1E Relating to state government taxation

ARTICLE 1 - INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Authorizing the commissioner to use tax collection remedies authorized through participation in audits performed by the multistate tax commission; modifying the higher education institution greater internship program participation requirements; defining economic substance for purposes of disallowing tax effects; making technical corrections; modifying financial institution and resident definitions; defining financial advisor, accelerated recognition of certain installment sale gains, and refundable film production credits; modifying the Minnesota working family credit; extending the Minnesota education credit to certain preschools and increasing the income limit; modifying the research activities increase tax credit and adding a sole proprietors application and certification requirement; creating Minnesota college savings plan, veterans jobs tax, and employee with employer-provided fitness facility expenses tax credits; modifying the unitary business principle for insurance companies; modifying apportionment of net income for determination of sales factor and dividend deduction; clarifying estate tax subtraction in eminent domain situations; requiring a report of free electronic filing for individual income tax returns; establishing a veterans jobs grant program; appropriating money to the commissioner of revenue for the free electronic filing study and the veteran jobs grant program

ARTICLE 2 - PROPERTY TAX

Requiring county levies for soil and water conservation districts to separately certify amounts and extend levies as special tax district levies; modifying certain market value; extending historical society appropriations to cities and towns; adding enrollment in the federal conservation reserve program as an agricultural purpose; modifying the class 3 property tax rate; establishing a targeted agricultural land tax credit; modifying the commercial-industrial property and seasonal residential recreational property state general levy base amounts; excluding certain seasonal residential recreational tax capacity market value from tax capacity; prescribing the metropolitan council and metropolitan mosquito control commission proposed levy certification dates; making conforming changes; requiring annual levy preliminary adjustment for the area wide portion and restricting deviation; clarifying delinquent property taxes due dates and penalties; clarifying interest on sales of tax-forfeited lands and the property tax refund; modifying the property tax refund additional refund, senior citizens property tax deferral program qualifications, initial application, the Lewis and Clark regional water system project bond maximum, agricultural preserve early termination, and the Sawyer levy; requiring the commissioner of revenue to offer board of appeals and equalization in-person training; providing for optional cancellation of tax forfeiture for certain St. Louis county buildings; requiring a study and report of production based valuation of agricultural land; authorizing Tofte to own and operate senior housing units; appropriating money to the commissioner of revenue for Hennepin county for the North Branch Library EMERGE Career and Technology Center and for the Cedar Riverside Opportunity Center; repealing agricultural containment facilities, apportionment and levy of state general tax, and Lewis and Clark water project bonding for municipalities and payment allocation

ARTICLE 3 - LOCAL DEVELOPMENT

Modifying tax increment financing (TIF) restrictions on pooling five-year limit; allowing tax increment bonding interfund loans; authorizing Coon Rapids to collect TIF from district 6-1 Port Riverwalk, Richfield and the city housing and redevelopment authority to elect to extend the Cedar Avenue TIF district duration limit, and the St. Paul housing and redevelopment authority to establish TIF districts in the former Ford Motor Company plant area

ARTICLE 4 - SALES AND USE TAXES

Modifying a percentage for the June tax liability payment; imposing a tax on a percentage of the dealer cost of a modular home sale; exempting from taxation durable medical equipment accessories and supplies covered by health insurance plans, precious metal bullion sales by registered dealers, car seat sales, and nonprofit animal shelter animal sales; modifying telecommunications capital equipment sales and nonprofit group sales tax exemptions; modifying cigarette and tobacco and liquor taxes and tax payments; requiring a construction debris conversion schedule publication; clarifying lodging tax application and collection; modifying the Duluth sales and lodging taxation area applicability; authorizing Mankato upon voter approval to use certain revenues for certain capital projects and athletic facilities; modifying the Mankato expiration of taxing authority and expenditure limitation; authorizing Mankato to issue general obligation bonds upon voter approval; requiring Mankato to pass a resolution in order to extend certain taxes; extending and increasing the North Mankato sales tax and bonding authority; requiring voter approval for a Luverne local sales tax; authorizing Marshall validation of prior act

ARTICLE 5 - PROPERTY TAX AIDS AND CREDITS

Modifying county tax-base equalization aid; providing reimbursement of county and tribes for Indian child out-of-home placement under local government aid (LGA) and appropriating money; making unorganized territory eligible for LGA; increasing the number of LGA installment payments; specifying aid amounts for cities, counties, and unorganized territories; modifying land payments to the commissioner of natural resources (DNR); making Worthington eligible for a LGA distribution instead of the Lewis and Clark joint powers board; reducing certain LGA; modifying the Red River watershed management board payment in lieu of taxes; authorizing Oslo, Dundee, Jeffers, and Woodstock city aid penalty forgiveness

ARTICLE 6 - WORKFORCE HOUSING

Authorizing and providing for a workforce housing tax credit for qualifying projects and areas and specifying requirements and allowing economic development district increments to be spent on projects; applying income limits for housing finance agency (HFA) challenge program projects

ARTICLE 7 - MINERALS

Modifying occupation tax appropriation to the mining environmental and regulatory account; creating the energy efficiency and mining protection account; changing the date for payment to the iron range resources and rehabilitation board (IRRRB); requiring the IRRRB to hold certain amounts in a separate energy efficiency and mining protection account; providing an exemption to the taconite economic development fund division and distribution of proceeds for certain companies in Itasca county and requiring deposit in the Douglas J. Johnson economic protection trust fund; requiring distribution to certain additional St. Louis county unorganized territories unless held by the county for public infrastructure projects; extending the iron range school consolidation and cooperatively operated school account distributions

