         473.679;53.20    (16) Metropolitan Mosquito Control Commission under sections 
         473.701 to 
         473.716;53.21    (17) Morrison County Rural Development Financing Authority under Laws 1982, 53.22chapter 437, section 1;53.23    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section
         6;53.24    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 53.25sections 1 to 6;53.26    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 53.275, section 39;53.28    (21) Middle Mississippi River Watershed Management Organization under sections 53.29103B.211
          and 
         103B.241;53.30    (22) emergency medical services special taxing districts under section 144F.01;53.31    (23) a county levying under the authority of section 
         103B.241, 
         103B.245, or 53.32103B.251, or 103C.331;53.33    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
         53.34under Laws 2003, First Special Session chapter 21, article 4, section 12;53.35    (25) an airport authority created under section 
         360.0426; and54.1    (26) any other political subdivision of the state of Minnesota, excluding counties,
         54.2school districts, cities, and towns, that has the power to adopt and certify a property
         tax 54.3levy to the county auditor, as determined by the commissioner of revenue.54.4EFFECTIVE DATE.This section is effective for assessment year 2016.54.5    Sec. 14. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:54.6    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), 54.7the taxes voted by cities, counties, school districts, and special districts shall
         be certified 54.8by the proper authorities to the county auditor on or before five working days after
         54.9December 20 in each year. A town must certify the levy adopted by the town board to
         54.10the county auditor by September 15 each year. If the town board modifies the levy
         at a 54.11special town meeting after September 15, the town board must recertify its levy to
         the 54.12county auditor on or before five working days after December 20. If a city, town,
         county, 54.13school district, or special district fails to certify its levy by that date, its levy
         shall be the 54.14amount levied by it for the preceding year.54.15(b)(i) The taxes voted by counties under sections 
         103B.241, 
         103B.245, and 54.16103B.251, and 103C.331 shall be separately certified by the county to the county auditor 54.17on or before five working days after December 20 in each year. The taxes certified
         54.18shall not be reduced by the county auditor by the aid received under section 
         273.1398, 54.19subdivision 3
         . If a county fails to certify its levy by that date, its levy shall be the amount
         54.20levied by it for the preceding year.54.21(ii) For purposes of the proposed property tax notice under section 
         275.065 and 54.22the property tax statement under section 
         276.04, for the first year in which the county 54.23implements the provisions of this paragraph, the county auditor shall reduce the county's
         54.24levy for the preceding year to reflect any amount levied for water management purposes
         54.25under clause (i) included in the county's levy.54.26EFFECTIVE DATE.This section is effective for assessment year 2016.54.27    Sec. 15. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:54.28    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing 54.29of the tax statements. The commissioner of revenue shall prescribe the form of the
         property 54.30tax statement and its contents. The tax statement must not state or imply that property
         tax 54.31credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement 54.32of the dollar amount due to each taxing authority and the amount of the state tax
         from the 54.33parcel of real property for which a particular tax statement is prepared. The dollar
         amounts 55.1attributable to the county, the state tax, the voter approved school tax, the other
         local school 55.2tax, the township or municipality, and the total of the metropolitan special taxing
         districts 55.3as defined in section 
         275.065, subdivision 3, paragraph (i), must be separately stated. 55.4The amounts due all other special taxing districts, if any, may be aggregated except
         that 55.5any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         55.6Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
         55.7line directly under the appropriate county's levy. If the county levy under this paragraph
         55.8includes an amount for a lake improvement district as defined under sections 
         103B.501 55.9to 
         103B.581, the amount attributable for that purpose must be separately stated from the 55.10remaining county levy amount. In the case of Ramsey County, if the county levy under
         this 55.11paragraph includes an amount for public library service under section 
         134.07, the amount 55.12attributable for that purpose may be separated from the remaining county levy amount.
         55.13The amount of the tax on homesteads qualifying under the senior citizens' property
         tax 55.14deferral program under chapter 290B is the total amount of property tax before subtraction
         55.15of the deferred property tax amount. The amount of the tax on contamination value
         55.16imposed under sections 
         270.91 to 
         270.98, if any, must also be separately stated. The dollar 55.17amounts, including the dollar amount of any special assessments, may be rounded to
         the 55.18nearest even whole dollar. For purposes of this section whole odd-numbered dollars
         may 55.19be adjusted to the next higher even-numbered dollar. The amount of market value excluded
         55.20under section 
         273.11, subdivision 16, if any, must also be listed on the tax statement.55.21    (b) The property tax statements for manufactured homes and sectional structures 55.22taxed as personal property shall contain the same information that is required on
         the 55.23tax statements for real property.55.24    (c) Real and personal property tax statements must contain the following information
         55.25in the order given in this paragraph. The information must contain the current year
         tax 55.26information in the right column with the corresponding information for the previous
         year 55.27in a column on the left:55.28    (1) the property's estimated market value under section 
         273.11, subdivision 1;55.29    (2) the property's homestead market value exclusion under section 
         273.13, 55.30subdivision 35;55.31    (3) the property's taxable market value under section 
         272.03, subdivision 15;55.32    (4) the property's gross tax, before credits;55.33(5) for agricultural properties, the credit under section 273.88;55.34    (5) (6) for homestead agricultural properties, the credit under section 
         273.1384;55.35    (6) (7) any credits received under sections 
         273.119; 
         273.1234 or 
         273.1235; 
         273.135; 55.36273.1391
         ; 
         273.1398, subdivision 4; 
         469.171; and 
         473H.10, except that the amount of 56.1credit received under section 
         273.135 must be separately stated and identified as "taconite 56.2tax relief"; and56.3    (7) (8) the net tax payable in the manner required in paragraph (a).56.4    (d) If the county uses envelopes for mailing property tax statements and if the county
         56.5agrees, a taxing district may include a notice with the property tax statement notifying
         56.6taxpayers when the taxing district will begin its budget deliberations for the current
         56.7year, and encouraging taxpayers to attend the hearings. If the county allows notices
         to 56.8be included in the envelope containing the property tax statement, and if more than
         56.9one taxing district relative to a given property decides to include a notice with
         the tax 56.10statement, the county treasurer or auditor must coordinate the process and may combine
         56.11the information on a single announcement.56.12EFFECTIVE DATE.This section is effective for property taxes payable in 2016 56.13and thereafter.56.14    Sec. 16. Minnesota Statutes 2014, section 276A.06, subdivision 3, is amended to read:56.15    Subd. 3. Apportionment of levy. The county auditor shall apportion the levy of 56.16each governmental unit in the county in the manner prescribed by this subdivision.
         The 56.17auditor shall:56.18(1) by August 20 of 2014 and each subsequent year, determine the preliminary 56.19areawide portion of the levy for each governmental unit by multiplying the local tax
         56.20rate of the governmental unit for the preceding levy year times the distribution value
         set 56.21forth in subdivision 2, clause (2);56.22(2) by September 5 of each year, adjust the preliminary areawide portion of the 56.23levy for each governmental unit by the adjustment percentage, if any, determined under
         56.24subdivision 5, paragraph (b);56.25(2) (3) by September 5 of 2014 and each subsequent year, determine the areawide 56.26portion of the levy for each governmental unit by multiplying the adjusted preliminary 56.27areawide portion of the levy for each governmental unit times a fraction, the numerator
         of 56.28which is the difference between the sum of the adjusted preliminary areawide levies for all 56.29governmental units in the area minus the school fund allocation and the denominator
         is the 56.30sum of the adjusted preliminary areawide levy for all governmental units in the area; and56.31(3) (4) by September 5 of 2014 and each subsequent year, determine the local 56.32portion of the current year's levy by subtracting the resulting amount from clause
         (1) (2) 56.33from the governmental unit's current year's levy.56.34EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.57.1    Sec. 17. Minnesota Statutes 2014, section 276A.06, subdivision 5, is amended to read:57.2    Subd. 5. Areawide tax rate.(a) On or before August 25, 1997, and of each 57.3subsequent year, the county auditor shall certify to the administrative auditor the 57.4preliminary portion of the levy of each governmental unit determined pursuant to 57.5subdivision 3, clause (1). The administrative auditor shall then determine the areawide
         57.6tax rate sufficient to yield an amount equal to the sum of the levies from the preliminary
         57.7areawide net tax capacity. 57.8(b) The areawide tax rate may not deviate from the previous year's areawide rate by
         57.9more than five percentage points. If the areawide tax rate determined under paragraph
         57.10(a) does not fall within that range, the auditor must determine the percentage increase
         or 57.11reduction to each jurisdiction's distribution levy necessary so that the areawide
         rate falls 57.12within the range and recalculate the areawide rate accordingly. 57.13(c) On or before September 1, the administrative auditor shall certify the areawide 57.14tax rate to each of the county auditors.57.15EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.57.16    Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:57.17    Subdivision 1. Due dates; penalties.(a) Except as provided in subdivisions 3 to 5, 57.18on May 16 or 21 days after the postmark date on the envelope containing the property
         tax 57.19statement, whichever is later, a penalty accrues and thereafter is charged upon all
         unpaid 57.20taxes on real estate on the current lists in the hands of the county treasurer. The
         penalty is 57.21at a rate of two percent on homestead property until May 31 and four percent on June
         1. 57.22The penalty on nonhomestead property is at a rate of four percent until May 31 and
         eight 57.23percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
         after 57.24the postmark date on the envelope containing the property tax statements, whichever
         is 57.25later, on commercial use real property used for seasonal residential recreational
         purposes 57.26and classified as class 1c or 4c, and on other commercial use real property classified
         as 57.27class 3a, provided that over 60 percent of the gross income earned by the enterprise
         on the 57.28class 3a property is earned during the months of May, June, July, and August. In order
         for 57.29the first half of the tax due on class 3a property to be paid after May 15 and before
         June 1, 57.30or 21 days after the postmark date on the envelope containing the property tax statement,
         57.31whichever is later, without penalty, the owner of the property must attach an affidavit
         57.32to the payment attesting to compliance with the income provision of this subdivision.
         57.33Thereafter, for both homestead and nonhomestead property, on the first day of each
         month 57.34beginning July 1, up to and including October 1 following, an additional penalty of
         one 57.35percent for each month accrues and is charged on all such unpaid taxes provided that
         if the 58.1due date was extended beyond May 15 as the result of any delay in mailing property
         tax 58.2statements no additional penalty shall accrue if the tax is paid by the extended due
         date. If 58.3the tax is not paid by the extended due date, then all penalties that would have accrued
         if 58.4the due date had been May 15 shall be charged. When the taxes against any tract or
         lot 58.5exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
         58.6date on the envelope containing the property tax statement, whichever is later; and,
         if so 58.7paid, no penalty attaches; the remaining one-half may be paid at any time prior to
         October 58.816 following, without penalty; but, if not so paid, then a penalty of two percent
         accrues 58.9thereon for homestead property and a penalty of four percent on nonhomestead property.
         58.10Thereafter, for homestead property, on the first day of November an additional penalty
         of 58.11four percent accrues and on the first day of December following, an additional penalty
         of 58.12two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
         58.13property, on the first day of November and December following, an additional penalty
         of 58.14four percent for each month accrues and is charged on all such unpaid taxes. If one-half
         of 58.15such taxes are not paid prior to May 16 or 21 days after the postmark date on the
         envelope 58.16containing the property tax statement, whichever is later, the same may be paid at
         any time 58.17prior to October 16, with accrued penalties to the date of payment added, and thereupon
         58.18no penalty attaches to the remaining one-half until October 16 following.58.19    (b) This section applies to payment of personal property taxes assessed against 58.20improvements to leased property, except as provided by section 
         277.01, subdivision 3.58.21    (c) A county may provide by resolution that in the case of a property owner that has 58.22multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made
         in 58.23installments as provided in this subdivision.58.24    (d) The county treasurer may accept payments of more or less than the exact amount 58.25of a tax installment due. Payments must be applied first to the oldest installment
         that is due 58.26but which has not been fully paid. If the accepted payment is less than the amount
         due, 58.27payments must be applied first to the penalty accrued for the year or the installment
         being 58.28paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
         58.29payment required as a condition for filing an appeal under section 
         278.03 or any other law, 58.30nor does it affect the order of payment of delinquent taxes under section 
         280.39.58.31(e) No penalty under this section shall accrue if the property tax payment is delivered
         58.32by mail to the county treasurer and the envelope containing the payment is postmarked
         58.33within two business days of the due date prescribed under this section.58.34EFFECTIVE DATE.This section is effective for property taxes payable in 2016 58.35and thereafter.59.1    Sec. 19. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:59.2    Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to 59.3whom the right to pay taxes has been given by statute, mortgage, or other agreement,
         may 59.4make and file with the county auditor of the county in which the parcel is located
         a written 59.5offer to pay the current taxes each year before they become delinquent, or to contest
         59.6the taxes under chapter 278 and agree to confess judgment for the amount provided,
         as 59.7determined by the county auditor. By filing the offer, the owner waives all irregularities
         59.8in connection with the tax proceedings affecting the parcel and any defense or objection
         59.9which the owner may have to the proceedings, and also waives the requirements of any
         59.10notice of default in the payment of any installment or interest to become due pursuant
         to 59.11the composite judgment to be so entered. Unless the property is subject to subdivision
         1a, 59.12with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent
         taxes, 59.13costs, penalty, and interest, and (ii) tender all current year taxes and penalty due
         at the 59.14time the confession of judgment is entered. In the offer, the owner shall agree to
         pay the 59.15balance in nine equal installments, with interest as provided in section 
         279.03, payable 59.16annually on installments remaining unpaid from time to time, on or before December
         31 59.17of each year following the year in which judgment was confessed.59.18(b) For property which qualifies under section 
         279.03, subdivision 2, paragraph (b), 59.19each year the commissioner shall set the interest rate for offers made under paragraph
         (a) 59.20at the greater of five percent or two percent above the prime rate charged by banks
         during 59.21the six-month period ending on September 30 of that year, rounded to the nearest full
         59.22percent, provided that the rate must not exceed the maximum annum rate specified under
         59.23section 
         279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the 59.24immediately succeeding year. The commissioner's determination under this subdivision
         is 59.25not a rule subject to the Administrative Procedure Act in chapter 14, including section
         59.2614.386
         . If a default occurs in the payments under any confessed judgment entered under 59.27this paragraph, the taxes and penalties due are subject to the interest rate specified
         in 59.28section 
         279.03.59.29For the purposes of this subdivision:59.30(1) the term "prime rate charged by banks" means the average predominant prime 59.31rate quoted by commercial banks to large businesses, as determined by the Board of
         59.32Governors of the Federal Reserve System; and59.33(2) "default" means the cancellation of the confession of judgment due to 59.34nonpayment of the current year tax or failure to make any installment payment required
         by 59.35this confessed judgment within 60 days from the date on which payment was due.60.1(c) The interest rate established at the time judgment is confessed is fixed for the
         60.2duration of the judgment. By October 15 of each year, the commissioner of revenue
         must 60.3determine the rate of interest as provided under paragraph (b) and, by November 1
         of each 60.4year, must certify the rate to the county auditor.60.5(d) A qualified property owner eligible to enter into a second confession of judgment
         60.6may do so at the interest rate provided in paragraph (b).60.7(e) Repurchase agreements or contracts for repurchase for properties being 60.8repurchased under section 282.261 are not eligible to receive the interest rate under 60.9paragraph (b).60.10(f) (e) The offer must be substantially as follows:60.11"To the court administrator of the district court of ........... county, I, .....................,
         60.12am the owner of the following described parcel of real estate located in ....................
         60.13county, Minnesota:60.14.............................. Upon that real estate there are delinquent taxes for
         the year ........., and 60.15prior years, as follows: (here insert year of delinquency and the total amount of
         delinquent 60.16taxes, costs, interest, and penalty). By signing this document I offer to confess
         judgment 60.17in the sum of $...... and waive all irregularities in the tax proceedings affecting
         these 60.18taxes and any defense or objection which I may have to them, and direct judgment to
         be 60.19entered for the amount stated above, minus the sum of $............, to be paid with
         this 60.20document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty,
         and 60.21interest stated above. I agree to pay the balance of the judgment in nine or four
         equal, 60.22annual installments, with interest as provided in section 
         279.03, payable annually, on the 60.23installments remaining unpaid. I agree to pay the installments and interest on or
         before 60.24December 31 of each year following the year in which this judgment is confessed and
         60.25current taxes each year before they become delinquent, or within 30 days after the
         entry of 60.26final judgment in proceedings to contest the taxes under chapter 278.60.27Dated .............., ......."60.28EFFECTIVE DATE.This section is effective for sales and repurchases occurring 60.29after June 30, 2015.60.30    Sec. 20. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:60.31    Subd. 4. Sale: method, requirements, effects. The sale authorized under 60.32subdivision 3 must be conducted by the county auditor at the county seat of the county
         in 60.33which the parcels lie, except that in St. Louis and Koochiching Counties, the sale
         may 60.34be conducted in any county facility within the county. The sale must not be for less
         than 61.1the appraised value except as provided in subdivision 7a. The parcels must be sold
         for 61.2cash only, unless the county board of the county has adopted a resolution providing
         for 61.3their sale on terms, in which event the resolution controls with respect to the sale.
         When 61.4the sale is made on terms other than for cash only (1) a payment of at least ten percent
         61.5of the purchase price must be made at the time of purchase, and the balance must be
         61.6paid in no more than ten equal annual installments, or (2) the payments must be made
         61.7in accordance with county board policy, but in no event may the board require more
         61.8than 12 installments annually, and the contract term must not be for more than ten
         years. 61.9Standing timber or timber products must not be removed from these lands until an amount
         61.10equal to the appraised value of all standing timber or timber products on the lands
         at the 61.11time of purchase has been paid by the purchaser. If a parcel of land bearing standing
         61.12timber or timber products is sold at public auction for more than the appraised value,
         the 61.13amount bid in excess of the appraised value must be allocated between the land and
         the 61.14timber in proportion to their respective appraised values. In that case, standing
         timber or 61.15timber products must not be removed from the land until the amount of the excess bid
         61.16allocated to timber or timber products has been paid in addition to the appraised
         value of 61.17the land. The purchaser is entitled to immediate possession, subject to the provisions
         of 61.18any existing valid lease made in behalf of the state.61.19For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
         61.20is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 61.21of the purchase price for sales occurring after December 31, 1990, is subject to interest 61.22at the same rate as installment payments on confession of judgment for delinquent taxes 61.23determined in section 
         279.03, subdivision 1a 279.37, subdivision 2, paragraph (b). The 61.24interest rate is subject to change each year on the unpaid balance in the manner provided
         61.25for rate changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable. 61.26Interest on the unpaid contract balance on sales occurring before July 1, 1982, is
         payable 61.27at the rate applicable to the sale at the time that the sale occurred.61.28EFFECTIVE DATE.This section is effective for sales occurring after June 30, 2015.61.29    Sec. 21. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:61.30    Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved 61.31by the county board is subject to interest at the same rate as installment payments on 61.32confession of judgment for delinquent taxes determined in section 
         279.03, subdivision 1a 61.33279.37, subdivision 2, paragraph (b). The interest rate is subject to change each year on the 61.34unpaid balance in the manner provided for rate changes in section 279.03, subdivision 1a.62.1EFFECTIVE DATE.This section is effective for repurchases occurring after June 62.230, 2015.62.3    Sec. 22. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:62.4    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax 62.5exclusive of special assessments, penalties, and interest payable on a claimant's
         homestead 62.6after deductions made under sections 
         273.135, 
         273.1384, 
         273.1391, 
         273.42, subdivision 2, 62.7and any other state paid property tax credits in any calendar year, and after any
         refund 62.8claimed and allowable under section 
         290A.04, subdivision 2h, that is first payable in 62.9the year that the property tax is payable. In the case of a claimant who makes ground
         62.10lease payments, "property taxes payable" includes the amount of the payments directly
         62.11attributable to the property taxes assessed against the parcel on which the house
         is located. 62.12No apportionment or reduction of the "property taxes payable" shall be required for
         the 62.13use of a portion of the claimant's homestead for a business purpose if the claimant
         does not 62.14deduct any business depreciation expenses for the use of a portion of the homestead, or 62.15elects to deduct expenses under section 280A of the Internal Revenue Code for a business
         62.16operated in a home, in the determination of federal adjusted gross income. For homesteads 62.17which are manufactured homes as defined in section 
         273.125, subdivision 8, and for 62.18homesteads which are park trailers taxed as manufactured homes under section 
         168.012, 62.19subdivision 9
         , "property taxes payable" shall also include 17 percent of the gross rent paid 62.20in the preceding year for the site on which the homestead is located. When a homestead
         62.21is owned by two or more persons as joint tenants or tenants in common, such tenants
         62.22shall determine between them which tenant may claim the property taxes payable on
         the 62.23homestead. If they are unable to agree, the matter shall be referred to the commissioner
         of 62.24revenue whose decision shall be final. Property taxes are considered payable in the
         year 62.25prescribed by law for payment of the taxes.62.26In the case of a claim relating to "property taxes payable," the claimant must have
         62.27owned and occupied the homestead on January 2 of the year in which the tax is payable
         62.28and (i) the property must have been classified as homestead property pursuant to section
         62.29273.124
         , on or before December 15 of the assessment year to which the "property taxes 62.30payable" relate; or (ii) the claimant must provide documentation from the local assessor
         62.31that application for homestead classification has been made on or before December
         15 62.32of the year in which the "property taxes payable" were payable and that the assessor
         has 62.33approved the application.62.34EFFECTIVE DATE.This section is effective for refunds based on rent paid after 62.35December 31, 2013, and property taxes payable after December 31, 2014.63.1    Sec. 23. Minnesota Statutes 2014, section 290A.04, subdivision 2h, is amended to read:63.2    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a homestead 63.3increase more than 12 ten percent over the property taxes payable in the prior year on the 63.4same property that is owned and occupied by the same owner on January 2 of both years,
         63.5and the amount of that increase is $100 or more, a claimant who is a homeowner shall
         63.6be allowed an additional refund equal to 60 percent of the amount of the increase
         over 63.7the greater of 12 ten percent of the prior year's property taxes payable or $100. This 63.8subdivision shall not apply to any increase in the gross property taxes payable attributable
         63.9to improvements made to the homestead after the assessment date for the prior year's
         63.10taxes. This subdivision shall not apply to any increase in the gross property taxes
         payable 63.11attributable to the termination of valuation exclusions under section 
         273.11, subdivision 16.63.12The maximum refund allowed under this subdivision is $1,000.63.13(b) For purposes of this subdivision "gross property taxes payable" means property
         63.14taxes payable determined without regard to the refund allowed under this subdivision.63.15(c) In addition to the other proofs required by this chapter, each claimant under
         this 63.16subdivision shall file with the property tax refund return a copy of the property
         tax statement 63.17for taxes payable in the preceding year or other documents required by the commissioner.63.18(d) Upon request, the appropriate county official shall make available the names and
         63.19addresses of the property taxpayers who may be eligible for the additional property
         tax 63.20refund under this section. The information shall be provided on a magnetic computer
         63.21disk. The county may recover its costs by charging the person requesting the information
         63.22the reasonable cost for preparing the data. The information may not be used for any
         63.23purpose other than for notifying the homeowner of potential eligibility and assisting
         the 63.24homeowner, without charge, in preparing a refund claim.63.25EFFECTIVE DATE.This section is effective for refund claims based on taxes 63.26payable in 2016 and thereafter.63.27    Sec. 24. Minnesota Statutes 2014, section 290B.03, subdivision 1, is amended to read:63.28    Subdivision 1. Program qualifications. The qualifications for the senior citizens' 63.29property tax deferral program are as follows:63.30(1) the property must be owned and occupied as a homestead by a person 65 years of
         63.31age or older. In the case of a married couple, at least one of the spouses must be
         at least 65 63.32years old at the time the first property tax deferral is granted, regardless of whether
         the 63.33property is titled in the name of one spouse or both spouses, or titled in another
         way that 63.34permits the property to have homestead status, and the other spouse must be at least
         62 63.35years of age;64.1(2) the total household income of the qualifying homeowners, as defined in section
         64.2290A.03, subdivision 5
         , for the calendar year preceding the year of the initial application 64.3may not exceed $60,000;64.4(3) the homestead must have been owned and occupied as the homestead of at least 64.5one of the qualifying homeowners for at least 15 five years prior to the year the initial 64.6application is filed;64.7(4) there are no state or federal tax liens or judgment liens on the homesteaded 64.8property;64.9(5) there are no mortgages or other liens on the property that secure future advances,
         64.10except for those subject to credit limits that result in compliance with clause (6);
         and64.11(6) the total unpaid balances of debts secured by mortgages and other liens on the
         64.12property, including unpaid and delinquent special assessments and interest and any
         64.13delinquent property taxes, penalties, and interest, but not including property taxes
         payable 64.14during the year, does not exceed 75 percent of the assessor's estimated market value
         for 64.15the year.64.16EFFECTIVE DATE.This section is effective for applications for deferral of taxes 64.17payable in 2016 and thereafter.64.18    Sec. 25. Minnesota Statutes 2014, section 290B.04, subdivision 1, is amended to read:64.19    Subdivision 1. Initial application. (a) A taxpayer meeting the program 64.20qualifications under section 
         290B.03 may apply to the commissioner of revenue for the 64.21deferral of taxes. Applications are due on or before July November 1 for deferral of any 64.22of the following year's property taxes. A taxpayer may apply in the year in which
         the 64.23taxpayer becomes 65 years old, provided that no deferral of property taxes will be
         made 64.24until the calendar year after the taxpayer becomes 65 years old. The application,
         which 64.25shall be prescribed by the commissioner of revenue, shall include the following items
         and 64.26any other information which the commissioner deems necessary:64.27    (1) the name, address, and Social Security number of the owner or owners;64.28    (2) a copy of the property tax statement for the current payable year for the 64.29homesteaded property;64.30    (3) the initial year of ownership and occupancy as a homestead;64.31    (4) the owner's household income for the previous calendar year; and64.32    (5) information on any mortgage loans or other amounts secured by mortgages or 64.33other liens against the property, for which purpose the commissioner may require the
         64.34applicant to provide a copy of the mortgage note, the mortgage, or a statement of
         the 64.35balance owing on the mortgage loan provided by the mortgage holder. The commissioner
         65.1may require the appropriate documents in connection with obtaining and confirming
         65.2information on unpaid amounts secured by other liens.65.3    The application must state that program participation is voluntary. The application
         65.4must also state that the deferred amount depends directly on the applicant's household
         65.5income, and that program participation includes authorization for the annual deferred
         65.6amount, the cumulative deferral and interest that appear on each year's notice prepared
         by 65.7the county under subdivision 6, is public data.65.8    The application must state that program participants may claim the property tax 65.9refund based on the full amount of property taxes eligible for the refund, including
         any 65.10deferred amounts. The application must also state that property tax refunds will be
         used to 65.11offset any deferral and interest under this program, and that any other amounts subject
         to 65.12revenue recapture under section 
         270A.03, subdivision 7, will also be used to offset any 65.13deferral and interest under this program.65.14    (b) As part of the initial application process, the commissioner may require the 65.15applicant to obtain at the applicant's own cost and submit:65.16    (1) if the property is registered property under chapter 508 or 508A, a copy of the
         65.17original certificate of title in the possession of the county registrar of titles
         (sometimes 65.18referred to as "condition of register"); or65.19    (2) if the property is abstract property, a report prepared by a licensed abstracter
         65.20showing the last deed and any unsatisfied mortgages, liens, judgments, and state and
         65.21federal tax lien notices which were recorded on or after the date of that last deed
         with 65.22respect to the property or to the applicant.65.23    The certificate or report under clauses (1) and (2) need not include references to
         65.24any documents filed or recorded more than 40 years prior to the date of the certification
         65.25or report. The certification or report must be as of a date not more than 30 days
         prior 65.26to submission of the application.65.27    The commissioner may also require the county recorder or county registrar of the 65.28county where the property is located to provide copies of recorded documents related
         to 65.29the applicant or the property, for which the recorder or registrar shall not charge
         a fee. The 65.30commissioner may use any information available to determine or verify eligibility
         under 65.31this section. The household income from the application is private data on individuals
         as 65.32defined in section 
         13.02, subdivision 12.65.33EFFECTIVE DATE.This section is effective for applications for deferral of taxes 65.34payable in 2016 and thereafter.65.35    Sec. 26. Minnesota Statutes 2014, section 469.194, subdivision 1, is amended to read:66.1    Subdivision 1. Authority; aggregate limit. (a) The governing body of a 66.2municipality the city of Worthington may, by resolution, issue obligations under chapter 66.3475 to acquire land or interests in land for, and to design, engineer, and construct
         pipeline 66.4and other facilities and infrastructure necessary to complete the Lewis and Clark
         Regional 66.5Water System Project.66.6(b) The maximum amount of bonds that may be issued under this section is limited to
         66.7an aggregate a principal amount of $45,000,000 $50,000,000, plus any costs of issuance and 66.8amounts to be deposited into a debt service or reserve account. The Lewis and Clark Joint 66.9Powers Board shall allocate the limit among the municipalities designated in subdivision
         2.66.10EFFECTIVE DATE.This section is effective the day following final enactment 66.11without local approval under the provisions of Minnesota Statutes, section 645.023.66.12    Sec. 27. Minnesota Statutes 2014, section 473H.09, is amended to read:66.13473H.09 EARLY TERMINATION.66.14    Subdivision 1.Public emergency. Termination of an agricultural preserve earlier 66.15than a date derived through application of section 
         473H.08 may be permitted only in the 66.16event of a public emergency upon petition from the owner or authority to the governor.
         66.17The determination of a public emergency shall be by the governor through executive
         order 66.18pursuant to sections 
         4.035 and 
         12.01 to 
         12.46. The executive order shall identify the 66.19preserve, the reasons requiring the action and the date of termination.66.20    Subd. 2.Death of owner.(a) Within 180 days of the death of an owner, an owner's 66.21spouse, or other qualifying person, the surviving owner may elect to terminate the
         66.22agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
         66.23preserve by notifying the authority on a form provided by the commissioner of agriculture.
         66.24Termination of a covenant under this subdivision must be executed and acknowledged
         in 66.25the manner required by law to execute and acknowledge a deed.66.26(b) For purposes of this subdivision, the following definitions apply:66.27(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the 66.28decedent was the settlor or a beneficiary of, or member of an entity permitted to
         own 66.29agricultural land and engage in farming under section 500.24 that owned the agricultural
         66.30preserve; and 66.31(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a 66.32trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm 66.33land under section 500.24 of which the decedent was a partner, shareholder, or member.67.1(c) When an agricultural preserve is terminated under this subdivision, the property
         67.2is subject to additional taxes in an amount equal to 50 percent of the taxes actually
         67.3levied against the property for the current taxes payable year. The additional taxes
         are 67.4extended against the property on the tax list for taxes payable in the current year.
         The 67.5additional taxes must be distributed among the jurisdictions levying taxes on the
         property 67.6in proportion to the current year's taxes.67.7EFFECTIVE DATE.This section is effective July 1, 2015.67.8    Sec. 28. Laws 1996, chapter 471, article 3, section 51, is amended to read:67.9    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.67.10    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the 67.11Carlton county board of commissioners may levy in and for the unorganized township
         of 67.12Sawyer an amount up to $1,500$2,000 annually for recreational purposes, beginning with 67.13taxes payable in 1997 and ending with taxes payable in 2006.67.14    Subd. 2. Effective date. This section is effective June 1, 1996, without local 67.15approval applies to taxes payable in 2015 and thereafter, and is effective the day after the
         67.16Carlton County Board of Commissioners and its chief clerical officer timely complete
         67.17their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.67.18    Sec. 29. BOARD OF APPEALS AND EQUALIZATION IN-PERSON 67.19TRAINING.67.20Notwithstanding any other law to the contrary, the commissioner of revenue, in 67.21consultation with the Minnesota Association of Townships, shall offer not less than
         12 67.22in-person board of appeals and equalization course trainings in 2015 and in 2016.67.23EFFECTIVE DATE.This section is effective June 1, 2015.67.24    Sec. 30. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN 67.25BUILDINGS; ST. LOUIS COUNTY.67.26    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 67.27have the meanings given.67.28(b) "Building PIN" means a parcel identification number that is assigned to a 67.29building and does not include the land upon which the building is located; and67.30(c) "Land PIN" means a parcel identification number that is assigned to land upon
         67.31which a building associated with a building PIN is located.68.1    Subd. 2.Optional cancellation of tax forfeiture for buildings with building PINs.68.2Notwithstanding any law to the contrary, if any building associated with a building
         PIN 68.3and located in St. Louis County forfeits or has forfeited to the state of Minnesota
         before, 68.4on, or after the date of enactment of this section because of nonpayment of delinquent
         68.5property taxes, special assessments, penalties, interest, or costs, the county auditor
         of St. 68.6Louis County may, with approval from the county board and the commissioner of revenue:68.7(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
         68.8the unpaid property taxes, special assessments, penalties, interest, or costs; and68.9(2) combine the building PIN with its associated land PIN. When this occurs, the 68.10land PIN is the only surviving parcel identification number, and includes both the
         building 68.11and the land upon which the building is located.68.12    Subd. 3.Cancellation of tax forfeiture; taxation through date of cancellation.68.13Notwithstanding any law to the contrary, if the county auditor of St. Louis County
         cancels 68.14a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision
         2, 68.15the affected building is not subject to taxation from the date of forfeiture through
         the 68.16date of cancellation.68.17    Subd. 4.Appropriation.$1,000,000 in fiscal year 2016 only is appropriated from 68.18the general fund to the commissioner of revenue for a grant to St. Louis County that
         shall 68.19be paid on July 1, 2015. The county may only use the grant to remove any building,
         68.20upon the request of the landowner, after the county has complied with the provisions
         of 68.21subdivision 2.68.22EFFECTIVE DATE.This section is effective the day following final enactment.68.23    Sec. 31. STUDY AND REPORT OF PRODUCTION BASED VALUATION OF 68.24AGRICULTURAL LAND.68.25(a) The commissioner of agriculture and the commissioner of revenue shall conduct
         68.26a study and prepare a report on the possibility of valuing agricultural land in the
         state for 68.27property tax purposes based on the value of agricultural commodities produced minus
         the 68.28cost of agricultural production.68.29(b) The study must, to the extent practicable under the appropriation and the time
         68.30available:68.31(1) assess the availability and accuracy of data sources necessary to determine the
         68.32productivity of agricultural land, the prices of agricultural commodities, and the
         costs of 68.33production, for all agricultural land across the state;69.1(2) analyze the potential impacts on other types of properties and on local 69.2governments if the state were to adopt a system valuing agricultural land based on
         69.3production value, including the impacts of any changes in state aids;69.4(3) identify types of agricultural properties that are not directly used in agricultural
         69.5production, and propose approaches for valuing those properties within a production
         69.6value based system;69.7(4) assign values to agricultural land based on the best currently available data,
         and 69.8compare the resulting values to valuations currently used for property tax purposes;
         to the 69.9extent possible, analyze what that relationship would be in years other than the study
         year;69.10(5) analyze the potential volatility of land values under a production value based
         69.11system and propose approaches for reducing the effects of agricultural land value
         volatility 69.12on other types of properties;69.13(6) analyze the potential tax shifts between different types of agricultural properties
         69.14under a production value based system;69.15(7) analyze and make recommendations for how a production value based system 69.16would be administered in terms of the role of the Department of Revenue, county and
         69.17local assessors, and other agencies; 69.18(8) analyze how appeals of assessments by property owners would be handled 69.19under a production value based system;69.20(9) analyze how a production value based system would affect the green acres and 69.21metropolitan agricultural preserves programs;69.22(10) identify other states that have adopted production based valuation systems and
         69.23describe how they have been implemented, with special emphasis upon neighboring 69.24states; and69.25(11) identify possible alternative methods of valuing agricultural land in addition
         to 69.26market value and production based agricultural land valuation. 69.27(c) The commissioners must seek input from the dean of the University of 69.28Minnesota College of Food, Agricultural, and Natural Resource Sciences in the design
         69.29and implementation of the study.69.30(d) The commissioners must request the involvement and participation of 69.31stakeholders including groups representing assessors and groups representing agricultural
         69.32property owners.69.33(e) The commissioners shall report the findings of the study to the committees of
         the 69.34house of representatives and senate having jurisdiction over taxes by February 1,
         2017, 69.35and file the report as required by Minnesota Statutes, section 3.195.70.1(f) $200,000 in fiscal year 2016 is appropriated from the general fund to the 70.2commissioner of revenue for purposes of preparing the report under this section. This
         is a 70.3onetime appropriation and is not added to the base.70.4EFFECTIVE DATE.This section is effective the day following final enactment.70.5    Sec. 32. TOWN OF TOFTE; MUNICIPAL HOUSING.70.6(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, 70.7chapter 719, article 19, section 27, the town of Tofte may own and operate within
         its 70.8boundary up to 12 units of housing for individuals over 55 years of age or families
         with 70.9one member of the household that is over 55 year of age.70.10(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, 70.11chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
         70.12to 469.047, with respect to this section. Upon the approval of the town board, the
         town of 70.13Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision
         6.70.14(c) Nothing in this section shall limit the power of the Cook County/Grand Marais
         70.15Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
         70.16The authority to undertake new projects under this section shall expire on June 30,
         2016.70.17EFFECTIVE DATE.This section is effective the day after compliance by 70.18the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
         70.19subdivisions 2 and 3.70.20    Sec. 33. APPROPRIATION.70.21$1,130,000 in fiscal year 2016 only is appropriated from the general fund to the 70.22commissioner of revenue for a grant to Hennepin County. Of this amount, $880,000 must
         70.23be used for the North Branch Library EMERGE Career and Technology Center, and 70.24$250,000 must be used for the Cedar Riverside Opportunity Center.70.25    Sec. 34.  REPEALER.70.26(a) Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.70.27(b) Minnesota Statutes 2014, section 275.025, subdivision 4, is repealed.70.28(c) Minnesota Statutes 2014, section 469.194, subdivisions 2 and 4, are repealed.70.29EFFECTIVE DATE.Paragraph (a) is effective for taxes payable in 2015. 70.30Paragraph (b) is effective for taxes payable in 2016 and thereafter. Paragraph (c)
         is 70.31effective the day following final enactment.71.1ARTICLE 371.2LOCAL DEVELOPMENT71.3    Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:71.4    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 71.5have the meanings given.71.6(b) "Activities" means acquisition of property, clearing of land, site preparation,
         soils 71.7correction, removal of hazardous waste or pollution, installation of utilities, construction
         71.8of public or private improvements, and other similar activities, but only to the extent
         that 71.9tax increment revenues may be spent for such purposes under other law.71.10(c) "Third party" means an entity other than (1) the person receiving the benefit
         71.11of assistance financed with tax increments, or (2) the municipality or the development
         71.12authority or other person substantially under the control of the municipality.71.13(d) "Revenues derived from tax increments paid by properties in the district" means
         71.14only tax increment as defined in section 
         469.174, subdivision 25, clause (1), and does 71.15not include tax increment as defined in section 
         469.174, subdivision 25, clauses (2), 71.16(3), and (4) to (5).71.17EFFECTIVE DATE.This section is effective the day following final enactment.71.18    Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:71.19    Subd. 2. Expenditures outside district. (a) For each tax increment financing 71.20district, an amount equal to at least 75 percent of the total revenue derived from
         tax 71.21increments paid by properties in the district must be expended on activities in the
         district 71.22or to pay bonds, to the extent that the proceeds of the bonds were used to finance
         activities 71.23in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
         71.24For districts, other than redevelopment districts for which the request for certification
         71.25was made after June 30, 1995, the in-district percentage for purposes of the preceding
         71.26sentence is 80 percent. Not more than 25 percent of the total revenue derived from
         tax 71.27increments paid by properties in the district may be expended, through a development
         fund 71.28or otherwise, on activities outside of the district but within the defined geographic
         area of 71.29the project except to pay, or secure payment of, debt service on credit enhanced bonds.
         71.30For districts, other than redevelopment districts for which the request for certification
         was 71.31made after June 30, 1995, the pooling percentage for purposes of the preceding sentence
         is 71.3220 percent. The revenue revenues derived from tax increments for paid by properties in 71.33the district that are expended on costs under section 
         469.176, subdivision 4h, paragraph 72.1(b), may be deducted first before calculating the percentages that must be expended
         within 72.2and without the district.72.3    (b) In the case of a housing district, a housing project, as defined in section 
         469.174, 72.4subdivision 11
         , is an activity in the district.72.5    (c) All administrative expenses are for activities outside of the district, except
         that 72.6if the only expenses for activities outside of the district under this subdivision
         are for 72.7the purposes described in paragraph (d), administrative expenses will be considered
         as 72.8expenditures for activities in the district.72.9    (d) The authority may elect, in the tax increment financing plan for the district,
         72.10to increase by up to ten percentage points the permitted amount of expenditures for
         72.11activities located outside the geographic area of the district under paragraph (a).
         As 72.12permitted by section 
         469.176, subdivision 4k, the expenditures, including the permitted 72.13expenditures under paragraph (a), need not be made within the geographic area of the
         72.14project. Expenditures that meet the requirements of this paragraph are legally permitted
         72.15expenditures of the district, notwithstanding section 
         469.176, subdivisions 4b, 4c, and 4j. 72.16To qualify for the increase under this paragraph, the expenditures must:72.17    (1) be used exclusively to assist housing that meets the requirement for a qualified
         72.18low-income building, as that term is used in section 42 of the Internal Revenue Code;
         and72.19    (2) not exceed the qualified basis of the housing, as defined under section 42(c)
         of 72.20the Internal Revenue Code, less the amount of any credit allowed under section 42
         of 72.21the Internal Revenue Code; and72.22    (3) be used to:72.23    (i) acquire and prepare the site of the housing;72.24    (ii) acquire, construct, or rehabilitate the housing; or72.25    (iii) make public improvements directly related to the housing; or72.26(4) be used to develop housing:72.27(i) if the market value of the housing does not exceed the lesser of:72.28(A) 150 percent of the average market value of single-family homes in that 72.29municipality; or72.30(B) $200,000 for municipalities located in the metropolitan area, as defined in 72.31section 
         473.121, or $125,000 for all other municipalities; and72.32(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
         72.33demolition of existing structures, site preparation, and pollution abatement on one
         or 72.34more parcels, if the parcel contains a residence containing one to four family dwelling
         72.35units that has been vacant for six or more months and is in foreclosure as defined
         in 73.1section 
         325N.10, subdivision 7, but without regard to whether the residence is the owner's 73.2principal residence, and only after the redemption period has expired.73.3    (e) For a district created within a biotechnology and health sciences industry zone
         73.4as defined in Minnesota Statutes 2012, section 
         469.330, subdivision 6, or for an existing 73.5district located within such a zone, tax increment derived from such a district may
         be 73.6expended outside of the district but within the zone only for expenditures required
         for the 73.7construction of public infrastructure necessary to support the activities of the zone,
         land 73.8acquisition, and other redevelopment costs as defined in section 
         469.176, subdivision 4j. 73.9These expenditures are considered as expenditures for activities within the district.
