HF 1226

1st Unofficial Engrossment - 90th Legislature (2017 - 2018)

Posted on 05/18/2017 10:26 a.m.

1.1A bill for an act 1.2relating to taxation; making policy, technical, and clarifying changes to income, 1.3corporate, estate, special, sales, property, and miscellaneous taxes and tax 1.4provisions;amending Minnesota Statutes 2016, sections 13.51, subdivision 2; 1.569.021, subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 1.6270.072, subdivisions 2, 3, by adding a subdivision; 270.12, by adding a 1.7subdivision; 270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1.81; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.35, 1.9subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445, by 1.10adding a subdivision; 270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, 1.11subdivision 1; 271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10; 272.0211, 1.12subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by adding a 1.13subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 273.061, subdivision 1.147; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, 1.15subdivision 22; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 2, 4; 1.16274.01, subdivision 1; 274.13, subdivision 1; 274.135, subdivision 3; 275.065, 1.17subdivision 1; 275.62, subdivision 2; 278.01, subdivision 1; 282.01, subdivisions 1.181a, 1d; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; 289A.09, 1.19subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, 1.20subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, 1.21subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, 1.22subdivision 7; 289A.60, subdivision 28, by adding a subdivision; 289A.63, by 1.23adding a subdivision; 290.0672, subdivision 1; 290.068, subdivision 2; 290.0922, 1.24subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.19; 290C.03; 1.25291.016, subdivisions 2, 3; 291.03, subdivisions 9, 11; 295.54, subdivision 2; 1.26295.55, subdivision 6; 296A.01, subdivisions 33, 42, by adding a subdivision; 1.27296A.02, by adding a subdivision; 296A.07, subdivision 1; 296A.22, subdivision 1.289; 296A.26; 297A.61, subdivision 10; 297A.82, subdivisions 4, 4a; 297D.02; 1.29297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 1.30297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1.311; 297G.22; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1.321, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 298.01, subdivision 1.334c; 469.319, subdivision 5; 477A.013, by adding a subdivision; 477A.19, by adding 1.34subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 2014, chapter 1.35308, article 9, section 94; Laws 2016, chapter 187, section 5; proposing coding 1.36for new law in Minnesota Statutes, chapters 273; 289A; 290B; 290C; 293; repealing 2.1Minnesota Statutes 2016, sections 281.22; 290C.02, subdivisions 5, 9; 290C.06; 2.2Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700. 2.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.4ARTICLE 1 2.5LEGISLATIVE PURPOSE AND INTENT 2.6    Section 1. new text begin LEGISLATIVE PURPOSE AND INTENT. new text end 2.7 new text begin This bill contains nonbudget policy and technical provisions that were proposed by the new text end 2.8 new text begin Department of Revenue during the 2015 and 2016 regular legislative sessions. The provisions new text end 2.9 new text begin are identical to those passed by the legislature in HF848 during the 2016 regular legislative new text end 2.10 new text begin session. The effective dates have been updated and other nonsubstantive edits have been new text end 2.11 new text begin made. The intent of this bill is to recreate, as closely as possible, the agreed-upon policy new text end 2.12 new text begin and technical provisions of 2016 HF848. new text end 2.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.14ARTICLE 2 2.15DEPARTMENT SALES SUPPRESSION PROVISIONS 2.16    Section 1. new text begin [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; new text end 2.17 new text begin DEFINITIONS. new text end 2.18 new text begin (a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and new text end 2.19 new text begin 609.5316, subdivision 3, the following terms have the meanings given. new text end 2.20 new text begin (b) "Automated sales suppression device" or "zapper" means a software program, carried new text end 2.21 new text begin on any tangible medium, or accessed through any other means, that falsifies the electronic new text end 2.22 new text begin records of electronic cash registers and other point-of-sale systems including, but not limited new text end 2.23 new text begin to, transaction data and transaction reports. new text end 2.24 new text begin (c) "Electronic cash register" means a device that keeps a register or supporting documents new text end 2.25 new text begin through the means of an electronic device or computer system designed to record transaction new text end 2.26 new text begin data for the purpose of computing, compiling, or processing retail sales transaction data in new text end 2.27 new text begin whatever manner. new text end 2.28 new text begin (d) "Phantom-ware" means hidden preinstalled or later-installed programming option new text end 2.29 new text begin embedded in the operating system of an electronic cash register or hardwired into the new text end 2.30 new text begin electronic cash register that can be used to create a virtual second electronic cash register new text end 2.31 new text begin or may eliminate or manipulate transaction records that may or may not be preserved in new text end 3.1 new text begin digital formats to represent the true or manipulated record of transactions in the electronic new text end 3.2 new text begin cash register. new text end 3.3 new text begin (e) "Transaction data" includes items purchased by a customer, the price of each item, new text end 3.4 new text begin the taxability determination for each item, a segregated tax amount for each of the taxed new text end 3.5 new text begin items, the date and time of the purchase, the name, address, and identification number of new text end 3.6 new text begin the vendor, and the receipt or invoice number of the transaction. new text end 3.7 new text begin (f) "Transaction report" means a report documenting, but not limited to, the sales, taxes new text end 3.8 new text begin collected, media totals, and discount voids at an electronic cash register that is printed on new text end 3.9 new text begin cash register tape at the end of a day or shift, or a report documenting every action at an new text end 3.10 new text begin electronic cash register that is stored electronically. new text end 3.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated in Minnesota new text end 3.12 new text begin Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after new text end 3.13 new text begin August 1, 2017. new text end 3.14    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 3.15read: 3.16     new text begin Subd. 32. new text end new text begin Sales suppression. new text end new text begin (a) A person who: new text end 3.17 new text begin (1) sells; new text end 3.18 new text begin (2) transfers; new text end 3.19 new text begin (3) develops; new text end 3.20 new text begin (4) manufactures; or new text end 3.21 new text begin (5) possesses with the intent to sell or transfer an automated sales suppression device, new text end 3.22 new text begin zapper, phantom-ware, or similar device capable of being used to commit tax fraud or new text end 3.23 new text begin suppress sales is liable for a civil penalty calculated under paragraph (b). new text end 3.24 new text begin (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total new text end 3.25 new text begin amount of all taxes and penalties due that are attributable to the use of any automated sales new text end 3.26 new text begin suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, new text end 3.27 new text begin development, or manufacture of the automated sales suppression device, zapper, new text end 3.28 new text begin phantom-ware, or similar device by the person. new text end 3.29 new text begin (c) The definitions in section 289A.14 apply to this subdivision. new text end 3.30 new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction new text end 3.31 new text begin of the commissioner, an agent of the commissioner, law enforcement agencies, or new text end 4.1 new text begin postsecondary education institutions that possess an automated sales suppression device, new text end 4.2 new text begin zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated new text end 4.3 new text begin sales suppression devices, zappers, or phantom-ware. new text end 4.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated that occur on new text end 4.5 new text begin or after August 1, 2017. new text end 4.6    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 4.7read: 4.8     new text begin Subd. 12. new text end new text begin Felony. new text end new text begin (a) A person who sells, purchases, installs, transfers, develops, new text end 4.9 new text begin manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or new text end 4.10 new text begin similar device knowing that the device or phantom-ware is capable of being used to commit new text end 4.11 new text begin tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for new text end 4.12 new text begin not more than five years or to a payment of a fine of not more than $10,000, or both. new text end 4.13 new text begin (b) An automated sales suppression device, zapper, phantom-ware, and any other device new text end 4.14 new text begin containing an automated sales suppression, zapper, or phantom-ware device or software is new text end 4.15 new text begin contraband and subject to forfeiture under section 609.5316. new text end 4.16 new text begin (c) The definitions in section 289A.14 apply to this subdivision. new text end 4.17 new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction new text end 4.18 new text begin of the commissioner, an agent of the commissioner, law enforcement agencies, or new text end 4.19 new text begin postsecondary education institutions that possess an automated sales suppression device, new text end 4.20 new text begin zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated new text end 4.21 new text begin sales suppression devices, zappers, or phantom-ware. new text end 4.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated that occur on new text end 4.23 new text begin or after August 1, 2017. new text end 4.24    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read: 4.25    Subd. 3. Weapons, telephone cloning paraphernalia, new text begin automated sales suppression new text end 4.26 new text begin devices, new text end and bullet-resistant vests. Weapons used are contraband and must be summarily 4.27forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 4.28a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 4.29of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 4.30defined in section 609.486, worn or possessed during the commission or attempted 4.31commission of a crime are contraband and must be summarily forfeited to the appropriate 4.32agency upon conviction of the owner or possessor for a controlled substance crime or for 5.1any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 5.2609.894 new text begin , and automated sales suppression devices, phantom-ware, and other devices new text end 5.3 new text begin containing an automated sales suppression or phantom-ware device or software used in new text end 5.4 new text begin violation of section 289A.63, subdivision 12, new text end are contraband and must be summarily forfeited 5.5to the appropriate agency upon a conviction. 5.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated in Minnesota new text end 5.7 new text begin Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017. new text end 5.8ARTICLE 3 5.9DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME, 5.10CORPORATE FRANCHISE, AND ESTATE TAXES 5.11    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read: 5.12    Subd. 11. Information included in income tax return. (a) The return must state: 5.13    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 5.14of the taxpayer in the same name or names and same address as the taxpayer has used in 5.15making the taxpayer's income tax return to the United States; 5.16    (2) the date or dates of birth of the taxpayer or taxpayers; 5.17    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 5.18has been issued by the United States with respect to the taxpayers; and 5.19    (4) the amount of the taxable income of the taxpayer as it appears on the federal return 5.20for the taxable year to which the Minnesota state return applies. 5.21    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 5.22of the federal income tax return that the taxpayer has filed or is about to file for the period, 5.23unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 5.24by telefiling. 5.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.26    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read: 5.27    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed. 5.28(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph 5.29(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue 5.30Code, and who reasonably expects to prepare more than ten Minnesota individual income new text begin , new text end 5.31 new text begin corporate franchise, S corporation, partnership, or fiduciary income new text end tax returns for the prior 6.1calendar year must file all Minnesota individual income new text begin , corporate franchise, S corporation, new text end 6.2 new text begin partnership, or fiduciary income new text end tax returns prepared for that calendar year by electronic 6.3means. 6.4(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 6.5that the taxpayer did not want the return filed by electronic means. 6.6(c) For each return that is not filed electronically by a tax refund or return preparer under 6.7this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is 6.8imposed upon the preparer. The fee is collected from the preparer in the same manner as 6.9income tax. The fee does not apply to returns that the commissioner requires to be filed in 6.10paper form. 6.