ARTICLE 8 - ELECTRIC GENERATION MACHINERY

Removing certain cross-reference; removing the personal property tax on personal property that is part of an electric generation system, excepting personal property of an electric generation system; providing electric generation machinery valuation; requiring the local or county assessor to list and assess electric light and power companies real property that is part of electric generation systems; providing electric generation property transition aid; repealing certain generation facility exemptions from personal property tax

ARTICLE 9 - RAILROAD RECODIFICATION

Modifying provisions applicability, definitions, annual report requirements, commissioner of revenue powers, apportionment and equalization of valuation; providing a deduction for nonoperating and exempt property; making technical changes; repealing nontaxable property and failure to file a report

ARTICLE 10 - PUBLIC FINANCE

Modifying education finance capital levies for building or land leases, town board and Hennepin county certificates of indebtedness, cities issuing capital notes for capital equipment, financing purchase of equipment, housing development authority general obligation revenue bond issue for corporate purposes, and municipal debt street reconstruction obligations and bond sale requirements

ARTICLE 11 - SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS

Modifying the sustainable forest resource management incentive purpose, definitions, eligibility requirements, applications, length of covenant, incentive payment calculation, annual payment, withdrawal procedures, penalties for removal, and determination of appeal; adding monitoring; providing for transfer of ownership and a transition provision; repealing certain definitions

ARTICLE 12 - MISCELLANEOUS

Increasing the budget reserve cash flow account amount and budget reserve reporting; increasing the tax court small claims division jurisdiction threshold amount; regulating dealer of gasoline used as a substitute for aviation gasoline under petroleum and fuel tax provisions; modifying the compressed natural gas tax rate; requiring a certain amount of Minneapolis sales and use tax money deposited in the general fund to be used to offset taxes paid by the NFL in connection with the Superbowl; providing limits on railroad condemnation powers over certain governmental property interests with regard to Hennepin county; authorizing local units of government to finance, acquire, construct, and bond for broadband equipment and allowing broadband joint powers boards; requiring border city enterprise zones tax reductions allocations; modifying the Destination Medical Center public infrastructure project to include planning, providing a restriction on city funds to support the nonprofit economic development agency, and allowing tax money to be used to pay other costs qualifying as a local match contribution; modifying the apportionment method of estate taxes and generation-skipping tax; appropriating money to the commissioners of natural resources (DNR) and revenue for administration; repealing the requirement for new or renewed tax expenditures

ARTICLE 13 - DEPARTMENT POLICY AND TECHNICAL PROVISIONS ??? INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Modifying tax filing requirements for individual, fiduciary, and corporate income taxes, employer withholding statement submission, exempt interest and exempt-interest dividends reporting, and corporate federal taxable income additions; modifying the corporate income tax and the long-term care insurance credit; authorizing the commissioner to require rental property owners to furnish a copy of each certificate of rent paid; clarifying qualified farm property treatment after a death

ARTICLE 14 - DEPARTMENT POLICY AND TECHNICAL PROVISIONS ??? SPECIAL TAXES AND SALES TAXES

Making technical and clarifying changes; modifying gross receipts omission assessments and the revenue definition for aircraft sales; defining bulk storage or bulk storage facility under fuel taxation; modifying the definitions of motor fuel and petroleum products; imposing a penalty on persons conducting prohibited gambling; requiring monthly tax returns filing for gambling entities and restricting information disclosure

ARTICLE 15 - DEPARTMENT OF REVENUE TECHNICAL AND POLICY ??? PROPERTY TAX PROVISIONS

Classifying state collected income property assessment data as non-public private; modifying air commerce, flight property, person definitions, wind energy conversion system reporting, utility company reports, petitions, and appeals, board of appeal and county board appeal provisions, validity determination, public entities conveyance, and conveyances; defining intermittent or irregularly timed flights; allowing commissioner filed reports, and board of equalization reassessment orders; making technical clarifying changes; removing water, gas, crude oil, and petroleum from the personal property tax; removing a taxable property estimated market value adjustment for lead hazard reduction projects; requiring the entry of construction and valuation data into local records; specifying local compliance; requiring local government communication by electronic mail prior to receiving local government aid (LGA); requiring certain department of natural resources (DNR) certifications; exempting tax-forfeited land sales from adverse claims to real property; allowing supplemental credit payments to lapse after a certain amount of time; repealing agricultural property tax cross-compliance with agricultural chemical and water laws and real estate tax sales and redemption county auditor to give notice

ARTICLE 16 - DEPARTMENT POLICY AND TECHNICAL PROVISIONS

Authorizing the commissioner of revenue to prescribe the content, format, and manner of returns and forms; requiring tax court appeals to be served and filed within a certain time frame; modifying revenue recapture for medical care debt; allowing the commissioner to provide information to the commissioner of human services for income verification; allowing the commissioner to reissue replacement supplemental agricultural credit warrants; clarifying administrative appeal; establishing a statute of limitation to assess an administrative penalty against a tax return preparer for an improper return; extending the time for which the name of a tax preparer may be posted by the department; allowing a licensing authority to accept an individual tax identification number; clarifying deed tax on school forest for a tax-forfeited land conveyance
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