         The 73.10authority provided by this paragraph expires for expenditures made after the later
         of (1) 73.11December 31, 2015, or (2) the end of the five-year period beginning on the date the
         district 73.12was certified, provided that date was before January 1, 2016.73.13(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 73.14Increments may continue to be expended under this authority after that date, if they
         are 73.15used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
         73.16(a), if December 31, 2016, is considered to be the last date of the five-year period
         after 73.17certification under that provision.73.18EFFECTIVE DATE.This section is effective the day following final enactment.73.19    Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:73.20    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by 73.21properties in the district are considered to have been expended on an activity within the 73.22district under subdivision 2 only if one of the following occurs:73.23(1) before or within five years after certification of the district, the revenues
         are 73.24actually paid to a third party with respect to the activity;73.25(2) bonds, the proceeds of which must be used to finance the activity, are issued
         and 73.26sold to a third party before or within five years after certification, the revenues
         are spent 73.27to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
         73.28reasonably expected to be spent before the end of the later of (i) the five-year period,
         or 73.29(ii) a reasonable temporary period within the meaning of the use of that term under
         section 73.30148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required
         reserve 73.31or replacement fund;73.32(3) binding contracts with a third party are entered into for performance of the 73.33activity before or within five years after certification of the district and the revenues
         are 73.34spent under the contractual obligation;74.1(4) costs with respect to the activity are paid before or within five years after
         74.2certification of the district and the revenues are spent to reimburse a party for
         payment 74.3of the costs, including interest on unreimbursed costs; or74.4(5) expenditures are made for housing purposes as permitted by subdivision 2, 74.5paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
         74.6by subdivision 2, paragraph (e).74.7(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
         74.8the original refunded bonds meet the requirements of paragraph (a), clause (2).74.9(c) For a redevelopment district or a renewal and renovation district certified after
         74.10June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph
         (a) 74.11are extended to ten years after certification of the district. For a redevelopment
         district 74.12certified after April 20, 2009, and before June 30, 2012, the five-year periods described
         in 74.13paragraph (a) are extended to eight years after certification of the district. This
         extension is 74.14provided primarily to accommodate delays in development activities due to unanticipated
         74.15economic circumstances.74.16EFFECTIVE DATE.This section is effective the day following final enactment.74.17    Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:74.18    Subd. 7. Interfund loans.(a) The authority or municipality may advance or loan 74.19money to finance expenditures under section 
         469.176, subdivision 4, from its general fund 74.20or any other fund under which it has legal authority to do so.74.21    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         74.22is earliest, the loan or advance must be authorized, by resolution of the governing body or 74.23of the authority, whichever has jurisdiction over the fund from which the advance
         or loan 74.24is authorized, before money is transferred, advanced, or spent, whichever is earliest.74.25    (c) The resolution may generally grant to the municipality or the authority the power 74.26to make interfund loans under one or more tax increment financing plans or for one
         or 74.27more districts. The resolution may be adopted before or after the adoption of the tax 74.28increment financing plan or the creation of the tax increment financing district from
         which 74.29the advance or loan is to be repaid.74.30    (d)  The terms and conditions for repayment of the loan must be provided in 74.31writing and. The written terms and conditions may be in any form, but must include, at 74.32a minimum, the principal amount, the interest rate, and maximum term. Written terms 74.33may be modified or amended in writing by the municipality or the authority before
         the 74.34latest decertification of the tax increment financing district from which the interfund
         loan 74.35will be paid. The maximum rate of interest permitted to be charged is limited to the 75.1greater of the rates specified under section 
         270C.40 or 
         549.09 as of the date the loan or 75.2advance is authorized, unless the written agreement states that the maximum interest
         rate 75.3will fluctuate as the interest rates specified under section 
         270C.40 or 
         549.09 are from time 75.4to time adjusted. Loans or advances may be structured as draw-down or line-of-credit 75.5obligations of the lending fund.75.6    (e) The authority shall report in the annual report submitted pursuant to section
         75.7469.175, subdivision 6:75.8    (1) the amount of any interfund loan or advance made in a calendar year; and75.9    (2) any amendment of an interfund loan or advance made in a calendar year.75.10EFFECTIVE DATE.This section is effective the day following final enactment 75.11and applies to all districts, regardless of when the request for certification was
         made.75.12    Sec. 5. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.75.13Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         75.141b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
         75.15from District 6-1 Port Riverwalk through December 31, 2038.75.16EFFECTIVE DATE.This section is effective upon compliance by the governing 75.17bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
         75.1811 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2,
         and 75.19645.021, subdivision 3.75.20    Sec. 6. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.75.21The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that 75.22activities must be undertaken within a five-year period from the date of certification
         of a 75.23tax increment financing district, are considered to be met for Tax Increment Financing
         75.24District No. 1-12 (Gateway North), administered by the Cottage Grove Economic 75.25Development Authority, if the activities are undertaken prior to January 1, 2017.75.26EFFECTIVE DATE.This section is effective upon compliance by the chief clerical 75.27officer of the governing body of the city of Cottage Grove with the requirements of
         75.28Minnesota Statutes, section 645.021, subdivisions 2 and 3.75.29    Sec. 7. CITY OF RICHFIELD; EXTENSION OF DISTRICT.75.30Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         75.31law to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in 75.32and for the city of Richfield may elect to extend the duration limit of the redevelopment
         76.1tax increment financing district known as the Cedar Avenue Tax Increment Financing
         76.2District established by Laws 2005, chapter 152, article 2, section 25, by ten years.76.3EFFECTIVE DATE.This section is effective upon compliance by the city 76.4of Richfield, Hennepin County, and Independent School District No. 280 with the 76.5requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         76.6subdivisions 2 and 3.76.7    Sec. 8. CITY OF ST. PAUL; TIF AUTHORITY.76.8    Subdivision 1.Establishment.Under the special rules in subdivision 2, the 76.9housing and redevelopment authority of the city of St. Paul may establish one or 76.10more redevelopment tax increment financing districts located wholly within the area
         76.11of the former Ford Motor Company plant properties, consisting of two tax parcels,
         76.1217-28-23-31-0001 and 17-28-23-13-0002, and adjacent roads and rights-of-way.76.13    Subd. 2.Special rules.(a) If the authority establishes any tax increment district 76.14under this section, the following special rules apply:76.15(1) the districts are deemed to meet all the requirements of Minnesota Statutes, 76.16section 469.174, subdivision 10; 76.17(2) any expenditure for, or payment of bonds issued to finance, activities within
         the 76.18area described in subdivision 1 is not subject to the restrictions under Minnesota
         Statutes, 76.19section 469.1763, for any district established under this section, except that expenditures
         76.20for activities outside the area defined in subdivision 1 are subject to the percentage
         limits 76.21under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a); and76.22(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply.76.23(b) Except as otherwise provided in paragraph (a), the provisions of Minnesota 76.24Statutes, sections 469.174 to 469.1794, apply to districts established under this
         section.76.25    Subd. 3.Expiration.The authority to request certification of districts under this 76.26section expires June 30, 2020, unless the city has requested certification of at least
         one 76.27district by that date. The authority to request certification of any district under
         this section 76.28expires June 30, 2030.76.29EFFECTIVE DATE.This section is effective upon approval by the governing 76.30body of the city of St. Paul and compliance with the requirements of Minnesota Statutes,
         76.31section 645.021.77.1ARTICLE 477.2SALES AND USE TAXES77.3    Section 1. Minnesota Statutes 2014, section 289A.20, subdivision 4, is amended to read:77.4    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 77.5payable to the commissioner monthly on or before the 20th day of the month following
         the 77.6month in which the taxable event occurred, or following another reporting period as
         the 77.7commissioner prescribes or as allowed under section 
         289A.18, subdivision 4, paragraph 77.8(f) or (g), except that use taxes due on an annual use tax return as provided under
         section 77.9289A.11, subdivision 1
         , are payable by April 15 following the close of the calendar year.77.10    (b) A vendor having a liability of $250,000 or more during a fiscal year ending June
         77.1130 must remit the June liability for the next year in the following manner:77.12    (1) Two business days before June 30 of the year, the vendor must remit 81.4 80 77.13percent of the estimated June liability to the commissioner.77.14    (2) On or before August 20 of the year, the vendor must pay any additional amount
         77.15of tax not remitted in June.77.16    (c) A vendor having a liability of:77.17    (1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 77.182013, and fiscal years thereafter, must remit by electronic means all liabilities
         on returns 77.19due for periods beginning in all subsequent calendar years on or before the 20th day
         of 77.20the month following the month in which the taxable event occurred, or on or before
         the 77.2120th day of the month following the month in which the sale is reported under section
         77.22289A.18, subdivision 4
         ; or77.23(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
         77.24thereafter, must remit by electronic means all liabilities in the manner provided
         in 77.25paragraph (a) on returns due for periods beginning in the subsequent calendar year,
         except 77.26for 81.4 80 percent of the estimated June liability, which is due two business days before 77.27June 30. The remaining amount of the June liability is due on August 20.77.28(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 77.29religious beliefs from paying electronically shall be allowed to remit the payment
         by mail. 77.30The filer must notify the commissioner of revenue of the intent to pay by mail before
         77.31doing so on a form prescribed by the commissioner. No extra fee may be charged to
         a 77.32person making payment by mail under this paragraph. The payment must be postmarked
         77.33at least two business days before the due date for making the payment in order to
         be 77.34considered paid on a timely basis.78.1EFFECTIVE DATE.This section is effective for taxes due and payable after 78.2July 1, 2015.78.3    Sec. 2. Minnesota Statutes 2014, section 289A.60, subdivision 15, is amended to read:78.4    Subd. 15. Accelerated payment of June sales tax liability; penalty for 78.5underpayment. For payments made after December 31, 2013, if a vendor is required by 78.6law to submit an estimation of June sales tax liabilities and 81.4 80 percent payment by a 78.7certain date, the vendor shall pay a penalty equal to ten percent of the amount of
         actual 78.8June liability required to be paid in June less the amount remitted in June. The penalty
         78.9must not be imposed, however, if the amount remitted in June equals the lesser of
         81.4 78.1080 percent of the preceding May's liability or 81.4 80 percent of the average monthly 78.11liability for the previous calendar year.78.12EFFECTIVE DATE.This section is effective for taxes due and payable after 78.13July 1, 2015.78.14    Sec. 3. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:78.15    Subd. 3. Manufactured housing and park trailers; modular housing.(a) For 78.16retail sales of manufactured homes as defined in section 
         327.31, subdivision 6, for 78.17residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent
         of the 78.18dealer's cost of the manufactured home. For retail sales of new or used park trailers,
         as 78.19defined in section 
         168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is 78.20imposed on 65 percent of the sales price of the park trailer.78.21(b) For retail sales of a modular home, as defined in section 297A.668, subdivision
         78.228, paragraph (b), for residential use, the sales tax under subdivisions 1 and 1a is
         imposed 78.23on 65 percent of the dealer's cost of the modular home.78.24EFFECTIVE DATE.This section is effective for sales and purchases made after 78.25June 30, 2015.78.26    Sec. 4. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:78.27    Subd. 7a. Accessories and supplies. Accessories and supplies required for the 78.28effective use of durable medical equipment for home use only or purchased in a transaction
         78.29covered by Medicare or, Medicaid, or other health insurance plan, that are not already 78.30exempt under subdivision 7, are exempt. Accessories and supplies for the effective
         use 78.31of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
         78.32For purposes of this subdivision "durable medical equipment," "prosthetic device,"
         79.1"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health 79.2insurance plan" means a health plan defined in section 62A.011, subdivision 3, or
         62V.02, 79.3subdivision 4, or a qualified health plan defined in section 62A.011, subdivision
         7.79.4EFFECTIVE DATE.This section is effective retroactively for sales and purchases 79.5made after April 1, 2009. Any vendor who paid sales or use tax on accessories and
         79.6supplies purchased in a transaction covered by a health insurance plan defined in
         79.7Minnesota Statutes, section 62A.011, subdivision 3, or 62V.02, subdivision 4, or a
         79.8qualified health plan defined in Minnesota Statutes, section 62A.011, subdivision
         7, that 79.9are not already exempt under Minnesota Statutes, section 297A.67, subdivision 7, and
         79.10that were sold after April 1, 2009, and before July 1, 2015, may apply for a refund
         of the 79.11sales or use tax paid in the manner provided in Minnesota Statutes, section 289A.50,
         79.12subdivision 1, but only if the vendor did not collect and remit sales tax on the accessories
         79.13and supplies for which a refund is claimed. Interest on the refund shall be paid at
         the rate 79.14in Minnesota Statutes, section 270C.405, from 90 days after the refund claim is filed
         with 79.15the commissioner of revenue. The amount to make the refunds is annually appropriated
         79.16to the commissioner of revenue from the general fund. Refunds must not be filed until
         79.17after June 30, 2015. Notwithstanding limitations on claims for refunds under Minnesota
         79.18Statutes, section 289A.40, claims may be filed with the commissioner until June 30,
         2016.79.19    Sec. 5. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 79.20to read:79.21    Subd. 34.Precious metal bullion.(a) Sales of precious metal bullion by registered 79.22dealers under section 80G.02 that are required to be reported under Internal Revenue
         79.23Service revenue procedure 92-103 are exempt. For purposes of this subdivision, "precious
         79.24metal bullion" means bullion that would qualify for the exception for certain coins
         and 79.25bullion under section 408(m)(3) of the Internal Revenue Code of 1986 as amended 79.26through December 31, 2014. "Precious metal bullion" does not include jewelry, certified
         79.27or graded coins, numismatic coins, or works of art.79.28(b) The intent of this subdivision is to afford the sale of precious metal bullion
         79.29similar treatment as afforded the sale of stock, bullion exchange traded funds, bonds,
         79.30and other investment instruments.79.31EFFECTIVE DATE.This section is effective for sales and purchases made after 79.32June 30, 2015.80.1    Sec. 6. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 80.2to read:80.3    Subd. 35.Car seats.The sale of an infant or child car seat, including a booster seat, 80.4that meets the requirements of a child passenger restraint system under motor vehicle
         80.5safety standards established by the United States Department of Transportation is
         exempt.80.6EFFECTIVE DATE.This section is effective for sales and purchases made after 80.7June 30, 2015.80.8    Sec. 7. Minnesota Statutes 2014, section 297A.68, subdivision 5, is amended to read:80.9    Subd. 5. Capital equipment. (a) Capital equipment is exempt. The tax must be 80.10imposed and collected as if the rate under section 297A.62, subdivision 1, applied,
         and 80.11then refunded in the manner provided in section 297A.75.80.12"Capital equipment" means machinery and equipment purchased or leased, and used 80.13in this state by the purchaser or lessee primarily for manufacturing, fabricating,
         mining, 80.14or refining tangible personal property to be sold ultimately at retail if the machinery
         and 80.15equipment are essential to the integrated production process of manufacturing, fabricating,
         80.16mining, or refining. Capital equipment also includes machinery and equipment 80.17used primarily to electronically transmit results retrieved by a customer of an online
         80.18computerized data retrieval system.80.19(b) Capital equipment includes, but is not limited to:80.20(1) machinery and equipment used to operate, control, or regulate the production 80.21equipment;80.22(2) machinery and equipment used for research and development, design, quality 80.23control, and testing activities;80.24(3) environmental control devices that are used to maintain conditions such as 80.25temperature, humidity, light, or air pressure when those conditions are essential
         to and are 80.26part of the production process;80.27(4) materials and supplies used to construct and install machinery or equipment;80.28(5) repair and replacement parts, including accessories, whether purchased as spare
         80.29parts, repair parts, or as upgrades or modifications to machinery or equipment;80.30(6) materials used for foundations that support machinery or equipment;80.31(7) materials used to construct and install special purpose buildings used in the
         80.32production process;80.33(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 80.34as part of the delivery process regardless if mounted on a chassis, repair parts for
         80.35ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and81.1(9) machinery or equipment used for research, development, design, or production 81.2of computer software.81.3(c) Capital equipment does not include the following:81.4(1) motor vehicles taxed under chapter 297B;81.5(2) machinery or equipment used to receive or store raw materials;81.6(3) building materials, except for materials included in paragraph (b), clauses (6)
         81.7and (7);81.8(4) machinery or equipment used for nonproduction purposes, including, but not 81.9limited to, the following: plant security, fire prevention, first aid, and hospital
         stations; 81.10support operations or administration; pollution control; and plant cleaning, disposal
         of 81.11scrap and waste, plant communications, space heating, cooling, lighting, or safety;81.12(5) farm machinery and aquaculture production equipment as defined by section 81.13297A.61
         , subdivisions 12 and 13;81.14(6) machinery or equipment purchased and installed by a contractor as part of an 81.15improvement to real property;81.16(7) machinery and equipment used by restaurants in the furnishing, preparing, or 81.17serving of prepared foods as defined in section 
         297A.61, subdivision 31;81.18(8) machinery and equipment used to furnish the services listed in section 
         297A.61, 81.19subdivision 3
         , paragraph (g), clause (6), items (i) to (vi) and (viii);81.20(9) machinery or equipment used in the transportation, transmission, or distribution
         81.21of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes,
         lines, 81.22tanks, mains, or other means of transporting those products. This clause does not
         apply to 81.23machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
         81.24239.77
         ; or81.25(10) any other item that is not essential to the integrated process of manufacturing,
         81.26fabricating, mining, or refining.81.27(d) For purposes of this subdivision:81.28(1) "Equipment" means independent devices or tools separate from machinery but 81.29essential to an integrated production process, including computers and computer software,
         81.30used in operating, controlling, or regulating machinery and equipment; and any subunit
         or 81.31assembly comprising a component of any machinery or accessory or attachment parts
         of 81.32machinery, such as tools, dies, jigs, patterns, and molds.81.33(2) "Fabricating" means to make, build, create, produce, or assemble components or
         81.34property to work in a new or different manner.81.35(3) "Integrated production process" means a process or series of operations through
         81.36which tangible personal property is manufactured, fabricated, mined, or refined. For
         82.1purposes of this clause, (i) manufacturing begins with the removal of raw materials
         82.2from inventory and ends when the last process prior to loading for shipment has been
         82.3completed; (ii) fabricating begins with the removal from storage or inventory of the
         82.4property to be assembled, processed, altered, or modified and ends with the creation
         82.5or production of the new or changed product; (iii) mining begins with the removal
         of 82.6overburden from the site of the ores, minerals, stone, peat deposit, or surface materials
         and 82.7ends when the last process before stockpiling is completed; and (iv) refining begins
         with 82.8the removal from inventory or storage of a natural resource and ends with the conversion
         82.9of the item to its completed form.82.10(4) "Machinery" means mechanical, electronic, or electrical devices, including 82.11computers and computer software, that are purchased or constructed to be used for
         the 82.12activities set forth in paragraph (a), beginning with the removal of raw materials
         from 82.13inventory through completion of the product, including packaging of the product.82.14(5) "Machinery and equipment used for pollution control" means machinery and 82.15equipment used solely to eliminate, prevent, or reduce pollution resulting from an
         activity 82.16described in paragraph (a).82.17(6) "Manufacturing" means an operation or series of operations where raw materials
         82.18are changed in form, composition, or condition by machinery and equipment and which
         82.19results in the production of a new article of tangible personal property. For purposes
         of 82.20this subdivision, "manufacturing" includes the generation of electricity or steam
         to be 82.21sold at retail.82.22(7) "Mining" means the extraction of minerals, ores, stone, or peat.82.23(8) "Online data retrieval system" means a system whose cumulation of information
         82.24is equally available and accessible to all its customers.82.25(9) "Primarily" means machinery and equipment used 50 percent or more of the time
         82.26in an activity described in paragraph (a).82.27(10) "Refining" means the process of converting a natural resource to an intermediate
         82.28or finished product, including the treatment of water to be sold at retail.82.29(11) This subdivision does not apply to telecommunications equipment as provided 82.30in subdivision 35a, and does not apply to wire, cable, fiber,or poles, or conduit for 82.31telecommunications services.82.32EFFECTIVE DATE.This section is effective for sales and purchases made after 82.33June 30, 2015.82.34    Sec. 8. Minnesota Statutes 2014, section 297A.68, subdivision 35a, is amended to read:83.1    Subd. 35a. Telecommunications or pay television services machinery and 83.2equipment. (a) Telecommunications or pay television services machinery and equipment 83.3purchased or leased for use directly by a telecommunications or pay television services
         83.4provider primarily in the provision of telecommunications or pay television services
         83.5that are ultimately to be sold at retail are exempt, regardless of whether purchased
         by 83.6the owner, a contractor, or a subcontractor.83.7(b) For purposes of this subdivision, "telecommunications or pay television 83.8machinery and equipment" includes, but is not limited to:83.9(1) machinery, equipment, and fixtures utilized in receiving, initiating, 83.10amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
         83.11telecommunications or pay television services, such as computers, transformers, amplifiers,
         83.12routers, bridges, repeaters, multiplexers, and other items performing comparable functions;83.13(2) machinery, equipment, and fixtures used in the transportation of 83.14telecommunications or pay television services, such as radio transmitters and receivers,
         83.15satellite equipment, microwave equipment, and other transporting media, but not wire, 83.16cable, including fiber, poles, or and conduit, but not including wire, cable, or poles;83.17(3) ancillary machinery, equipment, and fixtures that regulate, control, protect,
         or 83.18enable the machinery in clauses (1) and (2) to accomplish its intended function, such
         as 83.19auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
         83.20equipment necessary to the operation of the telecommunications or pay television 83.21equipment; and software necessary to the operation of the telecommunications or pay
         83.22television equipment; and83.23(4) repair and replacement parts, including accessories, whether purchased as spare
         83.24parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.83.25EFFECTIVE DATE.This section is effective for sales and purchases made after 83.26June 30, 2015.83.27    Sec. 9. Minnesota Statutes 2014, section 297A.70, subdivision 4, is amended to read:83.28    Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph 83.29(b) (c), to the following "nonprofit organizations" are exempt if the item purchased is 83.30used in the performance of their exempt function. The exemptions under this paragraph
         83.31do not apply to:83.32(1) a corporation, society, association, foundation, or institution organized and 83.33operated exclusively for charitable, religious, or educational purposes if the item
         83.34purchased is used in the performance of charitable, religious, or educational functions;
         83.35and veterans groups under subdivision 5;84.1(2) any senior citizen group or association of groups that: hospitals, outpatient 84.2surgical centers, and critical access dental providers under subdivision 7, paragraphs
         (a) 84.3to (c), (e), and (f);84.4(i) in general limits membership to persons who are either age 55 or older, or 84.5physically disabled;84.6(ii) is organized and operated exclusively for pleasure, recreation, and other 84.7nonprofit purposes, not including housing, no part of the net earnings of which inures
         to 84.8the benefit of any private shareholders; and84.9(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.84.10(3) products and services under subdivision 7, paragraph (d); 84.11(4) nursing homes and boarding care homes under subdivision 18; or84.12(5) a nonprofit organization authorized under section 465.717.84.13    (b) For purposes of this subdivision, charitable purpose includes the maintenance of 84.14a cemetery owned by a religious organization. "nonprofit organization" means:84.15    (1) an organization that has a current federal determination letter stating that the
         84.16nonprofit organization qualifies as an exempt organization under section 501(c)(3)
         of the 84.17Internal Revenue Code and has obtained a Minnesota tax identification number from
         the 84.18Department of Revenue under section 297A.83; or84.19    (2) any senior citizen group or association of groups that:84.20    (i) in general, limits membership to persons who are either age 55 or older or 84.21physically disabled;84.22    (ii) is organized and operated exclusively for pleasure, recreation, and other 84.23nonprofit purposes, not including housing, no part of the net earnings of which inures
         to 84.24the benefit of any private shareholders; and84.25    (iii) is an exempt organization under section 501(c) of the Internal Revenue Code.84.26(b) (c) This exemption does not apply to the following sales:84.27(1) building, construction, or reconstruction materials purchased by a contractor
         84.28or a subcontractor as a part of a lump-sum contract or similar type of contract with
         a 84.29guaranteed maximum price covering both labor and materials for use in the construction,
         84.30alteration, or repair of a building or facility;84.31(2) construction materials purchased by tax-exempt entities or their contractors to
         84.32be used in constructing buildings or facilities that will not be used principally
         by the 84.33tax-exempt entities;84.34(3) lodging as defined under section 
         297A.61, subdivision 3, paragraph (g), clause 84.35(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
         section 85.1297A.67, subdivision 2
         , except wine purchased by an established religious organization 85.2for sacramental purposes or as allowed under subdivision 9a; and85.3(4) leasing of a motor vehicle as defined in section 
         297B.01, subdivision 11, except 85.4as provided in paragraph (c) (d).85.5(c) (d) This exemption applies to the leasing of a motor vehicle as defined in section 85.6297B.01, subdivision 11
         , only if the vehicle is:85.7(1) a truck, as defined in section 
         168.002, a bus, as defined in section 
         168.002, or a 85.8passenger automobile, as defined in section 
         168.002, if the automobile is designed and 85.9used for carrying more than nine persons including the driver; and85.10(2) intended to be used primarily to transport tangible personal property or 85.11individuals, other than employees, to whom the organization provides service in 85.12performing its charitable, religious, or educational purpose.85.13(d) (e) A limited liability company also qualifies for exemption under this 85.14subdivision if (1) it consists of a sole member that would qualify for the exemption,
         and 85.15(2) the items purchased qualify for the exemption.85.16EFFECTIVE DATE.This section is effective for sales and purchases made after 85.17June 30, 2015.85.18    Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:85.19    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of 85.20tangible personal property or services at, and admission charges for fund-raising
         events 85.21sponsored by, a nonprofit organization are exempt if:85.22(1) all gross receipts are recorded as such, in accordance with generally accepted
         85.23accounting practices, on the books of the nonprofit organization; and85.24(2) the entire proceeds, less the necessary expenses for the event, will be used solely
         85.25and exclusively for charitable, religious, or educational purposes. Exempt sales include
         85.26the sale of prepared food, candy, and soft drinks at the fund-raising event.85.27(b) This exemption is limited in the following manner:85.28(1) it does not apply to admission charges for events involving bingo or other 85.29gambling activities or to charges for use of amusement devices involving bingo or
         other 85.30gambling activities;85.31(2) all gross receipts are taxable if the profits are not used solely and exclusively
         for 85.32charitable, religious, or educational purposes;85.33(3) it does not apply unless the organization keeps a separate accounting record,
         85.34including receipts and disbursements from each fund-raising event that documents all
         85.35deductions from gross receipts with receipts and other records;86.1(4) it does not apply to any sale made by or in the name of a nonprofit corporation
         as 86.2the active or passive agent of a person that is not a nonprofit corporation;86.3(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;86.4(6) it does not apply to fund-raising events conducted on premises leased for more
         86.5than five ten days but less than 30 days; and86.6(7) it does not apply if the risk of the event is not borne by the nonprofit organization
         86.7and the benefit to the nonprofit organization is less than the total amount of the
         state and 86.8local tax revenues forgone by this exemption.86.9(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
         86.10government, corporation, society, association, foundation, or institution organized
         and 86.11operated for charitable, religious, educational, civic, fraternal, and senior citizens'
         or 86.12veterans' purposes, no part of the net earnings of which inures to the benefit of
         a private 86.13individual.86.14(d) For purposes of this subdivision, "fund-raising events" means activities of 86.15limited duration, not regularly carried out in the normal course of business, that
         attract 86.16patrons for community, social, and entertainment purposes, such as auctions, bake
         sales, 86.17ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
         86.18craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
         86.19shows, festivals, galas, special event workshops, sporting activities such as marathons
         and 86.20tournaments, and similar events. Fund-raising events do not include the operation
         of a 86.21regular place of business in which services are provided or sales are made during
         regular 86.22hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet
         sales, 86.23regularly scheduled classes, or other activities carried out in the normal course
         of business.86.24EFFECTIVE DATE.This section is effective for sales and purchases made after 86.25June 30, 2015.86.26    Sec. 11. Minnesota Statutes 2014, section 297A.70, is amended by adding a 86.27subdivision to read:86.28    Subd. 20.Animal shelters.Sales of animals by a nonprofit animal shelter are 86.29exempt. For purposes of this subdivision, the term "nonprofit animal shelter" means
         86.30a nonprofit organization that is exempt under section 297A.70, subdivision 4, and
         is 86.31engaged in the business of rescuing, sheltering, and finding homes for unwanted animals.86.32EFFECTIVE DATE.This section is effective for sales and purchases made after 86.33June 30, 2015.87.1    Sec. 12. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:87.2    Subd. 3. Rates; tobacco products. (a) Except as provided in paragraphs (b) and (c) 87.3and subdivision 3a, a tax is imposed upon all tobacco products in this state and upon
         any 87.4person engaged in business as a distributor, at the rate of 95 percent of the wholesale
         sales 87.5price of the tobacco products. The tax is imposed at the time the distributor:87.6(1) brings, or causes to be brought, into this state from outside the state tobacco
         87.7products for sale;87.8(2) makes, manufactures, or fabricates tobacco products in this state for sale in
         87.9this state; or87.10(3) ships or transports tobacco products to retailers in this state, to be sold by
         those 87.11retailers.87.12(b) Notwithstanding paragraph (a), A minimum tax equal to the greater of the tax 87.13imposed under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 87.1420 cigarettes weighing not more than three pounds per thousand, as established under
         87.15subdivision 1, is imposed on each container of moist snuff weighing not more than 1.2 87.16ounces.  When more than one container subject to tax under this clause is packaged
         87.17together, each container is subject to the minimum tax.87.18(c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed
         87.19under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
         87.20weighing not more than three pounds per thousand, as established under subdivision
         1, 87.21times the number of ounces of moist snuff in the container, divided by 1.2, is imposed
         on 87.22each container of moist snuff weighing more than 1.2 ounces.87.23For purposes of this subdivision, a "container" means the smallest a consumer-size can, 87.24package, or other container that is marketed or packaged by the manufacturer, distributor, 87.25or retailer for separate sale to a retail purchaser. When more than one container is 87.26packaged together, each container is subject to tax.87.27EFFECTIVE DATE.This section is effective July 1, 2015.87.28    Sec. 13. Minnesota Statutes 2014, section 297F.09, subdivision 10, is amended to read:87.29    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor.87.30    A cigarette or tobacco products distributor having a liability of $250,000 or more
         during a 87.31fiscal year ending June 30, shall remit the June liability for the next year in the
         following 87.32manner:88.1    (a) Two business days before June 30 of the year, the distributor shall remit the
         88.2actual May liability and 81.4 80 percent of the estimated June liability to the commissioner 88.3and file the return in the form and manner prescribed by the commissioner.88.4    (b) On or before August 18 of the year, the distributor shall submit a return showing
         88.5the actual June liability and pay any additional amount of tax not remitted in June.
         A 88.6penalty is imposed equal to ten percent of the amount of June liability required to
         be paid 88.7in June, less the amount remitted in June. However, the penalty is not imposed if
         the 88.8amount remitted in June equals the lesser of:88.9    (1) 81.4 80 percent of the actual June liability; or88.10    (2) 81.4 80 percent of the preceding May liability.88.11EFFECTIVE DATE.This section is effective for taxes due and payable after 88.12July 1, 2015.88.13    Sec. 14. Minnesota Statutes 2014, section 297G.09, subdivision 9, is amended to read:88.14    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this 88.15chapter having a liability of $250,000 or more during a fiscal year ending June 30,
         shall 88.16remit the June liability for the next year in the following manner:88.17    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual
         88.18May liability and 81.4 80 percent of the estimated June liability to the commissioner and 88.19file the return in the form and manner prescribed by the commissioner.88.20    (b) On or before August 18 of the year, the taxpayer shall submit a return showing
         88.21the actual June liability and pay any additional amount of tax not remitted in June.
         A 88.22penalty is imposed equal to ten percent of the amount of June liability required to
         be paid 88.23in June less the amount remitted in June. However, the penalty is not imposed if the
         88.24amount remitted in June equals the lesser of:88.25    (1) 81.4 80 percent of the actual June liability; or88.26    (2) 81.4 80 percent of the preceding May liability.88.27EFFECTIVE DATE.This section is effective for taxes due and payable after 88.28July 1, 2015.88.29    Sec. 15. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:88.30    Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal 88.31solid waste shall pay a solid waste management tax of 60 cents per noncompacted 88.32cubic yard of periodic waste collection capacity purchased by the generator, based
         on 88.33the size of the container for the nonmixed municipal solid waste, the actual volume,
         89.1or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
         89.2be calculated by the waste management service provider using the same method for 89.3calculating the waste management service fee so that both are calculated according
         to 89.4container capacity, actual volume, or weight.89.5(b) Notwithstanding section 
         297H.02, a residential generator that generates 89.6nonmixed municipal solid waste shall pay a solid waste management tax in the same
         89.7manner as provided in paragraph (a).89.8(c) The weight-to-volume conversion schedule for:89.9(1) construction debris as defined in section 
         115A.03, subdivision 7, is one ton 89.10equals 3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner 89.11of revenue, after consultation with the commissioner of the Pollution Control Agency,
         89.12shall determine and may publish by notice a conversion schedule for construction debris;89.13(2) industrial waste as defined in section 
         115A.03, subdivision 13a, is equal to 89.1460 cents per cubic yard. The commissioner of revenue after consultation with the 89.15commissioner of the Pollution Control Agency, shall determine, and may publish by
         89.16notice, a conversion schedule for various industrial wastes; and89.17(3) infectious waste as defined in section 
         116.76, subdivision 12, and pathological 89.18waste as defined in section 
         116.76, subdivision 14, is 150 pounds equals one cubic yard, or 89.1960 cents per 150 pounds.89.20EFFECTIVE DATE.This section is effective for sales and purchases made after 89.21June 30, 2015.89.22    Sec. 16. Minnesota Statutes 2014, section 469.190, subdivision 1, is amended to read:89.23    Subdivision 1. Authorization. Notwithstanding section 
         477A.016 or any other law, 89.24a statutory or home rule charter city may by ordinance, and a town may by the affirmative
         89.25vote of the electors at the annual town meeting, or at a special town meeting, impose
         a 89.26tax of up to three percent on the gross receipts from the furnishing for consideration
         of 89.27lodging at a hotel, motel, rooming house, tourist court, or resort, other than the
         renting or 89.28leasing of it for a continuous period of 30 days or more. A statutory or home rule
         charter 89.29city may by ordinance impose the tax authorized under this subdivision on the camping
         89.30site receipts of a municipal campground. Regardless of whether the tax is collected locally 89.31or by the state, a tax imposed under this subdivision or under a special law applies
         to 89.32the entire consideration paid to obtain access to lodging, including ancillary or
         related 89.33services, such as services provided by accommodation intermediaries as defined in
         section 89.34297A.61, and similar services.90.1EFFECTIVE DATE.This section is effective the day following final enactment. In 90.2enacting this section, the legislature confirms that Minnesota Statutes, section 469.190,
         its 90.3predecessor provisions, and any special laws authorizing political subdivisions to
         impose 90.4lodging taxes, were and are intended to apply to the entire consideration paid to
         obtain 90.5access to lodging, including ancillary or related services, such as services provided
         by 90.6accommodation intermediaries as defined in Minnesota Statutes, section 297A.61, and
         90.7similar services. The provisions of this section must not be interpreted to imply
         a narrower 90.8construction of the tax base under lodging tax provisions of Minnesota law prior to
         the 90.9enactment of this section.90.10    Sec. 17. Minnesota Statutes 2014, section 469.190, subdivision 7, is amended to read:90.11    Subd. 7. Collection.(a) The statutory or home rule charter city may agree with the 90.12commissioner of revenue that a tax imposed pursuant to this section shall be collected
         90.13by the commissioner together with the tax imposed by chapter 297A, and subject to
         the 90.14same interest, penalties, and other rules and that its proceeds, less the cost of
         collection, 90.15shall be remitted to the city.90.16(b) If a tax under this section or under a special law is not collected by the 90.17commissioner of revenue, the local government imposing the tax may by ordinance limit
         90.18the required filing and remittance of the tax by an accommodation intermediary, as
         90.19defined in section 297A.61, subdivision 47, to once in every calendar year. The local
         90.20government must inform the accommodation intermediary of the date when the return
         90.21or remittance is due and the dates must coincide with one of the monthly dates for
         filing 90.22and remitting state sales tax under chapter 297A. The local government must also provide
         90.23accommodation intermediaries electronically with geographic and zip code information
         90.24necessary to correctly collect the tax.90.25EFFECTIVE DATE.This section is effective the day after final enactment.90.26    Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 90.27chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
         Laws 90.282003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter
         154, 90.29article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended
         to read:90.30    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         477A.016, or any other 90.31law, ordinance, or city charter provision to the contrary, the city of Duluth may,
         by 90.32ordinance, impose an additional sales tax of up to one and three-quarter percent on
         sales 90.33transactions which are described in Minnesota Statutes 2000, section 
         297A.01, subdivision 90.343, clause (c). The imposition of this tax shall not be subject to voter referendum
         under 91.1either state law or city charter provisions. When the city council determines that
         the taxes 91.2imposed under this paragraph at a rate of three-quarters of one percent and other
         sources 91.3of revenue produce revenue sufficient to pay debt service on bonds in the principal
         amount 91.4of $40,285,000 plus issuance and discount costs, issued for capital improvements at
         the 91.5Duluth Entertainment and Convention Center, which include a new arena, the rate of
         tax 91.6under this subdivision must be reduced by three-quarters of one percent.91.7(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         91.8section 
         477A.016, or any other law, ordinance, or city charter provision to the contrary, 91.9the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
         of 91.10one percent on sales transactions which are described in Minnesota Statutes 2000,
         section 91.11297A.01, subdivision 3
         , clause (c). This tax expires when the city council determines 91.12that the tax imposed under this paragraph, along with the tax imposed under section
         91.1322, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
         91.14in a principal amount of no more than $18,000,000, plus issuance and discount costs,
         91.15to finance capital improvements to public facilities to support tourism and recreational
         91.16activities in that portion of the city west of 34th 14th Avenue West and the area south of 91.17and including Skyline Parkway.91.18(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
         91.19bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for
         the 91.20costs of issuance and any premiums. The proceeds may be used to finance capital 91.21improvements to public facilities that support tourism and recreational activities
         in the 91.22portion of the city west of 34th 14th Avenue West and the area south of and including 91.23Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the 91.24provisions of Minnesota Statutes, chapter 475, except no election shall be required
         unless 91.25required by the city charter. The bonds shall not be included in computing net debt.
         The 91.26revenues from the taxes that the city of Duluth may impose under paragraph (b) and
         under 91.27section 22, paragraph (b), may be pledged to pay principal of and interest on such
         bonds.91.28EFFECTIVE DATE.This section is effective the day after the governing body of 91.29the city of Duluth and its chief clerical officer comply with Minnesota Statutes,
         section 91.30645.021, subdivisions 2 and 3.91.31    Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, 91.32article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section
         12, and 91.33Laws 2014, chapter 308, article 3, section 22, is amended to read:91.34    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND 91.35MOTELS.92.1    (a) Notwithstanding Minnesota Statutes, section 
         477A.016, or any other law, or 92.2ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
         92.3impose an additional tax of one percent upon the gross receipts from the sale of lodging
         92.4for periods of less than 30 days in hotels and motels located in the city. The tax
         shall be 92.5collected in the same manner as the tax set forth in the Duluth city charter, section
         54(d), 92.6paragraph one. The imposition of this tax shall not be subject to voter referendum
         under 92.7either state law or city charter provisions.92.8(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         92.9section 
         477A.016, or any other law, ordinance, or city charter provision to the contrary, 92.10the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
         92.11of one percent on the gross receipts from the sale of lodging for periods of less
         than 92.1230 days in hotels and motels located in the city. This tax expires when the city council
         92.13first determines that the tax imposed under this paragraph, along with the tax imposed
         92.14under section 21, paragraph (b), has produced revenues sufficient to pay the debt
         92.15service on bonds in a principal amount of no more than $18,000,000, plus issuance
         and 92.16discount costs, to finance capital improvements to public facilities to support tourism
         and 92.17recreational activities in that portion of the city west of 34th 14th Avenue West and the 92.18area south of and including Skyline Parkway.92.19EFFECTIVE DATE.This section is effective the day after the governing body of 92.20the city of Duluth and its chief clerical officer comply with Minnesota Statutes,
         section 92.21645.021, subdivisions 2 and 3.92.22    Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by 92.23Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7,
         section 9, 92.24and Laws 2009, chapter 88, article 4, section 14, is amended to read:92.25    Subd. 3.  Use of revenues.(a) Revenues received from taxes authorized by 92.26subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax
         and to 92.27pay all or a portion of the expenses of constructing and improving facilities as part
         of an 92.28urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
         92.29expenses include, but are not limited to, acquiring property and paying relocation
         expenses 92.30related to the development of Riverfront 2000 and related facilities, and securing
         or paying 92.31debt service on bonds or other obligations issued to finance the construction of Riverfront
         92.322000 and related facilities. For purposes of this section, "Riverfront 2000 and related
         92.33facilities" means a civic-convention center, an arena, a riverfront park, a technology
         center 92.34and related educational facilities, and all publicly owned real or personal property
         that 92.35the governing body of the city determines will be necessary to facilitate the use
         of these 93.1facilities, including but not limited to parking, skyways, pedestrian bridges, lighting,
         and 93.2landscaping. It also includes the performing arts theatre and the Southern Minnesota
         93.3Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.93.4    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
         93.5to voter approval at a special or general election held on or before December 31,
         2018, the 93.6city may by ordinance also use revenues from taxes authorized under subdivisions 1
         and 2:93.7    (1) up to a maximum of $29,000,000, plus associated bond costs, to pay all or a 93.8portion of the expenses of the following capital projects:93.9    (i) improvements to regional recreational facilities including existing hockey and
         93.10curling rinks, a baseball park, youth athletic fields and facilities, and the municipal
         93.11swimming pool including improvements to make the pool compliant with the Americans
         93.12with Disabilities Act; 93.13    (ii) improvements to flood control and the levee system;93.14(iii) water quality improvement projects in Blue Earth and Nicollet Counties; 93.15(iv) expansion of the regional transit building and related multimodal transit 93.16improvements;93.17(v) regional public safety and emergency communications improvements and 93.18equipment; and93.19(vi) matching funds for improvements to publicly owned regional facilities including
         93.20a historic museum, supportive housing, and a senior center; and93.21(2) up to a maximum of $25,000,000, plus associated bond costs, to pay all or a 93.22portion of the costs of constructing the following new regional athletic facilities:
         ice 93.23sheets, swimming and aquatic facility, multi-use sports bubble, indoor field house,
         or 93.24indoor tennis courts. 93.25(c) The additional uses of revenues authorized in paragraph (b) must be presented
         to 93.26voters in one ballot question. The election must be held on the same date as the election
         to 93.27extend the North Mankato local option sales tax authorized under section 25 of this
         article.93.28EFFECTIVE DATE.This section is effective the day after the governing body of 93.29the city of Mankato and its chief clerical officer timely complete their compliance
         with 93.30Minnesota Statutes, section 645.021, subdivisions 2 and 3.93.31    Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by 93.32Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008,
         chapter 93.33366, article 7, section 10, is amended to read:93.34    Subd. 4.  Expiration of taxing authority and expenditure limitation. The 93.35authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an
         excise tax 94.1shall expire on at the later of when revenues are sufficient to pay off the bonds, including 94.2interest and all other associated bond costs authorized under subdivision 5, or  December 94.331, 2022, unless the additional uses under subdivision 3, paragraph (b), are authorized. If
         94.4the additional uses allowed in subdivision 3, paragraph (b), are authorized, the taxes
         expire 94.5at the later of when revenues are sufficient to pay off the bonds, including interest
         and all 94.6other associated bond costs authorized under subdivision 5, or December 31, 2038.
         Upon 94.7expiration of the taxes, any remaining fund balance of revenues derived from the taxes
         94.8shall be disbursed to the general fund of the city. The taxes imposed under subdivisions
         1 94.9and 2 may expire at an earlier time if the city so determines by ordinance. 94.10EFFECTIVE DATE.This section is effective the day following final enactment 94.11without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.94.12    Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:94.13    Subd. 5. Bonds.(a) The city of Mankato may issue general obligation bonds of the 94.14city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
         94.15without election under Minnesota Statutes, chapter 475, on the question of issuance
         of the 94.16bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
         94.17and related facilities shall not be included in computing any debt limitations applicable
         94.18to the city of Mankato, and the levy of taxes required by section 
         475.61 to pay principal 94.19of and interest on the bonds shall not be subject to any levy limitation or be included
         in 94.20computing or applying any levy limitation applicable to the city.94.21    (b) The city of Mankato, subject to voter approval at the election required under
         94.22subdivision 3, paragraph (b), may issue general obligation bonds of the city in an
         amount 94.23not to exceed $29,000,000 for the projects listed under subdivision 3, paragraph (b),
         94.24clause (1), and not to exceed $25,000,000 for the projects listed under subdivision
         3, 94.25paragraph (b), clause (2), without election under Minnesota Statutes, chapter 475,
         on the 94.26question of issuance of the bonds or a tax to pay them. The debt represented by bonds
         94.27under this paragraph shall not be included in computing any debt limitations applicable
         94.28to the city of Mankato, and the levy of taxes required by Minnesota Statutes, section
         94.29475.61, to pay principal of and interest on the bonds, and shall not be subject to any levy
         94.30limitation or be included in computing or applying any levy limitation applicable
         to the 94.31city. The city may use tax revenue in excess of one year's principal interest reserve
         for 94.32intended annual bond payments to pay all or a portion of the cost of capital improvements
         94.33authorized in subdivision 3.95.1    (c) Notwithstanding the maximum bond limits in this subdivision, the city may use
         95.2tax revenue in excess of any and all annual principal and interest payment obligations
         for 95.3capital replacement associated with the uses authorized in subdivision 3.95.4EFFECTIVE DATE.This section is effective the day following final enactment 95.5without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.95.6    Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:95.7    Subd. 6. Reverse referendum; authorization of extensions.(a) If the Mankato city 95.8council intends to exercise the authority provided by this section, it shall pass
         a resolution 95.9stating the fact before July 1, 1991. The resolution must be published for two successive
         95.10weeks in the official newspaper of the city or, if there is no official newspaper,
         in a 95.11newspaper of general circulation in the city, together with a notice fixing a date
         for a public 95.12hearing on the matter. The hearing must be held at least two weeks but not more than
         four 95.13weeks after the first publication of the resolution. Following the public hearing,
         the city 95.14may determine to take no further action or adopt a resolution confirming its intention
         to 95.15exercise the authority. That resolution must also be published in the official newspaper
         of 95.16the city or, if there is no official newspaper, in a newspaper of general circulation
         in the 95.17city. If within 30 days after publication of the resolution a petition signed by voters
         equal 95.18in number to ten percent of the votes cast in the city in the last general election
         requesting 95.19a vote on the proposed resolution is filed with the county auditor, the resolution
         is not 95.20effective until it has been submitted to the voters at a general or special election
         and a 95.21majority of votes cast on the question of approving the resolution are in the affirmative.
         The 95.22commissioner of revenue shall prepare a suggested form of question to be presented
         at the 95.23election. The referendum must be held at a special or general election before December
         1, 95.241991. This subdivision applies notwithstanding any city charter provision to the contrary.95.25    (b) If the Mankato city council wishes to extend the taxes authorized under 95.26subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph
         (b) or 95.27(c), the city must pass a resolution extending the taxes before July 1, 2015. The
         tax may 95.28not be imposed unless approved by the voters.95.29EFFECTIVE DATE.This section is effective the day following final enactment 95.30without local approval pursuant to Minnesota Statutes, section 645.023, subdivision
         1.95.31    Sec. 24. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws 95.322011, First Special Session chapter 7, article 3, section 17, is amended to read:96.1EFFECTIVE DATE.This section is effective for sales and purchases after June 30, 96.22006, and before July 1, 2015.96.3EFFECTIVE DATE.This section is effective the day following final enactment.96.4    Sec. 25. Laws 2008, chapter 366, article 7, section 20, is amended to read:96.5    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.96.6    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 96.7section 
         477A.016, or any other provision of law, ordinance, or city charter, pursuant to 96.8the approval of the voters on November 7, 2006, the city of North Mankato may impose
         96.9by ordinance a sales and use tax of one-half of one percent for the purposes specified
         96.10in subdivision 2. The provisions of Minnesota Statutes, section 
         297A.99, govern the 96.11imposition, administration, collection, and enforcement of the taxes authorized under
         96.12this subdivision. 96.13    Subd. 2. Use of revenues.(a) Revenues received from the tax authorized by 96.14subdivision 1 must be used to pay all or part of the capital costs of the following
         projects: 96.15    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 96.16interchange project; 96.17    (2) development of regional parks and hiking and biking trails;96.18    (3) expansion of the North Mankato Taylor Library;96.19    (4) riverfront redevelopment; and96.20    (5) lake improvement projects.96.21    The total amount of revenues from the tax in subdivision 1 that may be used to fund
         96.22these projects is $6,000,000 plus any associated bond costs.96.23    (b) If the city extends the tax as authorized under subdivision 2a, paragraph (a),
         the 96.24total amount that may be used to fund these projects is increased by $9,000,000, plus
         96.25associated bond costs, including interest on the bonds, minus any revenues used for
         the 96.26purposes listed in paragraph (c).96.27(c) Revenues raised from the tax imposed under subdivision 1 may also be used to 96.28fund all or a portion of the costs of constructing new regional athletic facilities:
         ice sheets, 96.29swimming and aquatic facility, multi-use sports bubble, indoor field house, or indoor
         96.30tennis courts if those facilities are constructed within the corporate boundaries
         of the city 96.31of North Mankato. The tax may only be used for this purpose if authorized by the voters
         96.32as provided for in subdivision 2a, paragraph (b).96.33    Subd. 2a.Authorization to extend the tax.(a) Notwithstanding section 297A.99, 96.34subdivision 3, if the North Mankato city council intends to extend the tax authorized
         under 96.35subdivision 1 to cover an additional $9,000,000 in bonds, plus associated bond costs,
         97.1including interest on the bonds, to fund the projects in subdivision 2, paragraph
         (a), the 97.2city must pass a resolution extending the tax before July 1, 2015. The resolution
         is not 97.3effective until it has been submitted to the voters at a general or special election
         and a 97.4majority of votes cast on the question of approving the resolution are in the affirmative.
         97.5The referendum must be held at a special or general election before December 1, 2018,
         97.6and must be held on the same date as the referendum required under section 20. This
         97.7subdivision applies notwithstanding any city charter provision to the contrary.97.8(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
         97.9at a special or general election held on or before December 1, 2018, the city may
         use up 97.10to $5,000,000, plus associated bond costs of the additional sales tax revenue allowed
         to 97.11be raised under paragraph (a), to pay all or a portion of the costs of constructing
         the new 97.12regional athletic facilities listed in subdivision 2, paragraph (c). The referendum
         required 97.13under this paragraph must be held on the same date as the referendum required under
         97.14paragraph (a). The uses of revenues authorized in this paragraph and paragraph (a)
         must 97.15be presented to voters in one ballot question. The election must be held on the same
         date 97.16as the election to extend the Mankato local option sales tax authorized under section
         20.97.17    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the 97.18voters at the November 7, 2006 referendum authorizing the imposition of the taxes
         in 97.19this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital
         and 97.20administrative expenses for the projects described in subdivision 2, paragraph (a), in an 97.21amount that does not exceed $6,000,000. A separate election to approve the bonds under
         97.22Minnesota Statutes, section 
         475.58, is not required.97.23(b) The city of North Mankato, subject to voter approval under subdivision 2a, 97.24paragraph (a), allowing for additional revenue to be spent for the projects in subdivision
         2, 97.25paragraph (a), may issue additional bonds under Minnesota Statutes, chapter 475, to
         pay 97.26capital and administrative expenses for those projects in an amount that does not
         exceed 97.27$9,000,000, plus associated bond costs, including interest on the bonds. If approved
         by 97.28voters as required under subdivision 2a, paragraph (b), up to $5,000,000 of the bonds,
         plus 97.29associated bond costs, may be used to pay capital and administrative costs for the
         projects 97.30listed in subdivision 2, paragraph (b), instead. A separate election to approve the
         bonds 97.31under Minnesota Statutes, section 475.58, is not required.97.32    (b) (c) The debt represented by the bonds is not included in computing any debt 97.33limitation applicable to the city, and any levy of taxes under Minnesota Statutes,
         section 97.34475.61
         , to pay principal and interest on the bonds is not subject to any levy limitation.98.1    (d) Notwithstanding the maximum bond limits set forth above, the city may use tax
         98.2revenue in excess of any and all annual principal and interest payment obligations
         for 98.3capital replacement associated with the uses authorized in subdivision 2.98.4    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when 98.5the city council determines that the amount of revenues received from the taxes to
         pay for 98.6the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the 98.7additional amount needed to pay the costs related to issuance of bonds under subdivision
         98.83, including interest on the bonds, unless the tax is extended as allowed in this section. 98.9If the tax is extended as allowed under subdivision 2a, paragraphs (a) and (b), the
         tax 98.10expires December 31, 2038. Any funds remaining after completion of the projects and 98.11retirement or redemption of the bonds shall be placed in a capital facilities and
         equipment 98.12replacement fund of the city. The tax imposed under subdivision 1 may expire at an
         earlier 98.13time if the city so determines by ordinance. 98.14EFFECTIVE DATE.This section is effective the day after the governing body of 98.15the city of North Mankato and its chief clerical officer timely complete their compliance
         98.16with Minnesota Statutes, section 645.021, subdivisions 2 and 3.98.17    Sec. 26. Laws 2013, chapter 143, article 8, section 22, the effective date, as amended 98.18by Laws 2014, chapter 308, article 3, section 30, is amended to read:98.19EFFECTIVE DATE.Subdivision 7, paragraph (c), clause (2), is effective for sales 98.20and purchases made after June 30, 2013. The provisions of subdivision 7, paragraph
         (b), 98.21and paragraph (c), clause (8), are effective retroactively for sales and purchases
         made 98.22after April 1, 2009. Any vendor who paid sales or use tax on items now exempt under
         98.23subdivision 7, paragraph (b), and paragraph (c), clause (8), that were sold after
         April 1, 98.242009, and before July 1, 2013, may apply for a refund of the sales or use tax paid
         in the 98.25manner provided in Minnesota Statutes, section 
         289A.50, subdivision 1, but only if the 98.26vendor did not collect and remit sales tax on the items for which a refund is claimed.
         98.27Interest on the refund shall be paid at the rate in Minnesota Statutes, section 
         270C.405, 98.28from 90 days after the refund claim is filed with the commissioner of revenue. The
         amount 98.29to make the refunds is annually appropriated to the commissioner of revenue from the
         98.30general fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes,
         98.31section 
         289A.40, claims may be filed with the commissioner until June 30, 2015 2016.98.32EFFECTIVE DATE.This section is effective the day following final enactment.99.1    Sec. 27. Laws 2013, chapter 143, article 8, section 23, the effective date, as amended 99.2by Laws 2014, chapter 308, article 3, section 31, is amended to read:99.3EFFECTIVE DATE.This section is effective for sales and purchases made after 99.4June 30, 2013, except that the provision regarding accessories and supplies purchased
         99.5in a transaction covered by Medicare or Medicaid that are not already exempt under
         99.6Minnesota Statutes, section 
         297A.67, subdivision 7, and the provision defining "Medicare" 99.7and "Medicaid" are effective retroactively for sales and purchases made after April
         1, 99.82009. Any vendor who paid sales or use tax on accessories and supplies purchased in
         a 99.9transaction covered by Medicare or Medicaid that are not already exempt under Minnesota
         99.10Statutes, section 
         297A.67, subdivision 7, and that were sold after April 1, 2009, and before 99.11July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided
         in 99.12Minnesota Statutes, section 
         289A.50, subdivision 1, but only if the vendor did not collect 99.13and remit sales tax on the accessories and supplies for which a refund is claimed.
         Interest 99.14on the refund shall be paid at the rate in Minnesota Statutes, section 
         270C.405, from 90 99.15days after the refund claim is filed with the commissioner of revenue. The amount
         to make 99.16the refunds is annually appropriated to the commissioner of revenue from the general
         99.17fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes,
         section 99.18289A.40
         , claims may be filed with the commissioner until June 30, 2015 2016.99.19EFFECTIVE DATE.This section is effective retroactively for sales and purchases 99.20made after April 1, 2009.99.21    Sec. 28. Laws 2014, chapter 308, article 7, section 7, is amended to read:99.22    Sec. 7. CITY OF LUVERNE LOCAL SALES TAX.99.23(a) Notwithstanding Minnesota Statutes, sections 
         297A.99, 
         297A.993, and 99.24477A.016
         , or any other contrary provision of law, ordinance, or city charter, the city of
         99.25Luverne may, by ordinance, impose a sales and use tax of up to one-half of one percent
         for 99.26the purposes specified in paragraph (b), if approved by the voters at a general election held 99.27prior to December 31, 2020. Except as otherwise provided in this section, the provisions 99.28of Minnesota Statutes, section 
         297A.99, subdivisions 4 to 13, govern the imposition, 99.29administration, collection, and enforcement of the tax authorized under this paragraph.99.30(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs of
         99.31collection, must be first used by the city to pay debt service on bonds issuedthe city's 99.32local share under Minnesota Statutes, section 
         469.194477A.20, to fund the Lewis and 99.33Clark Regional Water System project. Revenues collected in any calendar year in excess
         99.34of the city obligation to pay for debt service on bonds issuedthe city's local share under 100.1Minnesota Statutes, section 
         469.194477A.20, may be retained by the city and used for 100.2funding other capital projects within the city.100.3(c) A tax imposed under paragraph (a) expires when the city's share of bondslocal 100.4share issued under Minnesota Statutes, section 
         469.194477A.20, to fund the Lewis and 100.5Clark Regional Water System Project has been made, or at an earlier time if approved
         100.6by the city council. The tax must not terminate before the city council determines
         that 100.7revenues from this tax and any other revenue source the city dedicates are sufficient
         to 100.8pay the citycity's local share of debtservice on bonds issued under Minnesota Statutes, 100.9section 
         469.194477A.20.100.10EFFECTIVE DATE.This section is effective the day following final enactment.100.11    Sec. 29. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.100.12(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
         100.13of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section
         14, 100.14and file its approval with the secretary of state by June 15, 2013.  If approved as
         authorized 100.15under this paragraph, actions undertaken by the city pursuant to the approval of the
         voters 100.16on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
         100.17chapter 7, article 4, section 14, are validated.100.18(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
         100.19Special Session chapter 7, article 4, section 14, and subject to local approval under
         100.20paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.100.21EFFECTIVE DATE.This section is effective the day following final enactment.100.22ARTICLE 5100.23PROPERTY TAX AIDS AND CREDITS100.24    Section 1. Minnesota Statutes 2014, section 477A.0124, subdivision 4, is amended to 100.25read:100.26    Subd. 4. County tax-base equalization aid. (a) For 2006 and subsequent years, 100.27the money appropriated to county tax-base equalization aid each calendar year, after
         the 100.28payment under paragraph (f), shall be apportioned among the counties according to
         each 100.29county's tax-base equalization aid factor.100.30(b) A county's tax-base equalization aid factor is equal to the amount by which (i)
         100.31$185 $330 times the county's population, exceeds (ii) 9.45 12 percent of the county's 100.32net tax capacity.101.1(c) In the case of a county with a population less than 10,000, the factor determined
         101.2in paragraph (b) shall be multiplied by a factor of three.101.3(d) In the case of a county with a population greater than or equal to 10,000, but
         less 101.4than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor
         of two.101.5(e) In the case of a county with a population greater than or equal to 12,500 but
         less 101.6than 16,500, the factor determined in paragraph (b) shall be multiplied by a factor
         of 1.25.101.7(e) (f) In the case of a county with a population greater than 500,000, the factor 101.8determined in paragraph (b) shall be multiplied by a factor of 0.25.101.9(g) For distributions in 2016, the allocation to a county under paragraphs (a) to
         (f) 101.10shall not be less than 95 percent of the sum of the tax base equalization aid in 2014
         plus 101.11any supplemental program aid that was distributed to the county under Laws 2014, chapter
         101.12308, article 1, section 13. For distributions in 2017 and subsequent years, the allocation
         101.13to a county under paragraphs (a) to (f) shall not be less than 95 percent of the tax
         base 101.14equalization aid of the county in the prior year.101.15(h) Beginning with aid payable in 2017, the amount under paragraph (b), item (i),
         101.16shall be increased by the ratio of the statewide net tax capacity per capita to the
         statewide 101.17net tax capacity per capita in the 2014 assessment year provided that in no case shall
         the 101.18ratio be less than one or the ratio in the prior year, whichever is greater. The amount
         shall 101.19be rounded to the nearest $10. The statewide taxable market value per capita shall
         be 101.20calculated using the most recent population available for the relevant assessment
         year at 101.21the time of the calculation of the aid by the commissioner under section 477A.014.101.22(f) (i) Before the money appropriated to county base equalization aid is apportioned 101.23among the counties as provided in paragraph (a), an amount up to $73,259 is allocated
         101.24annually to Anoka County and up to $59,664 is annually allocated to Washington County
         101.25for the county to pay postretirement costs of health insurance premiums for court
         101.26employees. The allocation under this paragraph is in addition to the allocations under
         101.27paragraphs (a) to (e) (h).101.28EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.101.29    Sec. 2. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 101.30CERTAIN OUT-OF-HOME PLACEMENT.101.31    Subdivision 1.Definition.When used in this section, "out-of-home placement" 101.32means 24-hour substitute care for an Indian child as defined by section 260C.007,
         101.33subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
         101.34away from the child's parent or guardian and for whom the county social services agency
         101.35or county correctional agency has been assigned responsibility for the child's placement
         102.1and care, which includes placement in foster care under section 260C.007, subdivision
         102.218, and a correctional facility pursuant to a court order.102.3    Subd. 2.Determination of nonfederal share of costs.(a) By January 1, 2016, each 102.4county shall report the following information to the commissioners of human services
         and 102.5corrections: (1) the separate amounts paid out of its social service agency and its
         corrections 102.6budget for out-of-home placement of children under the ICWA in calendar years 2012,
         102.72013, and 2014; and (2) the number of case days associated with the expenditures from
         102.8each budget. By March 15, 2016, the commissioner of human services, in consultation
         with 102.9the commissioner of corrections, shall certify to the commissioner of revenue and
         to the 102.10legislative committees responsible for local government aids and out-of-home placement
         102.11funding, whether the data reported under this subdivision accurately reflects total
         102.12expenditures by counties for out-of-home placement costs of children under the ICWA.102.13(b) By January 1, 2018, and each January 1 thereafter, each county shall report to
         the 102.14commissioners of human services and corrections the separate amounts paid out of its
         102.15social service agency and its corrections budget for out-of-home placement of children
         102.16under the ICWA in the calendar years two years before the current calendar year along
         102.17with the number of case days associated with the expenditures from each budget.102.18(c) Until the commissioner of human services develops another mechanism for 102.19collecting and verifying data on out-of-home placements of children under the ICWA,
         and 102.20the legislature authorizes the use of that data, the data collected under this subdivision
         102.21must be used to calculate payments under subdivision 3. The commissioner of human
         102.22services shall certify the nonfederal out-of-home placement costs for the three prior
         102.23calendar years for each county to the commissioner of revenue by June 1 of the year
         102.24prior to the aid payment.102.25    Subd. 3.Aid payments to counties.For aids payable in calendar year 2017 and 102.26thereafter, the commissioner of revenue shall reimburse each county for 100 percent
         of 102.27the nonfederal share of the cost of out-of-home placement of children under the ICWA
         102.28provided the commissioner of human services, in consultation with the commissioner
         102.29of corrections, certifies to the commissioner of revenue that accurate data is available
         102.30to make the aid determination under this section. The amount of reimbursement is the
         102.31county's average nonfederal share of the cost for out-of-home placement of children
         102.32under the ICWA for the most recent three calendar years for which data is available.