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 6.12 new text begin 31, 2016. new text end 6.13    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read: 6.14    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from 6.15an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 6.16who would have been required to deduct and withhold a tax under section 290.92, subdivision 6.172a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 6.18without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 6.19more than one withholding exemption, or who paid wages or made payments not subject 6.20to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 6.21employee or person receiving royalty payments in excess of $600, or who has entered into 6.22a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 6.23give every employee or person receiving royalty payments in respect to the remuneration 6.24paid by the person to the employee or person receiving royalty payments during the calendar 6.25year, on or before January 31 of the succeeding year, or, if employment is terminated before 6.26the close of the calendar year, within 30 days after the date of receipt of a written request 6.27from the employee if the 30-day period ends before January 31, a written statement showing 6.28the following: 6.29    (1) name of the person; 6.30    (2) the name of the employee or payee and the employee's or payee's Social Security 6.31account number; 6.32    (3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 6.33paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 7.1subdivision 20 ; the amount of sick pay as required under section 6051(f) of the Internal 7.2Revenue Code; and the amount of royalties subject to withholding under section 290.923, 7.3subdivision 2 ; and 7.4    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a 7.5or 3, or 290.923, subdivision 2. 7.6    (b) The statement required to be furnished by paragraph (a) with respect to any 7.7remuneration must be furnished at those times, must contain the information required, and 7.8must be in the form the commissioner prescribes. 7.9    (c) The commissioner may prescribe rules providing for reasonable extensions of time, 7.10not in excess of 30 days, to employers or payers required to give the statements to their 7.11employees or payees under this subdivision. 7.12    (d) A duplicate of any statement made under this subdivision and in accordance with 7.13rules prescribed by the commissioner, along with a reconciliation in the form the 7.14commissioner prescribes of the statements for the calendar year, including a reconciliation 7.15of the quarterly returns required to be filed under subdivision 1, must be filed with the 7.16commissioner on or before February 28 new text begin January 31 new text end of the year after the payments were 7.17made. 7.18    (e) If an employer cancels the employer's Minnesota withholding account number required 7.19by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 7.20with the commissioner within 30 days of the end of the quarter in which the employer 7.21cancels its account number. 7.22    (f) The employer must submit the statements required to be sent to the commissioner in 7.23the same manner required to satisfy the federal reporting requirements of section 6011(e) 7.24of the Internal Revenue Code and the regulations issued under it. An employer must submit 7.25statements to the commissioner required by this section by electronic means if the employer 7.26is required to send more than 25 statements to the commissioner, even though the employer 7.27is not required to submit the returns federally by electronic means. For statements issued 7.28for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 7.29required under section are aggregated for purposes of determining whether the 7.30electronic submission threshold is met. new text begin The commissioner shall prescribe the content, format, new text end 7.31 new text begin and manner of the statement pursuant to section 270C.30. new text end 7.32    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 7.33(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 7.34paragraph (a), with the commissioner by electronic means. 8.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for statements required to be sent to the new text end 8.2 new text begin commissioner after December 31, 2017, except that the date change in paragraph (d) is new text end 8.3 new text begin effective for wages paid after December 31, 2016. new text end 8.4    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read: 8.5    Subd. 14. Regulated investment companies; Reporting new text begin exempt interest and new text end 8.6exempt-interest dividends. (a) A regulated investment company paying $10 or more in 8.7exempt-interest dividends to an individual who is a resident of Minnesota new text begin , or any person new text end 8.8 new text begin receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee new text end 8.9 new text begin to an individual who is a resident of Minnesota, new text end must make a return indicating the amount 8.10of the new text begin exempt interest or new text end exempt-interest dividends, the name, address, and Social Security 8.11number of the recipient, and any other information that the commissioner specifies. The 8.12return must be provided to the shareholder new text begin recipient new text end by February 15 of the year following 8.13the year of the payment. The return provided to the shareholder new text begin recipient new text end must include a 8.14clear statement, in the form prescribed by the commissioner, that the new text begin exempt interest or new text end 8.15exempt-interest dividends must be included in the computation of Minnesota taxable income. 8.16By June 1 of each year, the regulated investment company new text begin payor new text end must file a copy of the 8.17return with the commissioner. 8.18    (b) For purposes of this subdivision, the following definitions apply. 8.19    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 8.20852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 8.21dividends that are not required to be added to federal taxable income under section 290.0131, 8.22subdivision 2 , paragraph (b). 8.23    (2) "Regulated investment company" means regulated investment company as defined 8.24in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 8.25as defined in section 851(g) of the Internal Revenue Code. 8.26     new text begin (3) "Exempt interest" means income on obligations of any state other than Minnesota, new text end 8.27 new text begin or a political or governmental subdivision, municipality, or governmental agency or new text end 8.28 new text begin instrumentality of any state other than Minnesota, and exempt from federal income taxes new text end 8.29 new text begin under the Internal Revenue Code or any other federal statute. new text end 8.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports required to be filed after new text end 8.31 new text begin December 31, 2017. new text end 9.1    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 9.2read: 9.3     new text begin Subd. 2a. new text end new text begin Annual withholding returns; eligible employers. new text end new text begin (a) An employer who new text end 9.4 new text begin deducts and withholds an amount required to be withheld by section 290.92 may file an new text end 9.5 new text begin annual return and make an annual payment of the amount required to be deducted and new text end 9.6 new text begin withheld for that calendar year if the employer has received a notification under paragraph new text end 9.7 new text begin (b). The ability to elect to file an annual return continues through the year following the new text end 9.8 new text begin year where an employer is required to deduct and withhold more than $500. new text end 9.9 new text begin (b) The commissioner is authorized to determine which employers are eligible to file new text end 9.10 new text begin an annual return and to notify employers who newly qualify to file an annual return because new text end 9.11 new text begin the amount an employer is required to deduct and withhold for that calendar year is $500 new text end 9.12 new text begin or less based on the most recent period of four consecutive quarters for which the new text end 9.13 new text begin commissioner has compiled data on that employer's withholding tax for that period. At the new text end 9.14 new text begin time of notification, eligible employers may still decide to file returns and make deposits new text end 9.15 new text begin quarterly. An employer who decides to file returns and make deposits quarterly is required new text end 9.16 new text begin to make all returns and deposits required by this chapter and, notwithstanding paragraph new text end 9.17 new text begin (a), is subject to all applicable penalties for failing to do so. new text end 9.18 new text begin (c) If, at the end of any calendar month other than the last month of the calendar year, new text end 9.19 new text begin the aggregate amount of undeposited tax withheld by an employer who has elected to file new text end 9.20 new text begin an annual return exceeds $500, the employer must deposit the aggregate amount with the new text end 9.21 new text begin commissioner within 30 days of the end of the calendar month. new text end 9.22 new text begin (d) If an employer who has elected to file an annual return ceases to pay wages for which new text end 9.23 new text begin withholding is required, the employer must file a final return and deposit any undeposited new text end 9.24 new text begin tax within 30 days of the end of the calendar month following the month in which the new text end 9.25 new text begin employer ceased paying wages. new text end 9.26 new text begin (e) An employer not subject to paragraph (c) or (d) who elects to file an annual return new text end 9.27 new text begin must file the return and pay the tax not previously deposited before February 1 of the year new text end 9.28 new text begin following the year in which the tax was withheld. new text end 9.29 new text begin (f) A notification to an employer regarding eligibility to file an annual return under new text end 9.30 new text begin Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a). new text end 9.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 9.32 new text begin 31, 2016. new text end 10.1    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read: 10.2    Subd. 2. Withholding from wages, entertainer withholding, withholding from 10.3payments to out-of-state contractors, and withholding by partnerships, small business 10.4corporations, trusts. (a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end a tax 10.5required to be deducted and withheld during the quarterly period must be paid on or before 10.6the last day of the month following the close of the quarterly period, unless an earlier time 10.7for payment is provided. A tax required to be deducted and withheld from compensation 10.8of an entertainer and from a payment to an out-of-state contractor must be paid on or before 10.9the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 10.10required to be deducted and withheld by partnerships, S corporations, and trusts must be 10.11paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 10.12trusts and under section 289A.26 for S corporations. 10.13(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 10.14under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 10.15withheld under those sections with the commissioner within the time allowed to deposit the 10.16employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 10.17section 31.6302-1, as amended through December 31, 2001, without regard to the safe 10.18harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 10.19must submit a copy of their federal notice of deposit status to the commissioner upon request 10.20by the commissioner. 10.21(c) The commissioner may prescribe by rule other return periods or deposit requirements. 10.22In prescribing the reporting period, the commissioner may classify payors according to the 10.23amount of their tax liability and may adopt an appropriate reporting period for the class that 10.24the commissioner judges to be consistent with efficient tax collection. In no event will the 10.25duration of the reporting period be more than one year. 10.26(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 10.27with respect to both the tax and the amount to be deducted must be made, without interest, 10.28in the manner and at the times the commissioner prescribes. If the underpayment cannot be 10.29adjusted, the amount of the underpayment will be assessed and collected in the manner and 10.30at the times the commissioner prescribes. 10.31(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 10.32June 30, the employer must remit each required deposit for wages paid in all subsequent 10.33calendar years by electronic means. 11.1(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 11.2clause (2), who remits withholding deposits must remit all deposits by electronic means as 11.3provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 11.4year for all of the employers. 11.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 11.6 new text begin 31, 2016. new text end 11.7    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read: 11.8    Subdivision 1. Individual income, fiduciary income, mining company, corporate 11.9franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 11.10company, and corporate franchise taxes, and interest and penalties, must be paid by the 11.11taxpayer upon whom the tax is imposed, except in the following cases: 11.12(1) The tax due from a decedent for that part of the taxable year in which the decedent 11.13died during which the decedent was alive and the taxes, interest, and penalty due for the 11.14prior years must be paid by the decedent's personal representative, if any. If there is no 11.15personal representative, the taxes, interest, and penalty must be paid by the transferees, as 11.16defined in section 270C.58, subdivision 3, to the extent they receive property from the 11.17decedent; 11.18(2) The tax due from an infant or other incompetent person must be paid by the person's 11.19guardian or other person authorized or permitted by law to act for the person; 11.20(3) The tax due from the estate of a decedent must be paid by the estate's personal 11.21representative; 11.22(4) The tax due from a trust, including those within the definition of a corporation, as 11.23defined in section 290.01, subdivision 4, must be paid by a trustee; and 11.24(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 11.25trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 11.26of the business or property so far as the tax is due to the income from the business or property. 11.27(b) Entertainment taxes are the joint and several liability of the entertainer and the 11.28entertainment entity. The payor is liable to the state for the payment of the tax required to 11.29be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 11.30entertainer for the amount of the payment. 11.31(c) The tax new text begin taxes new text end imposed under section new text begin sections 289A.35 and new text end 290.0922 on partnerships 11.32is new text begin are new text end the joint and several liability of the partnership and the general partners. 12.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.2    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read: 12.3289A.35 ASSESSMENTS ON RETURNS. 12.4(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 12.5income, items of federal tax preferences, or federal credit amounts to make them conform 12.6with the provisions of chapter 290 or section 298.01. If a return has been filed, the 12.7commissioner shall enter the liability reported on the return and may make any audit or 12.8investigation that is considered necessary. 12.9 new text begin (b) Upon petition by a taxpayer, and when the commissioner determines that it is in the new text end 12.10 new text begin best interest of the state, the commissioner may allow S corporations and partnerships to new text end 12.11 new text begin receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their new text end 12.12 new text begin owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must new text end 12.13 new text begin be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b). new text end 12.14 new text begin (c) A taxpayer may petition the commissioner for the use of the method described in new text end 12.15 new text begin paragraph (b) after the taxpayer is notified that an audit has been initiated and before an new text end 12.16 new text begin order of assessment has been issued. new text end 12.17 new text begin (d) A determination of the commissioner under paragraph (b) to grant or deny the petition new text end 12.18 new text begin of a taxpayer cannot be appealed to the Tax Court or any other court. new text end 12.19(b) new text begin (e) new text end The commissioner may audit and adjust the taxpayer's computation of tax under 12.20chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 12.21shall notify the estate no later than nine months after the filing date, as provided by section 12.22289A.38, subdivision 2 , whether the return is under examination or the return has been 12.23processed as filed. 12.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.25    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read: 12.26    Subd. 28. Preparer identification number. Any Minnesota individual income tax return 12.27or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 12.2813, paragraph (f), shall bear the identification number the preparer is required to use federally 12.29under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who 12.30prepares a Minnesota individual income tax return new text begin required by section 289A.08, subdivisions new text end 12.31 new text begin 1, 2, 3, and 7; or 289A.12, subdivision 3, new text end or claim for refund and fails to include the required 12.32number on the return or claim is subject to a penalty of $50 for each failure. 13.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 13.2 new text begin 31, 2016. new text end 13.3    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read: 13.4    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 13.5the meanings given. 13.6(b) "Long-term care insurance" means a policy that: 13.7(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 13.8the 7.5 percent new text begin adjusted gross new text end income test; or meets the requirements given in section 62A.46; 13.9or provides similar coverage issued under the laws of another jurisdiction; and 13.10(2) has a lifetime long-term care benefit limit of not less than $100,000; and 13.11(3) has been offered in compliance with the inflation protection requirements of section 13.1262S.23 . 13.13(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse. 13.14(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 13.15long-term care insurance premiums that qualify as deductions under section 213 of the 13.16Internal Revenue Code; and (2) the total amount deductible for medical care under section 13.17213 of the Internal Revenue Code. 13.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable years beginning new text end 13.19 new text begin after December 31, 2012. new text end 13.20    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read: 13.21    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 13.22given. 13.23    (a) "Qualified research expenses" means (i) qualified research expenses and basic research 13.24payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 13.25not include expenses incurred for qualified research or basic research conducted outside 13.26the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 13.27(ii) contributions to a nonprofit corporation established and operated pursuant to the 13.28provisions of chapter 317A for the purpose of promoting the establishment and expansion 13.29of business in this state, provided the contributions are invested by the nonprofit corporation 13.30for the purpose of providing funds for small, technologically innovative enterprises in 13.31Minnesota during the early stages of their development. 14.1    (b) "Qualified research" means qualified research as defined in section 41(d) of the 14.2Internal Revenue Code, except that the term does not include qualified research conducted 14.3outside the state of Minnesota. 14.4    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 14.5Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end must be 14.6calculated using Minnesota sales or receipts under section 290.191 and the definitions 14.7contained in clauses new text begin paragraphs new text end (a) and (b) shall apply. 14.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 14.9    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read: 14.10    Subd. 2. Income not derived from conduct of a trade or business. The income of a 14.11taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 14.12business must be assigned in accordance with paragraphs (a) to (f): 14.13    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 14.143401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 14.15that, the work of the employee is performed within it; all other income from such sources 14.16is treated as income from sources without this state. 14.17    Severance pay shall be considered income from labor or personal or professional services. 14.18    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 14.19or entertainer, income from compensation for labor or personal services performed within 14.20this state shall be determined in the following manner: 14.21    (i) The amount of income to be assigned to Minnesota for an individual who is a 14.22nonresident salaried athletic team employee shall be determined by using a fraction in which 14.23the denominator contains the total number of days in which the individual is under a duty 14.24to perform for the employer, and the numerator is the total number of those days spent in 14.25Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 14.26at the team's facilities as part of a team imposed program, are not included in the total number 14.27of duty days. Bonuses earned as a result of play during the regular season or for participation 14.28in championship, play-off, or all-star games must be allocated under the formula. Signing 14.29bonuses are not subject to allocation under the formula if they are not conditional on playing 14.30any games for the team, are payable separately from any other compensation, and are 14.31nonrefundable; and 14.32    (ii) The amount of income to be assigned to Minnesota for an individual who is a 14.33nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 15.1athletic or entertainment performance in Minnesota shall be determined by assigning to this 15.2state all income from performances or athletic contests in this state. 15.3    (3) For purposes of this section, amounts received by a nonresident as "retirement income" 15.4as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 15.5Law 104-95, are not considered income derived from carrying on a trade or business or 15.6from wages or other compensation for work an employee performed in Minnesota, and are 15.7not taxable under this chapter. 15.8    (b) Income or gains from tangible property located in this state that is not employed in 15.9the business of the recipient of the income or gains must be assigned to this state. 15.10    (c) Income or gains from intangible personal property not employed in the business of 15.11the recipient of the income or gains must be assigned to this state if the recipient of the 15.12income or gains is a resident of this state or is a resident trust or estate. 15.13    Gain on the sale of a partnership interest is allocable to this state in the ratio of the 15.14original cost of partnership tangible property in this state to the original cost of partnership 15.15tangible property everywhere, determined at the time of the sale. If more than 50 percent 15.16of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 15.17the partnership interest is allocated to this state in accordance with the sales factor of the 15.18partnership for its first full tax period immediately preceding the tax period of the partnership 15.19during which the partnership interest was sold. 15.20Gain on the sale of an interest in a single member limited liability company that is 15.21disregarded for federal income tax purposes is allocable to this state as if the single member 15.22limited liability company did not exist and the assets of the limited liability company are 15.23personally owned by the sole member. 15.24    Gain on the sale of goodwill or income from a covenant not to compete that is connected 15.25with a business operating all or partially in Minnesota is allocated to this state to the extent 15.26that the income from the business in the year preceding the year of sale was assignable new text begin new text end 15.27 new text begin allocable new text end to Minnesota under subdivision 3. 15.28    When an employer pays an employee for a covenant not to compete, the income allocated 15.29to this state is in the ratio of the employee's service in Minnesota in the calendar year 15.30preceding leaving the employment of the employer over the total services performed by the 15.31employee for the employer in that year. 16.1    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned 16.2to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 16.32 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3). 16.4    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 16.5taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile. 16.6    (f) For the purposes of this section, working as an employee shall not be considered to 16.7be conducting a trade or business. 16.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 16.9    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read: 16.10    Subdivision 1. Partners, not partnership, subject to tax. new text begin Except as provided under new text end 16.11 new text begin section 289A.35, paragraph (b), new text end a partnership as such shall not be subject to the income tax 16.12imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 16.13carrying on business as partners shall be liable for income tax only in their separate or 16.14individual capacities. 16.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 16.16    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read: 16.17290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE. 16.18 new text begin (a) new text end The owner or managing agent of any property for which rent is paid for occupancy 16.19as a homestead must furnish a certificate of rent paid to a person who is a renter on December 16.2031, in the form prescribed by the commissioner. If the renter moves before December 31, 16.21the owner or managing agent may give the certificate to the renter at the time of moving, 16.22or mail the certificate to the forwarding address if an address has been provided by the 16.23renter. The certificate must be made available to the renter before February 1 of the year 16.24following the year in which the rent was paid. The owner or managing agent must retain a 16.25duplicate of each certificate or an equivalent record showing the same information for a 16.26period of three years. The duplicate or other record must be made available to the 16.27commissioner upon request. 16.28 new text begin (b) The commissioner may require the owner or managing agent, through a simple new text end 16.29 new text begin process, to furnish to the commissioner on or before March 1 a copy of each certificate of new text end 16.30 new text begin rent paid furnished to a renter for rent paid in the prior year, in the content, format, and new text end 16.31 new text begin manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, new text end 16.32 new text begin the commissioner, after consulting with representatives of owners or managing agents, shall new text end 17.1 new text begin develop an implementation and administration plan for the requirements of this paragraph new text end 17.2 new text begin that attempts to minimize financial burdens, administration and compliance costs, and takes new text end 17.3 new text begin into consideration existing systems of owners and managing agents. new text end 17.4 new text begin (c) new text end For the purposes of this section, "owner" includes a park owner as defined under 17.5section 327C.01, subdivision 6, and "property" includes a lot as defined under section 17.6327C.01, subdivision 3 . 