         102.33The commissioner shall pay the aid under the schedule used for local government aid
         102.34payments under section 477A.015.102.35    Subd. 4.Aid payments to tribes.(a) By January 1, 2016, and each year 102.36thereafter, each tribe must certify to the commissioner of revenue the amount of federal
         103.1reimbursement received by the tribe for out-of-home placement of children under the
         103.2ICWA for the immediately preceding three calendar years.103.3(b) The amount of reimbursement to the tribe shall be the greater of: (1) five 103.4percent of the average reimbursement amount received from the federal government for
         103.5out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
         103.6The commissioner shall pay the aid under this section under the schedule used for
         local 103.7government aid payments under section 477A.015.103.8    Subd. 5.Appropriation.An amount sufficient to pay aid under this section is 103.9annually appropriated to the commissioner of revenue from the general fund.103.10EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.103.11    Sec. 3. Minnesota Statutes 2014, section 477A.013, subdivision 1, is amended to read:103.12    Subdivision 1. Towns and unorganized territories. In 2014 2016 and thereafter, 103.13each town and the total area of any unorganized territory within a county is eligible for 103.14a distribution under this subdivision equal to the product of (i) its agricultural
         property 103.15factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this 103.16subdivision, the following terms have the meanings given them:103.17(1) "agricultural property factor" means the ratio of the adjusted net tax capacity
         of 103.18agricultural property located in a town, or unorganized territory divided by the adjusted 103.19net tax capacity of all other property located in the town or unorganized territory. The 103.20agricultural property factor cannot exceed eight;103.21(2) "agricultural property" means property classified under section 
         273.13, as 103.22homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
         103.23seasonal recreational property;103.24(3) "town area factor" means the most recent estimate of total acreage, not to exceed 103.2550,000 acres, located in the case of a township, or 75,000 acres in the case of unorganized 103.26territory, available as of July 1 in the aid calculation year, estimated or established by:103.27(i) the United States Bureau of the Census;103.28(ii) the State Land Management Information Center Minnesota Geospatial 103.29Information Office; or103.30(iii) the secretary of state; and103.31(4) "population factor" means the square root of the towns' town's or unorganized 103.32territory's population.103.33If the sum of the aids payable to all towns and unorganized territories under this 103.34subdivision exceeds or is less than the limit under section 
         477A.03, subdivision 2c, 103.35the distribution to each town and unorganized territory must be reduced or increased 104.1proportionately so that the total amount of aids distributed under this section does
         not 104.2exceed the limit in section 
         477A.03, subdivision 2c.104.3EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.104.4    Sec. 4. Minnesota Statutes 2014, section 477A.014, subdivision 1, is amended to read:104.5    Subdivision 1. Calculations and payments. (a) The commissioner of revenue shall 104.6make all necessary calculations and make payments pursuant to sections 
         477A.013 and 104.7477A.03
          directly to the affected taxing authorities annually. In addition, the commissioner
         104.8shall notify the authorities of their aid amounts, as well as the computational factors
         used 104.9in making the calculations for their authority, and those statewide total figures
         that are 104.10pertinent, before August 1 of the year preceding the aid distribution year. In the case of 104.11unorganized territory, the commissioner shall notify the affected county government
         of 104.12the aid amount for any unorganized territory within the county and make payments of
         aid 104.13payable based on unorganized territory to the county government. The aid received
         by the 104.14county government must be spent in and for the unorganized territory.104.15(b) For the purposes of this subdivision, aid is determined for a city or, town, 104.16or unorganized territory based on its city or, town, or unorganized territory status as 104.17of June 30 of the year preceding the aid distribution year. If the effective date
         for a 104.18municipal incorporation, consolidation, annexation, detachment, dissolution, or township
         104.19organization is on or before June 30 of the year preceding the aid distribution year,
         such 104.20change in boundaries or form of government shall be recognized for aid determinations
         for 104.21the aid distribution year. If the effective date for a municipal incorporation, consolidation,
         104.22annexation, detachment, dissolution, or township organization is after June 30 of
         the year 104.23preceding the aid distribution year, such change in boundaries or form of government
         shall 104.24not be recognized for aid determinations until the following year.104.25(c) Changes in boundaries or form of government will only be recognized for the 104.26purposes of this subdivision, to the extent that: (1) changes in market values are
         included 104.27in market values reported by assessors to the commissioner, and changes in population
         104.28and household size are included in their respective certifications to the commissioner
         as 104.29referenced in section 
         477A.011, or (2) an annexation information report as provided in 104.30paragraph (d) is received by the commissioner on or before July 15 of the aid calculation
         104.31year. Revisions to estimates or data for use in recognizing changes in boundaries
         or form 104.32of government are not effective for purposes of this subdivision unless received by
         the 104.33commissioner on or before July 15 of the aid calculation year. Clerical errors in
         the 104.34certification or use of estimates and data established as of July 15 in the aid calculation
         104.35year are subject to correction within the time periods allowed under subdivision 3.105.1(d) In the case of an annexation, an annexation information report may be completed
         105.2by the annexing jurisdiction and submitted to the commissioner for purposes of this
         105.3subdivision if the net tax capacity of annexed area for the assessment year preceding
         the 105.4effective date of the annexation exceeds five percent of the city's net tax capacity
         for the 105.5same year. The form and contents of the annexation information report shall be prescribed
         105.6by the commissioner. The commissioner shall change the net tax capacity, the population,
         105.7the population decline, the commercial industrial percentage, and the transformed
         105.8population for the annexing jurisdiction only if the annexation information report
         provides 105.9data the commissioner determines to be reliable for all of these factors used to compute
         city 105.10revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
         105.11housing percentage and household size only if the entire area of an existing city
         or, town, 105.12or unorganized territory is annexed or consolidated and only if reliable data is available 105.13for all of these factors used to compute city revenue need for the annexing jurisdiction.105.14EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.105.15    Sec. 5. Minnesota Statutes 2014, section 477A.015, is amended to read:105.16477A.015 PAYMENT DATES.105.17The commissioner of revenue shall make the payments of local government aid to 105.18affected taxing authorities in two four installments on March 15, July 20 and December 26 105.1915, September 15, and November 15 annually.105.20When the commissioner of public safety determines that a local government has 105.21suffered financial hardship due to a natural disaster, the commissioner of public
         safety 105.22shall notify the commissioner of revenue, who shall make payments of aids under sections
         105.23477A.011
          to 
         477A.014, which are otherwise due on December 26 November 15, as soon 105.24as is practical after the determination is made but not before July 20.105.25The commissioner may pay all or part of the payments of aids under sections 105.26477A.011
          to 
         477A.014, which are due on December 26 November 15 at any time after 105.27August 15 if a local government requests such payment as being necessary for meeting
         its 105.28cash flow needs. For aids payable in 2013 only, a city that is located in an area deemed a 105.29disaster area during the month of April 2013, as defined in section 12A.02, subdivision 5, 105.30shall receive its December 26, 2013 payment with its July 20, 2013 payment.105.31EFFECTIVE DATE.This section is effective for aids payable in calendar year 105.322016 and thereafter.105.33    Sec. 6. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:106.1    Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial 106.2accounting and reporting standards in conformity with national standards to be applicable
         106.3to cities and towns of more than 2,500 population and uniform reporting standards
         to be 106.4applicable to cities and towns of less than 2,500 population.106.5EFFECTIVE DATE.This section applies to reporting of financial information for 106.6years ending on or after December 31, 2015.106.7    Sec. 7. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:106.8    Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive 106.9distributions under sections 
         477A.011 to 
         477A.03, counties and,  cities, and towns must 106.10conform to the standards set in subdivision 2 in making all financial reports required
         to be 106.11made to the state auditor after June 30, 1984.106.12EFFECTIVE DATE.This section applies to reporting of financial information for 106.13years ending on or after December 31, 2015.106.14    Sec. 8. Minnesota Statutes 2014, section 477A.03, subdivision 2a, is amended to read:106.15    Subd. 2a. Cities. For aids payable in 2014, the total aid paid under section 106.16477A.013, subdivision 9
         , is $507,598,012. The total aid paid under section 
         477A.013, 106.17subdivision 9
         , is $516,898,012 for aids payable in 2015. For aids payable in 2016 and 106.18thereafter, the total aid paid under section 
         477A.013, subdivision 9, is $519,398,012 106.19$540,940,079. For aids payable in 2017 and thereafter, the total aid paid under section
         106.20477A.013, subdivision 9, is $564,982,145.106.21EFFECTIVE DATE.This section is effective for aids payable in calendar year 106.222016 and thereafter.106.23    Sec. 9. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:106.24    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter through 2016, 106.25the total aid payable under section 
         477A.0124, subdivision 3, is $100,795,000. For 106.26aids payable in 2017 and thereafter, the total aid payable under section 477A.0124,
         106.27subdivision 3, is $102,895,000. Each calendar year, $500,000 of this appropriation shall 106.28be retained by the commissioner of revenue to make reimbursements to the commissioner
         106.29of management and budget for payments made under section 
         611.27. The reimbursements 106.30shall be to defray the additional costs associated with court-ordered counsel under
         section 106.31611.27
         . Any retained amounts not used for reimbursement in a year shall be included in 107.1the next distribution of county need aid that is certified to the county auditors
         for the 107.2purpose of property tax reduction for the next taxes payable year.107.3    (b) For aids payable in 2014 and thereafter 2015, the total aid under section 107.4477A.0124, subdivision 4
         , is $104,909,575. For aids payable in 2016, the total aid paid 107.5under section 477A.0124 is $129,909,575. For aids payable in 2017 and thereafter,
         107.6the total aid payable under section 477A.0124, subdivision 4, is $132,509,575. The 107.7commissioner of revenue shall transfer to the commissioner of management and budget
         107.8$207,000 annually for the cost of preparation of local impact notes as required by
         section 107.93.987
         , and other local government activities. The commissioner of revenue shall transfer
         107.10to the commissioner of education $7,000 annually for the cost of preparation of local
         107.11impact notes for school districts as required by section 
         3.987. The commissioner of 107.12revenue shall deduct the amounts transferred under this paragraph from the appropriation
         107.13under this paragraph. The amounts transferred are appropriated to the commissioner
         of 107.14management and budget and the commissioner of education respectively.107.15EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.107.16    Sec. 10. Minnesota Statutes 2014, section 477A.03, subdivision 2c, is amended to read:107.17    Subd. 2c. Towns and unorganized territories. For aids payable in 2014 2016 107.18and thereafter, the total aids paid under section 
         477A.013, subdivision 1, is limited to 107.19$10,000,000 $12,000,000. For aids payable in 2015 and thereafter, the total aids paid 107.20under section 477A.013, subdivision 1, is limited to the amount certified to be paid in 107.21the previous year.107.22EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.107.23    Sec. 11. Minnesota Statutes 2014, section 477A.12, subdivision 1, is amended to read:107.24    Subdivision 1. Types of land; payments.  The following amounts are annually 107.25appropriated to the commissioner of natural resources from the general fund for transfer
         107.26to the commissioner of revenue. The commissioner of revenue shall pay the transferred
         107.27funds to counties as required by sections 
         477A.11 to 
         477A.14. The amounts, based on the 107.28acreage as of July 1 of each year prior to the payment year, are:107.29(1) $5.133 multiplied by (i) the total number of acres of acquired natural resources 107.30land or, at the county's option three-fourths of one percent of the appraised value
         of all 107.31acquired natural resources land in the county, whichever is greater; and (ii) the total 107.32number of acres in the county that were purchased by a federally recognized Indian
         tribe 107.33with funding provided under section 97A.056;108.1(2) $5.133, multiplied by the total number of acres of transportation wetland or,
         at 108.2the county's option, three-fourths of one percent of the appraised value of all transportation
         108.3wetland in the county, whichever is greater;108.4(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
         108.5at the county's option, three-fourths of one percent of the appraised value of all
         wildlife 108.6management land in the county, whichever is greater;108.7(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
         108.8the number of acres of military refuge land in the county;108.9(5) $1.50 $2, multiplied by the number of acres of county-administered other natural 108.10resources land in the county;108.11(6) $5.133, multiplied by the total number of acres of land utilization project land
         108.12in the county;108.13(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other 108.14natural resources land in the county; and108.15    (8) without regard to acreage, and notwithstanding the rules adopted under section
         108.1684A.55
         , $300,000 for local assessments under section 
         84A.55, subdivision 9, that shall be 108.17divided and distributed to the counties containing state-owned lands within a conservation
         108.18area in proportion to each county's percentage of the total annual ditch assessments.; and108.19(9) without regard to acreage, and notwithstanding the rules adopted under section
         108.2084A.55, $300,000 for past unpaid local assessments under section 84A.55, subdivision 9, 108.21shall be distributed to the counties containing state-owned lands within a conservation
         108.22area in proportion to each county's percentage of the total past unpaid ditch assessments.
         108.23The payments shall be made for aids payable in calendar years 2015 through 2024. The
         108.24payments made to counties under this paragraph shall be considered the final payment
         108.25for this purpose.108.26The commissioner of natural resources shall certify the number of acres and appraised
         108.27values for wildlife management lands under clause (3) for calendar year 2013 to the
         108.28commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the
         108.29payment for any positive difference in the 2013 payment under clause (3) by June 30,
         2014.108.30EFFECTIVE DATE.Changes to clause (1) are effective for aids payable in 108.31calendar year 2017 and thereafter. Changes to clauses (5), (7), and (9) are effective
         for 108.32aids payable in calendar year 2015 and thereafter.108.33    Sec. 12. Minnesota Statutes 2014, section 477A.12, subdivision 2, is amended to read:109.1    Subd. 2. Procedure. (a) Each county auditor shall certify to the Department of 109.2Natural Resources during July of each year prior to the payment year the number of
         acres 109.3of county-administered other natural resources land within the county. The Department
         of 109.4Natural resources may, in addition to the certification of acreage, require descriptive
         lists 109.5of land so certified. The commissioner of natural resources shall determine and certify
         to 109.6the commissioner of revenue by March 1 of the payment year:109.7(1) the number of acres and most recent appraised value of acquired natural 109.8resources land, wildlife management land, and military refuge land within each county;109.9(2) the number of acres of commissioner-administered natural resources land within
         109.10each county;109.11(3) the number of acres of county-administered other natural resources land within
         109.12each county, based on the reports filed by each county auditor with the commissioner
         109.13of natural resources; and109.14(4) the number of acres of land utilization project land within each county; and109.15(5) the number of acres within each county purchased by a federally recognized 109.16Indian tribe with funding provided under section 97A.056.109.17(b) The commissioner of transportation shall determine and certify to the 109.18commissioner of revenue by March 1 of the payment year the number of acres of 109.19transportation wetland and the appraised value of the land, but only if it exceeds
         500 109.20acres in a county.109.21(c) Each auditor of a county that contains state-owned lands within a conservation
         109.22area shall determine and certify to the commissioner of natural resources by May 31
         of 109.23the payment year, the county's ditch assessments for state-owned lands subject to
         section 109.2484A.55, subdivision 9
         . A joint certification for two or more counties may be submitted to 109.25the commissioner of natural resources through the Consolidated Conservation Counties
         109.26Joint Powers Board. The commissioner of natural resources shall certify the ditch
         109.27assessments to the commissioner of revenue by June 15 of the payment year. The 109.28commissioner of natural resources shall certify the ditch assessments under this paragraph
         109.29for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the
         109.30payment for 2013 by June 30, 2014.109.31(d) The commissioner of revenue shall determine the distributions provided for in
         this 109.32section using: (1) the number of acres and appraised values certified by the commissioner
         109.33of natural resources and the commissioner of transportation by March 1 of the payment
         109.34year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.109.35EFFECTIVE DATE.This section is effective for certifications made in 2016 and 109.36thereafter.110.1    Sec. 13. Minnesota Statutes 2014, section 477A.13, is amended to read:110.2477A.13 TIME OF PAYMENT, DEDUCTIONS.110.3Payments to the counties of the amounts determined under section 
         477A.12 must 110.4be made by the commissioner of revenue from the general fund at the time provided
         in 110.5section 
         477A.015 for the first second installment of local government aid.110.6EFFECTIVE DATE.This section is effective for aids payable in calendar year 110.72016 and thereafter.110.8    Sec. 14. Minnesota Statutes 2014, section 477A.15, is amended to read:110.9477A.15 TACONITE AID REIMBURSEMENT.110.10Any school district in which is located property which had been entitled to a reduction
         110.11of tax pursuant to Minnesota Statutes 1978, section 
         273.135, subdivision 2, clause (c), 110.12shall receive in 1981 and subsequent years an amount equal to the amount it received
         in 110.131980 pursuant to Minnesota Statutes 1978, section 
         298.28, subdivision 1, clause (3)(b). 110.14Payments shall be made pursuant to this section and section 
         126C.48, subdivision 8, 110.15paragraph (5), by the commissioner of revenue to the taxing jurisdictions on the date
         in 110.16each calendar year when the first second installment is paid under section 
         477A.015.110.17EFFECTIVE DATE.This section is effective for payments made in calendar 110.18year 2016 and thereafter.110.19    Sec. 15. Minnesota Statutes 2014, section 477A.20, is amended to read:110.20477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS 110.21BOARDCITY OF WORTHINGTON.110.22(a) The Lewis and Clark Joint Powers Board The city of Worthington is eligible to 110.23receive an aid distribution under this section equal to (1) the principal and interest
         payable 110.24in the succeeding calendar year for bonds issued under section 
         469.194 minus the sum of 110.25(2) the combined adjusted net tax capacity of Rock County and Nobles County for the 110.26assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50
         percent 110.27of any federal aid received to fund the project in the calendar year the total local share. For 110.28purposes of this section, the "total local share" is as follows: the city of Worthington
         shall 110.29pay $300,000, the city of Luverne shall pay $100,000, Rock County shall pay $50,000,
         and 110.30Nobles County shall pay $50,000. Each municipality other than the city of Worthington
         110.31shall pay the amount indicated to the city of Worthington by July 1 of the year following
         110.32the year in which the bonds were issued and in each year thereafter until all principal
         111.1and interest has been paid. If a jurisdiction fails to pay the amount as indicated,
         the aid 111.2reductions for that municipality under section 477A.21 shall be made. The commissioner
         111.3of revenue shall add the amount of any aid reduction to the aid distribution under
         this 111.4section. The Board city of Worthington shall certify to the commissioner of revenue any 111.5federal aid allocated to the project for the calendar year and the principal and interest due 111.6in the succeeding calendar year by June 1 of the aid payable year. The commissioner
         of 111.7revenue shall calculate the aid payable under this section and certify the amount
         payable 111.8before July 1 of the aid distribution year. The commissioner shall pay the aid under
         this 111.9section to the board city of Worthington at the times specified for payments of local 111.10government aid in section 
         477A.015. An amount sufficient to pay the state aid authorized 111.11under this section is annually appropriated to the commissioner from the general fund.111.12(b) The board must allocate the aid to the municipalities issuing bonds under section
         111.13469.194 in proportion to their principal and interest payments.111.14(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment 111.15under this section in a calendar year, then the excess of the deduction must be carried
         111.16over and used to reduce the principal and interest in the succeeding year or years
         used to 111.17calculate aid under paragraph (a).111.18(d) If federal grants and aid received for the project, not deducted under paragraph
         111.19(a), clause (3), exceed the total debt service payments for bonds issued under section
         111.20469.194, other than payments made with state aid under this section, the joint powers 111.21board must repay any excess to the commissioner of revenue for deposit in the general
         111.22fund. The repayment may not exceed the sum of state aid payments under this section
         and 111.23any other grants made by the state for the project.111.24(e) (b) This section expires at the earlier of January 1, 2039, or when the bonds 111.25authorized under section 
         469.194 have been paid or defeased.111.26EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.111.27    Sec. 16. [477A.21] AID REDUCTIONS.111.28If a municipality fails to pay the amount indicated in section 477A.20, paragraph
         (a), 111.29the city of Worthington must notify the commissioner of revenue by July 5. The following
         111.30aid reduction for that municipality must be made for that year:111.31(1) for the city of Luverne, the aid payable under section 477A.013, subdivision 111.329, shall be reduced by $100,000;111.33(2) for Rock County, the aid payable under section 477A.0124, subdivision 3, shall
         111.34be reduced by $50,000; and112.1(3) for Nobles County, the aid payable under section 477A.0124, subdivision 3, shall
         112.2be reduced by $50,000.112.3The amount of the aid reductions under this section shall cancel to the general fund.112.4EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.112.5    Sec. 17. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended 112.6to read:112.7    Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT 112.8IN LIEU OF TAXES.112.9    (a) The Red River watershed management board may spend money from its general 112.10fund to compensate counties and townships for lost tax revenue from land that becomes
         112.11tax exempt after it is acquired by the board or a member watershed district for flood
         112.12damage reduction project. The amount that may be paid under this section to a county
         112.13or township must not exceed the tax that was payable to that taxing jurisdiction on
         the 112.14land in the last taxes payable year before the land became exempt due to the acquisition,
         112.15not to exceed $4 $5.133 per acre, multiplied by 20. This total amount may be paid in one 112.16payment, or in equal annual installments over a period that does not exceed 20 years.
         A 112.17member watershed district of the Red River management board may spend money from its
         112.18construction fund for the purposes described in this section.112.19    (b) For the purposes of this section, "Red River watershed management board" 112.20refers to the board established by Laws 1976, chapter 162, section 1, as amended by
         Laws 112.211982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
         112.22Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
         112.231998, chapter 389, article 3, section 29.112.24EFFECTIVE DATE.This section is effective for aids payable in calendar year 112.252015 and thereafter.112.26    Sec. 18. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.112.27Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of 112.28Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         112.29Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 112.30477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
         112.31of revenue that it received audited financial statements from the city for calendar
         year 112.322012 by December 31, 2013. The commissioner of revenue shall make a payment of 112.33$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
         113.1$37,473.50 is appropriated from the general fund to the commissioner of revenue in
         fiscal 113.2year 2016 to make this payment.113.3EFFECTIVE DATE.This section is effective the day following final enactment.113.4    Sec. 19. 2014 AID PENALTY FORGIVENESS.113.5(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         113.6of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid
         payment 113.7that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         113.8that the state auditor certifies to the commissioner of revenue that the city complied
         with 113.9all reporting requirements under Minnesota Statutes, section 477A.017, subdivision
         3, for 113.10calendar years 2013 and 2014 by June 1, 2015.113.11(b) The commissioner of revenue shall make payment to each city no later than June
         113.1230, 2015. Up to $101,570 of the fiscal year 2015 appropriation for local government
         aid is 113.13available for the payment under this section.113.14EFFECTIVE DATE.This section is effective the day following final enactment.113.15ARTICLE 6113.16WORKFORCE HOUSING113.17    Section 1. [116J.549] WORKFORCE HOUSING TAX CREDIT.113.18    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms 113.19have the meanings given.113.20(b) "City" means a statutory or home rule charter city.113.21(c) "Eligible project area" means an area that meets the following criteria:113.22(1) a census block with a population density over 200 persons per square mile 113.23according to the most recent United States census data available;113.24(2) located in a city with a population greater than 1,000;113.25(3) having a median number of full-time jobs of at least 500 for the last five years;113.26(4) the average vacancy rate for rental housing located in the municipality and in
         113.27any statutory or home rule charter city located within 15 miles or less of the boundaries
         113.28of the municipality has been four percent or less for at least the immediately preceding
         113.29two-year period; 113.30(5) located in an area served by a joint county-city economic development authority
         113.31or located in an area outside the following counties: Anoka, Benton, Carver, Chisago,
         113.32Dakota, Hennepin, Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington,
         113.33and Wright; and114.1(6) fewer than four market rate residential rental units per 1,000 residents were
         114.2constructed in the city in the last ten years without government financing, grants,
         or other 114.3subsidies, other than subsidies under this section or section 469.175, subdivision
         3.114.4(d) "Joint county-city economic development authority" means an economic 114.5development authority, formed under Laws 1988, chapter 516, section 1, as a joint
         114.6partnership between a city and county and excluding those established by the county
         only.114.7(e) "Market rate residential rental properties" means properties that are rented at
         114.8market value and excludes: (1) properties constructed with financial assistance requiring
         114.9the property to be occupied by residents that meet income limits under federal or
         state 114.10law of initial occupancy; and (2) properties constructed with federal, state, or local
         flood 114.11recovery assistance, regardless of whether that assistance imposed income limits as
         a 114.12condition of receiving assistance.114.13(f) "Officer" means a person elected or appointed by the board of directors to 114.14manage the daily operations of a business.114.15(g) "Principal" means a person having authority to act on behalf of a business.114.16(h) "Qualified investment" means a cash investment or the fair market value 114.17equivalent for common stock, land, a partnership or membership interest, preferred
         114.18stock, debt with mandatory conversion to equity, or an equivalent ownership interest
         as 114.19determined by the commissioner that is made in a qualified workforce housing project.114.20(i) "Qualified project investor" means an investor who has been certified by the 114.21commissioner under subdivision 2.114.22(j) "Qualifying workforce housing project" means a project:114.23(1) for market rate residential rental properties with a minimum of three dwelling
         114.24units;114.25(2) with a cost per unit of no more than $150,000 and no less than $75,000;114.26(3) located in an eligible project area;114.27(4) that has more than 50 percent nonstate funding proposed to fund the project; and114.28(5) that has been designated by the commissioner as a qualifying workforce housing
         114.29project.114.30    Subd. 2.Qualified project investor tax credits.(a) A credit of up to $1,000,000 is 114.31allowed against the tax imposed under chapter 290 for a taxpayer that makes a qualified
         114.32investment in a qualified workforce housing project equal to 33 percent of the amount
         of 114.33the qualified investment. 114.34(b) The credit under this subdivision is allowed in the taxable year that the qualified
         114.35workforce housing project has housing units that are certified for occupancy by the
         114.36Department of Labor and Industry or a city inspector.115.1(c) The commissioner must not allocate more than $5,000,000 in credits to qualified
         115.2project investors for taxable years beginning after December 31, 2015, and before
         January 115.31, 2017, and must not allocate more than $7,000,000 in credits to qualified project
         115.4investors for taxable years beginning after December 31, 2016, and before January
         1, 115.52022. The commissioner must not allocate more than 33 percent of qualified project
         115.6investor tax credits to the same qualified workforce housing project.115.7(d) Applications for tax credits for a taxable year must be made available by 115.8the commissioner by November 1 of the prior calendar year. The commissioner must 115.9make every effort to provide applications and relevant data to applicants in a simple,
         115.10concise manner using plain language. Tax credits must be allocated to qualified project
         115.11investors in the order that the tax credit request applications are filed, except
         where 115.12the commissioner determines the investment is circumventing the spirit of the law
         or 115.13where little or no local economic growth would occur as a result of the investment.
         The 115.14commissioner must approve or reject a tax credit request application within 15 days
         of 115.15receiving the application. The investment specified in the application must be made
         within 115.1660 days of the allocation of the credit. If the investment is not made within 60 days,
         the 115.17credit allocation is canceled. A qualified project investor who fails to invest as
         specified in 115.18the application must notify the commissioner immediately and no later than five business
         115.19days after the expiration of the 60-day investment period. The commissioner may require
         115.20an application fee for the applications submitted under this subdivision.115.21(e) All tax credit request applications filed with the department on the same day
         115.22must be treated as having been filed contemporaneously. If two or more qualified project
         115.23investors file tax credit request applications on the same day, and the aggregate
         amount of 115.24credit allocation claims exceeds the aggregate limit of credits under this section
         or the lesser 115.25amount of credits that remain unallocated on that day, then the credits must be allocated
         115.26among the qualified project investors who filed on that day on a pro rata basis with
         respect 115.27to the amounts claimed. The pro rata allocation for any one qualified project investor
         is the 115.28product obtained by multiplying a fraction, the numerator of which is the amount of
         the 115.29credit allocation claim filed on behalf of a qualified project investor and the denominator
         115.30of which is the total of all credit allocation claims filed on behalf of all applicants
         on that 115.31day, by the amount of credits that remain unallocated on that day for the taxable
         year.115.32(f) If a credit allocation has been granted to the qualified project investor and
         the 115.33qualified project investor has made the investment specified in the application as
         required 115.34under paragraph (d), the commissioner must issue a credit certificate to the taxpayer
         115.35designated in the application. The credit certificate must state the amount of the
         credit. 116.1The commissioner must notify the commissioner of revenue of credit certificates issued
         116.2under this subdivision.116.3(g) The commissioner of revenue shall prescribe the manner in which the credit 116.4may be issued or claimed.116.5    Subd. 3.Transfer and revocation of credits.(a) A tax credit under this section 116.6is not transferable to any other taxpayer. Credits passed through to partners, members,
         116.7shareholders, or owners are not considered transfers for purposes of this subdivision.116.8(b) If the commissioner discovers that a qualified project investor did not meet the
         116.9eligibility requirements for the tax credits under this section after the credits
         have been 116.10allocated, the commissioner may determine that credit allocated is revoked and must
         be 116.11repaid by the investor. The commissioner must notify the commissioner of revenue of
         116.12every credit revoked and subject to full or partial repayment under this section.116.13    Subd. 4.Reporting.Beginning in 2017, the commissioner must annually report 116.14by March 15 to the chairs and ranking minority members of the committees in the senate
         116.15and house of representatives with jurisdiction over taxes and economic development,
         in 116.16compliance with sections 3.195 and 3.197, on tax credits issued under this section.
         The 116.17report must include:116.18(1) information about the availability of workforce housing in greater Minnesota;116.19(2) information from employers and communities in greater Minnesota about 116.20whether or not workforce housing needs are being met;116.21(3) which projects have been funded by the workforce housing tax credit and 116.22whether previously funded projects have created economic growth;116.23(4) any suggested legislation to accelerate construction of workforce housing;116.24(5) the number and amount of tax credits issued and the identity of the recipients;116.25(6) the number and amount of tax credits revoked under subdivision 3;116.26(7) the location, total cost of, and expected rent to be received as a result of 116.27qualifying workforce housing projects funded under this section; and116.28(8) any other relevant information needed to evaluate the effect of the workforce
         116.29housing tax credits.116.30EFFECTIVE DATE.This section is effective for taxable years beginning after 116.31December 31, 2015.116.32    Sec. 2. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision 116.33to read:117.1    Subd. 38.Workforce housing tax credit.(a) A taxpayer is allowed a credit against 117.2the tax under this chapter equal to the amount certified by the commissioner of employment
         117.3and economic development under section 116J.549 to the  taxpayer for the taxable year.117.4(b) Credits allowed to a partnership, limited liability company taxed as a partnership,
         117.5corporation, or multiple owners of property are passed through to the partners, members,
         117.6shareholders, or owners, respectively, pro rata to each partner, member, shareholder,
         or 117.7owner based on that person's share of the entity's income for the taxable year.117.8(c) If the amount of the credit that the taxpayer is eligible to receive under this
         117.9subdivision exceeds the liability for tax under this chapter, the commissioner shall
         117.10refund the excess to the taxpayer. For purposes of this subdivision, "liability for
         tax" 117.11means the tax imposed under this chapter for the taxable year reduced by the sum of
         the 117.12nonrefundable credits allowed under this chapter.117.13EFFECTIVE DATE.This section is effective for taxable years beginning after 117.14December 31, 2015.117.15    Sec. 3. Minnesota Statutes 2014, section 469.174, subdivision 12, is amended to read:117.16    Subd. 12. Economic development district. "Economic development district" 117.17means a type of tax increment financing district which consists of any project, or
         portions 117.18of a project, which the authority finds to be in the public interest because:117.19(1) it will discourage commerce, industry, or manufacturing from moving their 117.20operations to another state or municipality; or117.21(2) it will result in increased employment in the state; or117.22(3) it will result in preservation and enhancement of the tax base of the state; or117.23(4) it satisfies the requirements of a workforce housing project under section 117.24469.176, subdivision 4c, paragraph (d).117.25EFFECTIVE DATE.This section is effective for districts for which the request for 117.26certification is made after June 30, 2015.117.27    Sec. 4. Minnesota Statutes 2014, section 469.175, subdivision 3, is amended to read:117.28    Subd. 3. Municipality approval. (a) A county auditor shall not certify the original 117.29net tax capacity of a tax increment financing district until the tax increment financing
         plan 117.30proposed for that district has been approved by the municipality in which the district
         117.31is located. If an authority that proposes to establish a tax increment financing district
         117.32and the municipality are not the same, the authority shall apply to the municipality
         in 117.33which the district is proposed to be located and shall obtain the approval of its
         tax 118.1increment financing plan by the municipality before the authority may use tax increment
         118.2financing. The municipality shall approve the tax increment financing plan only after
         a 118.3public hearing thereon after published notice in a newspaper of general circulation
         in the 118.4municipality at least once not less than ten days nor more than 30 days prior to the
         date 118.5of the hearing. The published notice must include a map of the area of the district
         from 118.6which increments may be collected and, if the project area includes additional area,
         a map 118.7of the project area in which the increments may be expended. The hearing may be held
         118.8before or after the approval or creation of the project or it may be held in conjunction
         with 118.9a hearing to approve the project.118.10    (b) Before or at the time of approval of the tax increment financing plan, the 118.11municipality shall make the following findings, and shall set forth in writing the
         reasons 118.12and supporting facts for each determination:118.13    (1) that the proposed tax increment financing district is a redevelopment district,
         a 118.14renewal or renovation district, a housing district, a soils condition district, or
         an economic 118.15development district; if the proposed district is a redevelopment district or a renewal
         or 118.16renovation district, the reasons and supporting facts for the determination that the
         district 118.17meets the criteria of section 
         469.174, subdivision 10, paragraph (a), clauses (1) and (2), or 118.18subdivision 10a, must be documented in writing and retained and made available to
         the 118.19public by the authority until the district has been terminated;118.20    (2) that, in the opinion of the municipality:118.21    (i) the proposed development or redevelopment would not reasonably be expected to
         118.22occur solely through private investment within the reasonably foreseeable future;
         and118.23    (ii) the increased market value of the site that could reasonably be expected to occur
         118.24without the use of tax increment financing would be less than the increase in the
         market 118.25value estimated to result from the proposed development after subtracting the present
         118.26value of the projected tax increments for the maximum duration of the district permitted
         118.27by the plan. The requirements of this item do not apply if the district is a housing
         district;118.28    (3) that the tax increment financing plan conforms to the general plan for the 118.29development or redevelopment of the municipality as a whole;118.30    (4) that the tax increment financing plan will afford maximum opportunity, 118.31consistent with the sound needs of the municipality as a whole, for the development
         or 118.32redevelopment of the project by private enterprise;118.33    (5) that the municipality elects the method of tax increment computation set forth
         in 118.34section 
         469.177, subdivision 3, paragraph (b), if applicable.118.35    (c) When the municipality and the authority are not the same, the municipality shall
         118.36approve or disapprove the tax increment financing plan within 60 days of submission
         by the 119.1authority. When the municipality and the authority are not the same, the municipality
         may 119.2not amend or modify a tax increment financing plan except as proposed by the authority
         119.3pursuant to subdivision 4. Once approved, the determination of the authority to undertake
         119.4the project through the use of tax increment financing and the resolution of the governing
         119.5body shall be conclusive of the findings therein and of the public need for the financing.119.6    (d) For a district that is subject to the requirements of paragraph (b), clause (2),
         119.7item (ii), the municipality's statement of reasons and supporting facts must include
         all of 119.8the following:119.9    (1) an estimate of the amount by which the market value of the site will increase
         119.10without the use of tax increment financing;119.11    (2) an estimate of the increase in the market value that will result from the 119.12development or redevelopment to be assisted with tax increment financing; and119.13    (3) the present value of the projected tax increments for the maximum duration of
         119.14the district permitted by the tax increment financing plan.119.15    (e) For purposes of this subdivision, "site" means the parcels on which the 119.16development or redevelopment to be assisted with tax increment financing will be located.119.17(f) Before or at the time of approval of the tax increment financing plan for a district
         119.18to be used to fund a workforce housing project under section 469.176, subdivision
         4c, 119.19paragraph (d), the municipality shall make the following findings and shall set forth
         in 119.20writing the reasons and supporting facts for each determination:119.21(1) the city has a population greater than 1,000;119.22(2) having a median number of full-time jobs of at least 500 for the last five years;119.23(3) located in a census block with a population density over 200 persons per square
         119.24mile, according to the most recent United States census data available;119.25(4) located in an area served by a joint county-city economic development authority
         119.26or outside the following counties: Anoka, Benton, Carver, Chisago, Dakota, Hennepin,
         119.27Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright;119.28(5) the average vacancy rate for rental housing located in the municipality, and in
         119.29any statutory or home rule charter city located within 15 miles or less of the boundaries
         119.30of the municipality, has been four percent or less for at least the immediately preceding
         119.31two-year period;119.32(6) at least one business located in the municipality, or within 15 miles of the 119.33municipality, that employs a minimum of 20 full-time equivalent employees in aggregate
         119.34has provided a written statement to the municipality indicating that the lack of available
         119.35rental housing has impeded their ability to recruit and hire employees; 120.1(7) fewer than four market rate residential rental units per 1,000 residents were
         120.2constructed in the city in the last ten years without government financing, grants,
         or other 120.3subsidies, other than subsidies under this section; and120.4(8) the municipality and the development authority intend to use increments from 120.5the district for the development of market rate residential rental properties and
         includes 120.6new modular homes or new manufactured homes, new manufactured homes on leased 120.7land, or in a manufacturer's home park to serve employees or businesses located in
         the 120.8municipality or surrounding area.120.9For purposes of this section: (1) "joint county-city economic development authority"
         120.10means an economic development authority, formed under Laws 1988, chapter 516, section
         120.111, as a joint partnership between a city and county and excluding those established
         by the 120.12county only; and (2) "market rate residential rental properties" means properties
         that are 120.13rented at market value and excludes: (i) properties constructed with financial assistance
         120.14requiring the property to be occupied by residents that meet income limits under federal
         or 120.15state law of initial occupancy; and (ii) properties constructed with federal, state,
         or local 120.16flood recovery assistance, regardless of whether that assistance imposed income limits
         as a 120.17condition of receiving assistance.120.18The authority to request certification of districts under this section expires June
         120.1930, 2020.120.20EFFECTIVE DATE.This section is effective for districts for which the request for 120.21certification is made after June 30, 2015.120.22    Sec. 5. Minnesota Statutes 2014, section 469.176, subdivision 4c, is amended to read:120.23    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment 120.24from an economic development district may not be used to provide improvements, loans,
         120.25subsidies, grants, interest rate subsidies, or assistance in any form to developments
         120.26consisting of buildings and ancillary facilities, if more than 15 percent of the buildings
         and 120.27facilities (determined on the basis of square footage) are used for a purpose other
         than:120.28    (1) the manufacturing or production of tangible personal property, including 120.29processing resulting in the change in condition of the property;120.30    (2) warehousing, storage, and distribution of tangible personal property, excluding
         120.31retail sales;120.32    (3) research and development related to the activities listed in clause (1) or (2);120.33    (4) telemarketing if that activity is the exclusive use of the property;120.34    (5) tourism facilities; or120.35    (6) space necessary for and related to the activities listed in clauses (1) to (5); or121.1    (7) a workforce housing project that satisfies the requirements of paragraph (d).121.2    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
         121.3increment from an economic development district may be used to provide improvements,
         121.4loans, subsidies, grants, interest rate subsidies, or assistance in any form for up
         to 15,000 121.5square feet of any separately owned commercial facility located within the municipal
         121.6jurisdiction of a small city, if the revenues derived from increments are spent only
         to 121.7assist the facility directly or for administrative expenses, the assistance is necessary
         to 121.8develop the facility, and all of the increments, except those for administrative expenses,
         121.9are spent only for activities within the district.121.10    (c) A city is a small city for purposes of this subdivision if the city was a small
         city 121.11in the year in which the request for certification was made and applies for the rest
         of 121.12the duration of the district, regardless of whether the city qualifies or ceases to
         qualify 121.13as a small city.121.14(d) A project qualifies as a workforce housing project under this subdivision if 121.15increments from the district are used exclusively to assist in the acquisition of
         property; 121.16construction of improvements; and provision of loans or subsidies, grants, interest
         121.17rate subsidies, public infrastructure, and related financing costs for rental housing
         121.18developments in the municipality, and if the governing body of the municipality made
         the 121.19findings for the project required by section 469.175, subdivision 3, paragraph (f).121.20EFFECTIVE DATE.This section is effective for districts for which the request for 121.21certification is made after June 30, 2015.121.22    Sec. 6. Minnesota Statutes 2014, section 469.1761, is amended by adding a subdivision 121.23to read:121.24    Subd. 5.Income limits; Minnesota Housing Finance Agency challenge program.121.25For a project receiving a loan or grant from the Minnesota Housing Finance Agency
         121.26challenge program under section 462A.33, the income limits under section 462A.33 are
         121.27substituted for the applicable income limits under subdivision 2 or 3 for the project.121.28EFFECTIVE DATE.This section is effective for districts for which the request for 121.29certification is made after June 30, 2015.122.1ARTICLE 7122.2MINERALS122.3    Section 1. Minnesota Statutes 2014, section 298.17, is amended to read:122.4298.17 OCCUPATION TAXES TO BE APPORTIONED.122.5(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 122.6companies, corporations, and associations, however or for whatever purpose organized,
         122.7engaged in the business of mining or producing iron ore or other ores, when collected
         122.8shall be apportioned and distributed in accordance with the Constitution of the state
         of 122.9Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
         122.10in the state treasury and credited to the general fund of which four-ninths shall
         be used 122.11for the support of elementary and secondary schools; and ten percent of the proceeds
         of 122.12the tax imposed by this section shall be deposited in the state treasury and credited
         to the 122.13general fund for the general support of the university.122.14(b) Of the money apportioned to the general fund by this section: (1) there 122.15is annually appropriated and credited to the mining environmental and regulatory 122.16account in the special revenue fund an amount equal to the greater of $1,500,000 or 122.17that which would have been generated by a 2-1/2 cent tax imposed by section 
         298.24122.18on each taxable ton produced in the preceding calendar year. Money in the mining 122.19environmental and regulatory account is appropriated annually to the commissioner
         of 122.20natural resources to fund agency staff to work on environmental issues and provide
         122.21regulatory services for ferrous and nonferrous mining operations in this state. Payment
         to 122.22the mining environmental and regulatory account shall be made by on July 1 annually. 122.23The commissioner of natural resources shall execute an interagency agreement with
         122.24the Pollution Control Agency to assist with the provision of environmental regulatory
         122.25services such as monitoring and permitting required for ferrous and nonferrous mining
         122.26operations; (2) there is annually appropriated and credited to the Iron Range Resources
         and 122.27Rehabilitation Board account in the special revenue fund an amount equal to that which
         122.28would have been generated by a 1.5 cent tax imposed by section 
         298.24 on each taxable 122.29ton produced in the preceding calendar year, to be expended for the purposes of section
         122.30298.22
         ; and (3) there is annually appropriated and credited to the Iron Range Resources 122.31and Rehabilitation Board account in the special revenue fund for transfer to the Iron
         Range 122.32school consolidation and cooperatively operated school account under section 
         298.28, 122.33subdivision 7a
         , an amount equal to that which would have been generated by a six cent tax 122.34imposed by section 
         298.24 on each taxable ton produced in the preceding calendar year. 122.35Payment to the Iron Range Resources and Rehabilitation Board account shall be made
         by 123.1May 15 on July 1 annually; and (4) there is annually appropriated and credited to the Iron 123.2Range Resources and Rehabilitation Board account in the special revenue fund for transfer
         123.3to the energy efficiency and mining protection account under section 298.227, paragraph
         123.4(d), an amount equal to that which would have been generated by a 15 cent tax imposed
         123.5by section 298.24 on each taxable ton produced in the preceding year. Payment to the
         Iron 123.6Range Resources and Rehabilitation Board account shall be made on July 1 annually.123.7(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i)
         123.8to provide environmental development grants to local governments located within any
         123.9county in region 3 as defined in governor's executive order number 60, issued on June
         123.1012, 1970, which does not contain a municipality qualifying pursuant to section 
         273.134, 123.11paragraph (b)
         , or (ii) to provide economic development loans or grants to businesses 123.12located within any such county, provided that the county board or an advisory group
         123.13appointed by the county board to provide recommendations on economic development 123.14shall make recommendations to the Iron Range Resources and Rehabilitation Board 123.15regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
         123.16account shall be made by May 15 on July 1 annually.123.17(d) Of the money allocated to Koochiching County, one-third must be paid to the 123.18Koochiching County Economic Development Commission.123.19EFFECTIVE DATE.This section is effective beginning with the 2015 production 123.20year.123.21    Sec. 2. Minnesota Statutes 2014, section 298.227, is amended to read:123.22298.227 TACONITE ECONOMIC DEVELOPMENT FUND.123.23    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         123.24production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by 123.25the Iron Range Resources and Rehabilitation Board in a separate taconite economic
         123.26development fund for each taconite and direct reduced ore producer. Money from the
         123.27fund for each producer shall be released by the commissioner after review by a joint
         123.28committee consisting of an equal number of representatives of the salaried employees
         and 123.29the nonsalaried production and maintenance employees of that producer. The District
         11 123.30director of the United States Steelworkers of America, on advice of each local employee
         123.31president, shall select the employee members. In nonorganized operations, the employee
         123.32committee shall be elected by the nonsalaried production and maintenance employees.
         123.33The review must be completed no later than six months after the producer presents
         a 123.34proposal for expenditure of the funds to the committee. The funds held pursuant to
         this 124.1section may be released only for workforce development and associated public facility
         124.2improvement, or for acquisition of plant and stationary mining equipment and facilities
         124.3for the producer or for research and development in Minnesota on new mining, or 124.4taconite, iron, or steel production technology, but only if the producer provides
         a matching 124.5expenditure equal to the amount of the distribution to be used for the same purpose
         124.6beginning with distributions in 2014. Effective for proposals for expenditures of
         money 124.7from the fund beginning May 26, 2007, the commissioner may not release the funds 124.8before the next scheduled meeting of the board. If a proposed expenditure is not approved
         124.9by the board, the funds must be deposited in the Taconite Environmental Protection
         Fund 124.10under sections 
         298.222 to 
         298.225. If a producer uses money which has been released 124.11from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or
         124.12mining shovels, and the producer removes the piece of equipment from the taconite
         tax 124.13relief area defined in section 
         273.134 within ten years from the date of receipt of the 124.14money from the fund, a portion of the money granted from the fund must be repaid to
         124.15the taconite economic development fund. The portion of the money to be repaid is 100
         124.16percent of the grant if the equipment is removed from the taconite tax relief area
         within 12 124.17months after receipt of the money from the fund, declining by ten percent for each
         of the 124.18subsequent nine years during which the equipment remains within the taconite tax relief
         124.19area. If a taconite production facility is sold after operations at the facility had
         ceased, any 124.20money remaining in the fund for the former producer may be released to the purchaser
         of 124.21the facility on the terms otherwise applicable to the former producer under this section.
         If 124.22a producer fails to provide matching funds for a proposed expenditure within six months
         124.23after the commissioner approves release of the funds, the funds are available for
         release to 124.24another producer in proportion to the distribution provided and under the conditions
         of 124.25this section. Any portion of the fund which is not released by the commissioner within
         124.26one year of its deposit in the fund shall be divided between the taconite environmental
         124.27protection fund created in section 
         298.223 and the Douglas J. Johnson economic protection 124.28trust fund created in section 
         298.292 for placement in their respective special accounts. 124.29Two-thirds of the unreleased funds shall be distributed to the taconite environmental
         124.30protection fund and one-third to the Douglas J. Johnson economic protection trust
         fund.124.31    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 124.32distributions and the review process, an amount equal to ten cents per taxable ton
         of 124.33production in 2007, for distribution in 2008 only, that would otherwise be distributed
         124.34under paragraph (a), may be used for a loan or grant for the cost of providing for
         a 124.35value-added wood product facility located in the taconite tax relief area and in a
         county 124.36that contains a city of the first class. This amount must be deducted from the distribution
         125.1under paragraph (a) for which a matching expenditure by the producer is not required.
         The 125.2granting of the loan or grant is subject to approval by the board. If the money is
         provided 125.3as a loan, interest must be payable on the loan at the rate prescribed in section
         
         298.2213, 125.4subdivision 3
         . (ii) Repayments of the loan and interest, if any, must be deposited in the 125.5taconite environment protection fund under sections 
         298.222 to 
         298.225. If a loan or 125.6grant is not made under this paragraph by July 1, 2012, the amount that had been made
         125.7available for the loan under this paragraph must be transferred to the taconite environment
         125.8protection fund under sections 
         298.222 to 
         298.225. (iii) Money distributed in 2008 to the 125.9fund established under this section that exceeds ten cents per ton is available to
         qualifying 125.10producers under paragraph (a) on a pro rata basis.125.11(c) Repayment or transfer of money to the taconite environmental protection fund 125.12under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
         125.13Rehabilitation Board for public works projects in house legislative districts in the
         same 125.14proportion as taxable tonnage of production in 2007 in each house legislative district,
         for 125.15distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
         125.16in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
         125.17do not require approval by the governor. For purposes of this paragraph, "house legislative
         125.18districts" means the legislative districts in existence on May 15, 2009.125.19(d) An amount equal to that determined under section 298.17, paragraph (b), 125.20clause (4), shall be held by the Iron Range Resources and Rehabilitation Board in
         a 125.21separate energy efficiency and mining protection account within the taconite economic
         125.22development fund that is hereby created for taconite and direct reduced ore producers.
         125.23Funds from the account shall be released annually by the Iron Range Resources and
         125.24Rehabilitation Board to each producer in direct proportion to the amount of the tax
         paid by 125.25that producer in the preceding year under section 298.01, as compared to the total
         amount 125.26of tax paid under section 298.01 in the preceding year by all producers, provided
         that a 125.27producer shall not be eligible for a distribution in amount greater than the amount
         of the 125.28tax paid in the preceding year. No expenditure under this section shall be paid unless
         125.29approved by seven members of the Iron Range Resources and Rehabilitation Board.125.30Notwithstanding any other law to the contrary, any amount allocated to the energy
         125.31efficiency and mining protection account does not cancel nor is eligible for transfer
         to 125.32another account or fund.125.33EFFECTIVE DATE.This section is effective beginning with the 2015 production 125.34year.125.35    Sec. 3. Minnesota Statutes 2014, section 298.24, subdivision 1, is amended to read:126.1    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is 126.2imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof,
         126.3and upon the production of iron ore concentrate therefrom, and upon the concentrate
         so 126.4produced, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
         126.5therefrom. The tax is also imposed upon other iron-bearing material.126.6    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be
         126.7equal to the preceding year's tax rate plus an amount equal to the preceding year's
         tax rate 126.8multiplied by the percentage increase in the implicit price deflator from the fourth
         quarter 126.9of the second preceding year to the fourth quarter of the preceding year. "Implicit
         price 126.10deflator" means the implicit price deflator for the gross domestic product prepared
         by the 126.11Bureau of Economic Analysis of the United States Department of Commerce.126.12    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
         126.13iron ore concentrate for each one percent that the iron content of the product exceeds
         72 126.14percent, when dried at 212 degrees Fahrenheit.126.15    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
         126.16production for the current year and the previous two years. The rate of the tax imposed
         126.17will be the current year's tax rate. This clause shall not apply in the case of the
         closing 126.18of a taconite facility if the property taxes on the facility would be higher if this
         clause 126.19and section 
         298.25 were not applicable. The tax on other iron-bearing material shall be 126.20imposed on the current year production.126.21    (e) If the tax or any part of the tax imposed by this subdivision is held to be 126.22unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate
         126.23produced shall be imposed.126.24    (f) Consistent with the intent of this subdivision to impose a tax based upon the
         126.25weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
         126.26determine the weight of merchantable iron ore concentrate included in fluxed pellets
         by 126.27subtracting the weight of the limestone, dolomite, or olivine derivatives or other
         basic 126.28flux additives included in the pellets from the weight of the pellets. For purposes
         of this 126.29paragraph, "fluxed pellets" are pellets produced in a process in which limestone,
         dolomite, 126.30olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
         126.31No subtraction from the weight of the pellets shall be allowed for binders, mineral
         and 126.32chemical additives other than basic flux additives, or moisture.126.33    (g)(1) Notwithstanding any other provision of this subdivision, for the first two
         years 126.34of a plant's commercial production of direct reduced ore from ore mined in this state,
         no 126.35tax is imposed under this section. As used in this paragraph, "commercial production"
         is 126.36production of more than 50,000 tons of direct reduced ore in the current year or in
         any prior 127.1year, "noncommercial production" is production of 50,000 tons or less of direct reduced
         ore 127.2in any year, and "direct reduced ore" is ore that results in a product that has an
         iron content 127.3of at least 75 percent. For the third year of a plant's commercial production of direct
         127.4reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
         otherwise 127.5determined under this subdivision. For the fourth commercial production year, the
         rate is 127.650 percent of the rate otherwise determined under this subdivision; for the fifth
         commercial 127.7production year, the rate is 75 percent of the rate otherwise determined under this
         127.8subdivision; and for all subsequent commercial production years, the full rate is
         imposed.127.9    (2) Subject to clause (1), production of direct reduced ore in this state is subject
         to 127.10the tax imposed by this section, but if that production is not produced by a producer
         of 127.11taconite, iron sulfides, or other iron-bearing material, the production of taconite,
         iron 127.12sulfides, or other iron-bearing material, that is consumed in the production of direct
         127.13reduced iron in this state is not subject to the tax imposed by this section on taconite,
         127.14iron sulfides, or other iron-bearing material.127.15    (3) Notwithstanding any other provision of this subdivision, no tax is imposed 127.16on direct reduced ore under this section during the facility's noncommercial production
         127.17of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
         127.18production of direct reduced ore is subject to the tax imposed by this section on
         taconite 127.19and iron sulphides. Three-year average production of direct reduced ore does not 127.20include production of direct reduced ore in any noncommercial year. Three-year average
         127.21production for a direct reduced ore facility that has noncommercial production is
         the 127.22average of the commercial production of direct reduced ore for the current year and
         the 127.23previous two commercial years.127.24    (4) This paragraph applies only to plants for which all environmental permits have
         127.25been obtained and construction has begun before July 1, 2008 2020.127.26EFFECTIVE DATE.This section is effective for taxes based on concentrate 127.27produced in 2015 and thereafter.127.28    Sec. 4. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision 127.29to read:127.30    Subd. 5.TEDF; deposits redirected.(a) For concentrates produced by a plant 127.31subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
         127.32County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
         127.33sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.128.1(b) All amounts not deposited in the taconite economic development fund as a 128.2result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
         128.3trust fund created under section 298.292.128.4(c) The provisions of this subdivision expire upon certification by the commissioner
         128.5of employment and economic development that all requirements of the reimbursement
         128.6agreement, as specified in paragraph (a), are satisfied.128.7EFFECTIVE DATE.This section is effective the day following final enactment.128.8    Sec. 5. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:128.9    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed 128.10under subdivision 8, and paragraph (b), must be allocated to the taconite municipal
         aid 128.11account to be distributed as provided in section 
         298.282.128.12    (b) An amount must be allocated to towns or cities that is annually certified by 128.13the county auditor of a county containing a taconite tax relief area as defined in
         section 128.14273.134, paragraph (b)
         , within which there is (1) an organized township if, as of January 128.152, 1982, more than 75 percent of the assessed valuation of the township consists of
         iron 128.16ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed
         valuation 128.17of the city consists of iron ore.128.18    (c) The amount allocated under paragraph (b) will be the portion of a township's or
         128.19city's certified levy equal to the proportion of (1) the difference between 50 percent
         of 128.20January 2, 1982, assessed value in the case of a township and 50 percent of the January
         2, 128.211980, assessed value in the case of a city and its current assessed value to (2) the
         sum of 128.22its current assessed value plus the difference determined in (1), provided that the
         amount 128.23distributed shall not exceed $55 per capita in the case of a township or $75 per capita
         in 128.24the case of a city. For purposes of this limitation, population will be determined
         according 128.25to the 1980 decennial census conducted by the United States Bureau of the Census.