17.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certificates of rent paid furnished to new text end 17.8 new text begin a renter for rent paid after December 31, 2016. new text end 17.9    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read: 17.10    Subd. 2. Additions. The following amounts, to the extent deducted in computing new text begin or new text end 17.11 new text begin otherwise excluded from new text end the federal taxable estate, must be added in computing the 17.12Minnesota taxable estate: 17.13(1) the amount of the deduction for state death taxes allowed under section 2058 of the 17.14Internal Revenue Code; 17.15(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 17.16of the Internal Revenue Code; and 17.17(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 17.18Revenue Code, made by the decedent within three years of the date of death. For purposes 17.19of this clause, the amount of the addition equals the value of the gift under section 2512 of 17.20the Internal Revenue Code and excludes any value of the gift included in the federal estate. 17.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 17.22 new text begin dying after June 30, 2013. new text end 17.23    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read: 17.24    Subd. 3. Subtraction. new text begin The following amounts, to the extent included in computing the new text end 17.25 new text begin federal taxable estate, may be subtracted in computing the Minnesota taxable estate but new text end 17.26 new text begin must not reduce the Minnesota taxable estate to less than zero: new text end 17.27 new text begin (1) the value of property subject to an election under section 291.03, subdivision 1d; new text end 17.28 new text begin and new text end 17.29 new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 9, 17.30and the value of qualified farm property under section 291.03, subdivision 10, or the result 17.31of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) new text begin items (i) new text end 18.1 new text begin to (v) new text end , whichever is less, may be subtracted in computing the Minnesota taxable estate but 18.2must not reduce the Minnesota taxable estate to less than zero: 18.3(1) new text begin (i) new text end $1,200,000 for estates of decedents dying in 2014; 18.4(2) new text begin (ii) new text end $1,400,000 for estates of decedents dying in 2015; 18.5(3) new text begin (iii) new text end $1,600,000 for estates of decedents dying in 2016; 18.6(4) new text begin (iv) new text end $1,800,000 for estates of decedents dying in 2017; and 18.7(5) new text begin (v) new text end $2,000,000 for estates of decedents dying in 2018 and thereafter. 18.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 18.9 new text begin dying after June 30, 2011. new text end 18.10    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read: 18.11    Subd. 9. Qualified small business property. Property satisfying all of the following 18.12requirements is qualified small business property: 18.13(1) The value of the property was included in the federal adjusted taxable estate. 18.14(2) The property consists of the assets of a trade or business or shares of stock or other 18.15ownership interests in a corporation or other entity engaged in a trade or business. Shares 18.16of stock in a corporation or an ownership interest in another type of entity do not qualify 18.17under this subdivision if the shares or ownership interests are traded on a public stock 18.18exchange at any time during the three-year period ending on the decedent's date of death. 18.19For purposes of this subdivision, an ownership interest includes the interest the decedent is 18.20deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code. 18.21(3) During the taxable year that ended before the decedent's death, the trade or business 18.22must not have been a passive activity within the meaning of section 469(c) of the Internal 18.23Revenue Code, and the decedent or the decedent's spouse must have materially participated 18.24in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 18.25excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 18.26by United States Treasury Department regulation that substitutes material participation in 18.27prior taxable years for material participation in the taxable year that ended before the 18.28decedent's death. 18.29(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 18.30taxable year that ended before the date of the death of the decedent. 18.31(5) The property does not consist of new text begin include: new text end 19.1 new text begin (i) new text end cash, new text begin ; new text end 19.2 new text begin (ii) new text end cash equivalents, new text begin ; new text end 19.3 new text begin (iii) new text end publicly traded securities, new text begin ; new text end or 19.4 new text begin (iv) any new text end assets not used in the operation of the trade or business. 19.5 new text begin (6) new text end For property consisting of shares of stock or other ownership interests in an entity, 19.6the value of cash, cash equivalents, publicly traded securities, or assets not used in the 19.7operation of the trade or business held by the corporation or other entity new text begin items described in new text end 19.8 new text begin clause (5) new text end must be deducted from the value of the property qualifying under this subdivision 19.9in proportion to the decedent's share of ownership of the entity on the date of death new text begin excluded new text end 19.10 new text begin in the valuation of the decedent's interest in the entity new text end . 19.11(6) new text begin (7) new text end The decedent continuously owned the property, including property the decedent 19.12is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 19.13the three-year period ending on the date of death of the decedent. In the case of a sole 19.14proprietor, if the property replaced similar property within the three-year period, the 19.15replacement property will be treated as having been owned for the three-year period ending 19.16on the date of death of the decedent. 19.17(7) new text begin (8) new text end For three years following the date of death of the decedent, the trade or business 19.18is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 19.19and a family member materially participates in the operation of the trade or business within 19.20the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 19.21of the Internal Revenue Code and any other provision provided by United States Treasury 19.22Department regulation that substitutes material participation in prior taxable years for 19.23material participation in the three years following the date of death of the decedent. 19.24(8) new text begin (9) new text end The estate and the qualified heir elect to treat the property as qualified small 19.25business property and agree, in the form prescribed by the commissioner, to pay the recapture 19.26tax under subdivision 11, if applicable. 19.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 19.28 new text begin dying after June 30, 2011. new text end 19.29    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read: 19.30    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before 19.31the death of the qualified heir, the qualified heir disposes of any interest in the qualified 19.32property, other than by a disposition to a family member, or a family member ceases to 20.1satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 20.2tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 20.3qualified small business property excluded under subdivision 9 with similar property, then 20.4the qualified heir will not be treated as having disposed of an interest in the qualified property. 20.5(b) The amount of the additional tax equals the amount of the exclusion claimed by the 20.6estate under subdivision 8, paragraph (d), multiplied by 16 percent. 20.7(c) The additional tax under this subdivision is due on the day which is six months after 20.8the date of the disposition or cessation in paragraph (a). 20.9 new text begin (d) This subdivision shall not apply as a result of any of the following: new text end 20.10 new text begin (1) a portion of qualified farm property consisting of less than one-fifth of the acreage new text end 20.11 new text begin of the property is reclassified as class 2b property under section 273.13, subdivision 23, and new text end 20.12 new text begin the qualified heir has not substantially altered the reclassified property during the three-year new text end 20.13 new text begin holding period; or new text end 20.14 new text begin (2) a portion of qualified farm property classified as 2a property at the death of the new text end 20.15 new text begin decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, new text end 20.16 new text begin garage, and immediately surrounding one acre of land is reclassified as 4bb property during new text end 20.17 new text begin the three-year holding period, and the qualified heir has not substantially altered the property. new text end 20.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 20.19 new text begin dying after June 30, 2011. new text end 20.20    Sec. 19. new text begin REPEALER. new text end 20.21 new text begin (a) new text end new text begin Minnesota Rules, part 8092.1400, new text end new text begin is repealed. new text end 20.22 new text begin (b) new text end new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed. new text end 20.23 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end 20.24 new text begin December 31, 2016, except that notifications from the Department of Revenue to employers new text end 20.25 new text begin regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain new text end 20.26 new text begin in force. Paragraph (b) is effective the day following final enactment. new text end 20.27ARTICLE 4 20.28DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL TAXES 20.29AND SALES AND USE TAXES 20.30    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read: 21.1    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 21.2apportionment, before the addition of the minimum fire state aid allocation amount under 21.3subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 21.4the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 21.5commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 21.6be reduced by the amount required to pay the state auditor's costs and expenses of the audits 21.7or exams of the firefighters relief associations. 21.8The total amount for apportionment in respect to fire state aid must not be less than two 21.9percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 21.10Premium Report after subtracting the following amounts: 21.11(1) the amount required to pay the state auditor's costs and expenses of the audits or 21.12exams of the firefighters relief associations; and 21.13(2) one percent of the premiums reported by town and farmers' new text begin township new text end mutual insurance 21.14companies and mutual property and casualty companies with total assets of $5,000,000 or 21.15less. 21.16(b) The total amount for apportionment as police state aid is equal to 104 percent of the 21.17amount of premium taxes paid to the state on the premiums reported to the commissioner 21.18by insurers on the Minnesota Aid to Police Premium Report. The total amount for 21.19apportionment in respect to the police state aid program must not be less than two percent 21.20of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 21.21to Police Premium Report. 21.22(c) The commissioner shall calculate the percentage of increase or decrease reflected in 21.23the apportionment over or under the previous year's available state aid using the same 21.24premiums as a basis for comparison. 21.25(d) In addition to the amount for apportionment of police state aid under paragraph (b), 21.26each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 21.27this increase is annually appropriated from the general fund. 21.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 21.29    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read: 21.30    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 21.316-1/2 years after the due date of the return or the date the return was filed, whichever is 21.32later, if: 22.1(1) the taxpayer omits from gross income an amount properly includable in it that is in 22.2excess of 25 percent of the amount of gross income stated in the return; 22.3(2) the taxpayer omits from a sales, use, or withholding tax return new text begin , or a return for a tax new text end 22.4 new text begin imposed under section 295.52, new text end an amount of taxes in excess of 25 percent of the taxes 22.5reported in the return; or 22.6(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 22.7estate reported in the return. 22.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.9    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read: 22.10    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this 22.11section: 22.12(1) corporations exempt from tax under section 290.05; 22.13(2) real estate investment trusts; 22.14(3) regulated investment companies or a fund thereof; and 22.15(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 22.16Code; 22.17(5) town and farmers' new text begin township new text end mutual insurance companies; 22.18(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 22.19to persons age 55 and over and are classified as homesteads under section 273.124, 22.20subdivision 3 ; and 22.21(7) a qualified business as defined under section 469.310, subdivision 11, if for the 22.22taxable year all of its property is located in a job opportunity building zone designated under 22.23section 469.314 and all of its payroll is a job opportunity building zone payroll under section 22.24469.310 . 22.25Entities not specifically exempted by this subdivision are subject to tax under this section, 22.26notwithstanding section 290.05. 22.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.28    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read: 22.29    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total 22.30amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 23.1subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 23.2distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 23.3the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 23.4295.52 , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 23.5under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 23.6refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 23.7the annual return as provided under section 295.55, subdivision 5 new text begin prescribed by the new text end 23.8 new text begin commissioner, on or before March 15 of the year following the calendar year the legend new text end 23.9 new text begin drugs were delivered outside Minnesota new text end . The refund must be claimed within 18 months 23.10from the date the drugs were delivered outside of Minnesota new text begin shall not be allowed if the new text end 23.11 new text begin initial claim for refund is filed more than one year after the original due date of the return new text end . 23.12Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 23.13claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 23.14date of the return if a return is due or the date of the actual claim for refund, whichever is 23.15later. 23.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for qualifying legend drugs delivered new text end 23.17 new text begin outside Minnesota after December 31, 2017. new text end 23.18    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 23.19read: 23.20     new text begin Subd. 9a. new text end new text begin Bulk storage or bulk storage facility. new text end new text begin "Bulk storage" or "bulk storage facility" new text end 23.21 new text begin means a single property, or contiguous or adjacent properties used for a common purpose new text end 23.22 new text begin and owned or operated by the same person, on or in which are located one or more stationary new text end 23.23 new text begin tanks that are used singularly or in combination for the storage or containment of more than new text end 23.24 new text begin 1,100 gallons of petroleum. new text end 23.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.26    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read: 23.27    Subd. 33. Motor fuel. "Motor fuel" means a liquid new text begin or gaseous form of fuel new text end , regardless 23.28of its composition or properties, used to propel a motor vehicle. 23.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.30    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read: 23.31    Subd. 42. Petroleum products. "Petroleum products" means all of the products defined 23.32in subdivisions 2, 7, 8, 8a, new text begin 8b, new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35. 24.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.2    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read: 24.3    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 24.4blended with ethanol, and agricultural alcohol gasoline used in producing and generating 24.5power for propelling motor vehicles used on the public highways of this state. The tax is 24.6imposed on the first licensed distributor who received the product in Minnesota. For purposes 24.7of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 20, 23, 24, 24.825, 32, and 34 . The tax is payable at the time and in the form and manner prescribed by the 24.9commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 24.10exceptions and reductions specified in section 296A.17. 24.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.12    Sec. 9. Minnesota Statutes 2016, section 297A.61, subdivision 10, is amended to read: 24.13    Subd. 10. Tangible personal property. (a) "Tangible personal property" means personal 24.14property that can be seen, weighed, measured, felt, or touched, or that is in any other manner 24.15perceptible to the senses. "Tangible personal property" includes, but is not limited to, 24.16electricity, water, gas, steam, and prewritten computer software. 24.17    (b) Tangible personal property does not include: 24.18    (1) large ponderous machinery and equipment used in a business or production activity 24.19which at common law would be considered to be real property; 24.20    (2) new text begin (1) new text end property which is subject to an ad valorem property tax; 24.21    (3) new text begin (2) new text end property described in section 272.02, subdivision 9, clauses (a) to (d); 24.22    (4) new text begin (3) new text end property described in section 272.03, subdivision 2, clauses (3) and (5); and 24.23(5) new text begin (4) new text end specified digital products, or other digital products, transferred electronically. 24.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.25    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read: 24.26    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed 24.27in this chapter to the extent provided. 24.28(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 24.29or partnership is exempt if the transfer constitutes a transfer within the meaning of section 24.30351 or 721 of the Internal Revenue Code. 25.1(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 25.2an aircraft for which a commercial use permit has been issued pursuant to section 360.654 25.3is exempt, if the aircraft is resold while the permit is in effect. 25.4(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 25.5companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 25.6subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 25.7maintenance of such air flight equipment, and flight simulators, but does not include airplanes new text begin new text end 25.8 new text begin aircraft new text end with a gross new text begin maximum takeoff new text end weight of less than 30,000 pounds that are used on 25.9intermittent or irregularly timed flights. 25.10(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 25.11section 360.511 and approved by the Federal Aviation Administration, and which the seller 25.12delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 25.13transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 25.14a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 25.15within Minnesota, except in the course of interstate commerce or isolated and occasional 25.16use, and will be registered in another state or country upon its removal from Minnesota. 25.17This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 25.18and uses the aircraft in the state exclusively for training purposes for a period not to exceed 25.19ten days prior to removing the aircraft from this state. 25.20(f) The sale or purchase of the following items that relate to aircraft operated under 25.21Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 25.22equipment and parts necessary for repair and maintenance of aircraft; and equipment and 25.23parts to upgrade and improve aircraft. 25.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 25.25 new text begin December 31, 2017. new text end 25.26    Sec. 11. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read: 25.27    Subd. 4a. Deposit in state airports fund. Tax revenue new text begin , including interest and penalties, new text end 25.28collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 25.29in the state airports fund established in section 360.017. new text begin For purposes of this subdivision, new text end 25.30 new text begin "revenue" does not include the revenue, including interest and penalties, generated by the new text end 25.31 new text begin sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as new text end 25.32 new text begin provided under article XI, section 15, of the Minnesota Constitution. new text end 25.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 26.1    Sec. 12. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read: 26.2    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions 26.3imposed by this chapter, a person, organization, or business entity possessing or selling a 26.4pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 26.5this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 26.6pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 26.7be assessed as if it were a full deal. 26.8(b) In addition to penalties and criminal sanctions imposed by this chapter, a person new text begin (1) new text end 26.9not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 26.10or paddlewheel games new text begin , or (2) who conducts gambling prohibited under sections 609.75 to new text end 26.11 new text begin 609.763, other than activities subject to tax under section 297E.03, new text end is liable for a tax of six 26.12percent of the gross receipts from that activity. 26.13(c) The tax must new text begin may new text end be assessed by the commissioner. An assessment must be considered 26.14a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 26.15commissioner shall assess the tax based on personal knowledge or information available to 26.16the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 26.17address, or serve in person, a written notice of the amount of tax, demand its immediate 26.18payment, and, if payment is not immediately made, collect the tax by any method described 26.19in chapter 270C, except that the commissioner need not await the expiration of the times 26.20specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 26.21and correctly determined and assessed. The burden is upon the taxpayer to show its 26.22incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 26.23that is exempt from taxation under subdivision 2. 26.24 new text begin (d) A person, organization, or business entity conducting gambling activity under this new text end 26.25 new text begin subdivision must file monthly tax returns with the commissioner, in the form required by new text end 26.26 new text begin the commissioner. The returns must be filed on or before the 20th day of the month following new text end 26.27 new text begin the month in which the gambling activity occurred. The tax imposed by this section is due new text end 26.28 new text begin and payable at the time when the returns are required to be filed. new text end 26.29 new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public new text end 26.30 new text begin employee may reveal facts contained in a tax return filed with the commissioner of revenue new text end 26.31 new text begin as required by this subdivision, nor can any information contained in the report or return new text end 26.32 new text begin be used against the tax obligor in any criminal proceeding, unless independently obtained, new text end 26.33 new text begin except in connection with a proceeding involving taxes due under this section, or as provided new text end 26.34 new text begin in section 270C.055, subdivision 1. However, this paragraph does not prohibit the new text end 27.1 new text begin commissioner from publishing statistics that do not disclose the identity of tax obligors or new text end 27.2 new text begin the contents of particular returns or reports. Any person violating this paragraph is guilty new text end 27.3 new text begin of a gross misdemeanor. new text end 27.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games played or purchased after June new text end 27.5 new text begin 30, 2017. new text end 27.6    Sec. 13. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read: 27.7    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal 27.8solid waste or upon the volume of nonmixed municipal solid waste for waste management 27.9services to manage the following materials: 27.10(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 27.11of Minnesota; 27.12(2) recyclable materials that are separated for recycling by the generator, collected 27.13separately from other waste, and recycled, to the extent the price of the service for handling 27.14recyclable material is separately itemized new text begin on a bill to the generator new text end ; 27.15(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 27.16generator, collected separately from other waste, delivered to a waste facility for the purpose 27.17of recycling, and recycled; 27.18(4) industrial waste, when it is transported to a facility owned and operated by the same 27.19person that generated it; 27.20(5) mixed municipal solid waste from a recycling facility that separates or processes 27.21recyclable materials and reduces the volume of the waste by at least 85 percent, provided 27.22that the exempted waste is managed separately from other waste; 27.23(6) recyclable materials that are separated from mixed municipal solid waste by the 27.24generator, collected and delivered to a waste facility that recycles at least 85 percent of its 27.25waste, and are collected with mixed municipal solid waste that is segregated in leakproof 27.26bags, provided that the mixed municipal solid waste does not exceed five percent of the 27.27total weight of the materials delivered to the facility and is ultimately delivered to a waste 27.28facility identified as a preferred waste management facility in county solid waste plans 27.29under section 115A.46; 27.30(7) source-separated compostable waste new text begin materials new text end , if the waste is new text begin materials are new text end delivered 27.31to a facility exempted as described in this clause. To initially qualify for an exemption, a 27.32facility must apply for an exemption in its application for a new or amended solid waste 28.1permit to the Pollution Control Agency. The first time a facility applies to the agency it 28.2must certify in its application that it will comply with the criteria in items (i) to (v) and the 28.3commissioner of the agency shall so certify to the commissioner of revenue who must grant 28.4the exemption. The facility must annually apply to the agency for certification to renew its 28.5exemption for the following year. The application must be filed according to the procedures 28.6of, and contain the information required by, the agency. The commissioner of revenue shall 28.7grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 28.8to the commissioner of revenue that based on an evaluation of the composition of incoming 28.9waste and residuals and the quality and use of the product: 28.10(i) generators separate materials at the source; 28.11(ii) the separation is performed in a manner appropriate to the technology specific to the 28.12facility that: 28.13(A) maximizes the quality of the product; 28.14(B) minimizes the toxicity and quantity of residuals new text begin rejects new text end ; and 28.15(C) provides an opportunity for significant improvement in the environmental efficiency 28.16of the operation; 28.17(iii) the operator of the facility educates generators, in coordination with each county 28.18using the facility, about separating the waste to maximize the quality of the waste stream 28.19for technology specific to the facility; 28.20(iv) process residuals new text begin rejects new text end do not exceed 15 percent of the weight of the total material 28.21delivered to the facility; and 28.22(v) the final product is accepted for use; 28.23(8) waste and waste by-products for which the tax has been paid; and 28.24(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 28.25Control Agency. 