         If the 128.26current assessed value of the township exceeds 50 percent of the township's January
         2, 128.271982, assessed value, or if the current assessed value of the city exceeds 50 percent
         of the 128.28city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes
         of this 128.29paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
         128.30means the appropriate net tax capacities multiplied by 10.2.128.31    (d) In addition to other distributions under this subdivision, three cents per taxable
         128.32ton for distributions in 2009 must be allocated for distribution to (1) towns that are entirely 128.33located within the taconite tax relief area defined in section 
         273.134, paragraph (b); and 128.34(2) the following unorganized territories located in St. Louis County: 56-17; 58-22;
         59-16; 128.3559-21; 60-18; and 60-19. For distribution in 2010 through 2014 and for distribution in 129.12018 and subsequent years, the three-cent amount must be annually increased in the
         129.2same proportion as the increase in the implicit price deflator as provided in section
         129.3298.24, subdivision 1
         . The amount available under this paragraph will be to towns shall 129.4be distributed to eligible towns on a per capita basis, provided that no town may receive
         129.5more than $50,000 in any year under this paragraph. Any amount of the distribution
         that 129.6exceeds the $50,000 limitation for a town under this paragraph must be redistributed
         on 129.7a per capita basis among the other eligible towns, to whose distributions do not exceed
         129.8$50,000. The amount available to unorganized territories in St. Louis County may be held
         129.9by the county and combined for public infrastructure projects.129.10EFFECTIVE DATE.This section is effective beginning with the 2015 production 129.11year.129.12    Sec. 6. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:129.13    Subd. 7a. Iron Range school consolidation and cooperatively operated school 129.14account. The following amounts must be allocated to the Iron Range Resources and 129.15Rehabilitation Board to be deposited in the Iron Range school consolidation and 129.16cooperatively operated school account that is hereby created:129.17(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
         129.18imposed under section 
         298.24; and (ii) for distributions beginning in 2024, five cents per 129.19taxable ton of the tax imposed under section 
         298.24;129.20(2) the amount as determined under section 
         298.17, paragraph (b), clause (3);129.21(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
         129.22proceeds attributable to the increase in the implicit price deflator as provided in
         section 129.23298.24, subdivision 1
         , with the remaining one-third to be distributed to the Douglas J. 129.24Johnson economic protection trust fund;129.25(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 129.26increased tax proceeds attributable to the increase in the implicit price deflator
         as provided 129.27in section 
         298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 129.28one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
         and129.29(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the 129.30sum of the increased tax proceeds attributable to the increase in the implicit price
         deflator 129.31as provided in section 
         298.24, subdivision 1, for distribution years 2015, 2016, and 129.322017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
         129.33protection trust fund; and129.34(4) any other amount as provided by law.130.1Expenditures from this account shall be made only to provide disbursements to 130.2assist school districts with the payment of bonds that were issued for qualified school
         130.3projects, or for any other school disbursement as approved by the Iron Range Resources
         130.4and Rehabilitation Board. For purposes of this section, "qualified school projects"
         means 130.5school projects within the taconite assistance area as defined in section 
         273.1341, that were 130.6(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
         130.7of education pursuant to section 
         123B.71.130.8Beginning in fiscal year 2019, the disbursement to school districts for payments for
         130.9bonds issued under section 
         123A.482, subdivision 9, must be increased each year to 130.10offset any reduction in debt service equalization aid that the school district qualifies
         for in 130.11that year, under section 
         123B.53, subdivision 6, compared with the amount the school 130.12district qualified for in fiscal year 2018.130.13No expenditure under this section shall be made unless approved by seven members 130.14of the Iron Range Resources and Rehabilitation Board.130.15EFFECTIVE DATE.This section is effective for distributions beginning in 2016 130.16and thereafter.130.17ARTICLE 8130.18ELECTRIC GENERATION MACHINERY130.19    Section 1. Minnesota Statutes 2014, section 216B.1621, subdivision 2, is amended to 130.20read:130.21    Subd. 2. Commission approval. (a) The commission shall approve an agreement 130.22under this section upon finding that:130.23(1) the proposed electric service power generation facility could reasonably be 130.24expected to qualify for a market value exclusion under section 272.0211;130.25(2) (1) the public utility has a contractual option to purchase electric power from 130.26the proposed facility; and130.27(3) (2) the public utility can use the output from the proposed facility to meet its 130.28future need for power as demonstrated in the most recent resource plan filed with
         and 130.29approved by the commission under section 
         216B.2422.130.30(b) Sections 
         216B.03, 
         216B.05, 
         216B.06, 
         216B.07, 
         216B.16, 
         216B.162, and 130.31216B.23
          do not apply to an agreement under this section.130.32EFFECTIVE DATE.This section is effective beginning with assessment year 130.332016 and thereafter.131.1    Sec. 2. Minnesota Statutes 2014, section 216B.164, subdivision 2a, is amended to read:131.2    Subd. 2a. Definitions. (a) For the purposes of this section, the following terms 131.3have the meanings given them.131.4(b) "Aggregated meter" means a meter located on the premises of a customer's 131.5owned or leased property that is contiguous with property containing the customer's
         131.6designated meter.131.7(c) "Capacity" means the number of megawatts alternating current (AC) at the point
         131.8of interconnection between a distributed generation facility and a utility's electric
         system.131.9(d) "Cogeneration" means a combined process whereby electrical and useful thermal
         131.10energy are produced simultaneously.131.11(e) "Contiguous property" means property owned or leased by the customer sharing 131.12a common border, without regard to interruptions in contiguity caused by easements,
         131.13public thoroughfares, transportation rights-of-way, or utility rights-of-way.131.14(f) "Customer" means the person who is named on the utility electric bill for the
         131.15premises.131.16(g) "Designated meter" means a meter that is physically attached to the customer's
         131.17facility that the customer-generator designates as the first meter to which net metered
         131.18credits are to be applied as the primary meter for billing purposes when the customer
         is 131.19serviced by more than one meter.131.20(h) "Distributed generation" means a facility that:131.21(1) has a capacity of ten megawatts or less;131.22(2) is interconnected with a utility's distribution system, over which the commission
         131.23has jurisdiction; and131.24(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
         131.25and may include waste heat, cogeneration, or fuel cell technology.131.26(i) "High-efficiency distributed generation" means a distributed energy facility that
         131.27has a minimum efficiency of 40 percent, as calculated under Minnesota Statutes 2014, 131.28section 
         272.0211, subdivision 1.131.29(j) "Net metered facility" means an electric generation facility constructed for the
         131.30purpose of offsetting energy use through the use of renewable energy or high-efficiency
         131.31distributed generation sources.131.32(k) "Renewable energy" has the meaning given in section 
         216B.2411, subdivision 2.131.33(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
         131.34generation facility for the recovery of costs for the provision of standby services,
         as 131.35provided for in a utility's tariffs approved by the commission, necessary to make
         electricity 131.36service available to the distributed generation facility.132.1EFFECTIVE DATE.This section is effective beginning with assessment year 132.22016 and thereafter.132.3    Sec. 3. Minnesota Statutes 2014, section 216B.2424, subdivision 5, is amended to read:132.4    Subd. 5. Mandate. (a) A public utility, as defined in section 
         216B.02, subdivision 4, 132.5that operates a nuclear-powered electric generating plant within this state must construct
         132.6and operate, purchase, or contract to construct and operate (1) by December 31, 1998,
         132.750 megawatts of electric energy installed capacity generated by farm-grown closed-loop
         132.8biomass scheduled to be operational by December 31, 2001; and (2) by December 31,
         132.91998, an additional 75 megawatts of installed capacity so generated scheduled to be
         132.10operational by December 31, 2002.132.11(b) Of the 125 megawatts of biomass electricity installed capacity required under
         132.12this subdivision, no more than 55 megawatts of this capacity may be provided by a
         facility 132.13that uses poultry litter as its primary fuel source and any such facility:132.14(1) need not use biomass that complies with the definition in subdivision 1;132.15(2) must enter into a contract with the public utility for such capacity, that has
         an 132.16average purchase price per megawatt hour over the life of the contract that is equal
         to or 132.17less than the average purchase price per megawatt hour over the life of the contract
         in 132.18contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy
         132.19the mandate of this section, and file that contract with the Public Utilities Commission
         132.20prior to September 1, 2000; and132.21(3) must schedule such capacity to be operational by December 31, 2002.132.22(c) Of the total 125 megawatts of biomass electric energy installed capacity required
         132.23under this section, no more than 75 megawatts may be provided by a single project.132.24(d) Of the 75 megawatts of biomass electric energy installed capacity required under
         132.25paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided
         by 132.26a St. Paul district heating and cooling system cogeneration facility utilizing waste
         wood 132.27as a primary fuel source. The St. Paul district heating and cooling system cogeneration
         132.28facility need not use biomass that complies with the definition in subdivision 1.132.29(e) The public utility must accept and consider on an equal basis with other biomass
         132.30proposals:132.31(1) a proposal to satisfy the requirements of this section that includes a project
         that 132.32exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or
         (2), and 132.33that proposes to sell the excess capacity to the public utility or to other purchasers;
         and132.34(2) a proposal for a new facility to satisfy more than ten but not more than 20 132.35megawatts of the electrical generation requirements by a small business-sponsored
         133.1independent power producer facility to be located within the northern quarter of the
         state, 133.2which means the area located north of Constitutional Route No. 8 as described in section
         133.3161.114, subdivision 2
         , and that utilizes biomass residue wood, sawdust, bark, chipped 133.4wood, or brush to generate electricity. A facility described in this clause is not
         required 133.5to utilize biomass complying with the definition in subdivision 1, but must be under
         133.6construction by December 31, 2005.133.7(f) If a public utility files a contract with the commission for electric energy installed
         133.8capacity that uses poultry litter as its primary fuel source, the commission must
         do a 133.9preliminary review of the contract to determine if it meets the purchase price criteria
         133.10provided in paragraph (b), clause (2). The commission shall perform its review and
         advise 133.11the parties of its determination within 30 days of filing of such a contract by a
         public 133.12utility. A public utility may submit by September 1, 2000, a revised contract to address
         the 133.13commission's preliminary determination.133.14(g) The commission shall finally approve, modify, or disapprove no later than July
         133.151, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet
         the 133.16mandate set forth in this subdivision.133.17(h) If a public utility subject to this section exercises an option to increase the
         133.18generating capacity of a project in a contract approved by the commission prior to
         April 133.1925, 2000, to satisfy the mandate in this subdivision, the public utility must notify
         the 133.20commission by September 1, 2000, that it has exercised the option and include in the
         133.21notice the amount of additional megawatts to be generated under the option exercised.
         133.22Any review by the commission of the project after exercise of such an option shall
         be 133.23based on the same criteria used to review the existing contract.133.24(i) A facility specified in this subdivision qualifies for exemption from property
         133.25taxation under section 272.02, subdivision 45.133.26EFFECTIVE DATE.This section is effective beginning with assessment year 133.272016 and thereafter.133.28    Sec. 4. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:133.29    Subd. 9. Personal property; exceptions. Except for the taxable personal property 133.30enumerated below, all personal property and the property described in section 
         272.03, 133.31subdivision 1
         , paragraphs (c) and (d), shall be exempt.133.32The following personal property shall be taxable:133.33(a) personal property which is part of an electric generating, transmission, or 133.34distribution system or a pipeline system transporting or distributing water, gas,
         crude 134.1oil, or petroleum products or mains and pipes used in the distribution of steam or
         hot or 134.2chilled water for heating or cooling buildings and structures;134.3(b) railroad docks and wharves which are part of the operating property of a railroad
         134.4company as defined in section 
         270.80;134.5(c) personal property defined in section 
         272.03, subdivision 2, clause (3);134.6(d) leasehold or other personal property interests which are taxed pursuant to section
         134.7272.01, subdivision 2
         ; 
         273.124, subdivision 7; or 
         273.19, subdivision 1; or any other law 134.8providing the property is taxable as if the lessee or user were the fee owner;134.9(e) manufactured homes and sectional structures, including storage sheds, decks, 134.10and similar removable improvements constructed on the site of a manufactured home,
         134.11sectional structure, park trailer or travel trailer as provided in section 
         273.125, subdivision 134.128
         , paragraph (f); and134.13(f) flight property as defined in section 
         270.071.134.14EFFECTIVE DATE.This section is effective beginning with assessment year 134.152016 and thereafter.134.16    Sec. 5. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:134.17    Subd. 10. Personal property used for pollution control. Personal property used 134.18primarily for the abatement and control of air, water, or land pollution is exempt
         to the 134.19extent that it is so used, and real property is exempt if it is used primarily for
         abatement 134.20and control of air, water, or land pollution as part of an agricultural operation,
         as a part 134.21of a centralized treatment and recovery facility operating under a permit issued by
         the 134.22Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
         134.23Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 134.24treatment facility and for the treatment, recovery, and stabilization of metals, oils,
         134.25chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 134.26part of an electric generation system. For purposes of this subdivision, personal property 134.27includes ponderous machinery and equipment used in a business or production activity
         134.28that at common law is considered real property. The real or personal property of an 134.29electric generation system is not eligible for an exemption under this section.134.30Any taxpayer requesting exemption of all or a portion of any real property or any
         134.31equipment or device, or part thereof, operated primarily for the control or abatement
         of 134.32air, water, or land pollution shall file an application with the commissioner of revenue.
         134.33The commissioner shall develop an electronic means to notify interested parties when
         134.34electric power generation facilities have filed an application. The Minnesota Pollution
         135.1Control Agency shall upon request of the commissioner furnish information and advice
         to 135.2the commissioner.135.3The information and advice furnished by the Minnesota Pollution Control 135.4Agency must include statements as to whether the equipment, device, or real property
         135.5meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
         135.6Control Agency, and whether the equipment, device, or real property is installed or
         135.7operated in accordance with it. On determining that property qualifies for exemption,
         135.8the commissioner shall issue an order exempting the property from taxation. The 135.9commissioner shall develop an electronic means to notify interested parties when 135.10the commissioner has issued an order exempting property from taxation under this 135.11subdivision. The equipment, device, or real property shall continue to be exempt from
         135.12taxation as long as the order issued by the commissioner remains in effect.135.13EFFECTIVE DATE.This section is effective for assessment year 2016 and 135.14thereafter.135.15    Sec. 6. [273.129] ELECTRIC GENERATION MACHINERY; VALUATION.135.16    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 135.17having the meanings given.135.18(b) "Biomass generating system" means any device used to produce energy by the 135.19direct combustion of carbon-based organisms.135.20(c) "Coal generating system" means any device whose primary purpose is the 135.21production of electricity derived by the direct combustion of coal to produce steam.135.22(d) "Electric generation machinery" means all personal property of an electric 135.23generation system, excluding solar energy generating systems and wind energy conversion
         135.24systems, used for the purpose of generating electricity.135.25(e) "Generation capacity" means the generation rate per megawatt as follows:135.26(1) $0 for hydroelectric generating systems;135.27(2) $5,000 for machinery used to generate electricity from biomass, natural gas, or
         135.28nuclear fuel generation systems; and135.29(3) $10,000 for machinery used to generate electricity from a coal or oil generation
         135.30system or any other fossil fuel.135.31(f) "Generation rate" means the rate per kilowatt hour as follows:135.32(1) $.05 for hydroelectric generating systems;135.33(2) $.0525 for machinery used to generate electricity from biomass, natural gas, or
         135.34nuclear fuel generation systems; and136.1(3) $.055 for machinery used to generate electricity from a coal or oil generation
         136.2system or any other fossil fuel.136.3(g) "Hydroelectric generating system" means any device whose primary purpose is 136.4the production of electricity derived from flowing water.136.5(h) "Nameplate capacity" means the maximum rated output of a generator, prime 136.6mover, or other electric power production equipment under specific conditions designated
         136.7by the manufacturer.136.8(i) "Natural gas generating system" means any device whose primary purpose is the
         136.9production of electricity derived from natural gas.136.10(j) "Nuclear fuel generating system" means any device whose primary purpose is 136.11the production of electricity generated by the use of the thermal energy released
         from the 136.12fission of nuclear fuel in a reactor.136.13(k) "Oil generating system" means any device whose primary purpose is the 136.14production of electricity derived by direct combustion of oil to produce steam.136.15(l) "Primary fuel source" means the fuel source that is dominantly used by a facility
         136.16in the production of electricity.136.17(m) "Spent fuel" means fuel that has been irradiated in a nuclear reactor to the point
         136.18where it is no longer useful in sustaining a nuclear reaction.136.19(n) "Spent fuel tax base" means $150,000,000 per facility plus $100,000 per ton of
         136.20spent fuel of a nuclear generating facility.136.21    Subd. 2.Rates; adjustment.The generation and capacity rates as provided in 136.22subdivision 1, paragraphs (e) and (f), shall be increased annually by an amount equal
         to the 136.23percentage change in the retail price of electricity for the residential sector in
         Minnesota 136.24for the prior year as reported by the U.S. Energy Information Administration.136.25    Subd. 3.Electric generation tax base.(a) The commissioner shall annually 136.26calculate the electric generation tax base under this section. An electric generating
         system 136.27with a capacity of one megawatt or less as determined under subdivision 4 shall be
         136.28exempt from the provisions of this section. The commissioner shall calculate the electric
         136.29generation tax base using the applicable capacity and generation rate based on the
         electric 136.30generation system's primary fuel source.136.31(b) The electric generation tax base for property described in subdivision 1 is equal
         136.32to the sum of: (1) its nameplate capacity multiplied by its generation capacity rate;
         (2) 136.33the average of its electric energy production as reported to the commissioner of revenue
         136.34for the immediately preceding five years, multiplied by its generation rate; and (3)
         its 136.35spent fuel tax base. For electric generating systems that have been operational for
         less 136.36than the immediately preceding five years, the average of its electric energy production
         137.1shall be the average of its electric energy production for the time period since the
         facility 137.2commenced operation.137.3(c) For purposes of a levy based on market value, the electric generation tax base
         137.4shall become part of the jurisdiction's market value tax base. For all levies based
         on net 137.5tax capacity, the electric generation tax base multiplied by two percent shall be
         added 137.6to the jurisdiction's net tax capacity base.137.7    Subd. 4.Electric generating systems; size.The total capacity of an electric 137.8generating system, pursuant to this section, shall be determined by combining all
         137.9generators of each fuel type within each facility, based on the information reported
         to the 137.10commissioner of revenue as required under subdivision 5.137.11    Subd. 5.Generating systems; reports.An owner of an electric generating system 137.12shall file a report with the commissioner of revenue annually on or before February
         1 137.13detailing: (1) the amount of electricity that was produced by each generator in the
         previous 137.14calendar year as reported to the U.S. Energy Information Administration; and (2) the
         137.15location, length, and capacity of all transmission and distribution lines. The commissioner
         137.16shall prescribe the form of the report. The report must contain the information required
         by 137.17the commissioner to determine the electric generation tax base. If an owner of an
         electric 137.18generating system fails to file the report by the due date, the commissioner of revenue
         137.19shall determine the electric generation tax base based upon the nameplate capacity
         of the 137.20system multiplied by a capacity factor of 100 percent.137.21EFFECTIVE DATE.This section is effective for assessment year 2016.137.22    Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:137.23    Subd. 24. Class 3.  Commercial and industrial property and utility real and personal 137.24property is class 3a.137.25(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
         137.26real property has a classification rate of 1.5 percent of the first tier of market
         value, and 2.0 137.27percent of the remaining market value. In the case of contiguous parcels of property
         owned 137.28by the same person or entity, only the value equal to the first-tier value of the
         contiguous 137.29parcels qualifies for the reduced classification rate, except that contiguous parcels
         owned 137.30by the same person or entity shall be eligible for the first-tier value classification
         rate on 137.31each separate business operated by the owner of the property, provided the business
         is 137.32housed in a separate structure. For the purposes of this subdivision, the first tier
         means the 137.33first $150,000 of market value. Real property owned in fee by a utility for transmission
         137.34line right-of-way shall be classified at the classification rate for the higher tier.138.1For purposes of this subdivision, parcels are considered to be contiguous even if
         138.2they are separated from each other by a road, street, waterway, or other similar intervening
         138.3type of property. Connections between parcels that consist of power lines or pipelines
         do 138.4not cause the parcels to be contiguous. Property owners who have contiguous parcels
         of 138.5property that constitute separate businesses that may qualify for the first-tier classification
         138.6rate shall notify the assessor by July 1, for treatment beginning in the following
         taxes 138.7payable year.138.8(2) All personal property that is: (i) part of an electric generation, transmission, or 138.9distribution system; or (ii) part of a pipeline system transporting or distributing
         water, gas, 138.10crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
         138.11operating property has a classification rate as provided under clause (1) for the
         first tier 138.12of market value and the remaining market value. In the case of multiple parcels in
         one 138.13county that are owned by one person or entity, only one first tier amount is eligible
         for the 138.14reduced rate.138.15(3) The entire market value of personal property that is: (i) tools, and  implements, 138.16and machinery of an electric generation, transmission, or distribution system; (ii) tools, 138.17implements, and machinery of a pipeline system transporting or distributing water,
         gas, 138.18crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution
         of 138.19steam or hot or chilled water for heating or cooling buildings, has a classification
         rate as 138.20provided under clause (1) for the remaining market value in excess of the first tier.138.21EFFECTIVE DATE.This section is effective beginning with assessment year 2016.138.22    Sec. 8. Minnesota Statutes 2014, section 273.37, subdivision 1, is amended to read:138.23    Subdivision 1. Listing and assessment where situated.(a) Personal property of 138.24electric light and power companies, and other individuals and partnerships supplying
         138.25electric light and power, having a fixed situs outside of the corporate limits of
         cities shall 138.26be listed and assessed in the district where situated, except as otherwise provided.138.27(b) Notwithstanding any other law to the contrary, the nonoperating property, and
         138.28operating real property of electric light and power companies that is part of an electric
         138.29generation system, shall be listed and assessed by the local or county assessor.138.30EFFECTIVE DATE.This section is effective for assessment year 2016 and 138.31thereafter.138.32    Sec. 9. [477A.21] ELECTRIC GENERATION PROPERTY TRANSITION AID.139.1    Subdivision 1.Definitions.For the purposes of this section, "local unit" means a 139.2home rule charter or statutory city, county, or a town.139.3    Subd. 2.Aid eligibility; payment.For aids payable in 2017 and thereafter, 139.4transition aid under this section for an eligible local unit equals: (1) the net tax
         capacity of 139.5all personal property of all electric generating systems as determined for assessment
         year 139.62015 multiplied by the 2015 local tax rate; minus (2) the net tax capacity in the
         current 139.7year of all electric generating systems as determined under section 273.129, multiplied
         by 139.8the current local tax rate. Aid to a local unit shall cease beginning in the year
         following 139.9the year in which the aid equals zero. Once a local unit becomes ineligible for aid
         under 139.10this section, it may not subsequently become eligible.139.11The commissioner of revenue shall compute the amount of transition aid payable to
         139.12each local unit under this section. On or before August 1 of each year, the commissioner
         139.13shall certify the amount of transition aid computed for aids payable in the following
         year 139.14for each recipient local unit. The commissioner shall pay transition aid to local
         units 139.15annually at the time provided for the second installment of local government aid under
         139.16section 477A.015.139.17The commissioner of revenue may require counties to provide any data that the 139.18commissioner deems necessary to administer this section.139.19    Subd. 3.Appropriation.An amount sufficient to pay transition aid under this 139.20section is annually appropriated to the commissioner of revenue from the general fund.139.21EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.139.22    Sec. 10.  REPEALER.139.23Minnesota Statutes 2014, sections 272.02, subdivisions 29, 33, 41, 44, 45, 47, 52,
         139.2454, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, and 99; 272.0211, are repealed.139.25EFFECTIVE DATE.This section is effective beginning with assessment year 139.262016 and thereafter.139.27ARTICLE 9139.28RAILROAD RECODIFICATION139.29    Section 1. Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:139.30    Subdivision 1. Applicability. The following words and phrases when used 139.31in sections 
         270.80 273.3712 to 
         270.87 273.3719, unless the context clearly indicates 139.32otherwise, have the meanings ascribed to them in this section.140.1EFFECTIVE DATE.This section is effective for assessment year 2015 and 140.2thereafter.140.3    Sec. 2. Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:140.4    Subd. 2. Railroad company. "Railroad company" means:140.5(1) any company which as a common carrier operates a railroad or a line or lines of
         140.6railway railroad situated within or partly within Minnesota; or140.7(2) any company owning or operating, other than as a common carrier, a railway 140.8principally used for transportation of taconite concentrates from the plant at which
         the 140.9taconite concentrates are produced in shipping form to a point of consumption or port
         140.10for shipment beyond the state; or140.11(3) any company that produces concentrates from taconite and transports that 140.12taconite in the course of the concentrating process and before the concentrating process
         is 140.13completed to a concentrating plant located within the state over a railroad that is
         not a 140.14common carrier and shall does not use a common carrier or taconite railroad company as 140.15defined in clause (2) for the movement of the concentrate to a point of consumption
         or 140.16port for shipment beyond the state.140.17EFFECTIVE DATE.This section is effective for assessment year 2015 and 140.18thereafter.140.19    Sec. 3. Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:140.20    Subd. 3. Operating property. "Operating property" means all property owned 140.21or used by a railroad company in the performance of railroad transportation services,
         140.22including without limitation franchises, rights-of-way, bridges, trestles, shops, docks, 140.23wharves, buildings and structures, but not limited to, road, locomotives, freight cars, 140.24and improvements on leased property. Operating property is listed and assessed by
         the 140.25commissioner where the property is located.140.26EFFECTIVE DATE.This section is effective for assessment year 2015 and 140.27thereafter.140.28    Sec. 4. Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:140.29    Subd. 4. Nonoperating property. "Nonoperating property" means and includes all 140.30property other than property defined in subdivision 3. Nonoperating property shall include 140.31includes real property which that is leased or rented or available for lease or rent to any 140.32person which that is not a railroad company. Vacant land shall be presumed to be available 141.1for lease or rent if it has not been used as operating property for a period of one
         year 141.2immediately preceding the valuation date. Nonoperating property also includes land which 141.3that is not necessary and integral to the performance of railroad transportation services
         141.4and which that is not used on a regular and continual basis in the performance of these 141.5services. Nonoperating property also includes that portion of a general corporation office 141.6building and its proportionate share of land which that is not used for railway railroad 141.7operation or purpose. Nonoperating property is assessed by the local or county assessor.141.8EFFECTIVE DATE.This section is effective for assessment year 2015 and 141.9thereafter.141.10    Sec. 5. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 141.11to read:141.12    Subd. 6.Company."Company" means any corporation, limited liability company, 141.13association, partnership, trust, estate, fiduciary, public or private organization
         of any kind, 141.14or any other legal entity.141.15EFFECTIVE DATE.This section is effective for assessment year 2015 and 141.16thereafter.141.17    Sec. 6. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 141.18to read:141.19    Subd. 7.Unit value."Unit value" means the value of the whole integrated system 141.20of a railroad company operating as a going concern without regard to the value of
         its 141.21component parts.141.22EFFECTIVE DATE.This section is effective for assessment year 2015 and 141.23thereafter.141.24    Sec. 7. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 141.25to read:141.26    Subd. 8.Book depreciation."Book depreciation" means the accumulated 141.27depreciation shown by a railroad company on its books or allowed to the company by
         141.28the Surface Transportation Board.141.29EFFECTIVE DATE.This section is effective for assessment year 2015 and 141.30thereafter.142.1    Sec. 8. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 142.2to read:142.3    Subd. 9.Equalization."Equalization" means the adjustment of the estimated value 142.4of railroad operating property to the apparent sales ratio of commercial and industrial
         142.5property.142.6EFFECTIVE DATE.This section is effective for assessment year 2015 and 142.7thereafter.142.8    Sec. 9. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 142.9to read:142.10    Subd. 10.Exempt property."Exempt property" means property which is 142.11nontaxable for ad valorem tax purposes under Minnesota Statutes, including personal
         142.12property exempt from taxation under chapter 272.142.13EFFECTIVE DATE.This section is effective for assessment year 2015 and 142.14thereafter.142.15    Sec. 10. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 142.16to read:142.17    Subd. 11.Original cost."Original cost" means the amount paid for an asset by the 142.18current owner as recorded on the railroad's books or allowed by the Surface Transportation
         142.19Board.142.20EFFECTIVE DATE.This section is effective for assessment year 2015 and 142.21thereafter.142.22    Sec. 11. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 142.23to read:142.24    Subd. 12.System."System" means the total property, real and personal, of a 142.25railroad, that is used in its railroad operations.142.26EFFECTIVE DATE.This section is effective for assessment year 2015 and 142.27thereafter.142.28    Sec. 12. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 142.29to read:143.1    Subd. 14.Minnesota allocated value."Minnesota allocated value" means the value 143.2of a railroad company's operating property that is assigned to Minnesota for tax purposes.143.3EFFECTIVE DATE.This section is effective for assessment year 2015 and 143.4thereafter.143.5    Sec. 13. Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:143.6    Subdivision 1. Valuation of operating property. The operating property of every 143.7railroad company doing business in Minnesota shall be valued by the commissioner in
         the 143.8manner prescribed by sections 
         270.80 273.3712 to 
         270.87 273.3719.143.9EFFECTIVE DATE.This section is effective for assessment year 2015 and 143.10thereafter.143.11    Sec. 14. Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:143.12    Subd. 3. Determination of type of property.(a) The commissioner shall have has 143.13exclusive primary jurisdiction to determine what whether railroad property is operating 143.14property and what is or nonoperating property. In making such the determination, the 143.15commissioner shall may solicit information and opinions from outside the department 143.16and afford all interested persons an opportunity to submit data or views on the subject
         143.17in writing or orally.143.18(b) Local and county assessors may submit written requests to the commissioner, 143.19asking for a determination of the nature of specific whether property owned by a 143.20railroad and located within their assessing jurisdiction is operating or nonoperating. Any 143.21determination made by the commissioner may be appealed by the assessor to the Tax
         Court 143.22pursuant to chapter 271. The requests must be submitted by April 1 of the assessing year. 143.23The commissioner must send the assessor a written determination by May 1. Assessors
         may 143.24appeal determinations made by the commissioner to the Tax Court pursuant to chapter
         271.143.25EFFECTIVE DATE.This section is effective for assessment year 2015 and 143.26thereafter.143.27    Sec. 15. Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision 143.28to read:143.29    Subd. 6.Deduction for nonoperating and exempt property.Property that was part 143.30of the system, but is nonoperating property, or that is exempt from ad valorem taxation,
         is 143.31excluded from the Minnesota allocated value under section 273.3718, subdivision 1a.
         Only 143.32qualifying property located in Minnesota may be deducted from the Minnesota allocated
         144.1value. The commissioner must deduct the market value of the property to be excluded.
         This 144.2must be calculated by multiplying the book value of the property by the market-to-book
         144.3ratio of the unit. The company has the burden of proof to establish that property
         should 144.4be excluded from the Minnesota allocated value. The railroad company must submit 144.5schedules of exempt or nonoperating property as the commissioner may require. The
         144.6remaining amount after this deduction is the Minnesota apportionable market value.144.7EFFECTIVE DATE.This section is effective for assessment year 2015 and 144.8thereafter.144.9    Sec. 16. Minnesota Statutes 2014, section 270.82, is amended to read:144.10270.82 REPORTS OF RAILROAD COMPANIES.144.11    Subdivision 1. Annual report required.Before March 31, every railroad company 144.12doing business in Minnesota shall annually must file with the commissioner on or before 144.13March 31 a an annual report under oath setting forth the information prescribed by the 144.14commissioner to enable the commissioner to make the valuation and equalization required
         144.15by sections 
         270.80 273.3712 to 
         270.87. 273.3719. The commissioner shall prescribe the 144.16content, format, and manner of the report pursuant to section 270C.30. If a report
         is made 144.17by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
         144.18except that a "law administered by the commissioner" includes the property tax laws.144.19    Subd. 2. Extension of time.If the commissioner for good determines that there is 144.20reasonable cause, the commissioner may extend the time for filing the report required by 144.21subdivision 1 for up to 15 days the time for filing the report required by subdivision 1.144.22    Subd. 3.Amended reports.A railroad company may file an amended report to 144.23correct or add information to the original report. Amended reports must be filed with
         144.24the commissioner by April 30.144.25    Subd. 4.Failure to file reports.(a) The commissioner may make the valuation 144.26provided for by sections 273.3712 to 237.3719, according to the commissioner's best
         144.27judgment based on available information, if any railroad company does not:144.28(1) make the report required by this section;144.29(2) permit an inspection and examination of its property, records, books, accounts,
         144.30or other papers when requested by the commissioner; or144.31(3) appear before the commissioner or a person appointed under section 273.3715, 144.32when required to do so.144.33(b) If the commissioner makes the valuation pursuant to paragraph (a), the 144.34commissioner's valuation is final. Notwithstanding any other law to the contrary,
         145.1the commissioner's valuation made pursuant to this subdivision is not appealable 145.2administratively.145.3EFFECTIVE DATE.This section is effective for assessment year 2015 and 145.4thereafter.145.5    Sec. 17. Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:145.6    Subdivision 1. Powers of commissioner. The commissioner shall have has the 145.7power to examine or cause to be examined any books, papers, records, or memoranda
         145.8relevant to the determination of the valuation of operating property as herein provided. 145.9The commissioner shall have the further power to may require the attendance of any 145.10person having knowledge or information in the premises concerning the valuation of the 145.11operating property, to compel the production of books, papers, records, or memoranda by 145.12persons so required to attend, to take testimony on matters material to such determination 145.13determine the valuation of operating property, and administer oaths or affirmations.145.14EFFECTIVE DATE.This section is effective for assessment year 2015 and 145.15thereafter.145.16    Sec. 18. Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:145.17    Subd. 2. Appointment of persons; subpoenas.For the purpose of making such 145.18examinations, The commissioner may appoint such persons as the commissioner may 145.19deem deems necessary to make the examinations described in subdivision 1. Such 145.20persons shall have the rights and powers of the examining of Persons appointed may 145.21examine books, papers, records or memoranda, and of subpoenaing subpoena witnesses, 145.22administering administer oaths and affirmations, and taking of take testimony, which are 145.23conferred upon the commissioner hereby. The court administrator of any court of record, 145.24upon demand of any such person appointed, shall issue a subpoena for the attendance of 145.25any witness or the production of any books, papers, records, or memoranda before such
         145.26person. The commissioner may also issue subpoenas for the appearance of witnesses
         145.27before the commissioner or before such persons. Disobedience of subpoenas so issued
         145.28shall be punished by the district court of the district in which the subpoena is issued
         for a 145.29contempt of the district court. Failure to comply with a subpoena shall be punished in the 145.30same manner as contempt of the district court.145.31EFFECTIVE DATE.This section is effective for assessment year 2015 and 145.32thereafter.146.1    Sec. 19. Minnesota Statutes 2014, section 270.84, is amended to read:146.2270.84 ANNUAL VALUATION OF OPERATING PROPERTY.146.3    Subdivision 1. Annual valuation; rules.(a) Before July 1, the commissioner 146.4shall annually between March 31 and May 31 make a determination of must determine 146.5the fair market value of the operating property of every railroad company doing business 146.6in this state as of January 2 of the year in which the valuation is made. In making 146.7this determination, The commissioner shall must employ generally accepted appraisal 146.8principles and practices which may include the unit method of determining value., and 146.9approaches approved by the Western States Association of Tax Administrators, National
         146.10Conference of Unit Valuation States, and the International Association of Assessing
         146.11Officers.146.12(b) The unit value of railroad property is the reconciled value considering the cost,
         146.13income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must
         146.14be weighted in accordance with the reliability of the information and the commissioner's
         146.15judgment.146.16    Subd. 1a.Cost approach.(a) The commissioner may use the cost approach, 146.17including but not limited to original cost less book depreciation and replacement
         cost 146.18less depreciation.146.19(b) Book depreciation is allowed as a deduction from an original cost model. Book
         146.20depreciation is assumed to include all forms of appraisal depreciation.146.21(c) Explicitly calculated appraisal depreciation, including physical, functional,
         and 146.22external obsolescence, is allowed as a deduction from the replacement cost model.146.23    Subd. 1b.Income approach.(a) The commissioner may use the income approach, 146.24including but not limited to direct capitalization models and yield capitalization
         models.146.25(b) The yield rate is calculated using market data on selected comparable companies
         146.26in the band of investment method.146.27(1) Discounted cash flows is a yield capitalization model that calculates the present
         146.28value of explicit cash flow forecasts capitalized using the yield rate, plus reversion
         to 146.29stable growth yield capitalization after the period of explicit forecasts.146.30(2) Stable growth yield capitalization is a yield capitalization model that calculates
         146.31the present value of anticipated future cash flows, capitalized using the yield rate
         and 146.32considering growth.146.33(c) Direct capitalization is the expected net operating income for the following year,
         146.34divided by the direct capitalization rate. The direct capitalization rate is calculated
         by 146.35using direct market observations from comparable sales or using market earning-to-price
         146.36information in the band of investment method.147.1    Subd. 1c.Market approach.The commissioner may use the market approach, 147.2including but not limited to a sales comparison model, a stock and debt model, or
         other 147.3market models that are available and reliable.147.4    Subd. 2. Notice. The commissioner, after determining the fair market value of the 147.5operating property of each railroad company, shall give notice to must notify the railroad 147.6company of the valuation by first class mail, overnight delivery, or messenger service.147.7EFFECTIVE DATE.This section is effective for assessment year 2015 and 147.8thereafter.147.9    Sec. 20. Minnesota Statutes 2014, section 270.86, is amended to read:147.10270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.147.11    Subdivision 1. Apportionment of value.Upon determining After allocating to 147.12Minnesota the fair market value of the operating property of each railroad company, the 147.13commissioner shall must apportion such the value to the respective counties and to the 147.14taxing districts therein in conformity with fair and reasonable rules and standards
         to be 147.15established by the commissioner pursuant to notice and hearing, except as provided
         in 147.16section 270.81. In establishing such rules and standards the commissioner may consider 147.17(a) the physical situs of all station houses, depots, docks, wharves, and other buildings
         and 147.18structures with an original cost in excess of $10,000; (b) the proportion that the
         length and 147.19type of all the tracks used by the railroad in such county and taxing district bears
         to the 147.20length and type of all the track used in the state; and (c) other facts as will result
         in a fair 147.21and equitable apportionment of value the operating parcels in Minnesota.147.22The apportioned market value of each company's operating parcel in Minnesota is 147.23the current original cost of each parcel as of the last assessment date plus original
         cost 147.24of new construction minus the original cost of property retired since the last assessment
         147.25date. The total Minnesota apportionable market value of the railroad is divided by
         the 147.26total current original cost of the railroad in Minnesota to determine a percentage.
         The 147.27resulting percentage is multiplied by the current original cost of each parcel to
         determine 147.28the apportioned market value of each parcel.147.29    Subd. 1a.Allocation of value.(a) After the market value of operating property has 147.30been estimated, the portion of value that is attributable to Minnesota must be determined
         147.31by calculating an allocation percentage using factors relevant to the industry segment
         of 147.32the railroad company. The allocation percentage must be multiplied by the value of
         the 147.33operating property to determine the Minnesota allocated value.147.34(b) The Minnesota allocated value is determined by averaging the following factors:148.1(1) miles of railroad track operated in Minnesota divided by miles of railroad track
         148.2operated in all states;148.3(2) ton miles of revenue freight transported in Minnesota divided by ton miles of
         148.4revenue freight transported in all states;148.5(3) gross revenues from transportation operations within Minnesota divided by gross
         148.6revenues from transportation operations in all states; and148.7(4) cost of railroad property in Minnesota divided by cost of railroad property in
         148.8all states.148.9(c) Each of the available factors must be weighted equally.148.10    Subd. 2. Equalized valuation. After making the apportionment provided in 148.11subdivision 1, the commissioner shall must determine the equalized valuation of the 148.12operating property in each county by applying to the apportioned value an estimated
         148.13current year median sales ratio for all commercial and industrial property in that
         county. 148.14If the commissioner decides determines that there are insufficient sales to determine a 148.15median commercial-industrial sales ratio, an estimated current year countywide median
         148.16sales ratio for all property shall must be applied to the apportioned value. No equalization 148.17shall Equalization must not be made to the market value of the operating property if the 148.18median sales ratio determined pursuant to this subdivision is within five at least 90 but less 148.19than 105 percent of the assessment ratio of the railroad operating property.148.20EFFECTIVE DATE.This section is effective for assessment year 2015 and 148.21thereafter.148.22    Sec. 21. Minnesota Statutes 2014, section 270.87, is amended to read:148.23270.87 CERTIFICATION TO COUNTY ASSESSORS.148.24After making an annual determination of the equalized fair market value of the 148.25operating property of each company in each of the respective counties, and in the
         taxing 148.26districts therein, The commissioner shall must certify the equalized fair market value of 148.27the operating property to the county assessor on or before June 30 August 1. The equalized 148.28fair market value of the operating property of the railroad company in the county and
         the 148.29taxing districts therein is the value on which taxes must be levied and collected
         in the 148.30same manner as on the commercial and industrial property of such county and the taxing 148.31districts therein in the counties and taxing districts. If the commissioner determines that 148.32the equalized fair market value certified on or before June 30 August 1 is in error, the 148.33commissioner may issue a corrected certification on or before August 31 October 1. The 148.34commissioner may correct errors that are merely clerical in nature until December
         31.149.1EFFECTIVE DATE.This section is effective for assessment year 2015 and 149.2thereafter.149.3    Sec. 22. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:149.4    Subd. 9. Personal property; exceptions. Except for the taxable personal property 149.5enumerated below, all personal property and the property described in section 
         272.03, 149.6subdivision 1
         , paragraphs (c) and (d), shall be exempt.149.7The following personal property shall be taxable:149.8(a) personal property which is part of an electric generating, transmission, or 149.9distribution system or a pipeline system transporting or distributing water, gas,
         crude 149.10oil, or petroleum products or mains and pipes used in the distribution of steam or
         hot or 149.11chilled water for heating or cooling buildings and structures;149.12(b) railroad docks and wharves which are part of thepersonal property that is part of 149.13the operating property of a railroad company as defined in section 
         270.80 273.3712;149.14(c) personal property defined in section 
         272.03, subdivision 2, clause (3);149.15(d) leasehold or other personal property interests which are taxed pursuant to section
         149.16272.01, subdivision 2
         ; 
         273.124, subdivision 7; or 
         273.19, subdivision 1; or any other law 149.17providing the property is taxable as if the lessee or user were the fee owner;149.18(e) manufactured homes and sectional structures, including storage sheds, decks, 149.19and similar removable improvements constructed on the site of a manufactured home,
         149.20sectional structure, park trailer or travel trailer as provided in section 
         273.125, subdivision 149.218
         , paragraph (f); and149.22(f) flight property as defined in section 
         270.071.149.23EFFECTIVE DATE.This section is effective for assessment year 2015 and 149.24thereafter.149.25    Sec. 23. SEVERABILITY.149.26If any part of this article is found to be invalid because it is in conflict with
         a 149.27provision of the Minnesota Constitution or for any other reason, all other provisions
         149.28of this act shall remain valid and any rights, remedies, and privileges that have
         been 149.29otherwise accrued by this act, shall remain in effect and may be proceeded with and
         149.30concluded under the provisions of this act.149.31    Sec. 24. REVISOR'S INSTRUCTION.149.32The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
         149.33in column A to the references listed in column B. The revisor shall also make necessary
         150.1cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with
         150.2renumbering.

150.3Column AColumn B150.4270.80273.3712150.5270.81273.3713150.6270.82273.3714150.7270.83273.3715150.8270.84273.3716150.9270.85273.3717150.10270.86273.3718150.11270.87273.3719

150.12EFFECTIVE DATE.This section is effective for assessment year 2015 and 150.13thereafter.150.14    Sec. 25.  REPEALER.150.15Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
         150.16and Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14,
         17, 150.1717a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600;
         150.188106.0700; 8106.0800; and 8106.9900, are repealed.150.19EFFECTIVE DATE.This section is effective for assessment year 2015 and 150.20thereafter.150.21ARTICLE 10150.22PUBLIC FINANCE150.23    Section 1. Minnesota Statutes 2014, section 126C.40, subdivision 1, is amended to read:150.24    Subdivision 1. To lease building or land. (a) When an independent or a special 150.25school district or a group of independent or special school districts finds it economically
         150.26advantageous to rent or lease a building or land for any instructional purposes or
         for school 150.27storage or furniture repair, and it determines that the operating capital revenue
         authorized 150.28under section 
         126C.10, subdivision 13, is insufficient for this purpose, it may apply to seek 150.29permission from the commissioner for permission to make an additional capital expenditure 150.30levy for this purpose. An application for permission to levy under this subdivision must 150.31contain financial justification for the proposed levy, the terms and conditions of
         the 150.32proposed lease, and a description of the space to be leased and its proposed use.150.33    (b) In granting permission to levy under this subdivision, the commissioner may 150.34consider the financial justification for the proposed levy, the terms and conditions
         151.1of the proposed lease, and a description of the space to be leased and its proposed
         151.2use. Additional information shall be provided for consideration upon request of the
         151.3commissioner. The criteria for approval of applications granting permission to levy under 151.4this subdivision must include: the reasonableness of the price, the appropriateness
         of the 151.5space to the proposed activity, the feasibility of transporting pupils to the leased
         building 151.6or land, conformity of the lease to the laws and rules of the state of Minnesota,
         and the 151.7appropriateness of the proposed lease to the space needs and the financial condition
         of the 151.8district. The commissioner must not authorize a levy under this subdivision in an
         amount 151.9greater than the cost to the district of renting or leasing a building or land for
         approved 151.10purposes. The proceeds of this levy must not be used for custodial or other maintenance
         151.11services. A district may not levy under this subdivision for the purpose of leasing
         or 151.12renting a district-owned building or site to itself.151.13    (c) For agreements finalized after July 1, 1997, a district may not levy under this
         151.14subdivision for the purpose of leasing: (1) a newly constructed building used primarily
         151.15for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
         151.16building addition or additions used primarily for regular kindergarten, elementary,
         or 151.17secondary instruction that contains more than 20 percent of the square footage of
         the 151.18previously existing building.151.19    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for
         the 151.20purpose of leasing or renting a district-owned building or site to itself only if
         the amount 151.21is needed by the district to make payments required by a lease purchase agreement,
         151.22installment purchase agreement, or other deferred payments agreement authorized by
         law, 151.23and the levy meets the requirements of paragraph (c). A levy authorized for a district
         by 151.24the commissioner under this paragraph may be in the amount needed by the district
         to 151.25make payments required by a lease purchase agreement, installment purchase agreement,
         151.26or other deferred payments agreement authorized by law, provided that any agreement
         151.27include a provision giving the school districts the right to terminate the agreement
         151.28annually without penalty.151.29    (e) The total levy under this subdivision for a district for any year must not exceed
         151.30$212 times the adjusted pupil units for the fiscal year to which the levy is attributable.151.31    (f) For agreements for which a review and comment have been submitted to the 151.32Department of Education after April 1, 1998, the term "instructional purpose" as used
         in 151.33this subdivision excludes expenditures on stadiums.151.34    (g) The commissioner of education may authorize a school district to exceed the 151.35limit in paragraph (e) if the school district petitions the commissioner for approval.
         The 152.1commissioner shall grant approval to a school district to exceed the limit in paragraph
         (e) 152.2for not more than five years if the district meets the following criteria:152.3    (1) the school district has been experiencing pupil enrollment growth in the 152.4preceding five years;152.5    (2) the purpose of the increased levy is in the long-term public interest;152.6    (3) the purpose of the increased levy promotes colocation of government services;
         and152.7    (4) the purpose of the increased levy is in the long-term interest of the district
         by 152.8avoiding over construction of school facilities.152.9    (h) A school district that is a member of an intermediate school district may include
         152.10in its authority under this section the costs associated with leases of administrative
         and 152.11classroom space for intermediate school district programs. This authority must not
         exceed 152.12$65 times the adjusted pupil units of the member districts. This authority is in addition
         to 152.13any other authority authorized under this section.152.14    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable
         in 152.152012 to 2023, a district that is a member of the "Technology and Information Education
         152.16Systems" data processing joint board, that finds it economically advantageous to enter
         into 152.17a lease agreement to finance improvements to a building and land for a group of school
         152.18districts or special school districts for staff development purposes, may levy for
         its portion 152.19of lease costs attributed to the district within the total levy limit in paragraph
         (e). The total 152.20levy authority under this paragraph shall not exceed $632,000.152.21(j) Notwithstanding paragraph (a), a district may levy under this subdivision for
         the 152.22purpose of leasing administrative space if the district can demonstrate to the satisfaction
         of 152.23the commissioner that the lease cost for the administrative space is no greater than
         the 152.24lease cost for instructional space that the district would otherwise lease. The commissioner
         152.25must deny this levy authority unless the district passes a resolution stating its
         intent to 152.26lease instructional space under this section if the commissioner does not grant authority
         152.27under this paragraph. The resolution must also certify that the lease cost for administrative
         152.28space under this paragraph is no greater than the lease cost for the district's proposed
         152.29instructional lease.152.30    Sec. 2. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:152.31    Subdivision 1. Certificates of indebtedness. The town board may issue certificates 152.32of indebtedness within the debt limits for a town purpose otherwise authorized by
         law. 152.33The certificates shall be payable in not more than ten years and be issued on the
         terms and 152.34in the manner as the board may determine, provided that notes issued for projects that 152.35eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause
         (2), 153.1shall be payable in not more than 20 years. If the amount of the certificates to be issued 153.2exceeds 0.25 percent of the estimated market value of the town, they shall not be
         issued 153.3for at least ten days after publication in a newspaper of general circulation in the
         town of 153.4the board's resolution determining to issue them. If within that time, a petition
         asking for 153.5an election on the proposition signed by voters equal to ten percent of the number
         of voters 153.6at the last regular town election is filed with the clerk, the certificates shall
         not be issued 153.7until their issuance has been approved by a majority of the votes cast on the question
         at 153.8a regular or special election. A tax levy shall be made to pay the principal and interest
         153.9on the certificates as in the case of bonds.153.10    Sec. 3. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:153.11    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 153.12without public referendum, issue capital notes within existing debt limits for the
         purpose 153.13of purchasing ambulance and other medical equipment, road construction or maintenance
         153.14equipment, public safety equipment and other capital equipment having an expected
         153.15useful life at least equal to the term of the notes issued. The notes shall be payable
         153.16in not more than ten years and shall be issued on terms and in a manner as the board
         153.17determines, provided that notes issued for projects that eliminate R-22, as such projects 153.18are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not
         more 153.19than 20 years. The total principal amount of the notes issued for any fiscal year shall not 153.20exceed one percent of the total annual budget for that year and shall be issued solely
         for 153.21the purchases authorized in this subdivision. A tax levy shall be made for the payment
         153.22of the principal and interest on such notes as in the case of bonds. For purposes
         of this 153.23subdivision, "equipment" includes computer hardware and software, whether bundled
         with 153.24machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
         153.25equipment" includes computer hardware and software and other intellectual property
         for 153.26use in medical diagnosis, medical procedures, research, record keeping, billing, and
         other 153.27hospital applications, together with application development services and training
         related 153.28to the use of the computer hardware and software and other intellectual property,
         all 153.29without regard to their useful life. For purposes of determining the amount of capital
         notes 153.30which the county may issue in any year, the budget of the county and Hennepin Healthcare
         153.31System, Inc. shall be combined and the notes issuable under this subdivision shall
         be in 153.32addition to obligations issuable under section 
         373.01, subdivision 3.153.33    Sec. 4. Minnesota Statutes 2014, section 410.32, is amended to read:153.34410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.154.1    (a) Notwithstanding any contrary provision of other law or charter, a home rule 154.2charter city may, by resolution and without public referendum, issue capital notes
         subject 154.3to the city debt limit to purchase capital equipment.154.4    (b) For purposes of this section, "capital equipment" means:154.5    (1) public safety equipment, ambulance and other medical equipment, road 154.6construction and maintenance equipment, and other capital equipment; and154.7    (2) computer hardware and software, whether bundled with machinery or equipment 154.8or unbundled, together with application development services and training related
         to the 154.9use of the computer hardware and software.154.10    (c) The equipment or software must have an expected useful life at least as long 154.11as the term of the notes.154.12    (d) The notes shall be payable in not more than ten years and be issued on terms and
         154.13in the manner the city determines, provided that notes issued for projects that eliminate 154.14R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
         shall be 154.15payable in not more than 20 years. The total principal amount of the capital notes issued 154.16in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
         154.17property in the city for that year.154.18    (e) A tax levy shall be made for the payment of the principal and interest on the
         154.19notes, in accordance with section 
         475.61, as in the case of bonds.154.20    (f) Notes issued under this section shall require an affirmative vote of two-thirds
         of 154.21the governing body of the city.154.22    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
         154.23city may also issue capital notes subject to its debt limit in the manner and subject
         to the 154.24limitations applicable to statutory cities pursuant to section 
         412.301.154.25    Sec. 5. Minnesota Statutes 2014, section 412.301, is amended to read:154.26412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.154.27    (a) The council may issue certificates of indebtedness or capital notes subject to
         the 154.28city debt limits to purchase capital equipment.154.29    (b) For purposes of this section, "capital equipment" means:154.30    (1) public safety equipment, ambulance and other medical equipment, road 154.31construction and maintenance equipment, and other capital equipment; and154.32    (2) computer hardware and software, whether bundled with machinery or equipment 154.33or unbundled, together with application development services and training related
         to the 154.34use of the computer hardware or software.155.1    (c) The equipment or software must have an expected useful life at least as long as
         155.2the terms of the certificates or notes.155.3    (d) Such certificates or notes shall be payable in not more than ten years and shall
         155.4be issued on such terms and in such manner as the council may determine, provided, 155.5however, that notes issued for projects that eliminate R-22, as such projects are
         defined in 155.6section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.155.7    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         155.8exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they 155.9shall not be issued for at least ten days after publication in the official newspaper
         of 155.10a council resolution determining to issue them; and if before the end of that time,
         a 155.11petition asking for an election on the proposition signed by voters equal to ten percent
         155.12of the number of voters at the last regular municipal election is filed with the clerk,
         such 155.13certificates or notes shall not be issued until the proposition of their issuance
         has been 155.14approved by a majority of the votes cast on the question at a regular or special election.155.15    (f) A tax levy shall be made for the payment of the principal and interest on such
         155.16certificates or notes, in accordance with section 
         475.61, as in the case of bonds.155.17    Sec. 6. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:155.18    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the 155.19general obligation of the general jurisdiction governmental unit as additional security
         for 155.20bonds payable from income or revenues of the project or the authority. The authority
         155.21must find that the pledged revenues will equal or exceed 110 percent of the principal
         and 155.22interest due on the bonds for each year. The proceeds of the bonds must be used for
         a 155.23qualified housing development project or projects. The obligations must be issued
         and 155.24sold in the manner and following the procedures provided by chapter 475, except the
         155.25obligations are not subject to approval by the electors, and the maturities may extend
         to 155.26not more than 35 years for obligations sold to finance housing for the elderly and
         40 years 155.27for other obligations issued under this subdivision. The authority is the municipality
         for 155.28purposes of chapter 475.155.29    (b) The principal amount of the issue must be approved by the governing body of 155.30the general jurisdiction governmental unit whose general obligation is pledged. Public
         155.31hearings must be held on issuance of the obligations by both the authority and the
         general 155.32jurisdiction governmental unit. The hearings must be held at least 15 days, but not
         more 155.33than 120 days, before the sale of the obligations.155.34    (c) The maximum amount of general obligation bonds that may be issued and 155.35outstanding under this section equals the greater of (1) one-half of one percent of
         the 156.1estimated market value of the general jurisdiction governmental unit whose general
         156.2obligation is pledged, or (2) $3,000,000 $5,000,000. In the case of county or multicounty 156.3general obligation bonds, the outstanding general obligation bonds of all cities in
         the 156.4county or counties issued under this subdivision must be added in calculating the
         limit 156.5under clause (1).156.6    (d) "General jurisdiction governmental unit" means the city in which the housing 156.7development project is located. In the case of a county or multicounty authority,
         the 156.8county or counties may act as the general jurisdiction governmental unit. In the case
         of 156.9a multicounty authority, the pledge of the general obligation is a pledge of a tax
         on the 156.10taxable property in each of the counties.156.11    (e) "Qualified housing development project" means a housing development project 156.12providing housing either for the elderly or for individuals and families with incomes
         not 156.13greater than 80 percent of the median family income as estimated by the United States
         156.14Department of Housing and Urban Development for the standard metropolitan statistical
         156.15area or the nonmetropolitan county in which the project is located. The project must
         be 156.16owned for the term of the bonds either by the authority or by a limited partnership
         or other 156.17entity in which the authority or another entity under the sole control of the authority
         is 156.18the sole general partner and the partnership or other entity must receive (1) an allocation
         156.19from the Department of Management and Budget or an entitlement issuer of tax-exempt
         156.20bonding authority for the project and a preliminary determination by the Minnesota
         156.21Housing Finance Agency or the applicable suballocator of tax credits that the project
         156.22will qualify for four percent low-income housing tax credits or (2) a reservation
         of nine 156.23percent low-income housing tax credits from the Minnesota Housing Finance Agency or
         a 156.24suballocator of tax credits for the project. A qualified housing development project
         may 156.25admit nonelderly individuals and families with higher incomes if:156.26    (1) three years have passed since initial occupancy;156.27    (2) the authority finds the project is experiencing unanticipated vacancies resulting
         in 156.28insufficient revenues, because of changes in population or other unforeseen circumstances
         156.29that occurred after the initial finding of adequate revenues; and156.30    (3) the authority finds a tax levy or payment from general assets of the general 156.31jurisdiction governmental unit will be necessary to pay debt service on the bonds
         if higher 156.32income individuals or families are not admitted.156.33    (f) The authority may issue bonds to refund bonds issued under this subdivision in
         156.34accordance with section 
         475.67. The finding of the adequacy of pledged revenues required 156.35by paragraph (a) and the public hearing required by paragraph (b) shall not apply
         to the 157.1issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
         157.2after July 1, 1992.157.3    Sec. 7. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:157.4    Subdivision 1. Establishment. An economic development authority may create 157.5and define the boundaries of economic development districts at any place or places
         within 157.6the city, except that the district boundaries must be contiguous, and may use the
         powers 157.7granted in sections 
         469.090 to 
         469.108 to carry out its purposes. First the authority must 157.8hold a public hearing on the matter. At least ten days before the hearing, the authority
         157.9shall publish notice of the hearing in a daily newspaper of general circulation in the city. 157.10Also, the authority shall find that an economic development district is proper and
         desirable 157.11to establish and develop within the city.157.12    Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:157.13    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, 157.14without regard to the election requirement under subdivision 1, issue and sell obligations
         157.15for street reconstruction or bituminous overlays, if the following conditions are
         met:157.16    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
         157.17plan that describes the street reconstruction or overlay to be financed, the estimated
         costs, 157.18and any planned reconstruction or overlay of other streets in the municipality over
         the next 157.19five years, and the plan and issuance of the obligations has been approved by a vote
         of 157.20all a majority of the members of the governing body present at the meeting following a 157.21public hearing for which notice has been published in the official newspaper at least
         ten 157.22days but not more than 28 days prior to the hearing; and157.23    (2) if a petition requesting a vote on the issuance is signed by voters equal to 157.24five percent of the votes cast in the last municipal general election and is filed
         with the 157.25municipal clerk within 30 days of the public hearing, the municipality may issue the
         bonds 157.26only after obtaining the approval of a majority of the voters voting on the question
         of the 157.27issuance of the obligations. If the municipality elects not to submit the question
         to the 157.28voters, the municipality shall not propose the issuance of bonds under this section
         for the 157.29same purpose and in the same amount for a period of 365 days from the date of receipt
         157.30of the petition. If the question of issuing the bonds is submitted and not approved
         by the 157.31voters, the provisions of section 
         475.58, subdivision 1a, shall apply.157.32    (b) Obligations issued under this subdivision are subject to the debt limit of the
         157.33municipality and are not excluded from net debt under section 
         475.51, subdivision 4.158.1    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
         158.2includes utility replacement and relocation and other activities incidental to the
         street 158.3reconstruction, turn lanes and other improvements having a substantial public safety
         158.4function, realignments, other modifications to intersect with state and county roads,
         and 158.5the local share of state and county road projects. For purposes of this subdivision,
         "street 158.6reconstruction" includes expenditures for street reconstruction that have been incurred
         158.7by a municipality before approval of a street reconstruction plan, if such expenditures
         158.8are included in a street reconstruction plan approved on or before the date of the
         public 158.9hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.158.10    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
         158.11modifications, and the local share of state and county road projects, street reconstruction
         158.12and bituminous overlays does not include the portion of project cost allocable to
         widening 158.13a street or adding curbs and gutters where none previously existed.158.14    Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:158.15    Subd. 2. Requirements waived. The requirements as to public sale shall not 158.16apply to:158.17(1) obligations issued under the provisions of a home rule charter or of a law 158.18specifically authorizing a different method of sale, or authorizing them to be issued
         in such 158.19manner or on such terms and conditions as the governing body may determine;158.20(2) obligations sold by an issuer in an amount not exceeding the total sum of 158.21$1,200,000 in any 12-month period;158.22(3) obligations issued by a governing body other than a school board in anticipation
         158.23of the collection of taxes or other revenues appropriated for expenditure in a single
         year, if 158.24sold in accordance with the most favorable of two or more proposals solicited privately;158.25(4) obligations sold to any board, department, or agency of the United States of 158.26America or of the state of Minnesota, in accordance with rules or regulations promulgated
         158.27by such board, department, or agency;158.28(5) obligations issued to fund pension and retirement fund liabilities under section
         158.29475.52, subdivision 6
         , obligations issued with tender options under section 
         475.54, 158.30subdivision 5a
         , crossover refunding obligations referred to in section 
         475.67, subdivision 158.3113
         , and any issue of obligations comprised in whole or in part of obligations bearing
         158.32interest at a rate or rates which vary periodically referred to in section 
         475.56;158.33(6) obligations to be issued for a purpose, in a manner, and upon terms and 158.34conditions authorized by law, if the governing body of the municipality, on the advice
         of 159.1bond counsel or special tax counsel, determines that interest on the obligations cannot
         be 159.2represented to be excluded from gross income for purposes of federal income taxation;159.3(7) obligations issued in the form of an installment purchase contract, lease purchase
         159.4agreement, or other similar agreement;159.5(8) obligations sold under a bond reinvestment program; and159.6(9) if the municipality has retained an independent financial municipal advisor, 159.7obligations which the governing body determines shall be sold by private negotiation.159.8ARTICLE 11159.9SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS159.10    Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:159.11290C.01 PURPOSE.159.12It is the policy of this state to promote sustainable forest resource management on
         159.13the state's public and private lands. Recognizing that The state's private forests comprise 159.14approximately one-half of the state forest land resources, that healthy and robust forest 159.15land provides significant benefits to the state of Minnesota, and that ad. These forests 159.16play a critical role in protecting water quality and soil resources, and provide extensive
         159.17wildlife habitat, diverse recreational experiences, and significant forest products
         that 159.18support the state's economy. Ad valorem property taxes represent a significant annual 159.19cost that can discourage long-term forest management investments. In order to foster 159.20silviculture investments and retain these forests for their economic and ecological
         benefits, 159.21this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is
         enacted 159.22to encourage the state's private forest landowners to make a long-term commitment
         to 159.23sustainable forest management.159.24    Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:159.25    Subdivision 1. Application. When used in sections 
         290C.01 to 
         290C.11 290C.13, 159.26the terms in this section have the meanings given them.159.27EFFECTIVE DATE.This section is effective the day following final enactment.159.28    Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:159.29    Subd. 3. Claimant. (a) "Claimant" means:159.30    (1) a person, as that term is defined in section 
         290.01, subdivision 2, who owns 159.31forest land in Minnesota and files an application authorized by the Sustainable Forest
         159.32Incentive Act;160.1    (2) a purchaser or grantee if property enrolled in the program was sold or transferred
         160.2after the original application was filed and prior to the annual incentive payment
         being 160.3made; or160.4    (3) an owner of land previously covered by an auxiliary forest contract that 160.5automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
         160.6pursuant to section 
         88.49, subdivision 9a, or 
         88.491, subdivision 2. 160.7    The purchaser or grantee must notify the commissioner in writing of the sale or 160.8transfer of the property. Owners of land that qualifies for inclusion pursuant to section 160.988.49, subdivision 9a
         , or 
         88.491, subdivision 2, must notify the commissioner in writing 160.10of the expiration of the auxiliary forest contract or land trade with a governmental
         unit 160.11and submit an application to the commissioner by August 15 July 1 in order to be eligible 160.12to receive a payment by October 1 of that same year. For purposes of section 
         290C.11, 160.13claimant also includes any person bound by the covenant required in section 
         290C.04.160.14    (b) No more than one claimant is entitled to a payment under this chapter with 160.15respect to any tract, parcel, or piece of land enrolled under this chapter that has
         been 160.16assigned the same parcel identification number. When enrolled forest land is owned
         by 160.17two or more persons, the owners must determine between them which person is eligible
         to 160.18claim the payments provided under sections 
         290C.01 to 
         290C.11. In the case of property 160.19sold or transferred, the former owner and the purchaser or grantee must determine
         between 160.20them which person is eligible to claim the payments provided under sections 
         290C.01 to 160.21290C.11
         . The owners, transferees, or grantees must notify the commissioner in writing 160.22which person is eligible to claim the payments.160.23EFFECTIVE DATE.This section is effective for certifications and applications 160.24due in 2016 and thereafter.160.25    Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:160.26    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 160.27contiguous acres for which the owner has implemented a forest management plan that
         was 160.28prepared or updated within the past ten years by an approved plan writer. For purposes
         of 160.29this subdivision, acres are considered to be contiguous even if they are separated
         by a road, 160.30waterway, railroad track, or other similar intervening property. At least 50 percent
         of the 160.31contiguous acreage must meet the definition of forest land in section 
         88.01, subdivision 160.327
         . For the purposes of sections 
         290C.01 to 
         290C.11, forest land does not include (i) 160.33land used for residential or agricultural purposes, (ii) land enrolled in the reinvest
         in 160.34Minnesota program, a state or federal conservation reserve or easement reserve program
         160.35under sections 
         103F.501 to 
         103F.531, the Minnesota agricultural property tax law under 161.1section 
         273.111, or land subject to agricultural land preservation controls or restrictions 161.2as defined in section 
         40A.02 or under the Metropolitan Agricultural Preserves Act under 161.3chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation 161.4easement funded under section 97A.056 or a comparable permanent easement conveyed 161.5to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation 161.6easement funded under section 
         97A.056 or a comparable permanent easement conveyed 161.7to a governmental or nonprofit entity after May 30, 2013; or (v) (iv) land improved with a 161.8structure, pavement, sewer, campsite, or any road, other than a township road, used
         for 161.9purposes not prescribed in the forest management plan.161.10EFFECTIVE DATE.This section is effective for applications made in 2016 and 161.11thereafter. 161.12    Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:161.13290C.03 ELIGIBILITY REQUIREMENTS.161.14(a) Land may be enrolled in the sustainable forest incentive program under this 161.15chapter if all of the following conditions are met:161.16(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
         161.17land must meet the definition of forest land in section 
         88.01, subdivision 7, during the 161.18enrollment;161.19(2) a forest management plan for the land must be prepared by an approved plan 161.20writer and implemented during the period in which the land is enrolled;161.21(3) timber harvesting and forest management guidelines must be used in conjunction
         161.22with any timber harvesting or forest management activities conducted on the land during
         161.23the period in which the land is enrolled;161.24(4) the land must be enrolled for a minimum of eight years;161.25(5) there are no delinquent property taxes on the land; and161.26(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject 161.27to a conservation easement funded under section 97A.056, or a comparable permanent
         161.28easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive 161.29program must allow year-round, nonmotorized access to fish and wildlife resources
         and 161.30motorized access on established and maintained roads and trails, unless the road or
         trail is 161.31temporarily closed for safety, natural resource, or road damage reasons on enrolled
         land 161.32except within one-fourth mile of a permanent dwelling or during periods of high fire
         161.33hazard as determined by the commissioner of natural resources;162.1(7) the claimant has registered with the forest management plan under clause (2) 162.2with the commissioner of natural resources, who has determined that the land meets
         162.3qualifications for enrollment; and162.4(8) the land is not classified as class 2c managed forest land.162.5(b) Claimants required to allow access under paragraph (a), clause (6), do not by
         162.6that action:162.7(1) extend any assurance that the land is safe for any purpose;162.8(2) confer upon the person the legal status of an invitee or licensee to whom a duty
         162.9of care is owed; or162.10(3) assume responsibility for or incur liability for any injury to the person or property
         162.11caused by an act or omission of the person.162.12(c) The commissioner of natural resources shall annually provide county assessors
         162.13verification information regarding plan registration under paragraph (a), clause (7),
         on 162.14a timely basis.162.15(d) A minimum of three acres must be excluded from enrolled land when the land is
         162.16improved with a structure that is not a minor, ancillary, nonresidential structure.162.17(e) If land does not meet the definition of forest land in section 290C.02, subdivision
         162.186, because the land is: (1) enrolled in the reinvest in Minnesota program; (2) enrolled
         in 162.19a state or federal conservation reserve or easement program under sections 103F.501
         to 162.20103F.531; (3) subject to the Minnesota agricultural property tax under section 273.111;
         or 162.21(4) subject to agricultural land preservation controls or restrictions as defined
         in section 162.2240A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire
         tax 162.23parcel that contains the land is not eligible to be enrolled in the program.162.24EFFECTIVE DATE.This section is effective for certifications and applications 162.25due in 2016 and thereafter.162.26    Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:162.27290C.04 APPLICATIONS.162.28    (a) A landowner may apply to enroll forest land for the sustainable forest incentive
         162.29program under this chapter. The claimant must complete, sign, and submit an application
         162.30to the commissioner by September 30 in order for the land to become eligible beginning
         162.31in the next year. The application shall be on a form prescribed by the commissioner 162.32commissioners of revenue and natural resources and must include the information the 162.33commissioner deems necessary. At a minimum, the application must show the following
         162.34information for the land and the claimant: (i) the claimant's Social Security number
         or 163.1state or federal business tax registration number and date of birth, (ii) the claimant's
         163.2address, (iii) the claimant's signature, (iv) the county's parcel identification numbers
         for 163.3the tax parcels that completely contain the claimant's forest land that is sought
         to be 163.4enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the
         approved 163.5plan writer's signature and identification number, and (vii) proof, in a form specified by the 163.6commissioner, that the claimant has executed and acknowledged in the manner required
         163.7by law for a deed, and recorded, a covenant that the land is not and shall not be
         developed 163.8in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a 163.9registration number for the forest management plan, issued by the commissioner of
         natural 163.10resources. The covenant shall state in writing that the covenant is binding on the claimant
         163.11and the claimant's successor or assignee, and that it runs with the land for a period
         of not 163.12less than eight years unless the claimant requests termination of the covenant after a 163.13reduction in payments due to changes in the payment formula under section 290C.07. The 163.14commissioner shall specify the form of the covenant and provide copies upon request.
         163.15The covenant must include a legal description that encompasses all the forest land
         that the 163.16claimant wishes to enroll under this section or the certificate of title number for
         that land if 163.17it is registered land. The commissioner of natural resources shall record the area eligible 163.18for enrollment into the Sustainable Forest Incentive Act as electronic geospatial
         data, as 163.19defined in section 16E.30, subdivision 10.163.20(b) The commissioner shall provide a copy of the application filed by the claimant
         163.21and all supporting materials to the commissioner of natural resources within 15 days
         of 163.22receipt or by September 1, whichever is sooner. The commissioner of natural resources
         163.23must notify the commissioner whether the applicant qualifies for enrollment within
         30 163.24days of receipt, and if the applicant qualifies for enrollment, the commissioner of
         natural 163.25resources shall specify the number of qualifying acres per tax parcel.163.26    (b) In all cases, (c) The commissioner shall notify the claimant within 90 days after 163.27receipt of a completed application that either the land has or has not been approved
         for 163.28enrollment. A claimant whose application is denied may appeal the denial as provided
         163.29in section 
         290C.13.163.30    (c) (d) Within 90 days after the denial of an application, or within 90 days after the 163.31final resolution of any appeal related to the denial, the commissioner shall execute
         and 163.32acknowledge a document releasing the land from the covenant required under this chapter.
         163.33The document must be mailed to the claimant and is entitled to be recorded.163.34    (d) (e) The Social Security numbers collected from individuals under this section are 163.35private data as provided in section 
         13.355. The federal business tax registration number 163.36and date of birth data collected under this section are also private data on individuals
         or 164.1nonpublic data, as defined in section 
         13.02, subdivisions 9 and 12, but may be shared 164.2with county assessors for purposes of tax administration and with county treasurers
         for 164.3purposes of the revenue recapture under chapter 270A.164.4EFFECTIVE DATE.This section is effective for certifications and applications 164.5due in 2016 and thereafter.164.6    Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:164.7290C.05 ANNUAL CERTIFICATION AND MONITORING.164.8    (a) On or before July 1 May 15 of each year, beginning with the year after the 164.9original claimant has received an approved application, the commissioner shall send
         each 164.10claimant enrolled under the sustainable forest incentive program a certification form.
         For 164.11purposes of this section, the original claimant is the person that filed the first application 164.12under section 290C.04 to enroll the land in the program current property owner on record, 164.13or the person designated by the owners in the case of multiple ownership. The claimant 164.14must sign and return the certification, attesting to the commissioner by July 1 of that 164.15same year, and (1) attest that the requirements and conditions for continued enrollment 164.16in the program are currently being met, and must return the signed certification form to 164.17the commissioner by August 15 of that same year (2) provide a report in the form and 164.18manner determined by the commissioner of natural resources describing the management
         164.19practices that have been carried out on the enrolled property during the prior year. If the 164.20claimant does not return an annual certification form by the due date, the provisions
         164.21in section 
         290C.11 apply. The commissioner of natural resources will verify that the 164.22claimant meets program requirements.164.23(b) The commissioner must provide the certification form and annual report described
         164.24in paragraph (a), clause (2), to the commissioner of natural resources by August 1.164.25(c) The commissioner of natural resources must conduct annual monitoring 164.26of a subset of claimants, excluding land also enrolled in a conservation easement
         164.27program. Claimants will be selected for monitoring based on reported violations, annual
         164.28certification, and random selections. Monitoring will be conducted on ten percent
         of 164.29claimants as of July 1 of each year. Monitoring may include, but is not limited to,
         a site 164.30visit by a department of natural resources or a contracted forester. The commissioner
         of 164.31natural resources will develop a monitoring form to record the monitoring data.164.32EFFECTIVE DATE.Paragraphs (a) and (b) are effective for certifications and 164.33applications due in 2016 and thereafter. Paragraph (c) is effective July 1, 2018.165.1    Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:165.2290C.055 LENGTH OF COVENANT.165.3(a) The covenant remains in effect for a minimum of eight years Claimants enrolling 165.4any land that is subject to a conservation easement funded under section 97A.056 or
         a 165.5comparable permanent easement conveyed to a governmental or nonprofit entity must
         165.6enroll their land under a covenant with a minimum duration of eight years. All other
         165.7claimants may choose to enroll their land under a covenant with a minimum duration
         of 165.8eight, 20, or 50 years. If land is removed the claimant requests removal from the program 165.9before it has been enrolled for four years half the number of years of the covenant's 165.10duration, the covenant remains in effect for eight years the entire duration of the covenant 165.11from the date recorded.165.12(b) If land that has been enrolled for four years half the number of years of the 165.13covenant's minimum duration or more is removed from the program for any reason, there 165.14is a waiting period before the covenant terminates. The covenant terminates on January
         1 165.15of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, 165.16respectively, that begins after the date that:165.17(1) the commissioner receives notification from the claimant that the claimant wishes
         165.18to remove the land from the program under section 
         290C.10; or165.19(2) the date that the land is removed from the program under section 
         290C.11.165.20(c) Notwithstanding the other provisions of this section, the covenant is terminated:165.21(1) at the same time that the land is removed from the program due to acquisition
         of 165.22title or possession for a public purpose under section 
         290C.10; or165.23(2) at the request of the claimant after a reduction in payments due to changes in
         the 165.24payment formula under section 
         290C.07.165.25EFFECTIVE DATE.This section is effective for certifications and applications in 165.262016 and thereafter.165.27    Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:165.28290C.07 CALCULATION OF INCENTIVE PAYMENT. 165.29    An approved claimant under the sustainable forest incentive program is eligible to
         165.30receive an annual payment for each acre of enrolled land. The payment shall equal $7 165.31per acre for each acre enrolled in the sustainable forest incentive program a percentage of 165.32the property tax that would be paid on the land determined by using the previous year's
         165.33statewide average total tax rate for all taxes levied within townships or unorganized
         165.34territories, the estimated market value per acre as calculated in section 290C.06,
         and 166.1a class rate of one percent as follows: (1) for claimants enrolling land that is subject
         166.2to a conservation easement funded under section 97A.056 or a comparable permanent 166.3easement conveyed to a governmental or nonprofit entity before May 31, 2013, under
         an 166.4eight-year covenant, 25 percent; (2) for claimants enrolling land that is not subject
         to 166.5a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
         166.6enrolling land that is not subject to a conservation easement  under a 20-year covenant,
         90 166.7percent; and (4) for claimants enrolling land that is not subject to a conservation
         easement 166.8under a 50-year covenant, 115 percent. The calculated payment shall not be less than
         the 166.9payment received in 2016 and shall not increase or decrease by more than ten percent
         166.10relative to the payment received for the previous year.166.11EFFECTIVE DATE.This section is effective for calculations made in 2016 and 166.12thereafter. 166.13    Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:166.14    Subdivision 1. Annual payment. An incentive payment for each acre of enrolled 166.15land will be made annually to each claimant in the amount determined under section
         166.16290C.07
         . By September 15 of each year, the commissioner of natural resources will 166.17certify to the commissioner the eligibility of each claimant to receive a payment.
         The 166.18incentive payment shall be paid by the commissioner on or before October 1 each year 166.19based on the certifications due August 15 July 1 of that year. Interest at the annual rate 166.20determined under section 
         270C.40 shall be included with any incentive payment not 166.21paid by the later of October 1 of the year the certification was due, or 45 days after
         the 166.22completed certification was returned or filed if the commissioner accepts a certification
         166.23filed after August 15 July 1 of the taxes payable year as the resolution of an appeal.166.24EFFECTIVE DATE.This section is effective for certifications and applications 166.25due in 2016 and thereafter.166.26    Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:166.27290C.10 WITHDRAWAL PROCEDURES.166.28An approved claimant (a) The current owner of land enrolled under the sustainable 166.29forest incentive program for a minimum of four years half the number of years of the 166.30covenant's minimum duration may notify the commissioner of the intent to terminate 166.31enrollment. Within 90 days of receipt of notice to terminate enrollment, the commissioner
         166.32shall inform the claimant in writing, acknowledging receipt of this notice and indicating
         166.33the effective date of termination from the sustainable forest incentive program. 167.1Termination of enrollment in the sustainable forest incentive program occurs on January
         1 167.2of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective minimum 167.3covenant that begins after receipt by the commissioner of the termination notice. After the
         167.4commissioner issues an effective date of termination, a claimant wishing to continue
         the 167.5land's enrollment in the sustainable forest incentive program beyond the termination
         date 167.6must apply for enrollment as prescribed in section 
         290C.04. A claimant who withdraws 167.7a parcel of land from this program may not reenroll the parcel for a period of three
         167.8years. Within 90 days after the termination date, the commissioner shall execute and
         167.9acknowledge a document releasing the land from the covenant required under this chapter.
         167.10The document must be mailed to the claimant and is entitled to be recorded.167.11(b) Notwithstanding paragraph (a), on request of the claimant,  the commissioner may 167.12allow early withdrawal from the Sustainable Forest Incentive Act without penalty when
         the 167.13state of Minnesota, any local government unit, or any other entity which has the power
         of 167.14eminent domain acquires title or possession to the land for a public purpose notwithstanding 167.15the provisions of this section. In the case of such an eligible acquisition under this 167.16paragraph, the commissioner shall execute and acknowledge a document releasing the 167.17land acquired by the state, local government unit, or other entity from the covenant.167.18(c) Notwithstanding paragraph (a), on request of the claimant, the commissioner 167.19shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
         167.20when the government or nonprofit entity acquires a permanent conservation easement
         167.21on the enrolled property and the conservation easement is at least as restrictive
         as the 167.22covenant required under section 290C.04. The commissioner of natural resources must
         167.23notify the commissioner of lands acquired under this paragraph that are eligible for
         167.24withdrawal. In the case of an eligible easement acquisition under this paragraph,
         the 167.25commissioner shall execute and acknowledge a document releasing the land subject to
         167.26the easement from the covenant.167.27(d) Notwithstanding paragraph (a), on request of the claimant, the commissioner 167.28shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
         for 167.29land that is subject to fee or easement acquisition or lease to the state of Minnesota
         or a 167.30political subdivision of the state for the public purpose of a paved trail. The commissioner
         167.31of natural resources must notify the commissioner of lands acquired under this paragraph
         167.32that are eligible for withdrawal. In the case of an eligible fee or easement acquisition
         or 167.33lease under this paragraph, the commissioner shall execute and acknowledge a document
         167.34releasing the land subject to fee or easement acquisition or lease by the state or
         political 167.35subdivision of the state.167.36(e) All other enrolled land must remain in the program.168.1EFFECTIVE DATE.Paragraphs (c) and (d) are effective the day following final 168.2enactment. Paragraphs (a), (b), and (e) are effective for notifications made in 2016
         and 168.3thereafter.168.4    Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.168.5    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 168.6have the meanings provided.168.7(b) "New owner" means a prospective purchaser or grantee.168.8(c) "Owner" means a grantor or seller.168.9    Subd. 2.Notification to commissioner.(a) An owner must notify the commissioner 168.10if the owner transfers any or all of the owner's land enrolled in the sustainable
         forest 168.11incentive program to one or more new owners within 60 days of the transfer of title
         to the 168.12property. The notification must include the legal descriptions of the transferred
         property, 168.13the tax parcel numbers, and the name and address of the new owner. If transfer of
         ownership 168.14is a result of the death of the claimant, the provisions of section 290C.12 shall
         apply.168.15(b) Upon notification, the commissioner shall inform the new owner of the 168.16restrictions of the covenant required by section 290C.04 and the withdrawal procedures
         168.17under section 290C.10. In order for the new owner to receive payments pursuant to
         this 168.18chapter, the new owner must file an application and register a new forest management
         plan 168.19with the commissioner of natural resources within two years from the date the title
         of the 168.20property was transferred to remain eligible.168.21    Subd. 3.Termination of enrollment.The commissioner will terminate enrollment 168.22according to the procedure in section 290C.10 for failure of the new owner to register
         a 168.23forest management plan within the time period in subdivision 2, paragraph (b).168.24EFFECTIVE DATE.This section is effective the day following final enactment.168.25    Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:168.26290C.11 PENALTIES FOR REMOVAL.168.27    (a) If the commissioner determines that land enrolled in the sustainable forest 168.28incentive program is in violation of the conditions for enrollment as specified in
         section 168.29290C.03
         , or upon notification by the commissioner of natural resources that land enrolled
         168.30is in violation of the conditions for enrollment, the commissioner shall notify the claimant 168.31current owner of the land of the intent to remove all the tax parcel of the enrolled land 168.32where the violation has occurred from the sustainable forest incentive program. The 169.1penalties described under paragraph (c) shall apply. The claimant current owner has 60 169.2days to appeal this determination under the provisions of section 
         290C.13.169.3    (b) If the commissioner determines the land is to be removed from the sustainable
         169.4forest incentive program due to the construction or addition of an improvement to the 169.5property, the claimant owner of the tax parcel that is in violation is liable for payment 169.6to the commissioner in the amount equal to : (1) the payments received issued related to 169.7the enrolled tax parcel under this chapter for the previous four-year period in the case of 169.8an eight-year minimum covenant, ten-year period in the case of a 20-year minimum 169.9covenant, and 25-year period in the case of a 50-year minimum covenant, plus interest; 169.10and (2) 25 percent of the estimated market value of the property as reclassified under
         169.11section 273.13 due to the structure being on the tax parcel, as determined by the
         assessor.169.12(c) If the commissioner of natural resources determines that the land is used for
         169.13purposes other than forestry purposes, the commissioner of natural resources shall
         notify 169.14the commissioner of revenue, who shall notify the current owner of the tax parcel
         that is in 169.15violation that the current owner is liable to the commissioner in an amount equal
         to: (1) 30 169.16percent of the estimated market value as property reclassified under section 273.13,
         due to 169.17the change in use, as determined by the assessor; and (2) the payments issued related
         to 169.18the enrolled tax parcel under this chapter for the previous four-year period in the
         case of 169.19an eight-year covenant, ten-year period in the case of a 20-year covenant, and 25-year
         169.20period in the case of a 50-year covenant, plus interest.169.21    (d) The claimant has 90 days to satisfy the payment for removal of land from the 169.22sustainable forest incentive program under this section. If the penalty is not paid
         within 169.23the 90-day period under this paragraph, the commissioner shall certify the amount
         to the 169.24county auditor for collection as a part of the general ad valorem real property taxes
         on the 169.25land in the following taxes payable year.169.26EFFECTIVE DATE.This section is effective the day following final enactment.169.27    Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:169.28    Subd. 6. Determination of appeal. On the basis of applicable law and available 169.29information, the commissioner shall determine the validity, if any, in whole or in
         part, 169.30of the appeal and notify the claimant of the decision. This notice must be in writing
         169.31and contain the basis for the determination. The commissioner shall consult with the 169.32commissioner of natural resources when an appeal relates to the use of the property
         for 169.33forestry or nonforestry purposes and for appeals related to forest management plans.169.34EFFECTIVE DATE.This section is effective the day following final enactment.170.1    Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION 170.2PROVISION.170.3(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
         170.4owner of enrolled lands may elect through May 15, 2017, and without penalty, to change
         170.5the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055.
         The 170.6owner of enrolled land must provide notice to the Department of Revenue of its intent
         to 170.7change the length of its covenant.170.8(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
         170.9owner of enrolled land must comply with the changes made in the act by certifications
         due 170.10in 2017, as required under Minnesota Statutes, section 290C.05.170.11EFFECTIVE DATE.This section is effective the day following final enactment.170.12    Sec. 16.  REPEALER.170.13Minnesota Statutes 2014, sections 290C.02, subdivisions 5 and 9, are repealed.170.14EFFECTIVE DATE.This section is effective the day following final enactment.170.15ARTICLE 12170.16MISCELLANEOUS170.17    Section 1. Minnesota Statutes 2014, section 16A.152, subdivision 2, is amended to read:170.18    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general 170.19fund revenues and expenditures, the commissioner of management and budget determines
         170.20that there will be a positive unrestricted budgetary general fund balance at the close
         of 170.21the biennium, the commissioner of management and budget must allocate money to the
         170.22following accounts and purposes in priority order:170.23    (1) the cash flow account established in subdivision 1 until that account reaches
         170.24$350,000,000;170.25    (2) the budget reserve account established in subdivision 1a until that account 170.26reaches $810,992,000 $994,339,000;170.27    (3) the amount necessary to increase the aid payment schedule for school district
         170.28aids and credits payments in section 
         127A.45 to not more than 90 percent rounded to the 170.29nearest tenth of a percent without exceeding the amount available and with any remaining
         170.30funds deposited in the budget reserve; and170.31    (4) the amount necessary to restore all or a portion of the net aid reductions under
         170.32section 
         127A.441 and to reduce the property tax revenue recognition shift under section 170.33123B.75, subdivision 5
         , by the same amount.171.1    (b) The amounts necessary to meet the requirements of this section are appropriated
         171.2from the general fund within two weeks after the forecast is released or, in the case
         of 171.3transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
         171.4schedules otherwise established in statute.171.5    (c) The commissioner of management and budget shall certify the total dollar 171.6amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner
         of 171.7education. The commissioner of education shall increase the aid payment percentage
         and 171.8reduce the property tax shift percentage by these amounts and apply those reductions
         to 171.9the current fiscal year and thereafter.171.10EFFECTIVE DATE.This section is effective July 1, 2015.171.11    Sec. 2. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:171.12    Subd. 8. Report on budget reserve percentage. (a) The commissioner of 171.13management and budget shall develop and annually review a methodology for evaluating
         171.14the adequacy of the budget reserve based on the volatility of Minnesota's general
         fund 171.15tax structure. The review must take into consideration relevant statistical and economic
         171.16literature. After completing the review, the commissioner may revise the methodology
         171.17if necessary. The commissioner must use the methodology to annually estimate the 171.18percentage of the current biennium's general fund nondedicated revenues recommended
         171.19as a budget reserve.171.20    (b) By January 15 August 31 of each year, the commissioner shall report the 171.21percentage of the current biennium's general fund nondedicated revenue that is 171.22recommended as a budget reserve to the chairs and ranking minority members of the
         171.23legislative committees with jurisdiction over the Department of Management and Budget
         171.24senate committee on finance, the house of representatives committee on ways and means,
         171.25and the senate and house of representatives committees on taxes. The report must also 171.26specify:171.27    (1) whether the commissioner revised the recommendation as a result of significant
         171.28changes in the mix of general fund taxes or the base of one or more general fund taxes;171.29    (2) whether the commissioner revised the recommendation as a result of a revision
         171.30to the methodology; and171.31    (3) any additional appropriate information.171.32EFFECTIVE DATE.This section is effective July 1, 2015.171.33    Sec. 3. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:172.1    Subdivision 1. Written order. The Tax Court, except in Small Claims Division, 172.2shall determine every appeal by written order containing findings of fact and the
         decision 172.3of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
         172.4of the entry of the order and of the substance of the decision shall be mailed to
         all parties. 172.5A motion for rehearing, which includes a motion for amended findings of fact, conclusions
         172.6of law, or a new trial, must be served by the moving party within 15 30 days after mailing 172.7of the notice by the court as specified in this subdivision, and the motion must be
         heard 172.8within 30 60 days thereafter, unless the time for hearing is extended by the court within 172.9the 30-day 60-day period for good cause shown.172.10EFFECTIVE DATE.This section is effective the day following final enactment.172.11    Sec. 4. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:172.12    Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division 172.13shall have jurisdiction only in the following matters:172.14(a) cases involving valuation, assessment, or taxation of real or personal property,
         if:172.15(i) the issue is a denial of a current year application for the homestead classification
         172.16for the taxpayer's property;172.17(ii) only one parcel is included in the petition, the entire parcel is classified
         as 172.18homestead class 1a or 1b under section 
         273.13, and the parcel contains no more than 172.19one dwelling unit;172.20(iii) the entire property is classified as agricultural homestead class 2a or 1b under
         172.21section 
         273.13; or172.22(iv) the assessor's estimated market value of the property included in the petition
         172.23is less than $300,000; or172.24(b) any case not involving valuation, assessment, or taxation of real and personal
         172.25property in which the amount in controversy does not exceed $5,000 $15,000, including 172.26penalty and interest.172.27EFFECTIVE DATE.This section is effective the day following final enactment.172.28    Sec. 5. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:172.29    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 172.30means natural gas, primarily methane, condensed under high pressure and stored in
         172.31specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
         172.32For purposes of this chapter, the energy content of CNG is considered to be 1,000 900 172.33BTUs per cubic foot.173.1EFFECTIVE DATE.This section is effective for sales and purchases made after 173.2June 30, 2015.173.3    Sec. 6. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 173.4to read:173.5    Subd. 13a.Dealer of gasoline used as a substitute for aviation gasoline."Dealer 173.6of gasoline used as a substitute for aviation gasoline" means any person who sells
         gasoline 173.7on the premises of an airport as defined under section 360.013, subdivision 39, to
         be 173.8dispensed directly into the fuel tank of an aircraft.173.9EFFECTIVE DATE.This section is effective for sales and purchases made after 173.10June 30, 2015.173.11    Sec. 7. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:173.12    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or 173.13denatured ethanol purchased by:173.14    (1) a transit system or transit provider receiving financial assistance or 173.15reimbursement under section 
         174.24, 
         256B.0625, subdivision 17, or 
         473.384;173.16    (2) providers of transportation to recipients of medical assistance home and 173.17community-based services waivers enrolled in day programs, including adult day care,
         173.18family adult day care, day treatment and habilitation, prevocational services, and
         173.19structured day services;173.20(3) an ambulance service licensed under chapter 144E;173.21(4) providers of medical or dental services by a federally qualified health center,
         173.22as defined under title 19 of the Social Security Act, as amended by Section 4161 of
         the 173.23Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as
         a 173.24mobile medical unit; or173.25    (5) a licensed distributor to be delivered to a terminal for use in blending; or173.26    (6) a dealer of gasoline used as a substitute for aviation gasoline.173.27EFFECTIVE DATE.This section is effective for sales and purchases made after 173.28June 30, 2015.173.29    Sec. 8. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:173.30    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:173.31    (a) Liquefied petroleum gas or propane is taxed at the rate of 
         18.75 cents per gallon.173.32    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.174.1    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic 174.2feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
         174.3equivalent," as defined by the National Conference on Weights and Measures, is 5.66
         174.4pounds of natural gas or 126.67 cubic feet.174.5    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
         174.6specified in section 
         296A.07, subdivision 2. The tax is payable in the form and manner 174.7prescribed by the commissioner.174.8EFFECTIVE DATE.This section is effective for sales and purchases made after 174.9June 30, 2015.174.10    Sec. 9. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:174.11    Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is 174.12imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline
         received, 174.13sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute 174.14for aviation gasoline. Aviation gasoline is defined in section 
         296A.01, subdivision 7.174.15EFFECTIVE DATE.This section is effective for sales and purchases made after 174.16June 30, 2015.174.17    Sec. 10. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:174.18    Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 174.19do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline or 174.20special fuel purchased and placed in the fuel tanks of an aircraft outside the state,
         even 174.21though the gasoline may be consumed within this state.174.22EFFECTIVE DATE.This section is effective for sales and purchases made after 174.23June 30, 2015.174.24    Sec. 11. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:174.25    Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are 174.26expressly declared not to be a tax upon consumption of gasoline used as a substitute for 174.27aviation gasoline, aviation gasoline or special fuel by an aircraft.174.28EFFECTIVE DATE.This section is effective for sales and purchases made after 174.29June 30, 2015.174.30    Sec. 12. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:175.1    Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to 175.2gasoline used as a substitute for aviation gasoline, aviation gasoline or jet fuel purchased 175.3by an ambulance service licensed under chapter 144E.175.4EFFECTIVE DATE.This section is effective for sales and purchases made after 175.5June 30, 2015.175.6    Sec. 13. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:175.7    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except 175.8as provided in paragraph (e), on or before the 23rd day of each month, every person
         175.9who is required to pay a gasoline tax shall file with the commissioner a report, in
         the 175.10form and manner prescribed by the commissioner, showing the number of gallons of 175.11petroleum products received by the reporter during the preceding calendar month, and
         175.12other information the commissioner may require. A written report is deemed to have
         175.13been filed as required in this subdivision if postmarked on or before the 23rd day
         of the 175.14month in which the tax is payable.175.15(b) The number of gallons of gasoline must be reported in United States standard 175.16liquid gallons, 231 cubic inches, except that the commissioner may upon written 175.17application and for cause shown permit the distributor to report the number of gallons
         of 175.18gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application
         is 175.19granted, all gasoline covered in the application and allowed by the commissioner must
         175.20continue to be reported by the distributor on the adjusted basis for a period of one
         year 175.21from the date of the granting of the application. The number of gallons of petroleum
         175.22products other than gasoline must be reported as originally invoiced. Each report
         must 175.23show separately the number of gallons of aviation gasoline received by the reporter
         during 175.24each calendar month and the number of gallons of gasoline sold to a dealer of gasoline 175.25used as a substitute for aviation fuel during each calendar month.175.26(c) Each report must also include the amount of gasoline tax on gasoline received
         by 175.27the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
         175.28of the quantity of gasoline received by a distributor shall be made for evaporation
         and loss. 175.29At the time of reporting, the reporter shall submit satisfactory evidence that one-third
         of 175.30the 2.5 percent deduction has been credited or paid to dealers on quantities sold
         to them.175.31(d) Each report shall contain a confession of judgment for the amount of the tax 175.32shown due to the extent not timely paid.175.33(e) Under certain circumstances and with the approval of the commissioner, 175.34taxpayers may be allowed to file reports annually.176.1EFFECTIVE DATE.This section is effective for sales and purchases made after 176.2June 30, 2015.176.3    Sec. 14. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:176.4    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any 176.5person who buys gasoline from a dealer of gasoline used as a substitute for aviation 176.6gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the 176.7excise taxes due directly or indirectly through the amount of the tax being included
         in the 176.8price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
         176.9sells it to any person for use in motor vehicles shall, on or before the 23rd day
         of the month 176.10following that in which such gasoline or special fuel was so used or sold, report
         the fact of 176.11the use or sale to the commissioner in the form and manner prescribed by the commissioner.176.12(b) Any person who buys gasoline other than aviation gasoline and who has paid the
         176.13motor vehicle gasoline excise tax directly or indirectly through the amount of the
         tax being 176.14included in the price of the gasoline, or otherwise, who knowingly sells such gasoline
         to any 176.15person to be used for the purpose of producing or generating power for propelling
         aircraft, 176.16or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
         176.17shall, on or before the 23rd day of the month following that in which such gasoline
         was so 176.18sold, stored, or withdrawn from storage, report the fact of the sale, storage, or
         withdrawal 176.19from storage to the commissioner in the form and manner prescribed by the commissioner.176.20EFFECTIVE DATE.This section is effective for sales and purchases made after 176.21June 30, 2015.176.22    Sec. 15. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:176.23    Subdivision 1. Aviation refund requirements. Any person claiming to be entitled 176.24to any refund or credit provided for in subdivision 3 shall receive the refund or
         credit 176.25upon filing with the commissioner a claim in such form and manner prescribed by the
         176.26commissioner. The claim shall set forth, among other things, the total number of gallons
         176.27of gasoline used as a substitute for aviation gasoline, aviation gasoline or special fuel 176.28for aircraft use upon which the claimant has directly or indirectly paid the excise
         tax 176.29provided for in this chapter, during the calendar year, which has been received, stored,
         or 176.30withdrawn from storage by the claimant in this state and not sold or otherwise disposed
         of 176.31to others. All claims for refunds under this subdivision shall be made on or before
         April 176.3230 following the end of the calendar year for which the refund is claimed.177.1EFFECTIVE DATE.This section is effective for sales and purchases made after 177.2June 30, 2015.177.3    Sec. 16. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:177.4    Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used 177.5as a substitute for aviation gasoline, aviation gasoline or special fuel for aircraft use and 177.6who has paid the excise taxes directly or indirectly through the amount of the tax
         being 177.7included in the price, or otherwise, who does not use it in motor vehicles or receive,
         sell, 177.8store, or withdraw it from storage for the purpose of producing or generating power
         for 177.9propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon
         filing 177.10with the commissioner a claim in the form and manner prescribed by the commissioner.
         177.11The claim shall state the total amount of the gasoline used as a substitute for aviation 177.12gasoline, aviation gasoline or special fuel for aircraft use purchased and used by the 177.13applicant, and shall state when and for what purpose it was used. On being satisfied
         that 177.14the claimant is entitled to payment, the commissioner shall approve the claim and
         transmit 177.15it to the commissioner of management and budget. The postmark on the envelope in 177.16which a written claim is mailed determines the date of filing.177.17(b) If a claim contains an error in preparation in computation or preparation, the
         177.18commissioner is authorized to adjust the claim in accordance with the evidence shown
         on 177.19the claim or other information available to the commissioner.177.20(c) An applicant who files a claim that is false or fraudulent, is subject to the
         177.21penalties provided in section 
         296A.23 for knowingly and willfully making a false claim.177.22EFFECTIVE DATE.This section is effective for sales and purchases made after 177.23June 30, 2015.177.24    Sec. 17. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:177.25    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly 177.26paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline 177.27or special fuel for aircraft use provided for by this chapter and either paid the airflight 177.28property tax under section 
         270.072or is an aerial applicator with a category B, general 177.29aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for 177.30aviation gasoline, aviation gasoline and special fuel received, stored, or withdrawn from 177.31storage by the person in this state in any calendar year and not sold or otherwise
         disposed 177.32of to others, or intended for sale or other disposition to others, on which such tax
         has been 177.33so paid, be entitled to the following graduated reductions in such tax for that calendar
         177.34year, to be obtained by means of the following refunds:178.1(1) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 178.2gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;178.3(2) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 178.4gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all
         178.5but two cents per gallon;178.6(3) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 178.7gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons,
         all 178.8but one cent per gallon;178.9(4) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 178.10gasoline or special fuel above 200,000, all but one-half cent per gallon.178.11EFFECTIVE DATE.This section is effective for sales and purchases made after 178.12June 30, 2015.178.13    Sec. 18. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:178.14    Subdivision 1. Intent; gasoline use. All gasoline received in this state and all 178.15gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a 178.16dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be 178.17determined to be intended for use in motor vehicles in this state.178.18EFFECTIVE DATE.This section is effective for sales and purchases made after 178.19June 30, 2015.178.20    Sec. 19. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:178.21    Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used 178.22as a substitute for aviation gasoline, aviation gasoline and on special fuel received, sold, 178.23stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid
         into 178.24the state treasury and credited to the state airports fund. There is hereby appropriated
         such 178.25sums as are needed to carry out the provisions of this subdivision.178.26EFFECTIVE DATE.This section is effective for sales and purchases made after 178.27June 30, 2015.178.28    Sec. 20. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:178.29    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk 178.30purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of 178.31special fuel shall keep a true and accurate record of all purchases, transfers, sales,
         and use 179.1of petroleum products and special fuel, including copies of all sales tickets issued,
         in a form 179.2and manner approved by the commissioner, and shall retain all such records for 3-1/2
         years.179.3EFFECTIVE DATE.This section is effective for sales and purchases made after 179.4June 30, 2015.179.5    Sec. 21. Minnesota Statutes 2014, section 297A.994, subdivision 4, is amended to read:179.6    Subd. 4. General fund allocations. The commissioner must retain and deposit to 179.7the general fund the following amounts, as required by subdivision 3, clause (3):179.8(1) for state bond debt service support beginning in calendar year 2021, and for each
         179.9calendar year thereafter through calendar year 2046, periodic amounts so that not
         later than 179.10December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has
         been 179.11deposited in the general fund. To determine aggregate present value, the commissioner
         179.12must consult with the commissioner of management and budget regarding the present
         value 179.13dates, discount rate or rates, and schedules of annual amounts. The present value
         date or 179.14dates must be based on the date or dates bonds are sold under section 
         16A.965, or the date 179.15or dates other state funds, if any, are deposited into the construction fund. The
         discount rate 179.16or rates must be based on the true interest cost of the bonds issued under section
         
         16A.965, 179.17or an equivalent 30-year bond index, as determined by the commissioner of management
         179.18and budget. The schedule of annual amounts must be certified to the commissioner by
         the 179.19commissioner of management and budget and the finance officer of the city;179.20(2) for the capital improvement reserve appropriation to the Minnesota Sports 179.21Facilities Authority beginning in calendar year 2021, and for each calendar year thereafter
         179.22through calendar year 2046, an aggregate annual amount equal to the amount paid by
         the 179.23state for this purpose in that calendar year under section 
         473J.13, subdivision 4;179.24(3) for the operating expense appropriation to the Minnesota Sports Facilities 179.25Authority beginning in calendar year 2021, and for each calendar year thereafter through
         179.26calendar year 2046, an aggregate annual amount equal to the amount paid by the state
         for 179.27this purpose in that calendar year under section 
         473J.13, subdivision 2;179.28(4) for recapture of state advances for capital improvements and operating expenses
         179.29for calendar years 2016 through 2020 beginning in calendar year 2021, and for each
         179.30calendar year thereafter until all amounts under this clause have been paid, proportionate
         179.31amounts periodically until an aggregate amount equal to the present value of all amounts
         179.32paid by the state have been deposited in the general fund. To determine the present
         179.33value of the amounts paid by the state to the authority and the present value of amounts
         179.34deposited to the general fund under this clause, the commissioner shall consult with
         the 179.35commissioner of management and budget regarding the present value dates, discount
         rate 180.1or rates, and schedule of annual amounts. The present value dates must be based on
         180.2the dates state funds are paid to the authority, or the dates the commissioner of
         revenue 180.3deposits taxes for purposes of this clause to the general fund. The discount rates
         must be 180.4based on the reasonably equivalent cost of state funds as determined by the commissioner
         180.5of management and budget. The schedule of annual amounts must be revised to reflect
         180.6amounts paid under section 
         473J.13, subdivision 2, paragraph (b), for 2016 to 2020, 180.7and subdivision 4, paragraph (c), for 2016 to 2020, and taxes deposited to the general
         180.8fund from time to time under this clause, and the schedule and revised schedules must
         180.9be certified to the commissioner by the commissioner of management and budget and
         180.10the finance officer of the city, and are transferred as accrued from the general fund
         for 180.11repayment of advances made by the state to the authority; and180.12(5) to capture increases in taxes imposed under the special law, for the benefit of
         180.13the Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for
         each 180.14calendar year thereafter through 2046, there shall be deposited to the general fund
         in 180.15proportionate periodic payments in the following year, an amount equal to the following:180.16(i) 50 percent of the difference, if any, by which the amount of the net annual taxes
         180.17for the previous year exceeds the sum of the net actual taxes in calendar year 2011
         plus 180.18$1,000,000, inflated at two percent per year since 2011, minus180.19(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes
         180.20for the preceding year exceeds the sum of the net actual taxes in calendar year 2011
         plus 180.21$3,000,000, inflated at two percent per year since 2011; and180.22(iii) of the amounts determined under items (i) and (ii), a total of $2,700,000 shall
         180.23be used to offset taxes paid by the NFL and its employees in connection with a world
         180.24championship football game sponsored by the NFL played at the stadium.180.25EFFECTIVE DATE.This section is effective the day following final enactment.180.26    Sec. 22. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS 180.27OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.180.28Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27,
         180.29and 222.36, or any other law, the powers of a foreign or domestic railroad corporation
         or a 180.30railroad company or a railroad interest acting as a public service corporation or
         a common 180.31carrier do not include the power to exercise eminent domain over a property interest
         of 180.32Hennepin County, the Hennepin County Housing and Redevelopment Authority, or the 180.33Hennepin County Regional Railroad Authority if the governmental power, by resolution
         180.34of its governing board, determines based on specific findings that the public safety
         or 180.35access of first responders would be substantially and adversely affected by the exercise.