28.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 28.27    Sec. 14. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read: 28.28    Subd. 2. Town and farmers' new text begin Township new text end mutual insurance. A tax is imposed on town 28.29and farmers' new text begin township new text end mutual insurance companies. The rate of tax is equal to one percent 28.30of gross premiums less return premiums on all direct business received by the insurer or 28.31agents of the insurer in Minnesota, in cash or otherwise, during the year. 29.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.2    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read: 29.3    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a 29.4surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 29.5premiums, less return premiums, on all direct business received by any licensed foreign or 29.6domestic fire insurance company on property in a city of the first class, or by its agents for 29.7it, in cash or otherwise. 29.8(b) By July 31 and December 31 of each year, the commissioner of management and 29.9budget shall pay to each city of the first class a warrant for an amount equal to the total 29.10amount of the surcharge on the premiums collected within that city since the previous 29.11payment. 29.12(c) The treasurer of the city shall place the money received under this subdivision in a 29.13special account or fund to defray all or a portion of the employer contribution requirement 29.14of public employees police and fire plan coverage for city firefighters. 29.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.16    Sec. 16. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read: 29.17    Subd. 3. Appropriation. The amount necessary to make the payments required under 29.18this section is appropriated to the commissioner of management and budget from the general 29.19fund. 29.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.21    Sec. 17. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read: 29.22    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining 29.23taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7 29.24and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income. 29.25(b) The amount of net operating loss incurred in a taxable year beginning before January 29.261, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 29.27the amount of net operating loss carryover determined in the calculation of the hypothetical 29.28corporate franchise tax under Minnesota Statutes 1988, sections and . 29.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.1ARTICLE 5 30.2DEPARTMENT OF REVENUE TECHNICAL AND POLICY; PROPERTY TAX 30.3PROVISIONS 30.4    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read: 30.5    Subd. 2. Income property assessment data. The following data collected by political 30.6subdivisions new text begin and the state new text end from individuals or business entities concerning income properties 30.7are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12: 30.8(a) detailed income and expense figures; 30.9(b) average vacancy factors; 30.10(c) verified net rentable areas or net usable areas, whichever is appropriate; 30.11(d) anticipated income and expenses; 30.12(e) projected vacancy factors; and 30.13(f) lease information. 30.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.15    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read: 30.16    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft of 30.17persons or property for hire in interstate, intrastate, or international transportation on regularly 30.18scheduled flights or on intermittent or irregularly timed flights by airline companies new text begin and new text end 30.19 new text begin includes transportation by any airline company making three or more flights in or out of new text end 30.20 new text begin Minnesota, or within Minnesota, during a calendar year new text end . 30.21(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 30.22flight, a flight arranged at the convenience of an airline and the person contracting for the 30.23transportation, or a charter flight. It includes any airline company making three or more 30.24flights in or out of Minnesota during a calendar year. 30.25(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 30.26owned and used for private air flight purposes if the person furnishing the transportation 30.27does not hold out to be engaged regularly in transportation for hire. 30.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 31.1    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read: 31.2    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used 31.3in connection therewith, including spare flight equipment. Flight property also includes 31.4computers and computer software used in operating, controlling, or regulating aircraft and 31.5flight equipment. new text begin Flight property does not include aircraft with a maximum takeoff weight new text end 31.6 new text begin of less than 30,000 pounds. new text end 31.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 31.8    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read: 31.9    Subd. 8. Person. "Person" means any new text begin an new text end individual, corporation, firm, copartnership, 31.10company, or association, and includes any guardian, trustee, executor, administrator, receiver, 31.11conservator, or any person acting in any fiduciary capacity therefor new text begin trust, estate, fiduciary, new text end 31.12 new text begin partnership, company, corporation, limited liability company, association, governmental new text end 31.13 new text begin unit or agency, public or private organization of any kind, or other legal entity new text end . 31.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 31.15    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 31.16read: 31.17     new text begin Subd. 10. new text end new text begin Intermittent or irregularly timed flights. new text end new text begin "Intermittently or irregularly timed new text end 31.18 new text begin flights" means any flight in which the departure time, departure location, and arrival location new text end 31.19 new text begin are specifically negotiated with the customer or the customer's representative, including but new text end 31.20 new text begin not limited to charter flights. new text end 31.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 31.22    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read: 31.23    Subd. 2. Assessment of flight property. Flight property that is owned by, or is leased, 31.24loaned, or otherwise made available to an airline company operating in Minnesota shall be 31.25assessed and appraised annually by the commissioner with reference to its value on January 31.262 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 31.27with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 31.28flights shall be excluded from the provisions of sections to . 31.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 32.1    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read: 32.2    Subd. 3. Report by airline company. new text begin (a) new text end Each year, on or before July 1, every airline 32.3company engaged in air commerce in this state shall file with the commissioner a report 32.4under oath setting forth specifically the information prescribed by the commissioner to 32.5enable the commissioner to make the assessment required in sections 270.071 to 270.079, 32.6unless the commissioner determines that the airline company or person should be excluded 32.7from new text begin is exempt from new text end filing because its activities do not constitute air commerce as defined 32.8herein. 32.9     new text begin (b) The commissioner shall prescribe the content, format, and manner of the report new text end 32.10 new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" includes new text end 32.11 new text begin the property tax laws. If a report is made by electronic means, the taxpayer's signature is new text end 32.12 new text begin defined pursuant to section 270C.304, except that a "law administered by the commissioner" new text end 32.13 new text begin includes the property tax laws. new text end 32.14 new text begin EFFECTIVE DATE. new text end new text begin The amendment to paragraph (a) is effective for reports filed in new text end 32.15 new text begin 2018 and thereafter. The amendment adding paragraph (b) is effective the day following new text end 32.16 new text begin final enactment. new text end 32.17    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 32.18read: 32.19     new text begin Subd. 3a. new text end new text begin Commissioner filed reports. new text end new text begin If an airline company fails to file a report required new text end 32.20 new text begin by subdivision 3, the commissioner may, from information in the commissioner's possession new text end 32.21 new text begin or obtainable by the commissioner, make and file a report for the airline company, or may new text end 32.22 new text begin issue a notice of net tax capacity and tax under section 270.075, subdivision 2. new text end 32.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 32.24    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 32.25read: 32.26     new text begin Subd. 6. new text end new text begin Reassessment orders. new text end new text begin If the State Board of Equalization determines that a new text end 32.27 new text begin considerable amount of property has been undervalued or overvalued compared to like new text end 32.28 new text begin property such that the assessment is grossly unfair or inequitable, the State Board of new text end 32.29 new text begin Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders new text end 32.30 new text begin to the county assessor to reassess all parcels or an identified set of parcels in a county. new text end 32.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 33.1    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read: 33.2    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 33.3commissioner a copy of the abstract that will be acted upon by the local and county boards 33.4of review. The abstract must list the real and personal property in the county itemized by 33.5assessment districts. The assessor of each county in the state shall file with the commissioner, 33.6within ten working days following final action of the local board of review or equalization 33.7and within five days following final action of the county board of equalization, any changes 33.8made by the local or county board. The information must be filed in the manner prescribed 33.9by the commissioner. It must be accompanied by a printed or typewritten copy of the 33.10proceedings of the appropriate board. 33.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for local and county boards of appeal new text end 33.12 new text begin and equalization meetings held in 2017 and thereafter. new text end 33.13    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read: 33.14    Subd. 9. Personal property; exceptions. Except for the taxable personal property 33.15enumerated below, all personal property and the property described in section 272.03, 33.16subdivision 1 , paragraphs (c) and (d), shall be exempt. 33.17The following personal property shall be taxable: 33.18(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or 33.19distribution system or new text begin ; (2) new text end a pipeline system transporting or distributing water, gas, crude 33.20oil, or petroleum products new text begin ; new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot 33.21or chilled water for heating or cooling buildings and structures; 33.22(b) railroad docks and wharves which are part of the operating property of a railroad 33.23company as defined in section 270.80; 33.24(c) personal property defined in section 272.03, subdivision 2, clause (3); 33.25(d) leasehold or other personal property interests which are taxed pursuant to section 33.26272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 33.27providing the property is taxable as if the lessee or user were the fee owner; 33.28(e) manufactured homes and sectional structures, including storage sheds, decks, and 33.29similar removable improvements constructed on the site of a manufactured home, sectional 33.30structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 33.31(f); and 33.32(f) flight property as defined in section 270.071. 34.