         181.1EFFECTIVE DATE.This section is effective retroactively from March 2, 2015, 181.2and applies to any eminent domain action to acquire any property interest of any of
         the 181.3named entities.181.4    Sec. 23. [465.95] BROADBAND SERVICE PUBLIC-PRIVATE PARTNERSHIPS.181.5    Subdivision 1.Local authority; broadband service.(a) A local unit of government 181.6may finance, acquire, and construct broadband equipment.181.7(b) Local units of government and broadband joint powers boards, authorized under
         181.8subdivision 3, are authorized to partner or contract with a private provider or cooperative
         181.9to finance, acquire and construct the broadband equipment. For purposes of this section,
         a 181.10"local unit of government" means a statutory city, a home rule charter city, or county.181.11    Subd. 2.Local authority; broadband infrastructure bonding.(a) Each local 181.12unit of government may authorize the issuance of general obligation bonds to provide
         181.13funds for the acquisition or betterment of its broadband infrastructure, or for refunding
         181.14any outstanding bonds issued for that purpose. Bonds may only be issued by the local
         181.15unit upon obtaining the approval of a majority of the electors voting on the question
         of 181.16issuing the obligations.181.17(b) The proceeds of the bonds may also be used, in part, to establish a reserve as
         181.18further security for the payment of the principal and interest of the bonds when due.181.19(c) The local unit of government may pledge its full faith, credit, and taxing powers,
         181.20or the proceeds of any designated tax levies, or the gross or net revenues or charges
         to 181.21be derived from any broadband service operated for the local unit of government, or
         any 181.22combination thereof. Taxes levied for the payment of the bonds and interest shall
         not reduce 181.23the amounts of other taxes which the local unit of government is authorized by law
         to levy.181.24(d) Bonds issued under this section may be sold at public or private sale upon the
         terms 181.25and conditions the local unit of government determines. Except as otherwise provided,
         the 181.26bonds shall be issued and sold in accordance with the provisions of chapter 475.181.27    Subd. 3.Broadband joint powers board.(a) A local unit of government may enter 181.28into an agreement under section 471.59 with other local units of government to finance,
         181.29acquire, and construct broadband equipment in the territory within the jurisdiction
         of all 181.30participating local units of government.181.31(b) An agreement entered into under this section may provide that:181.32(1) each local unit of government shall issue bonds to pay their respective shares
         of 181.33the cost of the broadband projects;181.34(2) one of the local units of government shall issue bonds to pay the full costs of
         the 181.35project and the other participating local units of government shall levy the tax authorized
         182.1under this subdivision and pledge the collections of the tax to the local unit of
         government 182.2that issues the bonds; or182.3(3) the joint powers board shall issue revenue bonds to pay the full costs of the
         182.4project and the participating local units of government shall levy the tax authorized
         182.5under this subdivision and pledge the collections of the tax to the joint powers entity
         for 182.6payment of the revenue bonds.182.7Bonds may only be issued by the local unit under this subdivision upon obtaining 182.8the approval of a majority of the electors voting on the question of issuing the obligations.182.9    Subd. 4.Exemption.Section 237.19 does not apply to broadband activities under 182.10this section.182.11    Subd. 5.Applicability.Subdivisions 2 and 3 apply only when a local unit of 182.12government partners or enters into an agreement with a private provider or cooperative
         to 182.13operate and maintain broadband service and equipment.182.14    Subd. 6.Additional authority.This section is in addition to and does not limit 182.15any other authority of a local unit of government to engage in the activities authorized
         182.16by this section.182.17EFFECTIVE DATE.This section is effective the day following final enactment.182.18    Sec. 24. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision 182.19to read:182.20    Subd. 20.Additional border city allocations; 2015.In addition to the tax 182.21reductions authorized in subdivisions 12 to 19, the commissioner shall allocate $2,000,000
         182.22for tax reductions to border city enterprise zones in cities located on the western
         border of 182.23the state. The commissioner shall allocate this amount among cities on a per capita
         basis. 182.24Allocations made under this subdivision may be used for tax reductions under sections
         182.25469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted
         182.26by businesses located in the enterprise zone, but only if the municipality determines
         182.27that the granting of the tax reduction or offset is necessary to retain a business
         within 182.28or attract a business to the zone.182.29EFFECTIVE DATE.This section is effective July 1, 2015.182.30    Sec. 25. Minnesota Statutes 2014, section 469.40, subdivision 11, as amended by Laws 182.312015, chapter 1, section 6, is amended to read:182.32    Subd. 11. Public infrastructure project. (a) "Public infrastructure project" means 182.33a project financed in part or in whole with public money in order to support the medical
         183.1business entity's development plans, as identified in the DMCC development plan. A
         183.2public infrastructure project may:183.3(1) acquire real property and other assets associated with the real property;183.4(2) demolish, repair, or rehabilitate buildings;183.5(3) remediate land and buildings as required to prepare the property for acquisition
         183.6or development;183.7(4) install, construct, or reconstruct elements of public infrastructure required
         to 183.8support the overall development of the destination medical center development district
         183.9including, but not limited to, streets, roadways, utilities systems and related facilities,
         183.10utility relocations and replacements, network and communication systems, streetscape
         183.11improvements, drainage systems, sewer and water systems, subgrade structures and 183.12associated improvements, landscaping, façade construction and restoration, wayfinding
         183.13and signage, and other components of community infrastructure;183.14(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
         183.15to encourage intermodal transportation and public transit;183.16(6) install, construct or reconstruct, furnish, and equip parks, cultural, and 183.17recreational facilities, facilities to promote tourism and hospitality, conferencing
         and 183.18conventions, and broadcast and related multimedia infrastructure;183.19(7) make related site improvements including, without limitation, excavation, 183.20earth retention, soil stabilization and correction, and site improvements to support
         the 183.21destination medical center development district;183.22(8) prepare land for private development and to sell or lease land;183.23(9) provide costs of relocation benefits to occupants of acquired properties; and183.24(10) construct and equip all or a portion of one or more suitable structures on land
         183.25owned by the city for sale or lease to private development; provided, however, that
         the 183.26portion of any structure directly financed by the city as a public infrastructure
         project must 183.27not be sold or leased to a medical business entity.183.28(b) A public infrastructure project is not a business subsidy under section 
         116J.993.183.29(c) Public infrastructure project includes the planning, preparation, and modification 183.30of the development plan under section 
         469.43, and.  The cost of that planning, preparation, 183.31and any modification is a capital cost of the public infrastructure project.183.32EFFECTIVE DATE.This section is effective the day after the governing body of 183.33the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section 183.34645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of 183.35the laws that are amended.184.1    Sec. 26. Minnesota Statutes 2014, section 469.43, is amended by adding a subdivision 184.2to read:184.3    Subd. 6a.Restriction on city funds to support nonprofit economic development 184.4agency.The nonprofit economic development agency shall not require the city to pay 184.5any amounts to the nonprofit economic development agency that are unrelated to public
         184.6infrastructure project costs.184.7EFFECTIVE DATE.This section is effective the day after the governing body of 184.8the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section 184.9645.021, subdivisions 2 and 3, and applies retroactively from June 22, 2013.184.10    Sec. 27. Minnesota Statutes 2014, section 469.45, subdivision 1, is amended to read:184.11    Subdivision 1. Rochester, other local taxes authorized. (a) Notwithstanding 184.12section 
         477A.016 or any other contrary provision of law, ordinance, or city charter, and in 184.13addition to any taxes the city may impose on these transactions under another statute
         or 184.14law, the city of Rochester may, by ordinance, impose at a rate or rates, determined
         by the 184.15city, any of the following taxes:184.16(1) a tax on the gross receipts from the furnishing for consideration of lodging and
         184.17related services as defined in section 
         297A.61, subdivision 3, paragraph (g), clause (2); the 184.18city may choose to impose a differential tax based on the number of rooms in the facility;184.19(2) a tax on the gross receipts of food and beverages sold primarily for consumption
         184.20on the premises by restaurants and places of refreshment that occur in the city of
         184.21Rochester; the city may elect to impose the tax in a defined district of the city;
         and184.22(3) a tax on the admission receipts to entertainment and recreational facilities,
         as 184.23defined by ordinance, in the city of Rochester.184.24(b) The provisions of section 
         297A.99, subdivisions 4 to 13, govern the 184.25administration, collection, and enforcement of any tax imposed by the city under 184.26paragraph (a).184.27(c) The proceeds of any taxes imposed under this subdivision, less refunds and 184.28costs of collection, must be used by the city only to meet its share of obligations
         for 184.29public infrastructure projects contained in the development plan and approved by the
         184.30corporation, including any associated financing costs or to pay any other costs qualifying 184.31as a local matching contribution under section 469.47, subdivision 4. Any tax imposed 184.32under paragraph (a) expires at the earlier of December 31, 2049, or when the city
         council 184.33determines that sufficient funds have been raised from the tax plus all other local
         funding 184.34sources authorized in Laws 2013, chapter 143, article 10, to meet the city obligation
         for 185.1financing public infrastructure projects contained in the development plan and approved
         185.2by the corporation, including any associated financing costs.185.3EFFECTIVE DATE.This section is effective the day after the governing body of 185.4the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section 185.5645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of 185.6the laws that are amended.185.7    Sec. 28. Minnesota Statutes 2014, section 469.45, subdivision 2, is amended to read:185.8    Subd. 2. General sales tax authority. The city may elect to extend the existing 185.9local sales and use tax under Laws 2013, chapter 143, article 10, section 13, or to
         impose 185.10an additional rate of up to one quarter of one percent tax on sales and use under
         Laws 185.112013, chapter 143, article 10, section 11. The proceeds of any extended or additional
         taxes 185.12imposed under this subdivision, less refunds and costs of collection, must be used
         by the 185.13city only to meet its share of obligations for public infrastructure projects contained
         in the 185.14development plan and approved by the corporation, including all financing costs. Revenues
         185.15collected in any year to meet the obligations must be used for payment of obligations
         or 185.16expenses for public infrastructure projects approved by the corporation or of any other 185.17costs qualifying as a local matching contribution under section 469.47, subdivision
         4.185.18EFFECTIVE DATE.This section is effective the day after the governing body of 185.19the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section 185.20645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of 185.21the laws that are amended.185.22    Sec. 29. Minnesota Statutes 2014, section 469.47, subdivision 4, as amended by Laws 185.232015, chapter 1, section 10, is amended to read:185.24    Subd. 4. General aid; local matching contribution. In order to qualify for general 185.25state infrastructure aid, the city must enter a written agreement with the commissioner
         that 185.26requires the city to make a qualifying local matching contribution to pay for $128,000,000
         185.27of the cost of public infrastructure projects approved by the corporation, including
         185.28financing costs, using funds other than state aid received under this section. Through June 185.2930, 2020, the $128,000,000 required local matching contribution is reduced by one-half of 185.30the any amounts the city pays for operating and administrative costs out of funds other 185.31than state aid received under this section for the support, administration, or operations of 185.32the corporation and the economic development agency up to a maximum amount agreed 185.33to by the board and the city. These amounts include any costs the city incurs in providing 186.1services, goods, or other support to the corporation or agency. Beginning on July
         1, 186.22020, the required local matching contribution is reduced by one-half of the amounts
         186.3the city pays for support, operating, and administrative costs of the corporation
         up to a 186.4maximum amount agreed to by the board and the city. The agreement must provide for the 186.5manner, timing, and amounts of the city contributions, including the city's commitment
         186.6for each year. Notwithstanding any law to the contrary, the agreement may provide
         that 186.7the city contributions for public infrastructure project principal costs may be made
         over a 186.820-year period at a rate not greater than $1 from the city for each $2.55 from the
         state. 186.9The local match contribution may be provided by the city from any source identified
         in 186.10section 
         469.45 and any other local tax proceeds or other funds from the city and may 186.11include providing funds to prepare the development plan, to assist developers undertaking
         186.12projects in accordance with the development plan, or by the city directly undertaking
         186.13public infrastructure projects in accordance with the development plan, provided the
         186.14projects have been approved by the corporation. City contributions that are in excess
         of 186.15this ratio carry forward and are credited toward subsequent years. The commissioner
         and 186.16city may agree to amend the agreement at any time in light of new information or other
         186.17appropriate factors. The city may enter into arrangements with the county to pay for
         or 186.18otherwise meet the local matching contribution requirement. Any public infrastructure
         186.19project within the area that will be in the destination medical center development
         district 186.20whose implementation is started or funded by the city after June 22, 2013, but before
         the 186.21development plan is adopted, as provided by section 
         469.43, subdivision 1, will be included 186.22for the purposes of determining the amount the city has contributed as required by
         this 186.23section and the agreement with the commissioner, subject to approval by the corporation.186.24EFFECTIVE DATE.This section is effective the day after the governing body of 186.25the city of Rochester and its chief clerical officer comply with Minnesota Statutes,
         section 186.26645.021, subdivisions 2 and 3, and applies retroactively to the original effective
         dates of 186.27the laws that are amended.186.28    Sec. 30. Minnesota Statutes 2014, section 524.3-916, is amended to read:186.29524.3-916 APPORTIONMENT OF ESTATE TAXES AND 186.30GENERATION-SKIPPING TAX.186.31(a) For purposes of this section:186.32(1) "estate" means the gross estate of a decedent as determined for the purpose of
         186.33federal estate tax or the estate tax payable to this state;187.1(2) "decedent's generation-skipping transfers" means all generation-skipping transfers
         187.2as determined for purposes of the federal generation-skipping tax which occur by reason
         187.3of the decedent's death which relate to property which is included in the decedent's
         estate;187.4(3) "person" means any individual, partnership, association, joint stock company,
         187.5corporation, limited liability company, government, political subdivision, governmental
         187.6agency, or local governmental agency;187.7(4) "person interested in the estate" means any person entitled to receive, or who
         has 187.8received, from a decedent or by reason of the death of a decedent any property or
         interest 187.9therein included in the decedent's estate. It includes a personal representative,
         guardian, 187.10conservator, trustee, and custodian;187.11(5) "state" means any state, territory, or possession of the United States, the District
         187.12of Columbia, and the Commonwealth of Puerto Rico;187.13(6) "estate tax" means the federal estate tax and the state estate tax determined
         by the 187.14commissioner of revenue pursuant to chapter 291 and interest and penalties imposed
         in 187.15addition to the tax;187.16(7) "decedent's generation-skipping tax" means the federal generation-skipping 187.17tax imposed on the decedent's generation-skipping transfers and interest and penalties
         187.18imposed in addition to the tax;187.19(8) "fiduciary" means personal representative or trustee.187.20(b) Unless the will or other governing instrument otherwise provides: Any tax 187.21occasioned by a decedent's death shall be apportioned as set forth in clauses (1)
         to (4).187.22(1) the Estate tax taxes shall be apportioned among all persons interested in the 187.23estate. The apportionment is to be made in the proportion that the value of the interest of 187.24each person interested in the estate bears to the total value of the interests of
         all persons 187.25interested in the estate. The values used in determining the tax are to shall be used for 187.26that purpose; and in apportioning the tax.187.27(2) Notwithstanding the general rule set forth in clause (1), if property is included
         in 187.28the decedent's gross estate pursuant to section 2044 of the Internal Revenue Code
         of 1986, 187.29as amended, or any similar provision of any state estate tax law, the difference between
         the 187.30total estate tax payable by the decedent's estate and the amount of estate tax that
         would 187.31have been payable by the decedent's estate if the property had not been included in
         the 187.32decedent's gross estate shall be apportioned ratably among the holders of interests
         in the 187.33property. The values used in determining the tax shall be used in apportioning the
         tax. The 187.34balance of the tax, if any, shall be apportioned as provided in clause (1).187.35(3) The decedent's generation-skipping tax shall be apportioned as provided by 187.36federal law. To the extent not provided by federal law, the decedent's generation-skipping
         188.1tax shall be apportioned among all persons receiving the decedent's generation-skipping
         188.2transfers whose tax apportionment is not provided by federal law in the proportion
         that the 188.3value of the transfer to each person bears to the total value of all such transfers.188.4(4) If the decedent's will or other written instrument directs a method of 188.5apportionment of estate tax or of the decedent's generation-skipping tax different
         from 188.6the method methods described in this section, the method described in the will or other 188.7written instrument controls shall control; provided, however, that:188.8(i) unless the decedent's will or other written instrument specifically indicates
         an 188.9intent to waive any right of recovery under section 2207A of the Internal Revenue
         Code of 188.101986, as amended, estate taxes on property described in clause (2) must be apportioned 188.11under the method described in this section to property included in the decedent's estate 188.12under section 2044 of the Internal Revenue Code of 1986, as amended clause (2); and188.13(ii) unless the decedent's will or other written instrument specifically indicates
         an 188.14intent to waive any right of recovery under section 2207B of the Internal Revenue
         Code of 188.151986, as amended, estate taxes must be apportioned under the method described in this 188.16section to on property included in the decedent's estate under section 2036 of the Internal 188.17Revenue Code of 1986, as amended, must be apportioned under the method described 188.18in clause (1).188.19(c)(1) The court in which venue lies for the administration of the estate of a decedent,
         188.20on petition for the purpose may determine the apportionment of the estate tax or of
         the 188.21decedent's generation-skipping tax.188.22(2) If the court finds that it is inequitable to apportion interest and penalties
         in 188.23the manner provided in subsection (b), because of special circumstances, it may direct
         188.24apportionment thereof in the manner it finds equitable.188.25(3) If the court finds that the assessment of penalties and interest assessed in relation
         188.26to the estate tax or the decedent's generation-skipping tax is due to delay caused
         by the 188.27negligence of the fiduciary, the court may charge the fiduciary with the amount of
         the 188.28assessed penalties and interest.188.29(4) In any action to recover from any person interested in the estate the amount of
         188.30the estate tax or of the decedent's generation-skipping tax apportioned to the person
         in 188.31accordance with this section the determination of the court in respect thereto shall
         be 188.32prima facie correct.188.33(d)(1) The personal representative or other person in possession of the property 188.34of the decedent required to pay the estate tax or the decedent's generation-skipping
         tax 188.35may withhold from any property distributable to any person interested in the estate,
         188.36upon its distribution, the amount of any taxes attributable to the person's interest.
         If the 189.1property in possession of the personal representative or other person required to
         pay any 189.2taxes and distributable to any person interested in the estate is insufficient to
         satisfy the 189.3proportionate amount of the taxes determined to be due from the person, the personal
         189.4representative or other person required to pay any taxes may recover the deficiency
         from 189.5the person interested in the estate. If the property is not in the possession of the
         personal 189.6representative or the other person required to pay any taxes, the personal representative
         or 189.7the other person required to pay any taxes may recover from any person interested
         in the 189.8estate the amount of any taxes apportioned to the person in accordance with this section.189.9(2) If property held by the personal representative or other person in possession
         189.10of the property of the decedent required to pay the estate tax or the decedent's 189.11generation-skipping tax is distributed prior to final apportionment of the estate
         tax or 189.12the decedent's generation-skipping tax, the distributee shall provide a bond or other
         189.13security for the apportionment liability in the form and amount prescribed by the
         personal 189.14representative or other person, as the case may be.189.15(e)(1) In making an apportionment, allowances shall be made for any exemptions 189.16granted, any classification made of persons interested in the estate and for any deductions
         189.17and credits allowed by the law imposing the tax.189.18(2) Any exemption or deduction allowed by reason of the relationship of any person
         189.19to the decedent, by reason of the purposes of the gift, or by allocation to the gift
         (either 189.20by election by the fiduciary or by operation of federal law), inures to the benefit
         of the 189.21person bearing such relationship or receiving the gift; but if an interest is subject
         to a prior 189.22present interest which is not allowable as a deduction, the tax apportionable against
         the 189.23present interest shall be paid from principal.189.24(3) Any deduction for property previously taxed and any credit for gift taxes or 189.25death taxes of a foreign country paid by the decedent or the decedent's estate inures
         to the 189.26proportionate benefit of all persons liable to apportionment.189.27(4) Any credit for inheritance, succession or estate taxes or taxes in the nature
         189.28thereof applicable to property or interests includable in the estate, inures to the
         benefit of 189.29the persons or interests chargeable with the payment thereof to the extent proportionately
         189.30that the credit reduces the tax.189.31(5) To the extent that property passing to or in trust for a surviving spouse or any
         189.32charitable, public or similar gift or devise is not an allowable deduction for purposes
         of 189.33the estate tax solely by reason of an estate tax imposed upon and deductible from
         the 189.34property, the property is not included in the computation provided for in subsection
         (b)(1) 189.35hereof, and to that extent no apportionment is made against the property. The sentence
         189.36immediately preceding does not apply to any case if the result would be to deprive
         the 190.1estate of a deduction otherwise allowable under section 2053(d) of the Internal Revenue
         190.2Code of 1986, as amended, of the United States, relating to deduction for state death
         taxes 190.3on transfers for public, charitable, or religious uses.190.4(f) No interest in income and no estate for years or for life or other temporary interest
         190.5in any property or fund is subject to apportionment as between the temporary interest
         190.6and the remainder. The estate tax on the temporary interest and the estate tax, if
         any, on 190.7the remainder is chargeable against the corpus of the property or funds subject to
         the 190.8temporary interest and remainder. The decedent's generation-skipping tax is chargeable
         190.9against the property which constitutes the decedent's generation-skipping transfer.190.10(g) Neither the personal representative nor other person required to pay the tax is
         190.11under any duty to institute any action to recover from any person interested in the
         estate 190.12the amount of the estate tax or of the decedent's generation-skipping tax apportioned
         to the 190.13person until the final determination of the tax. A personal representative or other
         person 190.14required to pay the estate tax or decedent's generation-skipping tax who institutes
         the 190.15action within a reasonable time after final determination of the tax is not subject
         to any 190.16liability or surcharge because any portion of the tax apportioned to any person interested
         190.17in the estate was collectible at a time following the death of the decedent but thereafter
         190.18became uncollectible. If the personal representative or other person required to pay
         the 190.19estate tax or decedent's generation-skipping tax cannot collect from any person interested
         190.20in the estate the amount of the tax apportioned to the person, the amount not recoverable
         190.21shall be equitably apportioned among the other persons interested in the estate who
         are 190.22subject to apportionment of the tax involved.190.23(h) A personal representative acting in another state or a person required to pay
         the 190.24estate tax or decedent's generation-skipping tax domiciled in another state may institute
         an 190.25action in the courts of this state and may recover a proportionate amount of the federal
         190.26estate tax, of an estate tax payable to another state or of a death duty due by a
         decedent's 190.27estate to another state, or of the decedent's generation-skipping tax, from a person
         190.28interested in the estate who is either domiciled in this state or who owns property
         in this 190.29state subject to attachment or execution. For the purposes of the action the determination
         190.30of apportionment by the court having jurisdiction of the administration of the decedent's
         190.31estate in the other state is prima facie correct.190.32    Sec. 31. ADMINISTRATIVE APPROPRIATIONS.190.33(a) $300,000 in fiscal year 2017 is appropriated from the general fund to the 190.34commissioner of natural resources for administering this act. The funding base for
         this 190.35appropriation in fiscal year 2018 and thereafter is $200,000.191.1(b) $1,000,000 in fiscal year 2016 and $700,000 in fiscal year 2017 are appropriated
         191.2from the general fund to the commissioner of revenue for administering this act. The
         191.3funding base for this appropriation in fiscal year 2018 and thereafter is $600,000.191.4EFFECTIVE DATE.This section is effective the day following final enactment.191.5    Sec. 32. APPROPRIATION CANCELLATIONS.191.6All unspent funds, estimated to be $2,380,000, to provide the 20 percent local match
         191.7funding required to obtain Federal Highway Administration emergency relief funds to
         191.8repair local roads and bridges damaged by June 2014 flooding, under Laws 2015, chapter
         191.92, section 3, are canceled to the general fund on June 30, 2015.191.10    Sec. 33. DEPARTMENT OF TRANSPORTATION; APPROPRIATION.191.11$2,380,000 is appropriated from the general fund to the commissioner of 191.12transportation in fiscal year 2016 to provide the 20 percent local match funding required
         to 191.13obtain Federal Highway Administration emergency relief funds to repair local roads
         and 191.14bridges damaged by flooding in June 2014. This is a onetime appropriation.191.15    Sec. 34.  REPEALER.191.16(a) Minnesota Statutes 2014, section 3.192, is repealed.191.17(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.191.18EFFECTIVE DATE.Paragraph (a) is effective retroactively from January 1, 2014. 191.19Paragraph (b) is effective the day following final enactment.191.20ARTICLE 13191.21DEPARTMENT POLICY AND TECHNICAL PROVISIONS - INCOME, 191.22CORPORATE FRANCHISE, AND ESTATE TAXES191.23    Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to 191.24read:191.25    Subd. 11. Information included in income tax return. (a) The return must state:191.26    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
         191.27address of the taxpayer in the same name or names and same address as the taxpayer
         has 191.28used in making the taxpayer's income tax return to the United States;191.29    (2) the date or dates of birth of the taxpayer or taxpayers;191.30    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
         191.31number has been issued by the United States with respect to the taxpayers; and192.1    (4) the amount of the taxable income of the taxpayer as it appears on the federal
         192.2return for the taxable year to which the Minnesota state return applies.192.3    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return 192.4a copy of the federal income tax return that the taxpayer has filed or is about to
         file for 192.5the period, unless the taxpayer is eligible to telefile the federal return and does file the
         192.6Minnesota return by telefiling.192.7EFFECTIVE DATE.This section is effective the day following final enactment.192.8    Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:192.9    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee 192.10imposed. (a) A "tax refund or return preparer," as defined in section 
         289A.60, subdivision 192.1113
         , paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the
         192.12Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota
         192.13individual income, corporate franchise, S corporation, partnership, or fiduciary income tax 192.14returns for the prior calendar year must file all Minnesota individual income, corporate 192.15franchise, S corporation, partnership, or fiduciary income tax returns prepared for that 192.16calendar year by electronic means.192.17(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the
         return 192.18that the taxpayer did not want the return filed by electronic means.192.19(c) For each return that is not filed electronically by a tax refund or return preparer
         192.20under this subdivision, including returns filed under paragraph (b), a paper filing
         fee 192.21of $5 is imposed upon the preparer. The fee is collected from the preparer in the
         same 192.22manner as income tax. The fee does not apply to returns that the commissioner requires
         192.23to be filed in paper form.192.24EFFECTIVE DATE.This section is effective for taxable years beginning after 192.25December 31, 2014.192.26    Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:192.27    Subd. 2. Withholding statement. (a) A person required to deduct and withhold 192.28from an employee a tax under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 192.292
         , or who would have been required to deduct and withhold a tax under section 
         290.92, 192.30subdivision 2a
          or 3, or persons required to withhold tax under section 
         290.923, subdivision 192.312
         , determined without regard to section 
         290.92, subdivision 19, if the employee or payee 192.32had claimed no more than one withholding exemption, or who paid wages or made 192.33payments not subject to withholding under section 
         290.92, subdivision 2a or 3, or 
         290.923, 193.1subdivision 2
         , to an employee or person receiving royalty payments in excess of $600, 193.2or who has entered into a voluntary withholding agreement with a payee under section
         193.3290.92, subdivision 20
         , must give every employee or person receiving royalty payments in 193.4respect to the remuneration paid by the person to the employee or person receiving
         royalty 193.5payments during the calendar year, on or before January 31 of the succeeding year,
         or, if 193.6employment is terminated before the close of the calendar year, within 30 days after
         the 193.7date of receipt of a written request from the employee if the 30-day period ends before
         193.8January 31, a written statement showing the following:193.9    (1) name of the person;193.10    (2) the name of the employee or payee and the employee's or payee's Social Security
         193.11account number;193.12    (3) the total amount of wages as that term is defined in section 
         290.92, subdivision 193.131
         , paragraph (1); the total amount of remuneration subject to withholding under section
         193.14290.92, subdivision 20
         ; the amount of sick pay as required under section 6051(f) of the 193.15Internal Revenue Code; and the amount of royalties subject to withholding under section
         193.16290.923, subdivision 2
         ; and193.17    (4) the total amount deducted and withheld as tax under section 
         290.92, subdivision 193.182a
          or 3, or 
         290.923, subdivision 2.193.19    (b) The statement required to be furnished by paragraph (a) with respect to any 193.20remuneration must be furnished at those times, must contain the information required,
         and 193.21must be in the form the commissioner prescribes.193.22    (c) The commissioner may prescribe rules providing for reasonable extensions of 193.23time, not in excess of 30 days, to employers or payers required to give the statements
         to 193.24their employees or payees under this subdivision.193.25    (d) A duplicate of any statement made under this subdivision and in accordance 193.26with rules prescribed by the commissioner, along with a reconciliation in the form the 193.27commissioner prescribes of the statements for the calendar year, including a reconciliation
         193.28of the quarterly returns required to be filed under subdivision 1, must be filed with the 193.29commissioner on or before February 28 of the year after the payments were made.193.30    (e) If an employer cancels the employer's Minnesota withholding account number 193.31required by section 
         290.92, subdivision 24, the information required by paragraph (d), 193.32must be filed with the commissioner within 30 days of the end of the quarter in which
         193.33the employer cancels its account number.193.34    (f) The employer must submit the statements required to be sent to the commissioner
         193.35in the same manner required to satisfy the federal reporting requirements of section
         193.366011(e) of the Internal Revenue Code and the regulations issued under it. An employer
         194.1must submit statements to the commissioner required by this section by electronic
         means 194.2if the employer is required to send more than 25 statements to the commissioner, even
         194.3though the employer is not required to submit the returns federally by electronic
         means. 194.4For statements issued for wages paid in 2011 and after, the threshold is ten. All
         statements 194.5issued for withholding required under section 290.92 are aggregated for purposes of 194.6determining whether the electronic submission threshold is met. The commissioner shall 194.7prescribe the content, format, and manner of the statement pursuant to section 270C.30.194.8    (g) A "third-party bulk filer" as defined in section 
         290.92, subdivision 30, paragraph 194.9(a), clause (2), must submit the returns required by this subdivision and subdivision
         1, 194.10paragraph (a), with the commissioner by electronic means.194.11EFFECTIVE DATE.This section is effective for statements required to be sent to 194.12the commissioner after December 31, 2015.194.13    Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:194.14    Subd. 14. Regulated investment companies; Reporting exempt interest and 194.15exempt-interest dividends. (a) A regulated investment company paying $10 or more in 194.16exempt-interest dividends to an individual who is a resident of Minnesota, or any person 194.17receiving $10 or more of exempt interest or exempt-interest dividends and paying as
         194.18nominee to an individual who is a resident of Minnesota, must make a return indicating 194.19the amount of the exempt interest or exempt-interest dividends, the name, address, and 194.20Social Security number of the recipient, and any other information that the commissioner
         194.21specifies. The return must be provided to the shareholder recipient by February 15 of the 194.22year following the year of the payment. The return provided to the shareholder recipient 194.23must include a clear statement, in the form prescribed by the commissioner, that the
         194.24exempt interest or exempt-interest dividends must be included in the computation of 194.25Minnesota taxable income. By June 1 of each year, the regulated investment company 194.26payor must file a copy of the return with the commissioner.194.27    (b) For purposes of this subdivision, the following definitions apply.194.28    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in 194.29section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
         194.30exempt-interest dividends that are not required to be added to federal taxable income
         194.31under section 
         290.01, subdivision 19a, clause (1)(ii).194.32    (2) "Regulated investment company" means regulated investment company as 194.33defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
         194.34investment company as defined in section 851(g) of the Internal Revenue Code.195.1    (3) "Exempt interest" means income on obligations of any state other than 195.2Minnesota, or a political or governmental subdivision, municipality, or governmental
         195.3agency or instrumentality of any state other than Minnesota, and exempt from federal
         195.4income taxes under the Internal Revenue Code or any other federal statute.195.5EFFECTIVE DATE.This section is effective for reports required to be filed after 195.6December 31, 2015.195.7    Sec. 5. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:195.8    Subd. 28. Preparer identification number. Any Minnesota individual income tax 195.9return or claim for refund prepared by a "tax refund or return preparer" as defined
         in 195.10subdivision 13, paragraph (f), shall bear the identification number the preparer is
         required 195.11to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund
         or 195.12return preparer who prepares a Minnesota tax return for an individual income tax return, 195.13corporation, S corporation, partnership, fiduciary, or claim for refund and fails to include 195.14the required number on the return or claim is subject to a penalty of $50 for each
         failure.195.15EFFECTIVE DATE.This section is effective for taxable years beginning after 195.16December 31, 2014.195.17    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:195.18    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 195.19and trusts, there shall be subtracted from federal taxable income:195.20    (1) net interest income on obligations of any authority, commission, or 195.21instrumentality of the United States to the extent includable in taxable income for
         federal 195.22income tax purposes but exempt from state income tax under the laws of the United
         States;195.23    (2) if included in federal taxable income, the amount of any overpayment of income
         195.24tax to Minnesota or to any other state, for any previous taxable year, whether the
         amount 195.25is received as a refund or as a credit to another taxable year's income tax liability;195.26    (3) the amount paid to others, less the amount used to claim the credit allowed under
         195.27section 
         290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 195.28to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks,
         and 195.29transportation of each qualifying child in attending an elementary or secondary school
         195.30situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 195.31resident of this state may legally fulfill the state's compulsory attendance laws,
         which 195.32is not operated for profit, and which adheres to the provisions of the Civil Rights
         Act 195.33of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees
         or 196.1tuition as defined in section 
         290.0674, subdivision 1, clause (1). As used in this clause, 196.2"textbooks" includes books and other instructional materials and equipment purchased
         196.3or leased for use in elementary and secondary schools in teaching only those subjects
         196.4legally and commonly taught in public elementary and secondary schools in this state.
         196.5Equipment expenses qualifying for deduction includes expenses as defined and limited
         in 196.6section 
         290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 196.7books and materials used in the teaching of religious tenets, doctrines, or worship,
         the 196.8purpose of which is to instill such tenets, doctrines, or worship, nor does it include
         books 196.9or materials for, or transportation to, extracurricular activities including sporting
         events, 196.10musical or dramatic events, speech activities, driver's education, or similar programs.
         No 196.11deduction is permitted for any expense the taxpayer incurred in using the taxpayer's
         or 196.12the qualifying child's vehicle to provide such transportation for a qualifying child.
         For 196.13purposes of the subtraction provided by this clause, "qualifying child" has the meaning
         196.14given in section 32(c)(3) of the Internal Revenue Code;196.15    (4) income as provided under section 
         290.0802;196.16    (5) to the extent included in federal adjusted gross income, income realized on 196.17disposition of property exempt from tax under section 
         290.491;196.18    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
         196.19of the Internal Revenue Code in determining federal taxable income by an individual
         196.20who does not itemize deductions for federal income tax purposes for the taxable year,
         an 196.21amount equal to 50 percent of the excess of charitable contributions over $500 allowable
         196.22as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
         196.23under the provisions of Public Law 109-1 and Public Law 111-126;196.24    (7) for individuals who are allowed a federal foreign tax credit for taxes that do
         not 196.25qualify for a credit under section 
         290.06, subdivision 22, an amount equal to the carryover 196.26of subnational foreign taxes for the taxable year, but not to exceed the total subnational
         196.27foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
         196.28"federal foreign tax credit" means the credit allowed under section 27 of the Internal
         196.29Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
         196.30under section 904(c) of the Internal Revenue Code minus national level foreign taxes
         to 196.31the extent they exceed the federal foreign tax credit;196.32    (8) in each of the five tax years immediately following the tax year in which an 196.33addition is required under subdivision 19a, clause (7), or 19c, clause (12) (11), in the case of 196.34a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
         of the 196.35delayed depreciation. For purposes of this clause, "delayed depreciation" means the
         amount 196.36of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision
         19c, 197.1clause (12) (11), in the case of a shareholder of an S corporation, minus the positive value 197.2of any net operating loss under section 172 of the Internal Revenue Code generated
         for the 197.3tax year of the addition. The resulting delayed depreciation cannot be less than zero;197.4    (9) job opportunity building zone income as provided under section 
         469.316;197.5    (10) to the extent included in federal taxable income, the amount of compensation
         197.6paid to members of the Minnesota National Guard or other reserve components of the
         197.7United States military for active service, including compensation for services performed
         197.8under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
         197.9service" means (i) state active service as defined in section 
         190.05, subdivision 5a, clause 197.10(1); or (ii) federally funded state active service as defined in section 
         190.05, subdivision 197.115b
         , and "active service" includes service performed in accordance with section 
         190.08, 197.12subdivision 3
         ;197.13    (11) to the extent included in federal taxable income, the amount of compensation
         197.14paid to Minnesota residents who are members of the armed forces of the United States
         197.15or United Nations for active duty performed under United States Code, title 10; or
         the 197.16authority of the United Nations;197.17    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 197.18qualified donor's donation, while living, of one or more of the qualified donor's
         organs 197.19to another person for human organ transplantation. For purposes of this clause, "organ"
         197.20means all or part of an individual's liver, pancreas, kidney, intestine, lung, or
         bone marrow; 197.21"human organ transplantation" means the medical procedure by which transfer of a human
         197.22organ is made from the body of one person to the body of another person; "qualified
         197.23expenses" means unreimbursed expenses for both the individual and the qualified donor
         197.24for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such
         expenses 197.25may be subtracted under this clause only once; and "qualified donor" means the individual
         197.26or the individual's dependent, as defined in section 152 of the Internal Revenue Code.
         An 197.27individual may claim the subtraction in this clause for each instance of organ donation
         for 197.28transplantation during the taxable year in which the qualified expenses occur;197.29    (13) in each of the five tax years immediately following the tax year in which an
         197.30addition is required under subdivision 19a, clause (8), or 19c, clause (13) (12), in the case 197.31of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
         of 197.32the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
         (13) 197.33(12), in the case of a shareholder of a corporation that is an S corporation, minus the
         197.34positive value of any net operating loss under section 172 of the Internal Revenue
         Code 197.35generated for the tax year of the addition. If the net operating loss exceeds the
         addition for 197.36the tax year, a subtraction is not allowed under this clause;198.1    (14) to the extent included in the federal taxable income of a nonresident of 198.2Minnesota, compensation paid to a service member as defined in United States Code,
         title 198.310, section 101(a)(5), for military service as defined in the Servicemembers Civil
         Relief 198.4Act, Public Law 108-189, section 101(2);198.5    (15) to the extent included in federal taxable income, the amount of national service
         198.6educational awards received from the National Service Trust under United States Code,
         198.7title 42, sections 12601 to 12604, for service in an approved Americorps National
         Service 198.8program;198.9(16) to the extent included in federal taxable income, discharge of indebtedness 198.10income resulting from reacquisition of business indebtedness included in federal taxable
         198.11income under section 108(i) of the Internal Revenue Code. This subtraction applies
         only 198.12to the extent that the income was included in net income in a prior year as a result
         of the 198.13addition under subdivision 19a, clause (13);198.14(17) the amount of the net operating loss allowed under section 
         290.095, subdivision 198.1511
         , paragraph (c);198.16(18) the amount of expenses not allowed for federal income tax purposes due 198.17to claiming the railroad track maintenance credit under section 45G(a) of the Internal
         198.18Revenue Code;198.19(19) the amount of the limitation on itemized deductions under section 68(b) of the
         198.20Internal Revenue Code;198.21(20) the amount of the phaseout of personal exemptions under section 151(d) of 198.22the Internal Revenue Code; and198.23(21) to the extent included in federal taxable income, the amount of qualified 198.24transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
         198.25Revenue Code. The subtraction is limited to the lesser of the amount of qualified
         198.26transportation fringe benefits received in excess of the limitations under section
         198.27132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
         198.28maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
         198.29Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
         198.30of the Internal Revenue Code.198.31EFFECTIVE DATE.This section is effective the day following final enactment.198.32    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:198.33    Subd. 19c. Corporations; additions to federal taxable income. For corporations, 198.34there shall be added to federal taxable income:199.1    (1) the amount of any deduction taken for federal income tax purposes for income,
         199.2excise, or franchise taxes based on net income or related minimum taxes, including
         but not 199.3limited to the tax imposed under section 
         290.0922, paid by the corporation to Minnesota, 199.4another state, a political subdivision of another state, the District of Columbia,
         or any 199.5foreign country or possession of the United States;199.6    (2) interest not subject to federal tax upon obligations of: the United States, its
         199.7possessions, its agencies, or its instrumentalities; the state of Minnesota or any
         other 199.8state, any of its political or governmental subdivisions, any of its municipalities,
         or any 199.9of its governmental agencies or instrumentalities; the District of Columbia; or Indian
         199.10tribal governments;199.11    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
         199.12Revenue Code;199.13    (4) the amount of any net operating loss deduction taken for federal income tax 199.14purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations
         loss 199.15deduction under section 810 of the Internal Revenue Code;199.16    (5) the amount of any special deductions taken for federal income tax purposes 199.17under sections 241 to 247 and 965 of the Internal Revenue Code;199.18    (6) losses from the business of mining, as defined in section 
         290.05, subdivision 1, 199.19clause (a), that are not subject to Minnesota income tax;199.20    (7) the amount of any capital losses deducted for federal income tax purposes under
         199.21sections 1211 and 1212 of the Internal Revenue Code;199.22    (8) the amount of percentage depletion deducted under sections 611 through 614 and
         199.23291 of the Internal Revenue Code;199.24    (9) for certified pollution control facilities placed in service in a taxable year
         199.25beginning before December 31, 1986, and for which amortization deductions were elected
         199.26under section 169 of the Internal Revenue Code of 1954, as amended through December
         199.2731, 1985, the amount of the amortization deduction allowed in computing federal taxable
         199.28income for those facilities;199.29    (10) (9) the amount of a partner's pro rata share of net income which does not flow 199.30through to the partner because the partnership elected to pay the tax on the income
         under 199.31section 6242(a)(2) of the Internal Revenue Code;199.32    (11) (10) any increase in subpart F income, as defined in section 952(a) of the 199.33Internal Revenue Code, for the taxable year when subpart F income is calculated without
         199.34regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;199.35    (12) (11) 80 percent of the depreciation deduction allowed under section 199.36168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause,
         if 200.1the taxpayer has an activity that in the taxable year generates a deduction for depreciation
         200.2under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the
         taxable 200.3year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
         200.4allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited
         to excess 200.5of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
         200.6over the amount of the loss from the activity that is not allowed in the taxable year.
         In 200.7succeeding taxable years when the losses not allowed in the taxable year are allowed,
         the 200.8depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;200.9    (13) (12) 80 percent of the amount by which the deduction allowed by section 179 of 200.10the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
         200.11Revenue Code of 1986, as amended through December 31, 2003;200.12    (14) (13) to the extent deducted in computing federal taxable income, the amount of 200.13the deduction allowable under section 199 of the Internal Revenue Code;200.14    (15) (14) the amount of expenses disallowed under section 
         290.10, subdivision 2; and200.15(16) (15) discharge of indebtedness income resulting from reacquisition of business 200.16indebtedness and deferred under section 108(i) of the Internal Revenue Code.200.17EFFECTIVE DATE.This section is effective the day following final enactment.200.18    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:200.19    Subd. 19d. Corporations; modifications decreasing federal taxable income. For 200.20corporations, there shall be subtracted from federal taxable income after the increases
         200.21provided in subdivision 19c:200.22    (1) the amount of foreign dividend gross-up added to gross income for federal 200.23income tax purposes under section 78 of the Internal Revenue Code;200.24    (2) the amount of salary expense not allowed for federal income tax purposes due to
         200.25claiming the work opportunity credit under section 51 of the Internal Revenue Code;200.26    (3) any dividend (not including any distribution in liquidation) paid within the 200.27taxable year by a national or state bank to the United States, or to any instrumentality
         of 200.28the United States exempt from federal income taxes, on the preferred stock of the
         bank 200.29owned by the United States or the instrumentality;200.30    (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 200.31Internal Revenue Code, except that:200.32    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
         200.33capital loss carrybacks shall not be allowed;201.1    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
         201.2a capital loss carryover to each of the 15 taxable years succeeding the loss year
         shall be 201.3allowed;201.4    (iii) for capital losses incurred in taxable years beginning before January 1, 1987,
         a 201.5capital loss carryback to each of the three taxable years preceding the loss year,
         subject to 201.6the provisions of Minnesota Statutes 1986, section 
         290.16, shall be allowed; and201.7    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
         201.8a capital loss carryover to each of the five taxable years succeeding the loss year
         to the 201.9extent such loss was not used in a prior taxable year and subject to the provisions
         of 201.10Minnesota Statutes 1986, section 
         290.16, shall be allowed;201.11    (5) an amount for interest and expenses relating to income not taxable for federal
         201.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the
         interest and 201.13expenses were disallowed as deductions under the provisions of section 171(a)(2),
         265 or 201.14291 of the Internal Revenue Code in computing federal taxable income;201.15    (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
         201.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8),
         a 201.17reasonable allowance for depletion based on actual cost. In the case of leases the
         deduction 201.18must be apportioned between the lessor and lessee in accordance with rules prescribed
         201.19by the commissioner. In the case of property held in trust, the allowable deduction
         must 201.20be apportioned between the income beneficiaries and the trustee in accordance with
         the 201.21pertinent provisions of the trust, or if there is no provision in the instrument,
         on the basis 201.22of the trust's income allocable to each;201.23    (7) for certified pollution control facilities placed in service in a taxable year
         201.24beginning before December 31, 1986, and for which amortization deductions were elected
         201.25under section 169 of the Internal Revenue Code of 1954, as amended through December
         201.2631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
         201.271986, section 290.09, subdivision 7;201.28    (8) (7) amounts included in federal taxable income that are due to refunds of 201.29income, excise, or franchise taxes based on net income or related minimum taxes paid
         201.30by the corporation to Minnesota, another state, a political subdivision of another
         state, 201.31the District of Columbia, or a foreign country or possession of the United States
         to the 201.32extent that the taxes were added to federal taxable income under subdivision 19c,
         clause 201.33(1), in a prior taxable year;201.34    (9) (8) income or gains from the business of mining as defined in section 
         290.05, 201.35subdivision 1
         , clause (a), that are not subject to Minnesota franchise tax;202.1    (10) (9) the amount of disability access expenditures in the taxable year which are not 202.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue
         Code;202.3    (11) (10) the amount of qualified research expenses not allowed for federal income 202.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
         202.5that the amount exceeds the amount of the credit allowed under section 
         290.068;202.6    (12) (11) the amount of salary expenses not allowed for federal income tax purposes 202.7due to claiming the Indian employment credit under section 45A(a) of the Internal
         202.8Revenue Code;202.9    (13) (12) any decrease in subpart F income, as defined in section 952(a) of the 202.10Internal Revenue Code, for the taxable year when subpart F income is calculated without
         202.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;202.12    (14) (13) in each of the five tax years immediately following the tax year in which an 202.13addition is required under subdivision 19c, clause (12) (11), an amount equal to one-fifth 202.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
         the 202.15amount of the addition made by the taxpayer under subdivision 19c, clause (12) (11). The 202.16resulting delayed depreciation cannot be less than zero;202.17    (15) (14) in each of the five tax years immediately following the tax year in which an 202.18addition is required under subdivision 19c, clause (13) (12), an amount equal to one-fifth 202.19of the amount of the addition;202.20(16) (15) to the extent included in federal taxable income, discharge of indebtedness 202.21income resulting from reacquisition of business indebtedness included in federal taxable
         202.22income under section 108(i) of the Internal Revenue Code. This subtraction applies
         only 202.23to the extent that the income was included in net income in a prior year as a result
         of the 202.24addition under subdivision 19c, clause (16) (15); and202.25(17) (16) the amount of expenses not allowed for federal income tax purposes due 202.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal
         202.27Revenue Code.202.28EFFECTIVE DATE.This section is effective the day following final enactment.202.29    Sec. 9. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:202.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 202.31have the meanings given.202.32(b) "Long-term care insurance" means a policy that:202.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code, 202.34disregarding the 7.5 percent adjusted gross income test; or meets the requirements 203.1given in section 
         62A.46; or provides similar coverage issued under the laws of another 203.2jurisdiction; and203.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and203.4(3) has been offered in compliance with the inflation protection requirements of 203.5section 
         62S.23.203.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.203.7(d) "Premiums deducted in determining federal taxable income" means the lesser of
         203.8(1) long-term care insurance premiums that qualify as deductions under section 213
         of 203.9the Internal Revenue Code; and (2) the total amount deductible for medical care under
         203.10section 213 of the Internal Revenue Code.203.11EFFECTIVE DATE.This section is effective retroactively for taxable years 203.12beginning after December 31, 2012.203.13    Sec. 10. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:203.14    Subd. 3. Exemption amount. (a) For purposes of computing the alternative 203.15minimum tax, the exemption amount is, for taxable years beginning after December 31,
         203.162005, $60,000 for married couples filing joint returns, $30,000 for married individuals
         203.17filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.203.18    (b) The exemption amount determined under this subdivision is subject to the phase
         203.19out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
         203.20taxable income as determined under this section must be substituted in the computation
         of 203.21the phase out.203.22    (c) For taxable years beginning after December 31, 2006, the exemption amount 203.23under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall 203.24adjust the exemption amount by the percentage determined pursuant to the provisions
         of 203.25section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word
         "2005" 203.26shall be substituted for the word "1992." For 2007, the commissioner shall then determine
         203.27the percent change from the 12 months ending on August 31, 2005, to the 12 months
         203.28ending on August 31, 2006, and in each subsequent year, from the 12 months ending
         on 203.29August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
         203.30year. The exemption amount as adjusted must be rounded to the nearest $10. If the
         amount 203.31ends in $5, it must be rounded up to the nearest $10 amount. The determination of
         the 203.32commissioner under this subdivision is not a rule under the Administrative Procedure
         Act.203.33EFFECTIVE DATE.This section is effective the day following final enactment.204.1    Sec. 11. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:204.2    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable 204.3income" is Minnesota net income as defined in section 
         290.01, subdivision 19, and 204.4includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d),
         (e), 204.5(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
         204.6Minnesota tax return, the minimum tax must be computed on a separate company basis.
         204.7If a corporation is part of a tax group filing a unitary return, the minimum tax must
         be 204.8computed on a unitary basis. The following adjustments must be made.204.9(1) The portion of the depreciation deduction allowed for federal income tax 204.10purposes under section 168(k) of the Internal Revenue Code that is required as an
         addition 204.11under section 
         290.01, subdivision 19c, clause (12) (11), is disallowed in determining 204.12alternative minimum taxable income.204.13(2) The subtraction for depreciation allowed under section 
         290.01, subdivision 204.1419d
         , clause (14) (13), is allowed as a depreciation deduction in determining alternative 204.15minimum taxable income.204.16(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
         204.17of the Internal Revenue Code does not apply.204.18(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
         204.19Revenue Code does not apply.204.20(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
         204.21Code does not apply.204.22(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
         204.23Revenue Code does not apply.204.24(7) The tax preference for charitable contributions of appreciated property under
         204.25section 57(a)(6) of the Internal Revenue Code does not apply.204.26(8) For purposes of calculating the adjustment for adjusted current earnings in 204.27section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
         204.28income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
         204.29minimum taxable income as defined in this subdivision, determined without regard to
         the 204.30adjustment for adjusted current earnings in section 56(g) of the Internal Revenue
         Code.204.31(9) For purposes of determining the amount of adjusted current earnings under 204.32section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
         204.3356(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
         204.34gross-up subtracted as provided in section 
         290.01, subdivision 19d, clause (1), or (ii) the 204.35amount of refunds of income, excise, or franchise taxes subtracted as provided in
         section 204.36290.01, subdivision 19d
         , clause (8) (7).205.1(10) Alternative minimum taxable income excludes the income from operating in a 205.2job opportunity building zone as provided under section 
         469.317.205.3Items of tax preference must not be reduced below zero as a result of the 205.4modifications in this subdivision.205.5EFFECTIVE DATE.This section is effective the day following final enactment.205.6    Sec. 12. Minnesota Statutes 2014, section 290A.19, is amended to read:205.7290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT 205.8CERTIFICATE.205.9(a) The owner or managing agent of any property for which rent is paid for 205.10occupancy as a homestead must furnish a certificate of rent paid to a person who is
         a 205.11renter on December 31, in the form prescribed by the commissioner. If the renter moves
         205.12before December 31, the owner or managing agent may give the certificate to the renter
         205.13at the time of moving, or mail the certificate to the forwarding address if an address
         has 205.14been provided by the renter. The certificate must be made available to the renter
         before 205.15February 1 of the year following the year in which the rent was paid. The owner or
         205.16managing agent must retain a duplicate of each certificate or an equivalent record
         showing 205.17the same information for a period of three years. The duplicate or other record must
         be 205.18made available to the commissioner upon request.205.19(b) The commissioner may require the owner or managing agent, through a 205.20simple process, to furnish to the commissioner on or before March 1 a copy of each
         205.21certificate of rent paid furnished to a renter for rent paid in the prior year, in
         the content, 205.22format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior
         205.23to implementation, the commissioner, after consulting with representatives of owners
         205.24or managing agents, shall develop an implementation and administration plan for the
         205.25requirements of this paragraph that attempts to minimize financial burdens, administration
         205.26and compliance costs, and takes into consideration existing systems of owners and
         205.27managing agents.205.28(c) For the purposes of this section, "owner" includes a park owner as defined under
         205.29section 
         327C.01, subdivision 6, and "property" includes a lot as defined under section 205.30327C.01, subdivision 3
         .205.31EFFECTIVE DATE.This section is effective for certificates of rent paid for rent 205.32paid after December 31, 2014.205.33    Sec. 13. Minnesota Statutes 2014, section 291.03, subdivision 10, is amended to read:206.1    Subd. 10. Qualified farm property. Property satisfying all of the following 206.2requirements is qualified farm property:206.3(1) The value of the property was included in the federal adjusted taxable estate.206.4(2) The property consists of agricultural land and is owned by a person or entity
         that 206.5is either not subject to or is in compliance with section 
         500.24.206.6(3) For property taxes payable in the taxable year of the decedent's death, the 206.7property is classified as class 2a property under section 
         273.13, subdivision 23, and is 206.8classified as agricultural homestead, agricultural relative homestead, or special
         agricultural 206.9homestead under section 
         273.124.206.10(4) The decedent continuously owned the property, including property the decedent
         206.11is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,
         for 206.12the three-year period ending on the date of death of the decedent either by ownership
         of 206.13the agricultural land or pursuant to holding an interest in an entity that is not
         subject to 206.14or is in compliance with section 
         500.24.206.15(5) The property is classified for property tax purposes as class 2a property under
         206.16section 
         273.13, subdivision 23, for three years following the date of death of the decedent. 206.17No property shall cease to be qualified farm property solely because a residence existing
         206.18at the time of the decedent's death is reclassified as class 4bb property under section
         206.19273.13, subdivision 25, during the three-year period. No property shall cease to be
         206.20qualified farm property solely because a portion consisting of no more than one-fifth
         is 206.21reclassified as 2b property under section 273.13, subdivision 23, during the three-year
         206.22period, so long as the qualified heir has not substantially altered the reclassified
         property 206.23during the holding period.206.24(6) The estate and the qualified heir elect to treat the property as qualified farm
         206.25property and agree, in a form prescribed by the commissioner, to pay the recapture
         tax 206.26under subdivision 11, if applicable.206.27EFFECTIVE DATE.This section is effective retroactively for estates of decedents 206.28dying after June 30, 2011.206.29    Sec. 14. Minnesota Statutes 2014, section 291.031, is amended to read:206.30291.031 CREDIT.206.31(a) The estate of a nonresident decedent that is subject to tax under this chapter
         on 206.32the value of Minnesota situs property held in a pass-through entity is allowed a credit
         206.33against the tax due under section 
         291.03 equal to the lesser of:207.1(1) the amount of estate or inheritance tax paid to another state that is attributable
         to 207.2the Minnesota situs property held in the pass-through entity; or207.3(2) the amount of tax paid under this section due under section 291.03 attributable to 207.4the Minnesota situs property held in the pass-through entity.207.5(b) The amount of tax attributable to the Minnesota situs property held in the 207.6pass-through entity must be determined by the increase in the estate or inheritance
         tax that 207.7results from including the market value of the property in the estate or treating
         the value 207.8as a taxable inheritance to the recipient of the property.207.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents 207.10dying after December 31, 2013.207.11    Sec. 15.  REPEALER.207.12Minnesota Rules, part 8092.2000, is repealed.207.13EFFECTIVE DATE.This section is effective the day following final enactment.207.14ARTICLE 14207.15DEPARTMENT POLICY AND TECHNICAL PROVISIONS - 207.16SPECIAL TAXES AND SALES TAXES207.17    Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:207.18    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 207.19apportionment, before the addition of the minimum fire state aid allocation amount
         under 207.20subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
         state 207.21upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported
         to 207.22the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
         207.23must be reduced by the amount required to pay the state auditor's costs and expenses
         of 207.24the audits or exams of the firefighters relief associations.207.25The total amount for apportionment in respect to fire state aid must not be less than
         207.26two percent of the premiums reported to the commissioner by insurers on the Minnesota
         207.27Firetown Premium Report after subtracting the following amounts:207.28(1) the amount required to pay the state auditor's costs and expenses of the audits
         or 207.29exams of the firefighters relief associations; and207.30(2) one percent of the premiums reported by town and farmers' township mutual 207.31insurance companies and mutual property and casualty companies with total assets of
         207.32$5,000,000 or less.208.1(b) The total amount for apportionment as police state aid is equal to 104 percent
         208.2of the amount of premium taxes paid to the state on the premiums reported to the 208.3commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
         208.4amount for apportionment in respect to the police state aid program must not be less
         than 208.5two percent of the amount of premiums reported to the commissioner by insurers on
         the 208.6Minnesota Aid to Police Premium Report.208.7(c) The commissioner shall calculate the percentage of increase or decrease reflected
         208.8in the apportionment over or under the previous year's available state aid using the
         same 208.9premiums as a basis for comparison.208.10(d) In addition to the amount for apportionment of police state aid under paragraph
         208.11(b), each year $100,000 must be apportioned for police state aid. An amount sufficient
         to 208.12pay this increase is annually appropriated from the general fund.208.13EFFECTIVE DATE.This section is effective the day following final enactment.208.14    Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:208.15    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed 208.16within 6-1/2 years after the due date of the return or the date the return was filed,
         208.17whichever is later, if:208.18(1) the taxpayer omits from gross income an amount properly includable in it that
         is 208.19in excess of 25 percent of the amount of gross income stated in the return;208.20(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a 208.21tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the 208.22taxes reported in the return; or208.23(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
         208.24gross estate reported in the return.208.25EFFECTIVE DATE.This section is effective the day following final enactment.208.26    Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:208.27    Subd. 2. Exemptions. The following entities are exempt from the tax imposed 208.28by this section:208.29(1) corporations exempt from tax under section 
         290.05;208.30(2) real estate investment trusts;208.31(3) regulated investment companies or a fund thereof; and208.32(4) entities having a valid election in effect under section 860D(b) of the Internal
         208.33Revenue Code;209.1(5) town and farmers' township mutual insurance companies;209.2(6) cooperatives organized under chapter 308A or 308B that provide housing 209.3exclusively to persons age 55 and over and are classified as homesteads under section
         209.4273.124, subdivision 3
         ; and209.5(7) a qualified business as defined under section 
         469.310, subdivision 11, if for the 209.6taxable year all of its property is located in a job opportunity building zone designated
         209.7under section 
         469.314 and all of its payroll is a job opportunity building zone payroll 209.8under section 
         469.310.209.9Entities not specifically exempted by this subdivision are subject to tax under this
         209.10section, notwithstanding section 
         290.05.209.11EFFECTIVE DATE.This section is effective the day following final enactment.209.12    Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:209.13    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against 209.14the total amount of tax, if any, the pharmacy owes during that calendar year under
         209.15section 
         295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy 209.16to a wholesale drug distributor subject to tax under section 
         295.52, subdivision 3, for 209.17legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
         209.18percentage specified in section 
         295.52, subdivision 3. If the amount of the refund exceeds 209.19the tax liability of the pharmacy under section 
         295.52, subdivision 4, the commissioner 209.20shall provide the pharmacy with a refund equal to the excess amount. Each qualifying
         209.21pharmacy must apply for the refund on the annual return as provided under section 209.22295.55, subdivision 5 prescribed by the commissioner, on or before March 15 of the year 209.23following the calendar year the legend drugs were delivered outside Minnesota. The 209.24refund must be claimed within 18 months from the date the drugs were delivered outside 209.25of Minnesota shall not be allowed if the initial claim for refund is filed more than one year
         209.26after the original due date of the return. Interest on refunds paid under this subdivision 209.27will begin to accrue 60 days after the date a claim for refund is filed. For purposes
         of this 209.28subdivision, the date a claim is filed is the due date of the return if a return is
         due or the 209.29date of the actual claim for refund, whichever is later.209.30EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered 209.31outside Minnesota after December 31, 2014.209.32    Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 209.33to read:210.1    Subd. 9a.Bulk storage or bulk storage facility."Bulk storage" or "bulk storage 210.2facility" means a single property, or contiguous or adjacent properties used for a
         common 210.3purpose and owned or operated by the same person, on or in which are located one or
         more 210.4stationary tanks that are used singularly or in combination for the storage or containment
         210.5of more than 1,100 gallons of petroleum.210.6EFFECTIVE DATE.This section is effective the day following final enactment.210.7    Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:210.8    Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, 210.9regardless of its composition or properties, used to propel a motor vehicle.210.10EFFECTIVE DATE.This section is effective the day following final enactment.210.11    Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:210.12    Subd. 42. Petroleum products. "Petroleum products" means all of the products 210.13defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.210.14EFFECTIVE DATE.This section is effective the day following final enactment.210.15    Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:210.16    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 210.17blended with ethanol, and agricultural alcohol gasoline used in producing and generating
         210.18power for propelling motor vehicles used on the public highways of this state. The
         tax 210.19is imposed on the first licensed distributor who received the product in Minnesota.