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 34.2    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 34.3    Subd. 2. Definitions. (a) For the purposes of this section, the term: 34.4(1) "wind energy conversion system" has the meaning given in section 216C.06, 34.5subdivision 19, and also includes a substation that is used and owned by one or more wind 34.6energy conversion facilities; 34.7(2) "large scale wind energy conversion system" means a wind energy conversion system 34.8of more than 12 megawatts, as measured by the nameplate capacity of the system or as 34.9combined with other systems as provided in paragraph (b); 34.10(3) "medium scale wind energy conversion system" means a wind energy conversion 34.11system of over two and not more than 12 megawatts, as measured by the nameplate capacity 34.12of the system or as combined with other systems as provided in paragraph (b); and 34.13(4) "small scale wind energy conversion system" means a wind energy conversion system 34.14of two megawatts and under, as measured by the nameplate capacity of the system or as 34.15combined with other systems as provided in paragraph (b). 34.16(b) For systems installed and contracted for after January 1, 2002, the total size of a 34.17wind energy conversion system under this subdivision shall be determined according to this 34.18paragraph. Unless the systems are interconnected with different distribution systems, the 34.19nameplate capacity of one wind energy conversion system shall be combined with the 34.20nameplate capacity of any other wind energy conversion system that is: 34.21(1) located within five miles of the wind energy conversion system; 34.22(2) constructed within the same calendar year new text begin 12-month period new text end as the wind energy 34.23conversion system; and 34.24(3) under common ownership. 34.25In the case of a dispute, the commissioner of commerce shall determine the total size of 34.26the system, and shall draw all reasonable inferences in favor of combining the systems. 34.27(c) In making a determination under paragraph (b), the commissioner of commerce may 34.28determine that two wind energy conversion systems are under common ownership when 34.29the underlying ownership structure contains similar persons or entities, even if the ownership 34.30shares differ between the two systems. Wind energy conversion systems are not under 34.31common ownership solely because the same person or entity provided equity financing for 34.32the systems. 35.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2018 and thereafter. new text end 35.2    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 35.3to read: 35.4     new text begin Subd. 8. new text end new text begin Extension. new text end new text begin The commissioner may, for good cause, extend the time for filing new text end 35.5 new text begin the report required by subdivision 4. The extension must not exceed 15 days. new text end 35.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2018 and thereafter. new text end 35.7    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read: 35.8    Subd. 7. Division of duties between local and county assessor. The duty of the duly 35.9appointed local assessor shall be to view and appraise the value of all property as provided 35.10by law, but all the book work shall be done by the county assessor, or the assessor's assistants, 35.11and the value of all property subject to assessment and taxation shall be determined by the 35.12county assessor, except as otherwise hereinafter provided. If directed by the county assessor, 35.13the local assessor shall new text begin must new text end perform the duties enumerated in subdivision 8, clause (16) new text begin , new text end 35.14 new text begin and must enter construction and valuation data into the records in the manner prescribed new text end 35.15 new text begin by the county assessor new text end . 35.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 35.17    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read: 35.18273.08 ASSESSOR'S DUTIES. 35.19The assessor shall actually view, and determine the market value of each tract or lot of 35.20real property listed for taxation, including the value of all improvements and structures 35.21thereon, at maximum intervals of five years and shall enter the value opposite each 35.22description. new text begin When directed by the county assessor, local assessors must enter construction new text end 35.23 new text begin and valuation data into the records in the manner prescribed by the county assessor. new text end 35.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 35.25    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 35.26to read: 35.27     new text begin Subd. 3. new text end new text begin Compliance. new text end new text begin A county assessor, or a city assessor having the powers of a new text end 35.28 new text begin county assessor, who does not comply with the timely notice requirement under subdivision new text end 35.29 new text begin 1 must: new text end 36.1 new text begin (1) mail an additional valuation notice to each person who was not provided timely new text end 36.2 new text begin notice; and new text end 36.3 new text begin (2) convene a supplemental local board of appeal and equalization or local review session new text end 36.4 new text begin no sooner than ten days after sending the additional notices required by clause (1). new text end 36.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for valuation notices sent in 2018 and new text end 36.6 new text begin thereafter. new text end 36.7    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read: 36.8    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 36.9(c), real estate which is residential and used for homestead purposes is class 1a. In the case 36.10of a duplex or triplex in which one of the units is used for homestead purposes, the entire 36.11property is deemed to be used for homestead purposes. The market value of class 1a property 36.12must be determined based upon the value of the house, garage, and land. 36.13    The first $500,000 of market value of class 1a property has a net classification rate of 36.14one percent of its market value; and the market value of class 1a property that exceeds 36.15$500,000 has a classification rate of 1.25 percent of its market value. 36.16    (b) Class 1b property includes homestead real estate or homestead manufactured homes 36.17used for the purposes of a homestead by: 36.18    (1) any person who is blind as defined in section 256D.35, or the blind person and the 36.19blind person's spouse; 36.20    (2) any person who is permanently and totally disabled or by the disabled person and 36.21the disabled person's spouse; or 36.22    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a 36.23property classified under this paragraph for taxes payable in 2008. 36.24    Property is classified and assessed under clause (2) only if the government agency or 36.25income-providing source certifies, upon the request of the homestead occupant, that the 36.26homestead occupant satisfies the disability requirements of this paragraph, and that the 36.27property is not eligible for the valuation exclusion under subdivision 34. 36.28    Property is classified and assessed under paragraph (b) only if the commissioner of 36.29revenue or the county assessor certifies that the homestead occupant satisfies the requirements 36.30of this paragraph. 36.31    Permanently and totally disabled for the purpose of this subdivision means a condition 36.32which is permanent in nature and totally incapacitates the person from working at an 37.1occupation which brings the person an income. The first $50,000 market value of class 1b 37.2property has a net classification rate of .45 percent of its market value. The remaining market 37.3value of class 1b property has a classification rate using the rates for new text begin is classified as new text end class 37.41a or class 2a property, whichever is appropriate, of similar market value. 37.5    (c) Class 1c property is commercial use real and personal property that abuts public 37.6water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 37.7seasonal residential occupancy for recreational purposes but not devoted to commercial 37.8purposes for more than 250 days in the year preceding the year of assessment, and that 37.9includes a portion used as a homestead by the owner, which includes a dwelling occupied 37.10as a homestead by a shareholder of a corporation that owns the resort, a partner in a 37.11partnership that owns the resort, or a member of a limited liability company that owns the 37.12resort even if the title to the homestead is held by the corporation, partnership, or limited 37.13liability company. For purposes of this paragraph, property is devoted to a commercial 37.14purpose on a specific day if any portion of the property, excluding the portion used 37.15exclusively as a homestead, is used for residential occupancy and a fee is charged for 37.16residential occupancy. Class 1c property must contain three or more rental units. A "rental 37.17unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 37.18site equipped with water and electrical hookups for recreational vehicles. Class 1c property 37.19must provide recreational activities such as the rental of ice fishing houses, boats and motors, 37.20snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 37.21services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 37.22the property is transferred to an individual or entity by deeded interest, or the sale of shares 37.23or stock, no longer qualifies for class 1c even though it may remain available for rent. A 37.24camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 37.251c, regardless of the term of the rental agreement, as long as the use of the camping pad 37.26does not exceed 250 days. If the same owner owns two separate parcels that are located in 37.27the same township, and one of those properties is classified as a class 1c property and the 37.28other would be eligible to be classified as a class 1c property if it was used as the homestead 37.29of the owner, both properties will be assessed as a single class 1c property; for purposes of 37.30this sentence, properties are deemed to be owned by the same owner if each of them is 37.31owned by a limited liability company, and both limited liability companies have the same 37.32membership. The portion of the property used as a homestead is class 1a property under 37.33paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 37.34market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 37.35market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 37.361.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 38.1temporary and seasonal residential occupancy for recreation purposes in which all or a 38.2portion of the property was devoted to commercial purposes for not more than 250 days in 38.3the year preceding the year of assessment desiring classification as class 1c, must submit a 38.4declaration to the assessor designating the cabins or units occupied for 250 days or less in 38.5the year preceding the year of assessment by January 15 of the assessment year. Those 38.6cabins or units and a proportionate share of the land on which they are located must be 38.7designated as class 1c as otherwise provided. The remainder of the cabins or units and a 38.8proportionate share of the land on which they are located must be designated as class 3a 38.9commercial. The owner of property desiring designation as class 1c property must provide 38.10guest registers or other records demonstrating that the units for which class 1c designation 38.11is sought were not occupied for more than 250 days in the year preceding the assessment 38.12if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 38.13(4) conference center or meeting room, and (5) other nonresidential facility operated on a 38.14commercial basis not directly related to temporary and seasonal residential occupancy for 38.15recreation purposes does not qualify for class 1c. 38.16    (d) Class 1d property includes structures that meet all of the following criteria: 38.17    (1) the structure is located on property that is classified as agricultural property under 38.18section 273.13, subdivision 23; 38.19    (2) the structure is occupied exclusively by seasonal farm workers during the time when 38.20they work on that farm, and the occupants are not charged rent for the privilege of occupying 38.21the property, provided that use of the structure for storage of farm equipment and produce 38.22does not disqualify the property from classification under this paragraph; 38.23    (3) the structure meets all applicable health and safety requirements for the appropriate 38.24season; and 38.25    (4) the structure is not salable as residential property because it does not comply with 38.26local ordinances relating to location in relation to streets or roads. 38.27    The market value of class 1d property has the same classification rates as class 1a property 38.28under paragraph (a). 38.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 38.30    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read: 38.31    Subdivision 1. Listing and assessment in county. The personal property of express, 38.32stage and transportation companies, and of pipeline companies engaged in the business of 38.33transporting natural gas, gasoline, crude oil, or other petroleum products new text begin , new text end except as otherwise 39.1provided by law, shall be listed and assessed in the county, town or district where the same 39.2is usually kept. 39.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.4    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read: 39.5    Subd. 2. Listing and assessment by commissioner. The personal property, consisting 39.6of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 39.7and others engaged in the operations or business of transporting natural gas, gasoline, crude 39.8oil, or other petroleum products by pipelines, shall be listed with and assessed by the 39.9commissioner of revenue and the values provided to the city or county assessor by order. 