         For 210.20purposes of this section, gasoline is defined in section 
         296A.01, subdivisions 8b, 10, 18, 210.2120, 23, 24, 25, 32, and 34
         . The tax is payable at the time and in the form and manner 210.22prescribed by the commissioner. The tax is payable at the rates specified in subdivision
         3, 210.23subject to the exceptions and reductions specified in section 
         296A.17.210.24EFFECTIVE DATE.This section is effective the day following final enactment.210.25    Sec. 9. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:210.26    Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and 210.27penalties, collected from the sale or purchase of an aircraft taxable under this chapter must
         210.28be deposited in the state airports fund established in section 
         360.017. For purposes of this 210.29subdivision, "revenue" does not include the revenue, including interest and penalties,
         211.1generated by the sales tax imposed under section 297A.62, subdivision 1a, which must
         be 211.2deposited as provided under the Minnesota Constitution, article XI, section 15.211.3EFFECTIVE DATE.This section is effective the day following final enactment.211.4    Sec. 10. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:211.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal 211.6sanctions imposed by this chapter, a person, organization, or business entity possessing
         or 211.7selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed
         by 211.8this chapter has not been paid is liable for a tax of six percent of the ideal gross
         of each 211.9pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be
         assessed 211.10as if it were a full deal.211.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
         211.12(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
         211.13raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections 211.14609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a 211.15tax of six percent of the gross receipts from that activity.211.16(c) The tax must may be assessed by the commissioner. An assessment must be 211.17considered a jeopardy assessment or jeopardy collection as provided in section 
         270C.36. 211.18The commissioner shall assess the tax based on personal knowledge or information 211.19available to the commissioner. The commissioner shall mail to the taxpayer at the
         211.20taxpayer's last known address, or serve in person, a written notice of the amount
         of tax, 211.21demand its immediate payment, and, if payment is not immediately made, collect the
         tax 211.22by any method described in chapter 270C, except that the commissioner need not await
         the 211.23expiration of the times specified in chapter 270C. The tax assessed by the commissioner
         211.24is presumed to be valid and correctly determined and assessed. The burden is upon
         the 211.25taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
         211.26does not apply to gambling that is exempt from taxation under subdivision 2.211.27(d) A person, organization, or business entity conducting gambling activity under
         211.28this subdivision must file monthly tax returns with the commissioner, in the form
         required 211.29by the commissioner. The returns must be filed on or before the 20th day of the month
         211.30following the month in which the gambling activity occurred. The tax imposed by this
         211.31section is due and payable at the time when the returns are required to be filed.211.32(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
         211.33employee may reveal facts contained in a tax return filed with the commissioner of
         211.34revenue as required by this subdivision, nor can any information contained in the
         report or 211.35return be used against the tax obligor in any criminal proceeding, unless independently
         212.1obtained, except in connection with a proceeding involving taxes due under this section,
         212.2or as provided in section 270C.055, subdivision 1. However, this paragraph does not
         212.3prohibit the commissioner from publishing statistics that do not disclose the identity
         of 212.4tax obligors or the contents of particular returns or reports. Any person violating
         this 212.5paragraph is guilty of a gross misdemeanor.212.6EFFECTIVE DATE.This section is effective for games played or purchased after 212.7June 30, 2015.212.8    Sec. 11. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:212.9    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed 212.10municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
         212.11management services to manage the following materials:212.12(1) mixed municipal solid waste and nonmixed municipal solid waste generated 212.13outside of Minnesota;212.14(2) recyclable materials that are separated for recycling by the generator, collected
         212.15separately from other waste, and recycled, to the extent the price of the service
         for 212.16handling recyclable material is separately itemized on a bill to the generator;212.17(3) recyclable nonmixed municipal solid waste that is separated for recycling by 212.18the generator, collected separately from other waste, delivered to a waste facility
         for the 212.19purpose of recycling, and recycled;212.20(4) industrial waste, when it is transported to a facility owned and operated by 212.21the same person that generated it;212.22(5) mixed municipal solid waste from a recycling facility that separates or processes
         212.23recyclable materials and reduces the volume of the waste by at least 85 percent, provided
         212.24that the exempted waste is managed separately from other waste;212.25(6) recyclable materials that are separated from mixed municipal solid waste by the
         212.26generator, collected and delivered to a waste facility that recycles at least 85 percent
         of its 212.27waste, and are collected with mixed municipal solid waste that is segregated in leakproof
         212.28bags, provided that the mixed municipal solid waste does not exceed five percent of
         the 212.29total weight of the materials delivered to the facility and is ultimately delivered
         to a waste 212.30facility identified as a preferred waste management facility in county solid waste
         plans 212.31under section 
         115A.46;212.32(7) source-separated compostable waste materials, if the waste is materials are 212.33delivered to a facility exempted as described in this clause. To initially qualify
         for an 212.34exemption, a facility must apply for an exemption in its application for a new or
         amended 212.35solid waste permit to the Pollution Control Agency. The first time a facility applies
         to the 213.1agency it must certify in its application that it will comply with the criteria in
         items (i) to (v) 213.2and the commissioner of the agency shall so certify to the commissioner of revenue
         who 213.3must grant the exemption. The facility must annually apply to the agency for certification
         213.4to renew its exemption for the following year. The application must be filed according
         to 213.5the procedures of, and contain the information required by, the agency. The commissioner
         213.6of revenue shall grant the exemption if the commissioner of the Pollution Control
         Agency 213.7finds and certifies to the commissioner of revenue that based on an evaluation of
         the 213.8composition of incoming waste and residuals and the quality and use of the product:213.9(i) generators separate materials at the source;213.10(ii) the separation is performed in a manner appropriate to the technology specific
         213.11to the facility that:213.12(A) maximizes the quality of the product;213.13(B) minimizes the toxicity and quantity of residuals rejects; and213.14(C) provides an opportunity for significant improvement in the environmental 213.15efficiency of the operation;213.16(iii) the operator of the facility educates generators, in coordination with each
         county 213.17using the facility, about separating the waste to maximize the quality of the waste
         stream 213.18for technology specific to the facility;213.19(iv) process residuals rejects do not exceed 15 percent of the weight of the total 213.20material delivered to the facility; and213.21(v) the final product is accepted for use;213.22(8) waste and waste by-products for which the tax has been paid; and213.23(9) daily cover for landfills that has been approved in writing by the Minnesota 213.24Pollution Control Agency.213.25EFFECTIVE DATE.This section is effective the day following final enactment.213.26    Sec. 12. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:213.27    Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on 213.28town and farmers' township mutual insurance companies. The rate of tax is equal to one 213.29percent of gross premiums less return premiums on all direct business received by
         the 213.30insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.213.31EFFECTIVE DATE.This section is effective the day following final enactment.213.32    Sec. 13. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:214.1    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct 214.2a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage
         gross 214.3premiums, less return premiums, on all direct business received by any licensed foreign
         or 214.4domestic fire insurance company on property in a city of the first class, or by its
         agents for 214.5it, in cash or otherwise.214.6(b) By July 31 and December 31 of each year, the commissioner of management 214.7and budget shall pay to each city of the first class a warrant for an amount equal to the 214.8total amount of the surcharge on the premiums collected within that city since the
         previous 214.9payment.214.10(c) The treasurer of the city shall place the money received under this subdivision
         214.11in a special account or fund to defray all or a portion of the employer contribution
         214.12requirement of public employees police and fire plan coverage for city firefighters.214.13EFFECTIVE DATE.This section is effective the day following final enactment.214.14    Sec. 14. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:214.15    Subd. 3. Appropriation. The amount necessary to make the payments required 214.16under this section is appropriated to the commissioner of management and budget from 214.17the general fund.214.18EFFECTIVE DATE.This section is effective the day following final enactment.214.19    Sec. 15. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:214.20    Subd. 3b. Deductions. (a) For purposes of determining taxable income under 214.21subdivision 3, the deductions from gross income include only those expenses necessary
         214.22to convert raw ores to marketable quality. Such expenses include costs associated
         with 214.23refinement but do not include expenses such as transportation, stockpiling, marketing,
         or 214.24marine insurance that are incurred after marketable ores are produced, unless the
         expenses 214.25are included in gross income. The allowable deductions from a mine or plant that mines
         214.26and produces more than one mineral, metal, or energy resource must be determined 214.27separately for the purposes of computing the deduction in section 
         290.01, subdivision 19c, 214.28clause (8). These deductions may be combined on one occupation tax return to arrive
         at 214.29the deduction from gross income for all production.214.30(b) The provisions of section 
         290.01, subdivisions 19c, clauses (6) and (8), and 19d, 214.31clauses (6) and (9) (8), are not used to determine taxable income.214.32EFFECTIVE DATE.This section is effective the day following final enactment.215.1    Sec. 16. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:215.2    Subd. 4c. Special deductions; net operating loss.(a) For purposes of determining 215.3taxable income under subdivision 4, the provisions of section 
         290.01, subdivisions 19c, 215.4clauses (6)
          and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable 215.5income.215.6(b) The amount of net operating loss incurred in a taxable year beginning before 215.7January 1, 1990, that may be carried over to a taxable year beginning after December
         31, 215.81989, is the amount of net operating loss carryover determined in the calculation
         of the 215.9hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 298.40 215.10and 298.402.215.11EFFECTIVE DATE.This section is effective the day following final enactment.215.12ARTICLE 15215.13DEPARTMENT OF REVENUE TECHNICAL AND POLICY - 215.14PROPERTY TAX PROVISIONS215.15    Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:215.16    Subd. 2. Income property assessment data. The following data collected by 215.17political subdivisions and the state from individuals or business entities concerning 215.18income properties are classified as private or nonpublic data pursuant to section
         
         13.02, 215.19subdivisions 9
          and 12:215.20(a) detailed income and expense figures;215.21(b) average vacancy factors;215.22(c) verified net rentable areas or net usable areas, whichever is appropriate;215.23(d) anticipated income and expenses;215.24(e) projected vacancy factors; and215.25(f) lease information.215.26EFFECTIVE DATE.This section is effective the day following final enactment.215.27    Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:215.28    Subd. 2. Air commerce.(a) "Air commerce" means the transportation by aircraft 215.29of persons or property for hire in interstate, intrastate, or international transportation
         215.30on regularly scheduled flights or on intermittent or irregularly timed flights by
         airline 215.31companies and includes transportation by any airline company making three or more 215.32flights in or out of Minnesota, or within Minnesota, during a calendar year.216.1(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
         216.2flight, a flight arranged at the convenience of an airline and the person contracting
         for the 216.3transportation, or a charter flight. It includes any airline company making three
         or more 216.4flights in or out of Minnesota during a calendar year.216.5(c) "Air commerce" does not include casual transportation for hire by aircraft 216.6commonly owned and used for private air flight purposes if the person furnishing the
         216.7transportation does not hold out to be engaged regularly in transportation for hire.216.8EFFECTIVE DATE.This section is effective for assessment year 2016 and 216.9thereafter.216.10    Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:216.11    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment 216.12used in connection therewith, including spare flight equipment. Flight property also
         216.13includes computers and computer software used in operating, controlling, or regulating
         216.14aircraft and flight equipment. Flight property does not include aircraft with a maximum 216.15takeoff weight of less than 30,000 pounds.216.16EFFECTIVE DATE.This section is effective for assessment year 2016 and 216.17thereafter.216.18    Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:216.19    Subd. 8. Person. "Person" means any an individual, corporation, firm, 216.20copartnership, company, or association, and includes any guardian, trustee, executor,
         216.21administrator, receiver, conservator, or any person acting in any fiduciary capacity
         therefor 216.22trust, estate, fiduciary, partnership, company, corporation, limited liability company,
         216.23association, governmental unit or agency, public or private organization of any kind,
         216.24or other legal entity.216.25EFFECTIVE DATE.This section is effective for assessment year 2016 and 216.26thereafter.216.27    Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision 216.28to read:216.29    Subd. 10.Intermittent or irregularly timed flights."Intermittently or irregularly 216.30timed flights" means any flight in which the departure time, departure location, and
         arrival 216.31location are specifically negotiated with the customer or the customer's representative,
         216.32including but not limited to charter flights.217.1EFFECTIVE DATE.This section is effective for assessment year 2016 and 217.2thereafter.217.3    Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:217.4    Subd. 2. Assessment of flight property.  Flight property that is owned by, or is 217.5leased, loaned, or otherwise made available to an airline company operating in Minnesota
         217.6shall be assessed and appraised annually by the commissioner with reference to its
         value 217.7on January 2 of the assessment year in the manner prescribed by sections 
         270.071 to 217.8270.079
         . Aircraft with a gross weight of less than 30,000 pounds and used on intermittent 217.9or irregularly timed flights shall be excluded from the provisions of sections 270.071 to 217.10270.079.217.11EFFECTIVE DATE.This section is effective for assessment year 2016 and 217.12thereafter.217.13    Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:217.14    Subd. 3. Report by airline company.(a) Each year, on or before July 1, every 217.15airline company engaged in air commerce in this state shall file with the commissioner
         a 217.16report under oath setting forth specifically the information prescribed by the commissioner
         217.17to enable the commissioner to make the assessment required in sections 
         270.071 to 217.18270.079
         , unless the commissioner determines that the airline company or person should be 217.19excluded from is exempt from filing because its activities do not constitute air commerce 217.20as defined herein.217.21    (b) The commissioner shall prescribe the content, format, and manner of the report
         217.22pursuant to section 270C.30, except that a "law administered by the commissioner"
         217.23includes the property tax laws. If a report is made by electronic means, the taxpayer's
         217.24signature is defined pursuant to section 270C.304, except that a "law administered
         by the 217.25commissioner" includes the property tax laws.217.26EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports 217.27filed in 2016 and thereafter. The amendment adding paragraph (b) is effective the
         day 217.28following final enactment.217.29    Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision 217.30to read:217.31    Subd. 3a.Commissioner filed reports.If an airline company fails to file a report 217.32required by subdivision 3, the commissioner may, from information in the commissioner's
         218.1possession or obtainable by the commissioner, make and file a report for the airline
         218.2company, or may issue a notice of net tax capacity and tax under section 270.075,
         218.3subdivision 2.218.4EFFECTIVE DATE.This section is effective for assessment year 2016 and 218.5thereafter.218.6    Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision 218.7to read:218.8    Subd. 6.Reassessment orders.If the State Board of Equalization determines that a 218.9considerable amount of property has been undervalued or overvalued compared to like
         218.10property such that the assessment is grossly unfair or inequitable, the State Board
         of 218.11Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue
         orders 218.12to the county assessor to reassess all or any part of a parcel in a county.218.13EFFECTIVE DATE.This section is effective for assessment year 2016 and 218.14thereafter.218.15    Sec. 10. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:218.16    Subdivision 1. Annual report required. Every railroad company doing business 218.17in Minnesota shall annually file with the commissioner on or before March 31 a report
         218.18under oath setting forth the information prescribed by the commissioner to enable
         the 218.19commissioner to make the valuation and equalization required by sections 
         270.80 to 218.20270.87
         . The commissioner shall prescribe the content, format, and manner of the report 218.21pursuant to section 270C.30, except that a "law administered by the commissioner"
         218.22includes the property tax laws. If a report is made by electronic means, the taxpayer's
         218.23signature is defined pursuant to section 270C.304, except that a "law administered
         by the 218.24commissioner" includes the property tax laws.218.25EFFECTIVE DATE.This section is effective the day following final enactment.218.26    Sec. 11. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:218.27    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 218.28commissioner a copy of the abstract that will be acted upon by the local and county
         218.29boards of review. The abstract must list the real and personal property in the county
         218.30itemized by assessment districts. The assessor of each county in the state shall file
         with 218.31the commissioner, within ten working days following final action of the local board
         of 218.32review or equalization and within five days following final action of the county board
         of 219.1equalization, any changes made by the local or county board. The information must
         be 219.2filed in the manner prescribed by the commissioner. It must be accompanied by a printed 219.3or typewritten copy of the proceedings of the appropriate board.219.4EFFECTIVE DATE.This section is effective for county boards of appeal and 219.5equalization meetings held in 2016 and thereafter.219.6    Sec. 12. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:219.7    Subd. 9. Personal property; exceptions. Except for the taxable personal property 219.8enumerated below, all personal property and the property described in section 
         272.03, 219.9subdivision 1
         , paragraphs (c) and (d), shall be exempt.219.10The following personal property shall be taxable:219.11(a) personal property which is part of (i) an electric generating, transmission, or 219.12distribution system or; (ii) a pipeline system transporting or distributing water, gas, crude 219.13oil, or petroleum products; or (iii) mains and pipes used in the distribution of steam or hot 219.14or chilled water for heating or cooling buildings and structures;219.15(b) railroad docks and wharves which are part of the operating property of a railroad
         219.16company as defined in section 
         270.80;219.17(c) personal property defined in section 
         272.03, subdivision 2, clause (3);219.18(d) leasehold or other personal property interests which are taxed pursuant to section
         219.19272.01, subdivision 2
         ; 
         273.124, subdivision 7; or 
         273.19, subdivision 1; or any other law 219.20providing the property is taxable as if the lessee or user were the fee owner;219.21(e) manufactured homes and sectional structures, including storage sheds, decks, 219.22and similar removable improvements constructed on the site of a manufactured home,
         219.23sectional structure, park trailer or travel trailer as provided in section 
         273.125, subdivision 219.248
         , paragraph (f); and219.25(f) flight property as defined in section 
         270.071.219.26EFFECTIVE DATE.This section is effective the day following final enactment.219.27    Sec. 13. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:219.28    Subd. 2. Definitions. (a) For the purposes of this section, the term:219.29(1) "wind energy conversion system" has the meaning given in section 216C.06, 219.30subdivision 19, and also includes a substation that is used and owned by one or more
         219.31wind energy conversion facilities;220.1(2) "large scale wind energy conversion system" means a wind energy conversion 220.2system of more than 12 megawatts, as measured by the nameplate capacity of the system
         220.3or as combined with other systems as provided in paragraph (b);220.4(3) "medium scale wind energy conversion system" means a wind energy conversion 220.5system of over two and not more than 12 megawatts, as measured by the nameplate 220.6capacity of the system or as combined with other systems as provided in paragraph
         (b); and220.7(4) "small scale wind energy conversion system" means a wind energy conversion 220.8system of two megawatts and under, as measured by the nameplate capacity of the system
         220.9or as combined with other systems as provided in paragraph (b).220.10(b) For systems installed and contracted for after January 1, 2002, the total size
         of a 220.11wind energy conversion system under this subdivision shall be determined according
         to 220.12this paragraph. Unless the systems are interconnected with different distribution
         systems, 220.13the nameplate capacity of one wind energy conversion system shall be combined with
         the 220.14nameplate capacity of any other wind energy conversion system that is:220.15(1) located within five miles of the wind energy conversion system;220.16(2) constructed within the same calendar year 12-month period as the wind energy 220.17conversion system; and220.18(3) under common ownership.220.19In the case of a dispute, the commissioner of commerce shall determine the total size
         220.20of the system, and shall draw all reasonable inferences in favor of combining the
         systems.220.21(c) In making a determination under paragraph (b), the commissioner of commerce 220.22may determine that two wind energy conversion systems are under common ownership 220.23when the underlying ownership structure contains similar persons or entities, even
         if the 220.24ownership shares differ between the two systems. Wind energy conversion systems are
         220.25not under common ownership solely because the same person or entity provided equity
         220.26financing for the systems.220.27EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.220.28    Sec. 14. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:220.29    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax 220.30under subdivision 3 shall file a report with the commissioner of revenue annually
         on 220.31or before February 1 January 15 detailing the amount of electricity in kilowatt-hours 220.32that was produced by the wind energy conversion system for the previous calendar year.
         220.33The commissioner shall prescribe the form of the report. The report must contain the
         220.34information required by the commissioner to determine the tax due to each county under
         220.35this section for the current year. If an owner of a wind energy conversion system
         subject 221.1to taxation under this section fails to file the report by the due date, the commissioner
         221.2of revenue shall determine the tax based upon the nameplate capacity of the system
         221.3multiplied by a capacity factor of 60 percent.221.4(b) On or before February 28, the commissioner of revenue shall notify the owner of
         221.5the wind energy conversion systems of the tax due to each county for the current year
         and 221.6shall certify to the county auditor of each county in which the systems are located
         the tax 221.7due from each owner for the current year.221.8EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.221.9    Sec. 15. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision 221.10to read:221.11    Subd. 8.Extension.The commissioner may, for good cause, extend the time for 221.12filing the report required by subdivision 4. The extension must not exceed 15 days.221.13EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.221.14    Sec. 16. Minnesota Statutes 2014, section 273.032, is amended to read:221.15273.032 MARKET VALUE DEFINITION.221.16    (a) Unless otherwise provided, for the purpose of determining any property tax 221.17levy limitation based on market value or any limit on net debt, the issuance of bonds,
         221.18certificates of indebtedness, or capital notes based on market value, any qualification
         to 221.19receive state aid based on market value, or any state aid amount based on market value,
         221.20the terms "market value," "estimated market value," and "market valuation," whether
         221.21equalized or unequalized, mean the estimated market value of taxable property within
         the 221.22local unit of government before any of the following or similar adjustments for:221.23    (1) the market value exclusions under:221.24    (i) section 
         273.11, subdivisions 14a and 14c (vacant platted land);221.25    (ii) section 
         273.11, subdivision 16 (certain improvements to homestead property);221.26    (iii) section 
         273.11, subdivisions 19 and 20 (certain improvements to business 221.27properties);221.28    (iv) section 
         273.11, subdivision 21 (homestead property damaged by mold);221.29    (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);221.30    (vi) (v) section 
         273.13, subdivision 34 (homestead of a disabled veteran or family 221.31caregiver); or221.32    (vii) (vi) section 
         273.13, subdivision 35 (homestead market value exclusion); or221.33    (2) the deferment of value under:222.1    (i) the Minnesota Agricultural Property Tax Law, section 
         273.111;222.2    (ii) the Aggregate Resource Preservation Law, section 
         273.1115;222.3    (iii) the Minnesota Open Space Property Tax Law, section 
         273.112;222.4    (iv) the rural preserves property tax program, section 
         273.114; or222.5    (v) the Metropolitan Agricultural Preserves Act, section 
         473H.10; or222.6    (3) the adjustments to tax capacity for:222.7    (i) tax increment financing under sections 
         469.174 to 
         469.1794;222.8    (ii) fiscal disparities under chapter 276A or 473F; or222.9    (iii) powerline credit under section 
         273.425.222.10    (b) Estimated market value under paragraph (a) also includes the market value 222.11of tax-exempt property if the applicable law specifically provides that the limitation,
         222.12qualification, or aid calculation includes tax-exempt property.222.13    (c) Unless otherwise provided, "market value," "estimated market value," and 222.14"market valuation" for purposes of property tax levy limitations and calculation of
         state 222.15aid, refer to the estimated market value for the previous assessment year and for
         purposes 222.16of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital
         notes 222.17refer to the estimated market value as last finally equalized.222.18    (d) For purposes of a provision of a home rule charter or of any special law that
         is not 222.19codified in the statutes and that imposes a levy limitation based on market value
         or any limit 222.20on debt, the issuance of bonds, certificates of indebtedness, or capital notes based
         on market 222.21value, the terms "market value," "taxable market value," and "market valuation," whether
         222.22equalized or unequalized, mean "estimated market value" as defined in paragraph (a).222.23EFFECTIVE DATE.This section is effective the day following final enactment.222.24    Sec. 17. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:222.25    Subd. 7. Division of duties between local and county assessor. The duty of the 222.26duly appointed local assessor shall be to view and appraise the value of all property
         as 222.27provided by law, but all the book work shall be done by the county assessor, or the
         222.28assessor's assistants, and the value of all property subject to assessment and taxation
         shall 222.29be determined by the county assessor, except as otherwise hereinafter provided. If
         directed 222.30by the county assessor, the local assessor shall must perform the duties enumerated in 222.31subdivision 8, clause (16), and must enter construction and valuation data into the records 222.32in the manner prescribed by the county auditor.222.33EFFECTIVE DATE.This section is effective for assessment year 2016 and 222.34thereafter.223.1    Sec. 18. Minnesota Statutes 2014, section 273.08, is amended to read:223.2273.08 ASSESSOR'S DUTIES.223.3The assessor shall actually view, and determine the market value of each tract or
         lot 223.4of real property listed for taxation, including the value of all improvements and
         structures 223.5thereon, at maximum intervals of five years and shall enter the value opposite each
         223.6description. When directed by the county assessor, local assessors must enter construction 223.7and valuation data into the records in the manner prescribed by the county assessor.223.8EFFECTIVE DATE.This section is effective for assessment year 2016 and 223.9thereafter.223.10    Sec. 19. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision 223.11to read:223.12    Subd. 3.Compliance.A county assessor, or a city assessor having the powers 223.13of a county assessor, who does not comply with the timely notice requirement under
         223.14subdivision 1 must:223.15(1) mail an additional valuation notice to each person who was not provided timely
         223.16notice; and223.17(2) convene a supplemental local board of appeal and equalization or local review
         223.18session no sooner than ten days after sending the additional notices required by clause
         (1).223.19EFFECTIVE DATE.This section is effective for valuation notices sent in 2016 223.20and thereafter.223.21    Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:223.22    Subdivision 1. Listing and assessment in county. The personal property of express, 223.23stage and transportation companies, and of pipeline companies engaged in the business
         223.24of transporting natural gas, gasoline, crude oil, or other petroleum products, except as 223.25otherwise provided by law, shall be listed and assessed in the county, town or district
         223.26where the same is usually kept.223.27EFFECTIVE DATE.This section is effective the day following final enactment.223.28    Sec. 21. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:223.29    Subd. 2. Listing and assessment by commissioner. The personal property, 223.30consisting of the pipeline system of mains, pipes, and equipment attached thereto,
         of 223.31pipeline companies and others engaged in the operations or business of transporting
         224.1natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed 224.2with and assessed by the commissioner of revenue and the values provided to the 224.3city or county assessor by order. This subdivision shall not apply to the assessment
         of 224.4the products transported through the pipelines nor to the lines of local commercial
         gas 224.5companies engaged primarily in the business of distributing gas products to consumers at 224.6retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum 224.7products exclusively for such owner's own consumption and not for resale to others.
         If 224.8more than 85 percent of the natural gas or other petroleum products actually transported 224.9over the pipeline is used for the owner's own consumption and not for resale to others,
         224.10then this subdivision shall not apply; provided, however, that in that event, the
         pipeline 224.11shall be assessed in proportion to the percentage of gas products actually transported over 224.12such pipeline that is not used for the owner's own consumption. On or before August
         1, 224.13the commissioner shall certify to the auditor of each county, the amount of such personal
         224.14property assessment against each company in each district in which such property is
         224.15located. If the commissioner determines that the amount of personal property assessment
         224.16certified on or before August 1 is in error, the commissioner may issue a corrected
         224.17certification on or before October 1. The commissioner may correct errors that are
         merely 224.18clerical in nature until December 31.224.19EFFECTIVE DATE.This section is effective the day following final enactment.224.20    Sec. 22. Minnesota Statutes 2014, section 273.371, is amended to read:224.21273.371 REPORTS OF UTILITY COMPANIES.224.22    Subdivision 1. Report required. Every electric light, power, gas, water, express, 224.23stage, and transportation company, and pipeline company doing business in Minnesota 224.24shall annually file with the commissioner on or before March 31 a report under oath
         setting 224.25forth the information prescribed by the commissioner to enable the commissioner to
         make 224.26valuations, recommended valuations, and equalization required under sections 
         273.33, 224.27273.35
         , 
         273.36, 
         273.37, and 
         273.3711. If all the required information is not available on 224.28March 31, the company or pipeline shall file the information that is available on
         or before 224.29March 31, and the balance of the information as soon as it becomes available.224.30    Subd. 2. Extension. The commissioner for good cause may extend the time for 224.31filing the report required by subdivision 1. The extension may must not exceed 15 days.224.32    Subd. 3.Reports filed by the commissioner.If a company fails to file a report 224.33required by subdivision 1, the commissioner may, from information in the commissioner's
         224.34possession or obtainable by the commissioner, make and file a report for the company,
         or 225.1make the valuations, recommended valuations, and equalizations required under sections
         225.2273.33, 273.35 to 273.37, and 273.3711.225.3EFFECTIVE DATE.This section is effective for assessment year 2016 and 225.4thereafter.225.5    Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:225.6    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required 225.7to be brought against the commissioner under this section, the petition initiating
         the appeal 225.8must be served on the commissioner and must be filed with the Tax Court in Ramsey
         225.9County, as provided in paragraph (b) or (c).225.10(b) If the appeal to court is from an order of the commissioner, it must be brought
         225.11under chapter 271 and filed within the time period prescribed in section 271.06, 225.12subdivision 2, except that when the provisions of this section conflict with chapter 225.13271 or 278, this section prevails. In addition, the petition must include all the parcels 225.14encompassed by that order which the petitioner claims have been partially, unfairly,
         225.15or unequally assessed, assessed at a valuation greater than their real or actual value,
         225.16misclassified, or are exempt. For this purpose, an order of the commissioner is either
         (1) a 225.17certification or notice of value by the commissioner for property described in subdivision
         225.181, or (2) the final determination by the commissioner of either an administrative
         appeal 225.19conference or informal administrative appeal described in subdivision 4.225.20(c) If the appeal is from the tax that results from implementation of the 225.21commissioner's order, certification, or recommendation, it must be brought under 225.22chapter 278, and the provisions in that chapter apply, except that service shall be
         on the 225.23commissioner only and not on the local officials specified in section 
         278.01, subdivision 1, 225.24and if any other provision of this section conflicts with chapter 278, this section
         prevails. 225.25In addition, the petition must include either all the utility parcels or all the railroad
         parcels 225.26in the state in which the petitioner claims an interest and which the petitioner claims
         have 225.27been partially, unfairly, or unequally assessed, assessed at a valuation greater than
         their 225.28real or actual value, misclassified, or are exempt.225.29EFFECTIVE DATE.This section is effective for assessment year 2016 and 225.30thereafter.225.31    Sec. 24. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:225.32    Subd. 4. Administrative appeals. (a) Companies that submit the reports under 225.33section 
         270.82 or 
         273.371 by the date specified in that section, or by the date specified 226.1by the commissioner in an extension, may appeal administratively to the commissioner
         226.2prior to bringing an action in court.226.3    (b) Companies that must submit reports under section 270.82 must submit file a 226.4written request to for an appeal with the commissioner for a conference within ten 30 226.5days after the notice date of the commissioner's valuation certification or other notice 226.6to the company, or by June 15, whichever is earlier. For purposes of this section, the 226.7term "notice date" means the date of the valuation certification, commissioner's order,
         226.8recommendation, or other notice.226.9    (c) Companies that submit reports under section 273.371 must submit a written 226.10request to the commissioner for a conference within ten days after the date of the
         226.11commissioner's valuation certification or notice to the company, or by July 1, whichever
         226.12is earlier. The appeal need not be in any particular form but must contain the following 226.13information:226.14    (1) name and address of the company;226.15    (2) the date;226.16    (3) its Minnesota identification number;226.17    (4) the assessment year or period involved;226.18    (5) the findings in the valuation that the company disputes;226.19    (6) a summary statement specifying its reasons for disputing each item; and226.20    (7) the signature of the company's duly authorized agent or representative.226.21    (d) When requested in writing and within the time allowed for filing an 226.22administrative appeal, the commissioner may extend the time for filing an appeal for
         a 226.23period of not more than 15 days from the expiration of the time for filing the appeal.226.24    (d) (e) The commissioner shall conduct the conference either in person or by 226.25telephone upon the commissioner's entire files and records and such further information as 226.26may be offered. The conference must be held no later than 20 days after the date of
         the 226.27commissioner's valuation certification or notice to the company, or by the date specified
         226.28by the commissioner in an extension request for an appeal. Within 60 30 days after the 226.29conference the commissioner shall make a final determination of the matter and shall
         226.30notify the company promptly of the determination. The conference is not a contested
         226.31case hearing subject to chapter 14.226.32    (e) In addition to the opportunity for a conference under paragraph (a), the 226.33commissioner shall also provide the railroad and utility companies the opportunity
         to 226.34discuss any questions or concerns relating to the values established by the commissioner
         226.35through certification or notice in a less formal manner. This does not change or modify
         226.36the deadline for requesting a conference under paragraph (a), the deadline in section
         227.1271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for 227.2appealing property taxes in court.227.3EFFECTIVE DATE.This section is effective for assessment year 2016 and 227.4thereafter.227.5    Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 227.6to read:227.7    Subd. 5.Agreement determining valuation.When it appears to be in the best 227.8interest of the state, the commissioner may settle any matter under consideration
         regarding 227.9an appeal filed under this section. The agreement must be in writing and signed by
         227.10the commissioner and the company or the company's authorized representative. The 227.11agreement is final and conclusive, and except upon a showing of fraud, malfeasance,
         227.12or misrepresentation of a material fact, the case may not be reopened as to the matters
         227.13agreed upon.227.14EFFECTIVE DATE.This section is effective for assessment year 2016 and 227.15thereafter.227.16    Sec. 26. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 227.17to read:227.18    Subd. 6.Dismissal of administrative appeal.If a taxpayer files an administrative 227.19appeal from an order of the commissioner and also files an appeal to the tax court
         for 227.20that same order of the commissioner, the administrative appeal is dismissed and the
         227.21commissioner is no longer required to make the determination of appeal under subdivision
         227.224.227.23EFFECTIVE DATE.This section is effective beginning with assessment year 2015.227.24    Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:227.25    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town 227.26board of a town, or the council or other governing body of a city, is the local board 227.27of appeal and equalization except (1) in cities whose charters provide for a board
         of 227.28equalization or (2) in any city or town that has transferred its local board of review
         power 227.29and duties to the county board as provided in subdivision 3. The county assessor shall
         227.30fix a day and time when the board or the local board of equalization shall meet in the 227.31assessment districts of the county. Notwithstanding any law or city charter to the
         contrary, 227.32a city board of equalization shall be referred to as a local board of appeal and equalization. 228.1On or before February 15 of each year the assessor shall give written notice of the
         time 228.2to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
         228.3the meetings must be held between April 1 and May 31 each year. The clerk shall give
         228.4published and posted notice of the meeting at least ten days before the date of the
         meeting.228.5    The board shall meet either at a central location within the county or at the office
         of 228.6the clerk to review the assessment and classification of property in the town or city.
         No 228.7changes in valuation or classification which are intended to correct errors in judgment
         by 228.8the county assessor may be made by the county assessor after the board has adjourned
         228.9in those cities or towns that hold a local board of review; however, corrections of
         errors 228.10that are merely clerical in nature or changes that extend homestead treatment to property
         228.11are permitted after adjournment until the tax extension date for that assessment year.
         The 228.12changes must be fully documented and maintained in the assessor's office and must
         be 228.13available for review by any person. A copy of the changes made during this period
         in 228.14those cities or towns that hold a local board of review must be sent to the county
         board no 228.15later than December 31 of the assessment year.228.16    (b) The board shall determine whether the taxable property in the town or city has
         228.17been properly placed on the list and properly valued by the assessor. If real or personal
         228.18property has been omitted, the board shall place it on the list with its market value,
         and 228.19correct the assessment so that each tract or lot of real property, and each article,
         parcel, 228.20or class of personal property, is entered on the assessment list at its market value.
         No 228.21assessment of the property of any person may be raised unless the person has been
         228.22duly notified of the intent of the board to do so. On application of any person feeling
         228.23aggrieved, the board shall review the assessment or classification, or both, and correct
         228.24it as appears just. The board may not make an individual market value adjustment or
         228.25classification change that would benefit the property if the owner or other person
         having 228.26control over the property has refused the assessor access to inspect the property
         and the 228.27interior of any buildings or structures as provided in section 
         273.20. A board member 228.28shall not participate in any actions of the board which result in market value adjustments
         228.29or classification changes to property owned by the board member, the spouse, parent,
         228.30stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
         nephew, 228.31or niece of a board member, or property in which a board member has a financial interest.
         228.32The relationship may be by blood or marriage.228.33    (c) A local board may reduce assessments upon petition of the taxpayer but the total
         228.34reductions must not reduce the aggregate assessment made by the county assessor by
         more 228.35than one percent. If the total reductions would lower the aggregate assessments made
         by 228.36the county assessor by more than one percent, none of the adjustments may be made.
         The 229.1assessor shall correct any clerical errors or double assessments discovered by the
         board 229.2without regard to the one percent limitation.229.3    (d) A local board does not have authority to grant an exemption or to order property
         229.4removed from the tax rolls.229.5    (e) A majority of the members may act at the meeting, and adjourn from day to day
         229.6until they finish hearing the cases presented. The assessor shall attend and take
         part in 229.7the proceedings, but must not vote. The county assessor, or an assistant delegated
         by the 229.8county assessor shall attend the meetings. The board shall list separately all omitted
         229.9property added to the list by the board and all items of property increased or decreased,
         229.10with the market value of each item of property, added or changed by the board. The
         229.11county assessor shall enter all changes made by the board.229.12    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
         229.13counsel, or by written communication before the board after being duly notified of
         the 229.14board's intent to raise the assessment of the property, or if a person feeling aggrieved
         by an 229.15assessment or classification fails to apply for a review of the assessment or classification,
         229.16the person may not appear before the county board of appeal and equalization for a
         review. 229.17This paragraph does not apply if an assessment was made after the local board meeting,
         as 229.18provided in section 
         273.01, or if the person can establish not having received notice of 229.19market value at least five days before the local board meeting.229.20    (g) The local board must complete its work and adjourn within 20 days from the 229.21time of convening stated in the notice of the clerk, unless a longer period is approved
         by 229.22the commissioner of revenue. No action taken after that date is valid. All complaints
         229.23about an assessment or classification made after the meeting of the board must be
         heard 229.24and determined by the county board of equalization. A nonresident may, at any time,
         229.25before the meeting of the board file written objections to an assessment or classification
         229.26with the county assessor. The objections must be presented to the board at its meeting
         by 229.27the county assessor for its consideration.229.28EFFECTIVE DATE.This section is effective the day following final enactment.229.29    Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:229.30    Subdivision 1. Members; meetings; rules for equalizing assessments. The county 229.31commissioners, or a majority of them, with the county auditor, or, if the auditor
         cannot be 229.32present, the deputy county auditor, or, if there is no deputy, the court administrator
         of the 229.33district court, shall form a board for the equalization of the assessment of the property
         229.34of the county, including the property of all cities whose charters provide for a board
         of 229.35equalization. This board shall be referred to as the county board of appeal and equalization.
         230.1The board shall meet annually, on the date specified in section 
         274.14, at the office of the 230.2auditor. Each member shall take an oath to fairly and impartially perform duties as
         a 230.3member. Members shall not participate in any actions of the board which result in
         market 230.4value adjustments or classification changes to property owned by the board member,
         the 230.5spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister,
         uncle, 230.6aunt, nephew, or niece of a board member, or property in which a board member has
         a 230.7financial interest. The relationship may be by blood or marriage. The board shall
         examine 230.8and compare the returns of the assessment of property of the towns or districts, and
         230.9equalize them so that each tract or lot of real property and each article or class
         of personal 230.10property is entered on the assessment list at its market value, subject to the following
         rules:230.11    (1) The board shall raise the valuation of each tract or lot of real property which
         230.12in its opinion is returned below its market value to the sum believed to be its market
         230.13value. The board must first give notice of intention to raise the valuation to the
         person in 230.14whose name it is assessed, if the person is a resident of the county. The notice must
         fix 230.15a time and place for a hearing.230.16    (2) The board shall reduce the valuation of each tract or lot which in its opinion
         is 230.17returned above its market value to the sum believed to be its market value.230.18    (3) The board shall raise the valuation of each class of personal property which 230.19in its opinion is returned below its market value to the sum believed to be its market
         230.20value. It shall raise the aggregate value of the personal property of individuals,
         firms, or 230.21corporations, when it believes that the aggregate valuation, as returned, is less
         than the 230.22market value of the taxable personal property possessed by the individuals, firms,
         or 230.23corporations, to the sum it believes to be the market value. The board must first
         give notice 230.24to the persons of intention to do so. The notice must set a time and place for a hearing.230.25    (4) The board shall reduce the valuation of each class of personal property that 230.26is returned above its market value to the sum it believes to be its market value.
         Upon 230.27complaint of a party aggrieved, the board shall reduce the aggregate valuation of
         the 230.28individual's personal property, or of any class of personal property for which the
         individual 230.29is assessed, which in its opinion has been assessed at too large a sum, to the sum
         it believes 230.30was the market value of the individual's personal property of that class.230.31    (5) The board must not reduce the aggregate value of all the property of its county,
         as 230.32submitted to the county board of equalization, with the additions made by the auditor
         under 230.33this chapter, by more than one percent of its whole valuation. The board may raise
         the 230.34aggregate valuation of real property, and of each class of personal property, of the
         county, 230.35or of any town or district of the county, when it believes it is below the market
         value of the 230.36property, or class of property, to the aggregate amount it believes to be its market
         value.231.1    (6) The board shall change the classification of any property which in its opinion
         231.2is not properly classified.231.3    (7) The board does not have the authority to grant an exemption or to order property
         231.4removed from the tax rolls.231.5    (8) The board may not make an individual market value adjustment or classification
         231.6change that would benefit property if the owner or other person having control over
         the 231.7property has refused the assessor access to inspect the property and the interior
         of any 231.8buildings or structures as provided in section 273.20.231.9EFFECTIVE DATE.This section is effective for county board of appeal and 231.10equalization meetings in 2016 and thereafter.231.11    Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:231.12    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts 231.13county boards of appeal and equalization meetings must provide proof to the commissioner
         231.14by December 1, 2009, and each year thereafter, February 1  that it is in compliance with the 231.15requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 231.16was a quorum of voting members at each meeting of the board of appeal and equalization
         231.17in the current previous year. A county that does not comply with these requirements is 231.18deemed to have transferred its board of appeal and equalization powers to the special
         231.19board of equalization appointed pursuant to section 
         274.13, subdivision 2, beginning 231.20with the following year's assessment and continuing unless the powers are reinstated
         231.21under paragraph (c). A county that does not comply with the requirements of subdivision
         231.222 and has not appointed a special board of equalization shall appoint a special board
         of 231.23equalization before the following year's assessment.231.24    (b) The county shall notify the taxpayers when the board of appeal and equalization
         231.25for a county has been transferred to the special board of equalization under this
         subdivision 231.26and, prior to the meeting time of the special board of equalization, the county shall
         make 231.27available to those taxpayers a procedure for a review of the assessments, including,
         but 231.28not limited to, open book meetings. This alternate review process must take place
         in 231.29April and May.231.30    (c) A county board whose powers are transferred to the special board of equalization
         231.31under this subdivision may be reinstated by resolution of the county board and upon
         proof 231.32of compliance with the requirements of subdivision 2. The resolution and proofs must
         231.33be provided to the commissioner by December February 1 in order to be effective for 231.34the following current year's assessment.232.1(d) If a person who was entitled to appeal to the county board of appeal and 232.2equalization or to the county special board of equalization is not able to do so in
         a 232.3particular year because the county board or special board did not meet the quorum
         and 232.4training requirements in this section and section 
         274.13, or because the special board 232.5was not appointed, that person may instead appeal to the commissioner of revenue,
         232.6provided that the appeal is received by the commissioner prior to August 1. The appeal
         232.7is not subject to either chapter 14 or section 
         270C.92. The commissioner must issue 232.8an appropriate order to the county assessor in response to each timely appeal, either
         232.9upholding or changing the valuation or classification of the property. Prior to October
         1 of 232.10each year, the commissioner must charge and bill the county where the property is
         located 232.11$500 for each tax parcel covered by an order issued under this paragraph in that year.
         232.12Amounts received by the commissioner under this paragraph must be deposited in the
         232.13state's general fund. If payment of a billed amount is not received by the commissioner
         232.14before December 1 of the year when billed, the commissioner must deduct that unpaid
         232.15amount from any state aid the commissioner would otherwise pay to the county under
         232.16chapter 477A in the next year. Late payments may either be returned to the county
         232.17uncashed and undeposited or may be accepted. If a late payment is accepted, the state
         aid 232.18paid to the county under chapter 477A must be adjusted within 12 months to eliminate
         any 232.19reduction that occurred because the payment was late. Amounts needed to make these
         232.20adjustments are included in the appropriation under section 
         477A.03, subdivision 2.232.21EFFECTIVE DATE.This section is effective for county boards of appeal and 232.22equalization meetings held in 2016 and thereafter.232.23    Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:232.24    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 232.25contrary, on or before September 30, each county and each home rule charter or statutory
         232.26city shall certify to the county auditor the proposed property tax levy for taxes
         payable in 232.27the following year.232.28    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         232.29each town and each special taxing district shall adopt and certify to the county auditor
         a 232.30proposed property tax levy for taxes payable in the following year. For towns, the
         final 232.31certified levy shall also be considered the proposed levy.232.32    (c) On or before September 30, each school district that has not mutually agreed 232.33with its home county to extend this date shall certify to the county auditor the proposed
         232.34property tax levy for taxes payable in the following year. Each school district that
         has 232.35agreed with its home county to delay the certification of its proposed property tax
         levy 233.1must certify its proposed property tax levy for the following year no later than October
         233.27. The school district shall certify the proposed levy as:233.3    (1) a specific dollar amount by school district fund, broken down between 233.4voter-approved and non-voter-approved levies and between referendum market value 233.5and tax capacity levies; or233.6    (2) the maximum levy limitation certified by the commissioner of education 233.7according to section 
         126C.48, subdivision 1.233.8    (d) If the board of estimate and taxation or any similar board that establishes 233.9maximum tax levies for taxing jurisdictions within a first class city certifies the
         maximum 233.10property tax levies for funds under its jurisdiction by charter to the county auditor
         by the 233.11date specified in paragraph (a), the city shall be deemed to have certified its levies
         for 233.12those taxing jurisdictions.233.13    (e) For purposes of this section, "special taxing district" means a special taxing
         233.14district as defined in section 
         275.066. Intermediate school districts that levy a tax 233.15under chapter 124 or 136D, joint powers boards established under sections 
         123A.44 to 233.16123A.446
         , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 233.17also special taxing districts for purposes of this section.233.18(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         233.19tax levy under this subdivision, the taxing authority shall announce the time and
         place 233.20of its any subsequent regularly scheduled meetings at which the budget and levy will be 233.21discussed and at which the public will be allowed to speak. The time and place of
         those 233.22meetings must be included in the proceedings or summary of proceedings published in
         the 233.23official newspaper of the taxing authority under section 
         123B.09, 
         375.12, or 
         412.191.233.24EFFECTIVE DATE.This section is effective the day following final enactment.233.25    Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:233.26    Subd. 2. Local governments required to report. For purposes of this section, 233.27"local governmental unit" means a county, home rule charter or statutory city with
         a 233.28population greater than 2,500, a town with a population greater than 5,000, or a home rule 233.29charter or statutory city or town that receives a distribution from the taconite municipal
         aid 233.30account in the levy year.233.31EFFECTIVE DATE.This section is effective the day following final enactment.233.32    Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:234.1    Subdivision 1. Determination of validity. (a) Any person having personal property, 234.2or any estate, right, title, or interest in or lien upon any parcel of land, who claims
         that 234.3such property has been partially, unfairly, or unequally assessed in comparison with
         other 234.4property in the (1) city, or (2) county, or (3) in the case of a county containing
         a city of the 234.5first class, the portion of the county excluding the first class city, or that the
         parcel has 234.6been assessed at a valuation greater than its real or actual value, or that the tax
         levied 234.7against the same is illegal, in whole or in part, or has been paid, or that the property
         is 234.8exempt from the tax so levied, may have the validity of the claim, defense, or objection
         234.9determined by the district court of the county in which the tax is levied or by the
         Tax 234.10Court by serving one copy of a petition for such determination upon the county auditor,
         234.11one copy on the county attorney, one copy on the county treasurer, and three copies
         on the 234.12county assessor. The county assessor shall immediately forward one copy of the petition
         234.13to the appropriate governmental authority in a home rule charter or statutory city
         or town 234.14in which the property is located if that city or town employs its own certified assessor.
         234.15A copy of the petition shall also be forwarded by the assessor to the school board
         of the 234.16school district in which the property is located.234.17(b) In counties where the office of county treasurer has been combined with the 234.18office of county auditor, the county may elect to require the petitioner to serve
         the number 234.19of copies as determined by the county. The county assessor shall immediately forward
         one 234.20copy of the petition to the appropriate governmental authority in a home rule charter
         or 234.21statutory city or town in which the property is located if that city or town employs
         its own 234.22certified assessor. A list of petitioned properties, including the name of the petitioner,
         the 234.23identification number of the property, and the estimated market value, shall be sent
         on 234.24or before the first day of July by the county auditor/treasurer to the school board
         of the 234.25school district in which the property is located.234.26(c) For all counties, the petitioner must file the copies with proof of service, in
         the 234.27office of the court administrator of the district court on or before April 30 of the
         year in 234.28which the tax becomes payable. A petition for determination under this section may
         be 234.29transferred by the district court to the Tax Court. An appeal may also be taken to
         the Tax 234.30Court under chapter 271 at any time following receipt of the valuation notice that county 234.31assessors or city assessors having the powers of a county assessor are required by section 234.32273.121
          to send to persons whose property is to be included on the assessment roll that 234.33year, but prior to May 1 of the year in which the taxes are payable.234.34EFFECTIVE DATE.This section is effective the day following final enactment.234.35    Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:235.1    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state 235.2agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited
         land 235.3must be withheld from sale or lease to others for a maximum of six months. The request
         235.4must be submitted to the county auditor. Upon receipt, the county auditor must withhold
         235.5the parcel from sale or lease to any other party for six months, and must confirm
         the 235.6starting date of the six-month withholding period to the requesting agency or subdivision.
         235.7If the request is from a governmental subdivision of the state, the governmental 235.8subdivision must pay the maintenance costs incurred by the county during the period
         the 235.9parcel is withheld. The county board may approve a sale or conveyance to the requesting
         235.10party during the withholding period. A conveyance of the property to the requesting
         235.11party terminates the withholding period.235.12A governmental subdivision of the state must not make, and a county auditor must 235.13not act upon, a second request to withhold a parcel from sale or lease within 18 months
         235.14of a previous request for that parcel. A county may reject a request made under this
         235.15paragraph if the request is made more than 30 days after the county has given notice
         to the 235.16requesting state agency or governmental subdivision of the state that the county intends
         to 235.17sell or otherwise dispose of the property.235.18(b) Nonconservation tax-forfeited lands may be sold by the county board, for 235.19their market value as determined by the county board, to an organized or incorporated
         235.20governmental subdivision of the state for any public purpose for which the subdivision
         is 235.21authorized to acquire property. When the term "market value" is used in this section,
         it 235.22means an estimate of the full and actual market value of the parcel as determined
         by the 235.23county board, but in making this determination, the board and the persons employed
         by or 235.24under contract with the board in order to perform, conduct, or assist in the determination,
         235.25are exempt from the licensure requirements of chapter 82B.235.26(c) Nonconservation tax-forfeited lands may be released from the trust in favor of 235.27the taxing districts on application to sold by the county board by, for their market value as 235.28determined by the county board, to a state agency for an authorized use at not less than 235.29their market value as determined by the county board any public purpose for which the 235.30agency is authorized to acquire property.235.31(d) Nonconservation tax-forfeited lands may be sold by the county board to an 235.32organized or incorporated governmental subdivision of the state or state agency for
         less 235.33than their market value if:235.34(1) the county board determines that a sale at a reduced price is in the public interest
         235.35because a reduced price is necessary to provide an incentive to correct the blighted
         236.1conditions that make the lands undesirable in the open market, or the reduced price
         will 236.2lead to the development of affordable housing; and236.3(2) the governmental subdivision or state agency has documented its specific plans
         236.4for correcting the blighted conditions or developing affordable housing, and the specific
         236.5law or laws that empower it to acquire real property in furtherance of the plans.236.6If the sale under this paragraph is to a governmental subdivision of the state, the
         236.7commissioner of revenue must convey the property on behalf of the state by quitclaim
         236.8deed. If the sale under this paragraph is to a state agency, the property is released from 236.9the trust in favor of the taxing districts and the commissioner of revenue must issue a 236.10conveyance document that releases the property from the trust in favor of the taxing
         236.11districts convey the property on behalf of the state by quitclaim deed to the agency.236.12(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
         236.13may be conveyed by the commissioner of revenue in the name of the state to a 236.14governmental subdivision for an authorized public use, if an application is submitted
         to the 236.15commissioner which includes a statement of facts as to the use to be made of the tract
         and 236.16the favorable recommendation of the county board. For the purposes of this paragraph,
         236.17"authorized public use" means a use that allows an indefinite segment of the public
         to 236.18physically use and enjoy the property in numbers appropriate to its size and use,
         or is for a 236.19public service facility. Authorized public uses as defined in this paragraph are limited
         to:236.20(1) a road, or right-of-way for a road;236.21(2) a park that is both available to, and accessible by, the public that contains
         236.22improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;236.23(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
         236.24with a reasonable amount of surrounding land maintained in its natural state;236.25(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
         236.26including transit ways, park-and-ride lots, transit stations, maintenance and garage
         236.27facilities, and other facilities related to a public transit system;236.28(5) public beaches or boat launches;236.29(6) public parking;236.30(7) civic recreation or conference facilities; and236.31(8) public service facilities such as fire halls, police stations, lift stations,
         water 236.32towers, sanitation facilities, water treatment facilities, and administrative offices.236.33No monetary compensation or consideration is required for the conveyance, except as
         236.34provided in subdivision 1g, but the conveyance is subject to the conditions provided
         in 236.35law, including, but not limited to, the reversion provisions of subdivisions 1c and
         1d.237.1(f) The commissioner of revenue shall convey a parcel of nonconservation 237.2tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
         237.3on behalf of the state upon the favorable recommendation of the county board if the
         237.4governmental subdivision has certified to the board that prior to forfeiture the subdivision
         237.5was entitled to the parcel under a written development agreement or instrument, but
         237.6the conveyance failed to occur prior to forfeiture. No compensation or consideration
         is 237.7required for, and no conditions attach to, the conveyance.237.8(g) The commissioner of revenue shall convey a parcel of nonconservation 237.9tax-forfeited land to the association of a common interest community by quitclaim
         deed 237.10upon the favorable recommendation of the county board if the association certifies
         to the 237.11board that prior to forfeiture the association was entitled to the parcel under a
         written 237.12agreement, but the conveyance failed to occur prior to forfeiture. No compensation
         or 237.13consideration is required for, and no conditions attach to, the conveyance.237.14(h) Conservation tax-forfeited land may be sold to a governmental subdivision of 237.15the state for less than its market value for either: (1) creation or preservation
         of wetlands; 237.16(2) drainage or storage of storm water under a storm water management plan; or (3)
         237.17preservation, or restoration and preservation, of the land in its natural state. The
         deed must 237.18contain a restrictive covenant limiting the use of the land to one of these purposes
         for 237.1930 years or until the property is reconveyed back to the state in trust. At any time,
         the 237.20governmental subdivision may reconvey the property to the state in trust for the taxing
         237.21districts. The deed of reconveyance is subject to approval by the commissioner of
         revenue. 237.22No part of a purchase price determined under this paragraph shall be refunded upon
         a 237.23reconveyance, but the amount paid for a conveyance under this paragraph may be taken
         237.24into account by the county board when setting the terms of a future sale of the same
         237.25property to the same governmental subdivision under paragraph (b) or (d). If the lands
         237.26are unplatted and located outside of an incorporated municipality and the commissioner
         237.27of natural resources determines there is a mineral use potential, the sale is subject
         to the 237.28approval of the commissioner of natural resources.237.29(i) A park and recreation board in a city of the first class is a governmental 237.30subdivision for the purposes of this section.237.31(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
         237.32by the commissioner of revenue in the name of the state to a governmental subdivision
         for 237.33a school forest under section 
         89.41. An application that includes a statement of facts as 237.34to the use to be made of the tract and the favorable recommendation of the county
         board 237.35and the commissioner of natural resources must be submitted to the commissioner of
         237.36revenue. No monetary compensation or consideration is required for the conveyance,
         but 238.1the conveyance is subject to the conditional use and reversion provisions of subdivisions
         238.21c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
         238.3property back to the state in trust for the taxing districts. The deed of reconveyance
         is 238.4subject to approval by the commissioner of revenue.238.5EFFECTIVE DATE.This section is effective the day following final enactment.238.6    Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:238.7    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years 238.8from the date of any conveyance of tax-forfeited land to a governmental subdivision
         for 238.9an authorized public use as provided in this section, regardless of when the deed
         for the 238.10authorized public use was executed, if the governmental subdivision has failed to
         put the 238.11land to that use, or abandons that use, the governing body of the subdivision must:
         (1) 238.12with the approval of the county board, purchase the property for an authorized public
         238.13purpose at the present market value as determined by the county board, or (2) authorize
         238.14the proper officers to convey the land, or the part of the land not required for an
         authorized 238.15public use, to the state of Minnesota in trust for the taxing districts. If the governing
         body 238.16purchases the property under clause (1), the commissioner of revenue shall, upon proper
         238.17application submitted by the county auditor and upon the reconveyance of the land subject 238.18to the conditional use deed to the state, convey the property on behalf of the state by 238.19quitclaim deed to the subdivision free of a use restriction and the possibility of
         reversion 238.20or defeasement. If the governing body decides to reconvey the property to the state
         under 238.21this clause, the officers shall execute a deed of conveyance immediately. The conveyance
         238.22is subject to the approval of the commissioner and its form must be approved by the
         238.23attorney general. For 15 years from the date of the conveyance, there is no failure
         to put 238.24the land to the authorized public use and no abandonment of that use if a formal plan
         of 238.25the governmental subdivision, including, but not limited to, a comprehensive plan
         or land 238.26use plan, shows an intended future use of the land for the authorized public use.238.27(b) Property held by a governmental subdivision of the state under a conditional use
         238.28deed executed under this section by the commissioner of revenue on or after January
         1, 238.292007, may be acquired by that governmental subdivision after 15 years from the date
         238.30of the conveyance if the commissioner determines upon written application from the
         238.31subdivision that the subdivision has in fact put the property to the authorized public
         use for 238.32which it was conveyed, and the subdivision has made a finding that it has no current
         plans 238.33to change the use of the lands. Prior to conveying the property, the commissioner
         shall 238.34inquire whether the county board where the land is located objects to a conveyance
         of the 238.35property to the subdivision without conditions and without further act by or obligation
         239.1of the subdivision. If the county does not object within 60 days, and the commissioner
         239.2makes a favorable determination, the commissioner shall issue a quitclaim deed on
         behalf 239.3of the state unconditionally conveying the property to the governmental subdivision.
         For 239.4purposes of this paragraph, demonstration of an intended future use for the authorized
         239.5public use in a formal plan of the governmental subdivision does not constitute use
         for 239.6that authorized public use.239.7(c) Property held by a governmental subdivision of the state under a conditional use
         239.8deed executed under this section by the commissioner of revenue before January 1,
         2007, 239.9is released from the use restriction and possibility of reversion on January 1, 2022,
         if the 239.10county board records a resolution describing the land and citing this paragraph. The
         239.11county board may authorize the county treasurer to deduct the amount of the recording
         239.12fees from future settlements of property taxes to the subdivision.239.13(d) Except for tax-forfeited land conveyed to establish a school forest under section
         239.1489.41
         , property conveyed under a conditional use deed executed under this section by 239.15the commissioner of revenue, regardless of when the deed for the authorized public
         use 239.16was executed, is released from the use restriction and reverter, and any use restriction
         or 239.17reverter for which no declaration of reversion has been recorded with the county recorder
         239.18or registrar of titles, as appropriate, is nullified on the later of: (1) January
         1, 2015; (2) 30 239.19years from the date the deed was acknowledged; or (3) final resolution of an appeal
         to 239.20district court under subdivision 1e, if a lis pendens related to the appeal is recorded
         in the 239.21office of the county recorder or registrar of titles, as appropriate, prior to January
         1, 2015.239.22(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish
         a 239.23school forest under section 
         89.41 is subject to a perpetual conditional use deed and reverter. 239.24The property reverts to the state in trust for the taxing districts by operation of
         law if the 239.25commissioner of natural resources determines and reports to the commissioner of revenue
         239.26under section 
         89.41, subdivision 3, that the governmental subdivision has failed to use the 239.27land for school forest purposes for three consecutive years. The commissioner of revenue
         239.28shall record a declaration of reversion for land that has reverted under this paragraph.239.29EFFECTIVE DATE.This section is effective the day following final enactment.239.30    Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a 239.31subdivision to read:239.32    Subd. 14.Communication by electronic mail.Prior to receiving aid pursuant to 239.33this section, a city must register an official electronic mail address with the commissioner,
         239.34which the commissioner may use as an exclusive means to communicate with the city.
         240.1EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.240.2    Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a 240.3subdivision to read:240.4    Subd. 3a.Certification.On or before June 1 of each year, the commissioner of 240.5natural resources shall certify to the commissioner of revenue the number of watercraft
         240.6launches and the number of watercraft trailer parking spaces in each county.240.7EFFECTIVE DATE.This section is effective for transition aid payable in 2016 240.8and thereafter.240.9    Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a 240.10subdivision to read:240.11    Subd. 3b.Certification.On or before June 1 of each year, the commissioner of 240.12natural resources shall certify to the commissioner of revenue the counties that complied
         240.13with the requirements of subdivision 3 the prior year and are eligible to receive
         aid 240.14under this section.240.15EFFECTIVE DATE.This section is effective for transition aid payable in 2016 240.16and thereafter.240.17    Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:240.18    Subd. 2. Exception. This section does not apply to sales made under chapter 282 or 240.19if the purchaser is represented throughout the transaction by either:240.20(1) a person licensed to practice law in this state; or240.21(2) a person licensed as a real estate broker or salesperson under chapter 82, 240.22provided that the representation does not create a dual agency, as that term is defined
         240.23in section 
         82.55, subdivision 6.240.24EFFECTIVE DATE.This section is effective for sales of tax-forfeited land 240.25occurring after the day following final enactment.240.26    Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:240.27    Subd. 2. Payment of supplemental credit.(a) The commissioner must pay 240.28supplemental credit amounts to each qualifying taxpayer by October 15, 2014.240.29(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
         240.30or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant
         within 241.1two years from the date the warrant was issued, the right to the credit shall lapse
         and the 241.2warrant shall be deposited in the general fund.241.3EFFECTIVE DATE.This section is effective the day following final enactment.241.4    Sec. 40.  REPEALER. 241.5Minnesota Statutes 2014, sections 273.111, subdivision 9a; and 281.22, are repealed.241.6EFFECTIVE DATE.This section is effective the day following final enactment.241.7ARTICLE 16241.8DEPARTMENT POLICY AND TECHNICAL PROVISIONS - MISCELLANEOUS241.9    Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:241.10    Subdivision 1. Annual report required. Every railroad company doing business 241.11in Minnesota shall annually file with the commissioner on or before March 31 a report
         241.12under oath setting forth the information prescribed by the commissioner to enable
         the 241.13commissioner to make the valuation and equalization required by sections 
         270.80 to 241.14270.87
         . The commissioner shall prescribe the content, format, and manner of the report 241.15pursuant to section 270C.30, except that a "law administered by the commissioner"
         241.16includes the property tax laws. If a report is made by electronic means, the taxpayer's
         241.17signature is defined pursuant to section 270C.304, except that a "law administered
         by the 241.18commissioner" includes the property tax laws.241.19EFFECTIVE DATE.This section is effective the day following final enactment.241.20    Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:241.21    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed 241.22and certain amount of money, which equals or exceeds $25 and which is due and payable
         241.23to a claimant agency. The term includes criminal fines imposed under section 
         609.10 or 241.24609.125
         , fines imposed for petty misdemeanors as defined in section 
         609.02, subdivision 241.254a
         , and restitution. A debt may arise under a contractual or statutory obligation, a
         court 241.26order, or other legal obligation, but need not have been reduced to judgment.241.27    A debt includes any legal obligation of a current recipient of assistance which is
         241.28based on overpayment of an assistance grant where that payment is based on a client
         241.29waiver or an administrative or judicial finding of an intentional program violation;
         241.30or where the debt is owed to a program wherein the debtor is not a client at the time
         242.1notification is provided to initiate recovery under this chapter and the debtor is
         not a 242.2current recipient of food support, transitional child care, or transitional medical
         assistance.242.3    (b) A debt does not include any legal obligation to pay a claimant agency for medical
         242.4care, including hospitalization if the income of the debtor at the time when the medical
         242.5care was rendered does not exceed the following amount:242.6    (1) for an unmarried debtor, an income of $8,800 $12,360 or less;242.7    (2) for a debtor with one dependent, an income of $11,270 $15,830 or less;242.8    (3) for a debtor with two dependents, an income of $13,330 $18,730 or less;242.9    (4) for a debtor with three dependents, an income of $15,120 $21,240 or less;242.10    (5) for a debtor with four dependents, an income of $15,950 $22,410 or less; and242.11    (6) for a debtor with five or more dependents, an income of $16,630 $23,360 or less.242.12For purposes of this paragraph, "debtor" means the individual whose income, 242.13together with the income of the individual's spouse if domiciled in the same household,
         242.14brings the individual within the income provisions of this paragraph. For purposes
         of this 242.15paragraph, a spouse domiciled in the same household shall be considered a dependent.242.16    (c) The commissioner shall adjust the income amounts in paragraph (b) by the 242.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
         242.18Code, except that in section 1(f)(3)(B) the word "1999 2013" shall be substituted for 242.19the word "1992." For 2001 2015, the commissioner shall then determine the percent 242.20change from the 12 months ending on August 31, 1999 2013, to the 12 months ending on 242.21August 31, 2000 2014, and in each subsequent year, from the 12 months ending on August 242.2231, 1999 2013, to the 12 months ending on August 31 of the year preceding the taxable 242.23year. The determination of the commissioner pursuant to this subdivision shall not
         be 242.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained
         242.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
         242.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount.242.27    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
         242.28the dollar amount of the premium authorized under section 
         256L.15, subdivision 1a.242.29EFFECTIVE DATE.The section is effective retroactively for debts incurred after 242.30December 31, 2013.242.31    Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:242.32    Subdivision 1. Disclosure to commissioner of human services. (a) On the request 242.33of the commissioner of human services, the commissioner shall disclose return information
         242.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A,
         to 242.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).243.1    (b) Data that may be disclosed are limited to data relating to the identity, 243.2whereabouts, employment, income, and property of a person owing or alleged to be owing
         243.3an obligation of child support.243.4    (c) The commissioner of human services may request data only for the purposes of 243.5carrying out the child support enforcement program and to assist in the location of
         parents 243.6who have, or appear to have, deserted their children. Data received may be used only
         243.7as set forth in section 
         256.978.243.8    (d) The commissioner shall provide the records and information necessary to 243.9administer the supplemental housing allowance to the commissioner of human services.243.10    (e) At the request of the commissioner of human services, the commissioner of 243.11revenue shall electronically match the Social Security numbers and names of participants
         243.12in the telephone assistance plan operated under sections 
         237.69 to 
         237.71, with those of 243.13property tax refund filers, and determine whether each participant's household income
         is 243.14within the eligibility standards for the telephone assistance plan.243.15    (f) The commissioner may provide records and information collected under sections
         243.16295.50
          to 
         295.59 to the commissioner of human services for purposes of the Medicaid 243.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 243.18102-234. Upon the written agreement by the United States Department of Health and
         243.19Human Services to maintain the confidentiality of the data, the commissioner may provide
         243.20records and information collected under sections 
         295.50 to 
         295.59 to the Centers for 243.21Medicare and Medicaid Services section of the United States Department of Health and
         243.22Human Services for purposes of meeting federal reporting requirements.243.23    (g) The commissioner may provide records and information to the commissioner of 243.24human services as necessary to administer the early refund of refundable tax credits.243.25    (h) The commissioner may disclose information to the commissioner of human 243.26services as necessary to verify income for welfare income verification for eligibility and 243.27premium payment under the MinnesotaCare program, under section 
         256L.05, subdivision 243.282
         , as well as the medical assistance program under section 256B.243.29    (i) The commissioner may disclose information to the commissioner of human 243.30services necessary to verify whether applicants or recipients for the Minnesota family
         243.31investment program, general assistance, food support, Minnesota supplemental aid 243.32program, and child care assistance have claimed refundable tax credits under chapter
         290 243.33and the property tax refund under chapter 290A, and the amounts of the credits.243.34    (j) The commissioner may disclose information to the commissioner of human 243.35services necessary to verify income for purposes of calculating parental contribution
         243.36amounts under section 
         252.27, subdivision 2a.244.1EFFECTIVE DATE.This section is effective the day following final enactment.244.2    Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:244.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.244.4Except as otherwise provided by law, the commissioner shall prescribe the content 244.5and, format, and manner of all returns and other forms required to be filed under a law 244.6administered by the commissioner, and may furnish them subject to charge on application.244.7EFFECTIVE DATE.This section is effective the day following final enactment.244.8    Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:244.9    Subd. 5. Prohibition against collection during appeal period of an order. No 244.10collection action can be taken on an order of assessment, or any other order imposing
         a 244.11liability, including the filing of liens under section 
         270C.63, and no late payment penalties 244.12may be imposed when a return has been filed for the tax type and period upon which
         the 244.13order is based, during the appeal period of an order. The appeal period of an order
         ends: 244.14(1) 60 days after the order has been mailed to the taxpayer notice date designated by the 244.15commissioner on the order; (2) if an administrative appeal is filed under section 
         270C.35, 244.1660 days after the notice date designated by the commissioner on the written determination 244.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter
         271, when 244.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and
         the 244.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination
         244.20of the appeal. This subdivision does not apply to a jeopardy assessment under section
         244.21270C.36
         , or a jeopardy collection under section 
         270C.36.244.22EFFECTIVE DATE.This section is effective for orders dated after September 244.2330, 2015.244.24    Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:244.25    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, 244.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last
         known 244.27address, or sent by electronic mail to the taxpayer's last known electronic mailing
         address 244.28as provided for in section 
         325L.08, is sufficient even if the taxpayer is deceased or is 244.29under a legal disability, or, in the case of a corporation, has terminated its existence,
         unless 244.30the commissioner has been provided with a new address by a party authorized to receive
         244.31notices of assessment. Notice of an assessment is sufficient if it is sent on or before the 244.32notice date designated by the commissioner on the assessment.245.1EFFECTIVE DATE.This section is effective for assessments dated after 245.2September 30, 2015.245.3    Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:245.4    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 245.5section 
         289A.60, subdivision 4, or a request for abatement of interest or additional tax 245.6charge, must be filed with the commissioner within 60 days of the notice date of the notice 245.7was mailed to the taxpayer's last known address, stating that a penalty has been imposed 245.8or additional tax charge. For purposes of this section, the term "notice date" means
         the 245.9notice date designated by the commissioner on the order or other notice that a penalty
         or 245.10additional tax charge has been imposed.245.11(b) If the commissioner issues an order denying a request for abatement of penalty,
         245.12interest, or additional tax charge, the taxpayer may file an administrative appeal
         as 245.13provided in section 
         270C.35 or appeal to Tax Court as provided in section 
         271.06.245.14(c) If the commissioner does not issue an order on the abatement request within 245.1560 days from the date the request is received, the taxpayer may appeal to Tax Court
         as 245.16provided in section 
         271.06.245.17EFFECTIVE DATE.This section is effective for orders and notices dated after 245.18September 30, 2015.245.19    Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:245.20    Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any 245.21other provision of law, the commissioner may, based on a showing of reasonable cause,
         245.22reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant 245.23or check that has lapsed under any provision of law relating to rebates or under section
         245.24290A.18, subdivision 2
         . The authority to reissue warrants or checks under this subdivision 245.25is limited to five years after the date of issuance of the original warrant or check.245.26EFFECTIVE DATE.This section is effective the day following final enactment.245.27    Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:245.28    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the 245.29date of designated by the commissioner on the order adjusting the tax or order denying a 245.30request for abatement, or, in the case of a denied refund, the notice date of designated by 245.31the commissioner on the notice of denial.246.1EFFECTIVE DATE.This section is effective for orders and notices dated after 246.2September 30, 2015.246.3    Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a 246.4subdivision to read:246.5    Subd. 11.Dismissal of administrative appeal.If a taxpayer files an administrative 246.6appeal for an order of the commissioner and also files an appeal to the Tax Court
         for 246.7that same order of the commissioner, the administrative appeal is dismissed and the
         246.8commissioner is no longer required to make a determination of appeal under subdivision
         6.246.9EFFECTIVE DATE.This section is effective for all administrative appeals filed 246.10after June 30, 2015.246.11    Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:246.12    Subdivision 1. Sufficient notice. (a) If no method of notification of a written 246.13determination or action of the commissioner is otherwise specifically provided for
         by 246.14law, notice of the determination or action sent postage prepaid by United States mail
         to 246.15the taxpayer or other person affected by the determination or action at the taxpayer's
         246.16or person's last known address, is sufficient. If the taxpayer or person being notified
         is 246.17deceased or is under a legal disability, or, in the case of a corporation being notified
         that 246.18has terminated its existence, notice to the last known address of the taxpayer, person,
         or 246.19corporation is sufficient, unless the department has been provided with a new address
         by a 246.20party authorized to receive notices from the commissioner.246.21(b) If a taxpayer or other person agrees to accept notification by electronic means,
         246.22notice of a determination or action of the commissioner sent by electronic mail to
         the 246.23taxpayer's or person's last known electronic mailing address as provided for in section
         246.24325L.08
          is sufficient.246.25(c) Notice of a determination or action of the commissioner is sufficient if it is
         sent 246.26on or before the notice date designated by the commissioner on the notice.246.27EFFECTIVE DATE.This section is effective for notices dated after September 246.2830, 2015.246.29    Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a 246.30subdivision to read:246.31    Subd. 9.Enforcement; limitations.(a) Notwithstanding any other law, the 246.32imposition of a penalty or any other action against a tax return preparer authorized
         by 247.1subdivision 6 with respect to a return may be taken by the commissioner within the
         period 247.2provided by section 289A.38 to assess tax on that return.247.3(b) Imposition of a penalty or other action against a tax return preparer authorized
         247.4by subdivision 6 other than with respect to a return must be taken by the commissioner
         247.5within five years of the violation of statute.247.6EFFECTIVE DATE.This section is effective for tax preparation services provided 247.7after the day following final enactment.247.8    Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:247.9    Subd. 5. Removal from list. The commissioner shall remove the name of a tax 247.10preparer from the list of tax preparers published under this section:247.11(1) when the commissioner determines that the name was included on the list in error;247.12(2) within 90 days three years after the preparer has demonstrated to the commissioner 247.13that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied 247.14any sentence imposed, successfully completed any probationary period imposed, and 247.15successfully completed any remedial actions required by the commissioner, the State
         247.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or247.17(3) when the commissioner has been notified that the tax preparer is deceased.247.18EFFECTIVE DATE.This section is effective the day following final enactment.247.19    Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:247.20    Subd. 4. Licensing authority; duties. All licensing authorities must require 247.21the applicant to provide the applicant's Social Security number or individual taxpayer 247.22identification number and Minnesota business identification number, as applicable, on 247.23all license applications. Upon request of the commissioner, the licensing authority
         247.24must provide the commissioner with a list of all applicants, including the name, 247.25address, business name and address, and Social Security number, or individual taxpayer 247.26identification number and business identification number, as applicable, of each applicant. 247.27The commissioner may request from a licensing authority a list of the applicants no
         more 247.28than once each calendar year.247.29EFFECTIVE DATE.This section is effective the day following final enactment.247.30    Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:247.31    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 247.3260 days after the notice of the making and filing date of an order of the commissioner of 248.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal
         upon 248.2the commissioner and file the original, with proof of such service, with the Tax Court
         248.3administrator or with the court administrator of district court acting as court administrator
         248.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order
         248.5extend the time for appealing for an additional period not exceeding 30 days. For purposes 248.6of this section, the term "notice date" means the notice date designated by the commissioner
         248.7on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within 248.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal
         to 248.9the attorney general. The attorney general shall represent the commissioner, if requested,
         248.10upon all such appeals except in cases where the attorney general has appealed in behalf
         of 248.11the state, or in other cases where the attorney general deems it against the interests
         of the 248.12state to represent the commissioner, in which event the attorney general may intervene
         or 248.13be substituted as an appellant in behalf of the state at any stage of the proceedings.248.14Upon a final determination of any other matter over which the court is granted 248.15jurisdiction under section 
         271.01, subdivision 5, the taxpayer or the taxpayer's attorney 248.16shall file a petition or notice of appeal as provided by law with the court administrator
         of 248.17district court, acting in the capacity of court administrator of the Tax Court, with
         proof of 248.18service of the petition or notice of appeal as required by law and within the time
         required 248.19by law. As used in this subdivision, "final determination" includes a notice of assessment
         248.20and equalization for the year in question received from the local assessor, an order
         of the 248.21local board of equalization, or an order of a county board of equalization.248.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition
         248.23filed with the district court administrator acting as court administrator of the Tax
         Court is 248.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
         248.25property valuation for which the assessor, a local board of equalization, a county
         board of 248.26equalization or the commissioner of revenue has issued an order, the officer issuing
         the 248.27order shall be notified of the filing of the appeal. The notice of appeal or petition
         shall be 248.28in the form prescribed by the Tax Court.248.29EFFECTIVE DATE.This section is effective for orders dated after September 248.3030, 2015.248.31    Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:248.32    Subd. 7. Rules. Except as provided in section 
         278.05, subdivision 6, the Rules 248.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the
         248.34procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply 248.35to alter the 60-day period of time to file a notice of appeal provided in subdivision
         2. The 249.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
         249.2apply until superseded.249.3EFFECTIVE DATE.This section is effective for orders dated after September 249.430, 2015.249.5    Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:249.6    Subd. 10. Personal property used for pollution control. Personal property used 249.7primarily for the abatement and control of air, water, or land pollution is exempt
         to the 249.8extent that it is so used, and real property is exempt if it is used primarily for
         abatement 249.9and control of air, water, or land pollution as part of an agricultural operation,
         as a part 249.10of a centralized treatment and recovery facility operating under a permit issued by
         the 249.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
         249.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 249.13treatment facility and for the treatment, recovery, and stabilization of metals, oils,
         249.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes,
         or as 249.15part of an electric generation system. For purposes of this subdivision, personal
         property 249.16includes ponderous machinery and equipment used in a business or production activity
         249.17that at common law is considered real property.249.18Any taxpayer requesting exemption of all or a portion of any real property or any
         249.19equipment or device, or part thereof, operated primarily for the control or abatement
         of air, 249.20water, or land pollution shall file an application with the commissioner of revenue.
         The 249.21commissioner shall develop an electronic means to notify interested parties when electric
         249.22power generation facilities have filed an application. The commissioner shall prescribe 249.23the content, format, and manner of the application pursuant to section 270C.30, except
         249.24that a "law administered by the commissioner" includes the property tax laws, and
         if an 249.25application is made by electronic means, the taxpayer's signature is defined pursuant
         to 249.26section 270C.304, except that a "law administered by the commissioner" includes the
         249.27property tax laws. The Minnesota Pollution Control Agency shall upon request of the 249.28commissioner furnish information and advice to the commissioner.249.29The information and advice furnished by the Minnesota Pollution Control 249.30Agency must include statements as to whether the equipment, device, or real property
         249.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
         249.32Control Agency, and whether the equipment, device, or real property is installed or
         249.33operated in accordance with it. On determining that property qualifies for exemption,
         249.34the commissioner shall issue an order exempting the property from taxation. The 249.35commissioner shall develop an electronic means to notify interested parties when 250.1the commissioner has issued an order exempting property from taxation under this 250.2subdivision. The equipment, device, or real property shall continue to be exempt from
         250.3taxation as long as the order issued by the commissioner remains in effect.250.4EFFECTIVE DATE.This section is effective the day following final enactment.250.5    Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:250.6    Subdivision 1. Efficiency determination and certification. An owner or operator 250.7of a new or existing electric power generation facility, excluding wind energy conversion
         250.8systems, may apply to the commissioner of revenue for a market value exclusion on
         the 250.9property as provided for in this section. This exclusion shall apply only to the market
         250.10value of the equipment of the facility, and shall not apply to the structures and
         the land 250.11upon which the facility is located. The commissioner of revenue shall prescribe the
         forms 250.12content, format, manner, and procedures for this application pursuant to section 270C.30, 250.13except that a "law administered by the commissioner" includes the property tax laws.
         If 250.14an application is made by electronic means, the taxpayer's signature is defined pursuant
         250.15to section 270C.304, except that a "law administered by the commissioner" includes
         the 250.16property tax laws. Upon receiving the application, the commissioner of revenue shall: (1) 250.17request the commissioner of commerce to make a determination of the efficiency of
         the 250.18applicant's electric power generation facility; and (2) shall develop an electronic
         means to 250.19notify interested parties when electric power generation facilities have filed an
         application. 250.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy
         250.21outputs to energy inputs, expressed as a percentage, based on the performance of the
         250.22facility's equipment during normal full load operation. The commissioner must include
         in 250.23this formula the energy used in any on-site preparation of materials necessary to
         convert 250.24the materials into the fuel used to generate electricity, such as a process to gasify
         petroleum 250.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances
         in 250.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
         250.27project under section 
         216B.2424; for these instances, the commissioner shall adjust the 250.28heating value to allow for energy consumed for evaporation of the moisture in the
         wood. 250.29The applicant shall provide the commissioner of commerce with whatever information
         the 250.30commissioner deems necessary to make the determination. Within 30 days of the receipt
         250.31of the necessary information, the commissioner of commerce shall certify the findings
         of 250.32the efficiency determination to the commissioner of revenue and to the applicant.
         The 250.33commissioner of commerce shall determine the efficiency of the facility and certify
         the 250.34findings of that determination to the commissioner of revenue every two years thereafter
         250.35from the date of the original certification.251.1EFFECTIVE DATE.This section is effective the day following final enactment.251.2    Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:251.3    Subdivision 1. Statement of exemption. (a) Except in the case of property owned 251.4by the state of Minnesota or any political subdivision thereof, and property exempt
         from 251.5taxation under section 
         272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at 251.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
         251.7on property described in section 
         272.02, subdivisions 2 to 33, must file a statement of 251.8exemption with the assessor of the assessment district in which the property is located.251.9(b) A taxpayer claiming an exemption from taxation on property described in section
         251.10272.02, subdivision 10
         , must file a statement of exemption with the commissioner of 251.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption.251.12(c) In case of sickness, absence or other disability or for good cause, the assessor
         251.13or the commissioner may extend the time for filing the statement of exemption for
         a 251.14period not to exceed 60 days.251.15(d) The commissioner of revenue shall prescribe the form and contents content, 251.16format, and manner of the statement of exemption pursuant to section 270C.30, except 251.17that a "law administered by the commissioner" includes the property tax laws.251.18(e) If a statement is made by electronic means, the taxpayer's signature is defined
         251.19pursuant to section 270C.304, except that a "law administered by the commissioner"
         251.20includes the property tax laws.251.21EFFECTIVE DATE.This section is effective the day following final enactment.251.22    Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:251.23    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax 251.24under subdivision 3 shall file a report with the commissioner of revenue annually
         on or 251.25before February 1 detailing the amount of electricity in kilowatt-hours that was produced
         251.26by the wind energy conversion system for the previous calendar year. The commissioner
         251.27shall prescribe the form content, format, and manner of the report pursuant to section 251.28270C.30, except that a "law administered by the commissioner" includes the property
         tax 251.29laws. The report must contain the information required by the commissioner to determine
         251.30the tax due to each county under this section for the current year. If an owner of
         a wind 251.31energy conversion system subject to taxation under this section fails to file the
         report 251.32by the due date, the commissioner of revenue shall determine the tax based upon the
         251.33nameplate capacity of the system multiplied by a capacity factor of 60 percent.252.1(b) If a report is made by electronic means, the taxpayer's signature is defined 252.2pursuant to section 270C.304, except that a "law administered by the commissioner"
         252.3includes the property tax laws.252.4(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 252.5of the wind energy conversion systems of the tax due to each county for the current
         year 252.6and shall certify to the county auditor of each county in which the systems are located
         the 252.7tax due from each owner for the current year.252.8EFFECTIVE DATE.This section is effective the day following final enactment.252.9    Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:252.10    Subd. 4. Reports. An owner of a solar energy generating system subject to tax 252.11under this section shall file a report with the commissioner of revenue annually on
         or 252.12before January 15 detailing the amount of electricity in megawatt-hours that was produced
         252.13by the system in the previous calendar year. The commissioner shall prescribe the
         form 252.14content, format, and manner of the report pursuant to section 270C.30. The report must 252.15contain the information required by the commissioner to determine the tax due to each
         252.16county under this section for the current year. If an owner of a solar energy generating
         252.17system subject to taxation under this section fails to file the report by the due
         date, the 252.18commissioner of revenue shall determine the tax based upon the nameplate capacity
         of 252.19the system multiplied by a capacity factor of 30 percent.252.20EFFECTIVE DATE.This section is effective the day following final enactment.252.21    Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:252.22    Subd. 2. Form; information required. The certificate of value shall require 252.23such facts and information as may be determined by the commissioner to be reasonably
         252.24necessary in the administration of the state education aid formulas. The form 252.25commissioner shall prescribe the content, format, and manner of the certificate of value 252.26shall be prescribed by the Department of Revenue which shall provide an adequate 252.27supply of forms to each county auditor pursuant to section 270C.30, except that a "law 252.28administered by the commissioner" includes the property tax laws.252.29EFFECTIVE DATE.This section is effective the day following final enactment.252.30    Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:253.1    Subd. 13. Homestead application. (a) A person who meets the homestead 253.2requirements under subdivision 1 must file a homestead application with the county
         253.3assessor to initially obtain homestead classification.253.4    (b) The format and contents of a uniform homestead application shall be prescribed 253.5by the commissioner of revenue. The commissioner shall prescribe the content, format, 253.6and manner of the homestead application required to be filed under this chapter pursuant
         253.7to section 270C.30. The application must clearly inform the taxpayer that this application 253.8must be signed by all owners who occupy the property or by the qualifying relative
         and 253.9returned to the county assessor in order for the property to receive homestead treatment.253.10    (c) Every property owner applying for homestead classification must furnish to the
         253.11county assessor the Social Security number of each occupant who is listed as an owner
         253.12of the property on the deed of record, the name and address of each owner who does
         not 253.13occupy the property, and the name and Social Security number of each owner's spouse
         who 253.14occupies the property. The application must be signed by each owner who occupies the
         253.15property and by each owner's spouse who occupies the property, or, in the case of
         property 253.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying
         relative.253.17    If a property owner occupies a homestead, the property owner's spouse may not 253.18claim another property as a homestead unless the property owner and the property owner's
         253.19spouse file with the assessor an affidavit or other proof required by the assessor
         stating that 253.20the property qualifies as a homestead under subdivision 1, paragraph (e).253.21    Owners or spouses occupying residences owned by their spouses and previously 253.22occupied with the other spouse, either of whom fail to include the other spouse's
         name 253.23and Social Security number on the homestead application or provide the affidavits
         or 253.24other proof requested, will be deemed to have elected to receive only partial homestead
         253.25treatment of their residence. The remainder of the residence will be classified as
         253.26nonhomestead residential. When an owner or spouse's name and Social Security number
         253.27appear on homestead applications for two separate residences and only one application
         is 253.28signed, the owner or spouse will be deemed to have elected to homestead the residence
         for 253.29which the application was signed.253.30    (d) If residential real estate is occupied and used for purposes of a homestead by
         a 253.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph
         (c), in 253.32order for the property to receive homestead status, a homestead application must be
         filed 253.33with the assessor. The Social Security number of each relative and spouse of a relative
         253.34occupying the property shall be required on the homestead application filed under
         this 253.35subdivision. If a different relative of the owner subsequently occupies the property,
         the 253.36owner of the property must notify the assessor within 30 days of the change in occupancy.
         254.1The Social Security number of a relative or relative's spouse occupying the property
         254.2is private data on individuals as defined by section 
         13.02, subdivision 12, but may be 254.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under
         the 254.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.254.5    (e) The homestead application shall also notify the property owners that if the 254.6property is granted homestead status for any assessment year, that same property shall
         254.7remain classified as homestead until the property is sold or transferred to another
         person, 254.8or the owners, the spouse of the owner, or the relatives no longer use the property
         as their 254.9homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must 254.10be timely filed with the county auditor as provided under section 
         272.115. Failure to 254.11notify the assessor within 30 days that the property has been sold, transferred, or
         that the 254.12owner, the spouse of the owner, or the relative is no longer occupying the property
         as a 254.13homestead, shall result in the penalty provided under this subdivision and the property
         254.14will lose its current homestead status.254.15    (f) If a homestead application has not been filed with the county by December 15,
         254.16the assessor shall classify the property as nonhomestead for the current assessment
         year 254.17for taxes payable in the following year, provided that the owner may be entitled to
         receive 254.18the homestead classification by proper application under section 
         375.192.254.19EFFECTIVE DATE.This section is effective the day following final enactment.254.20    Sec. 24. Minnesota Statutes 2014, section 273.371, subdivision 1, is amended to read:254.21    Subdivision 1. Report required. Every electric light, power, gas, water, express, 254.22stage, and transportation company and pipeline doing business in Minnesota shall 254.23annually file with the commissioner on or before March 31 a report under oath setting
         254.24forth the information prescribed by the commissioner to enable the commissioner to
         254.25make valuations, recommended valuations, and equalization required under sections
         254.26273.33
         , 
         273.35, 
         273.36, 
         273.37, and 
         273.3711. The commissioner shall prescribe the 254.27content, format, and manner of the report pursuant to section 270C.30, except that
         254.28a "law administered by the commissioner" includes the property tax laws. If all the 254.29required information is not available on March 31, the company or pipeline shall file
         the 254.30information that is available on or before March 31, and the balance of the information
         254.31as soon as it becomes available. If a report is made by electronic means, the taxpayer's 254.32signature is defined pursuant to section 270C.304, except that a "law administered
         by the 254.33commissioner" includes the property tax laws.254.34EFFECTIVE DATE.This section is effective the day following final enactment.255.1    Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:255.2287.2205 TAX-FORFEITED LAND.255.3    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
         255.4by the purchaser of tax-forfeited land whether the purchase is the result of a public
         255.5auction or private sale or a repurchase of tax-forfeited land. State agencies and
         local 255.6units of government that acquire tax-forfeited land by purchase or any other means
         are 255.7subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands
         to a 255.8governmental subdivision for an authorized public use under section 
         282.01, subdivision 255.91a
         , for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes 255.10under section 
         282.01, subdivision 1b.255.11EFFECTIVE DATE.This section is effective the day following final enactment.255.12    Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a 255.13subdivision to read:255.14    Subd. 17.Format.The commissioner shall prescribe the content, format, and 255.15manner of the returns and other documents pursuant to section 270C.30. This does not
         255.16authorize the commissioner to require individual income taxpayers to file individual
         255.17income tax returns electronically.255.18EFFECTIVE DATE.This section is effective the day following final enactment.255.19    Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:255.20    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 255.21under section 
         290.92, subdivision 2a or 3, and a person required to deduct and withhold 255.22tax under section 
         290.923, subdivision 2, must file a return with the commissioner for each 255.23quarterly period unless otherwise prescribed by the commissioner.255.24(b) A person or corporation required to make deposits under section 
         290.9201, 255.25subdivision 8
         , must file an entertainer withholding tax return with the commissioner.255.26(c) A person required to withhold an amount under section 
         290.9705, subdivision 1, 255.27must file a return.255.28(d) A partnership required to deduct and withhold tax under section 
         290.92, 255.29subdivision 4b
         , must file a return.255.30(e) An S corporation required to deduct and withhold tax under section 
         290.92, 255.31subdivision 4c
         , must also file a return.255.32(f) Returns must be filed in the form and manner, and contain the information 255.33prescribed by the commissioner The commissioner shall prescribe the content, format, 256.1and manner of the returns pursuant to section 270C.30. Every return for taxes withheld 256.2must be signed by the employer, entertainment entity, contract payor, partnership,
         or S 256.3corporation, or a designee.256.4EFFECTIVE DATE.This section is effective the day following final enactment.256.5    Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:256.6    Subdivision 1. Return required. (a) Except as provided in section 
         289A.18, 256.7subdivision 4
         , for the month in which taxes imposed by chapter 297A are payable, or for 256.8which a return is due, a return for the preceding reporting period must be filed with
         the 256.9commissioner in the form and manner the commissioner prescribes. The commissioner 256.10shall prescribe the content, format, and manner of the returns pursuant to section
         270C.30. 256.11A person making sales at retail at two or more places of business may file a consolidated
         256.12return subject to rules prescribed by the commissioner. In computing the dollar amount
         of 256.13items on the return, the amounts are rounded off to the nearest whole dollar, disregarding
         256.14amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next
         256.15highest dollar.256.16(b) Notwithstanding this subdivision, a person who is not required to hold a sales
         tax 256.17permit under chapter 297A and who makes annual purchases, for use in a trade or business,
         256.18of less than $18,500, or a person who is not required to hold a sales tax permit and
         who 256.19makes purchases for personal use, that are subject to the use tax imposed by section
         256.20297A.63
         , may file an annual use tax return on a form prescribed by the commissioner. 256.21The commissioner shall prescribe the content, format, and manner of the return pursuant
         256.22to section 270C.30. If a person who qualifies for an annual use tax reporting period is 256.23required to obtain a sales tax permit or makes use tax purchases, for use in a trade
         or 256.24business, in excess of $18,500 during the calendar year, the reporting period must
         be 256.25considered ended at the end of the month in which the permit is applied for or the
         purchase 256.26in excess of $18,500 is made and a return must be filed for the preceding reporting
         period.256.27(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the 256.28person's religious beliefs from using electronics shall be allowed to file by mail,
         without 256.29any additional fees. The filer must notify the commissioner of revenue of the intent
         to file 256.30by mail on a form prescribed by the commissioner. A return filed under this paragraph
         256.31must be postmarked no later than the day the return is due in order to be considered
         filed 256.32on a timely basis.256.33EFFECTIVE DATE.This section is effective the day following final enactment.257.1    Sec. 29. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:257.2    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the 257.3refund claim is denied in whole or in part, the taxpayer may:257.4(1) file an administrative appeal as provided in section 
         270C.35, or an appeal 257.5with the Tax Court, within 60 days after issuance the notice date of the commissioner's 257.6notice of denial; or257.7(2) file an action in the district court to recover the refund.257.8(b) An action in the district court on a denied claim for refund must be brought 257.9within 18 months of the notice date of the denial of the claim by the commissioner. For 257.10the purposes of this section, "notice date" is defined in section 270C.35, subdivision
         3.257.11(c) No action in the district court or the Tax Court shall be brought within six months
         257.12of the filing of the refund claim unless the commissioner denies the claim within
         that period.257.13(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
         257.14of the claim, the taxpayer may bring an action in the district court or the Tax Court
         at any 257.15time after the expiration of six months from the time the claim was filed.257.16(e) The commissioner and the taxpayer may agree to extend the period for bringing
         257.17an action in the district court.257.18(f) An action for refund of tax by the taxpayer must be brought in the district court
         257.19of the district in which lies the county of the taxpayer's residence or principal
         place of 257.20business. In the case of an estate or trust, the action must be brought at the principal
         place 257.21of its administration. Any action may be brought in the district court for Ramsey
         County.257.22EFFECTIVE DATE.This section is effective for claims for refund denied after 257.23September 30, 2015.257.24    Sec. 30. [290B.11] FORMS. 257.25The commissioner shall prescribe the content, format, and manner of all forms and
         257.26other documents required to be filed under this chapter pursuant to section 270C.30.257.27EFFECTIVE DATE.This section is effective the day following final enactment.257.28    Sec. 31. Minnesota Statutes 2014, section 290C.13, subdivision 3, is amended to read:257.29    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the 257.30notice date designated by the commissioner on the order or notice of the determination 257.31removing enrolled land or the notice date of designated by the commissioner on the notice 257.32denying an application to enroll land or denying part or all of an incentive payment.258.1EFFECTIVE DATE.This section is effective for orders and notices dated after 258.2September 30, 2015.258.3    Sec. 32. [293.15] FORMS. 258.4The commissioner shall prescribe the content, format, and manner of all forms and
         258.5other documents required to be filed under this chapter pursuant to section 270C.30.258.6EFFECTIVE DATE.This section is effective the day following final enactment.258.7    Sec. 33. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:258.8    Subd. 6. Form of returns.The estimated payments and annual return must contain 258.9the information and be in the form prescribed by the commissioner. The commissioner 258.10shall prescribe the content, format, and manner of the estimated payment forms and
         annual 258.11return pursuant to section 270C.30.258.12EFFECTIVE DATE.This section is effective the day following final enactment.258.13    Sec. 34. Minnesota Statutes 2014, section 296A.02, is amended by adding a 258.14subdivision to read:258.15    Subd. 5.Forms. The commissioner shall prescribe the content, format, and manner 258.16of all forms and other documents required to be filed under this chapter pursuant
         to section 258.17270C.30.258.18EFFECTIVE DATE.This section is effective the day following final enactment.258.19    Sec. 35. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:258.20    Subd. 9. Abatement of penalty. (a) The commissioner may by written order 258.21abate any penalty imposed under this section, if in the commissioner's opinion there
         is 258.22reasonable cause to do so.258.23(b) A request for abatement of penalty must be filed with the commissioner within
         258.2460 days of the notice date of the notice stating that a penalty has been imposed was mailed 258.25to the taxpayer's last known address. For purposes of this section, the term "notice date" 258.26means the notice date designated by the commissioner on the order or other notice
         that a 258.27penalty has been imposed.258.28(c) If the commissioner issues an order denying a request for abatement of penalty,
         258.29the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal
         to 258.30Tax Court as provided in section 
         271.06. If the commissioner does not issue an order on 259.1the abatement request within 60 days from the date the request is received, the taxpayer
         259.2may appeal to Tax Court as provided in section 
         271.06.259.3EFFECTIVE DATE.This section is effective for orders and notices dated after 259.4September 30, 2015.259.5    Sec. 36. Minnesota Statutes 2014, section 296A.26, is amended to read:259.6296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.259.7In lieu of an administrative appeal under section 
         270C.35, any person aggrieved by 259.8an order of the commissioner fixing a tax, penalty, or interest under this chapter
         may, within 259.960 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 259.10provided under section 
         271.06. For purposes of this section, the term "notice date" means 259.11the notice date designated by the commissioner on the order fixing a tax, penalty,
         or interest.259.12EFFECTIVE DATE.This section is effective for orders dated after September 259.1330, 2015.259.14    Sec. 37. Minnesota Statutes 2014, section 297D.02, is amended to read:259.15297D.02 ADMINISTRATION.259.16The commissioner of revenue shall administer this chapter. The commissioner shall 259.17prescribe the content, format, and manner of all forms and other documents required
         to be 259.18filed under this chapter pursuant to section 270C.30. Payments required by this chapter 259.19must be made to the commissioner on the form provided by the commissioner. Tax obligors
         259.20are not required to give their name, address, Social Security number, or other identifying
         259.21information on the form. The commissioner shall collect all taxes under this chapter.259.22EFFECTIVE DATE.This section is effective the day following final enactment.259.23    Sec. 38. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:259.24    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due 259.25and payable to the commissioner when the gambling tax return is required to be filed.
         259.26Distributors must file their monthly sales figures with the commissioner on a form
         259.27prescribed by the commissioner. Returns covering the taxes imposed under this section
         259.28must be filed with the commissioner on or before the 20th day of the month following
         the 259.29close of the previous calendar month. The commissioner may require that the returns be 259.30filed via magnetic media or electronic data transfer. The commissioner shall prescribe the 259.31content, format, and manner of returns or other documents pursuant to section 270C.30.
         260.1The proceeds, along with the revenue received from all license fees and other fees
         under 260.2sections 
         349.11 to 
         349.191, 
         349.211, and 
         349.213, must be paid to the commissioner of 260.3management and budget for deposit in the general fund.260.4(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
         260.5the distributor is imposed on the retail sales price. The retail sale of pull-tabs
         or tipboards 260.6by the organization is exempt from taxes imposed by chapter 297A and is exempt from
         all 260.7local taxes and license fees except a fee authorized under section 
         349.16, subdivision 8.260.8(c) One-half of one percent of the revenue deposited in the general fund under 260.9paragraph (a), is appropriated to the commissioner of human services for the compulsive
         260.10gambling treatment program established under section 
         245.98. One-half of one percent 260.11of the revenue deposited in the general fund under paragraph (a), is appropriated
         to 260.12the commissioner of human services for a grant to the state affiliate recognized by
         260.13the National Council on Problem Gambling to increase public awareness of problem 260.14gambling, education and training for individuals and organizations providing effective
         260.15treatment services to problem gamblers and their families, and research relating to
         260.16problem gambling. Money appropriated by this paragraph must supplement and must not
         260.17replace existing state funding for these programs.260.18EFFECTIVE DATE.This section is effective the day following final enactment.260.19    Sec. 39. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:260.20    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for 260.21use or resale in this state, or for receipt by a person or entity in this state, shall
         file with the 260.22commissioner, on a form prescribed by the commissioner, a report of gambling product
         260.23sold to any person in the state, including the established governing body of an Indian
         tribe 260.24recognized by the United States Department of the Interior. The report must be filed
         260.25monthly on or before the 20th day of the month succeeding the month in which the sale
         260.26was made. The commissioner may require that the report be submitted via magnetic 260.27media or electronic data transfer. The commissioner shall prescribe the content, format, 260.28and manner of returns or other documents pursuant to section 270C.30. The commissioner 260.29may inspect the premises, books, records, and inventory of a manufacturer without
         notice 260.30during the normal business hours of the manufacturer. A person violating this section
         is 260.31guilty of a misdemeanor.260.32EFFECTIVE DATE.This section is effective the day following final enactment.260.33    Sec. 40. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:261.1    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form 261.2the commissioner prescribes, its sales of each type of gambling product. This report
         must 261.3be filed monthly on or before the 20th day of the month succeeding the month in which
         261.4the sale was made. The commissioner may require that a distributor submit the monthly 261.5report and invoices required in this subdivision via magnetic media or electronic
         data 261.6transfer. The commissioner shall prescribe the content, format, and manner of returns or 261.7other documents pursuant to section 270C.30.261.8EFFECTIVE DATE.This section is effective the day following final enactment.261.9    Sec. 41. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:261.10    Subdivision 1. Reports. An organization must file with the commissioner, on a form 261.11prescribed by the commissioner, a report showing all gambling activity conducted by
         that 261.12organization for each month. Gambling activity includes all gross receipts, prizes,
         all 261.13gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
         261.14purpose and board-approved expenditures. The report must be filed with the commissioner
         261.15on or before the 20th day of the month following the month in which the gambling activity
         261.16takes place. The commissioner may require that the reports be filed via magnetic media or 261.17electronic data transfer. The commissioner shall prescribe the content, format, and manner 261.18of returns or other documents pursuant to section 270C.30.261.19EFFECTIVE DATE.This section is effective the day following final enactment.261.20    Sec. 42. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:261.21    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day 261.22of each calendar month, a distributor with a place of business in this state shall
         file a 261.23return with the commissioner showing the quantity of cigarettes manufactured or brought
         261.24in from outside the state or purchased during the preceding calendar month and the
         261.25quantity of cigarettes sold or otherwise disposed of in this state and outside this
         state 261.26during that month. A licensed distributor outside this state shall in like manner
         file a 261.27return showing the quantity of cigarettes shipped or transported into this state during
         the 261.28preceding calendar month. Returns must be made in the form and manner prescribed by 261.29The commissioner  shall prescribe the content, format, and manner of returns pursuant to 261.30section 270C.30, and the returns must contain any other information required by the 261.31commissioner. The return must be accompanied by a remittance for the full unpaid tax
         261.32liability shown by it. For distributors subject to the accelerated tax payment requirements
         262.1in subdivision 10, the return for the May liability is due two business days before
         June 30th 262.2of the year and the return for the June liability is due on or before August 18th
         of the year.262.3EFFECTIVE DATE.This section is effective the day following final enactment.262.4    Sec. 43. Minnesota Statutes 2014, section 297F.23, is amended to read:262.5297F.23 JUDICIAL REVIEW.262.6In lieu of an administrative appeal under section 
         270C.35, a person aggrieved by an 262.7order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within 60 262.8days from the notice date of the notice of the order, appeal to the Tax Court in the manner 262.9provided under section 
         271.06. For purposes of this section, the term "notice date" means 262.10the notice date designated by the commissioner on the order fixing a tax, penalty,
         or interest.262.11EFFECTIVE DATE.This section is effective for orders dated after September 262.1230, 2015.262.13    Sec. 44. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:262.14    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or 262.15importers. On or before the 18th day of each calendar month following the month in 262.16which a licensed manufacturer or wholesaler first sells wine and distilled spirits
         within 262.17the state, or a brewer or importer first sells or imports fermented malt beverages,
         or a 262.18wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages,
         262.19the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax
         must 262.20file a return with the commissioner, and in addition must keep records and render
         reports 262.21as required by the commissioner. Returns must be made in a form and manner prescribed 262.22by the commissioner, and  The commissioner shall prescribe the content, format, and 262.23manner of returns pursuant to section 270C.30. The returns must contain any other 262.24information required by the commissioner. Returns must be accompanied by a remittance
         262.25for the full unpaid tax liability. Returns must be filed regardless of whether a tax
         is due.262.26EFFECTIVE DATE.This section is effective the day following final enactment.262.27    Sec. 45. Minnesota Statutes 2014, section 297G.22, is amended to read:262.28297G.22 JUDICIAL REVIEW.262.29In lieu of an administrative appeal under this chapter, a person aggrieved by an order
         262.30of the commissioner fixing a tax, penalty, or interest under this chapter may, within
         60 days 262.31from the date of the notice date of the order, appeal to the Tax Court in the manner provided 263.1under section 
         271.06. For purposes of this section, the term "notice date" means the notice 263.2date designated by the commissioner on the order fixing a tax, penalty, or interest.263.3EFFECTIVE DATE.This section is effective for orders dated after September 263.430, 2015.263.5    Sec. 46. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision 263.6to read:263.7    Subd. 11.Format. The commissioner shall prescribe the content, format, and 263.8manner of returns or other documents pursuant to section 270C.30.263.9EFFECTIVE DATE.This section is effective the day following final enactment.263.10    Sec. 47. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:263.11    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in 263.12whole or in part, the taxpayer may contest the denial by:263.13(1) filing an administrative appeal with the commissioner under section 
         270C.35;263.14(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of 263.15denial; or263.16(3) filing an action in the district court to recover the refund.263.17(b) An action in the district court must be brought within 18 months following of the 263.18notice date of the notice of denial. For purposes of this section, "notice date" is defined in 263.19section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought 263.20in the district court of the district in which lies the taxpayer's principal place
         of business or 263.21in the District Court for Ramsey County. If a taxpayer files a claim for refund and
         the 263.22commissioner has not issued a denial of the claim, the taxpayer may bring an action
         in 263.23the district court or the Tax Court at any time after the expiration of six months
         from the 263.24time the claim was filed.263.25EFFECTIVE DATE.This section is effective for claims for refund denied after 263.26September 30, 2015.263.27    Sec. 48. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:263.28    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a 263.29repayment required under subdivision 1, if the commissioner, in consultation with
         263.30the commissioner of employment and economic development and appropriate officials
         263.31from the local government units in which the qualified business is located, determines
         263.32that requiring repayment of the tax is not in the best interest of the state or the
         local 264.1government units and the business ceased operating as a result of circumstances beyond
         264.2its control including, but not limited to:264.3    (1) a natural disaster;264.4    (2) unforeseen industry trends; or264.5    (3) loss of a major supplier or customer.264.6    (b)(1) The commissioner shall waive repayment required under subdivision 1a if 264.7the commissioner has waived repayment by the operating business under subdivision
         1, 264.8unless the person that received benefits without having to operate a business in the
         zone 264.9was a contributing factor in the qualified business becoming subject to repayment
         under 264.10subdivision 1;264.11    (2) the commissioner shall waive the repayment required under subdivision 1a, even
         264.12if the repayment has not been waived for the operating business if:264.13    (i) the person that received benefits without having to operate a business in the
         zone 264.14and the business that operated in the zone are not related parties as defined in section
         264.15267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007;
         and264.16    (ii) actions of the person were not a contributing factor in the qualified business
         264.17becoming subject to repayment under subdivision 1.264.18(c) Requests for waiver must be made no later than 60 days after the earlier of the
         264.19notice date of an order issued under subdivision 4, paragraph (d), or the date of
         a tax 264.20statement issued under subdivision 4, paragraph (c). For purposes of this section, the term 264.21"notice date" means the notice date designated by the commissioner on the order.264.22EFFECTIVE DATE.This section is effective for orders of the commissioner of 264.23revenue dated after September 30, 2015.