39.10This subdivision shall not apply to the assessment of the products transported through the 39.11pipelines nor to the lines of local commercial gas companies engaged primarily in the 39.12business of distributing gas new text begin products new text end to consumers at retail nor to pipelines used by the 39.13owner thereof to supply natural gas or other petroleum products exclusively for such owner's 39.14own consumption and not for resale to others. If more than 85 percent of the natural gas or 39.15other petroleum products actually transported over the pipeline is used for the owner's own 39.16consumption and not for resale to others, then this subdivision shall not apply; provided, 39.17however, that in that event, the pipeline shall be assessed in proportion to the percentage 39.18of gas new text begin products new text end actually transported over such pipeline that is not used for the owner's own 39.19consumption. On or before August 1, the commissioner shall certify to the auditor of each 39.20county, the amount of such personal property assessment against each company in each 39.21district in which such property is located. If the commissioner determines that the amount 39.22of personal property assessment certified on or before August 1 is in error, the commissioner 39.23may issue a corrected certification on or before October 1. The commissioner may correct 39.24errors that are merely clerical in nature until December 31. 39.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.26    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read: 39.27    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to 39.28be brought against the commissioner under this section, the petition initiating the appeal 39.29must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 39.30as provided in paragraph (b) or (c). 39.31(b) If the appeal to court is from an order of the commissioner, it must be brought under 39.32chapter 271 new text begin and filed within the time period prescribed in section 271.06, subdivision 2 new text end , 39.33except that when the provisions of this section conflict with chapter 271 new text begin or 278 new text end , this section 40.1prevails. In addition, the petition must include all the parcels encompassed by that order 40.2which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 40.3at a valuation greater than their real or actual value, misclassified, or are exempt. For this 40.4purpose, an order of the commissioner is either (1) a certification or notice of value by the 40.5commissioner for property described in subdivision 1, or (2) the final determination by the 40.6commissioner of either an administrative appeal conference or informal administrative 40.7appeal described in subdivision 4. 40.8(c) If the appeal is from the tax that results from implementation of the commissioner's 40.9order, certification, or recommendation, it must be brought under chapter 278, and the 40.10provisions in that chapter apply, except that service shall be on the commissioner only and 40.11not on the local officials specified in section 278.01, subdivision 1, and if any other provision 40.12of this section conflicts with chapter 278, this section prevails. In addition, the petition must 40.13include either all the utility parcels or all the railroad parcels in the state in which the 40.14petitioner claims an interest and which the petitioner claims have been partially, unfairly, 40.15or unequally assessed, assessed at a valuation greater than their real or actual value, 40.16misclassified, or are exempt. 40.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 40.18    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read: 40.19    Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 40.20270.82 or 273.371 by the date specified in that section, or by the date specified by the 40.21commissioner in an extension, may appeal administratively to the commissioner prior to 40.22bringing an action in court. 40.23    (b) Companies that must submit reports under section must submit new text begin file new text end a written 40.24request to new text begin for an appeal with new text end the commissioner for a conference within ten new text begin 30 new text end days after 40.25the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice to the company, 40.26or by June 15, whichever is earlier. new text begin For purposes of this section, "notice date" means the new text end 40.27 new text begin notice date of the valuation certification, commissioner's order, recommendation, or other new text end 40.28 new text begin notice. new text end 40.29    (c) Companies that submit reports under section must submit a written request 40.30to the commissioner for a conference within ten days after the date of the commissioner's 40.31valuation certification or notice to the company, or by July 1, whichever is earlier. new text begin The new text end 40.32 new text begin appeal need not be in any particular form but must contain the following information: new text end 40.33     new text begin (1) name and address of the company; new text end 41.1     new text begin (2) the date; new text end 41.2     new text begin (3) its Minnesota identification number; new text end 41.3     new text begin (4) the assessment year or period involved; new text end 41.4     new text begin (5) the findings in the valuation that the company disputes; new text end 41.5     new text begin (6) a summary statement specifying its reasons for disputing each item; and new text end 41.6     new text begin (7) the signature of the company's duly authorized agent or representative. new text end 41.7     new text begin (d) When requested in writing and within the time allowed for filing an administrative new text end 41.8 new text begin appeal, the commissioner may extend the time for filing an appeal for a period of not more new text end 41.9 new text begin than 15 days from the expiration of the time for filing the appeal. new text end 41.10    (d) new text begin (e) new text end The commissioner shall conduct the conference new text begin either in person or by telephone new text end 41.11upon the commissioner's entire files and records and such further information as may be 41.12offered. The conference must be held no later than 20 days after the date of the 41.13commissioner's valuation certification or notice to the company, or by the date specified by 41.14the commissioner in an extension new text begin request for an appeal new text end . Within 60 new text begin 30 new text end days after the 41.15conference the commissioner shall make a final determination of the matter and shall notify 41.16the company promptly of the determination. The conference is not a contested case hearing new text begin new text end 41.17 new text begin subject to chapter 14 new text end . 41.18    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner 41.19shall also provide the railroad and utility companies the opportunity to discuss any questions 41.20or concerns relating to the values established by the commissioner through certification or 41.21notice in a less formal manner. This does not change or modify the deadline for requesting 41.22a conference under paragraph (a), the deadline in section for appealing an order of 41.23the commissioner, or the deadline in section for appealing property taxes in court. 41.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 41.25    Sec. 22. new text begin [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES. new text end 41.26 new text begin After making the apportionment provided in Minnesota Rules, part 8100.0600, the new text end 41.27 new text begin commissioner must equalize the values of the operating structures to the level accepted by new text end 41.28 new text begin the State Board of Equalization if the appropriate sales ratio for each county, as conducted new text end 41.29 new text begin by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is new text end 41.30 new text begin outside the range accepted by the State Board of Equalization. The commissioner must not new text end 41.31 new text begin equalize the value of the operating structures if the sales ratio determined pursuant to this new text end 41.32 new text begin subdivision is within the range accepted by the State Board of Equalization. new text end 42.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2017. new text end 42.2    Sec. 23. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read: 42.3    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board 42.4of a town, or the council or other governing body of a city, is the new text begin local new text end board of appeal and 42.5equalization except (1) in cities whose charters provide for a board of equalization or (2) 42.6in any city or town that has transferred its local board of review power and duties to the 42.7county board as provided in subdivision 3. The county assessor shall fix a day and time 42.8when the board or the new text begin local new text end board of equalization shall meet in the assessment districts of 42.9the county. Notwithstanding any law or city charter to the contrary, a city board of 42.10equalization shall be referred to as a new text begin local new text end board of appeal and equalization. On or before 42.11February 15 of each year the assessor shall give written notice of the time to the city or 42.12town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 42.13be held between April 1 and May 31 each year. The clerk shall give published and posted 42.14notice of the meeting at least ten days before the date of the meeting. 42.15    The board shall meet either at a central location within the county or at the office of the 42.16clerk to review the assessment and classification of property in the town or city. No changes 42.17in valuation or classification which are intended to correct errors in judgment by the county 42.18assessor may be made by the county assessor after the board has adjourned in those cities 42.19or towns that hold a local board of review; however, corrections of errors that are merely 42.20clerical in nature or changes that extend homestead treatment to property are permitted after 42.21adjournment until the tax extension date for that assessment year. The changes must be fully 42.22documented and maintained in the assessor's office and must be available for review by any 42.23person. A copy of the changes made during this period in those cities or towns that hold a 42.24local board of review must be sent to the county board no later than December 31 of the 42.25assessment year. 42.26    (b) The board shall determine whether the taxable property in the town or city has been 42.27properly placed on the list and properly valued by the assessor. If real or personal property 42.28has been omitted, the board shall place it on the list with its market value, and correct the 42.29assessment so that each tract or lot of real property, and each article, parcel, or class of 42.30personal property, is entered on the assessment list at its market value. No assessment of 42.31the property of any person may be raised unless the person has been duly notified of the 42.32intent of the board to do so. On application of any person feeling aggrieved, the board shall 42.33review the assessment or classification, or both, and correct it as appears just. The board 42.34may not make an individual market value adjustment or classification change that would 43.1benefit the property if the owner or other person having control over the property has refused 43.2the assessor access to inspect the property and the interior of any buildings or structures as 43.3provided in section 273.20. A board member shall not participate in any actions of the board 43.4which result in market value adjustments or classification changes to property owned by 43.5the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 43.6brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 43.7board member has a financial interest. The relationship may be by blood or marriage. 43.8    (c) A local board may reduce assessments upon petition of the taxpayer but the total 43.9reductions must not reduce the aggregate assessment made by the county assessor by more 43.10than one percent. If the total reductions would lower the aggregate assessments made by 43.11the county assessor by more than one percent, none of the adjustments may be made. The 43.12assessor shall correct any clerical errors or double assessments discovered by the board 43.13without regard to the one percent limitation. 43.14    (d) A local board does not have authority to grant an exemption or to order property 43.15removed from the tax rolls. 43.16    (e) A majority of the members may act at the meeting, and adjourn from day to day until 43.17they finish hearing the cases presented. The assessor shall attend and take part in the 43.18proceedings, but must not vote. The county assessor, or an assistant delegated by the county 43.19assessor shall attend the meetings. The board shall list separately all omitted property added 43.20to the list by the board and all items of property increased or decreased, with the market 43.21value of each item of property, added or changed by the board. The county assessor shall 43.22enter all changes made by the board. 43.23    (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 43.24or by written communication before the board after being duly notified of the board's intent 43.25to raise the assessment of the property, or if a person feeling aggrieved by an assessment 43.26or classification fails to apply for a review of the assessment or classification, the person 43.27may not appear before the county board of appeal and equalization for a review. This 43.28paragraph does not apply if an assessment was made after the local board meeting, as 43.29provided in section 273.01, or if the person can establish not having received notice of 43.30market value at least five days before the local board meeting. 43.31    (g) The local board must complete its work and adjourn within 20 days from the time 43.32of convening stated in the notice of the clerk, unless a longer period is approved by the 43.33commissioner of revenue. No action taken after that date is valid. All complaints about an 43.34assessment or classification made after the meeting of the board must be heard and 44.1determined by the county board of equalization. A nonresident may, at any time, before the 44.2meeting of the board file written objections to an assessment or classification with the county 44.3assessor. The objections must be presented to the board at its meeting by the county assessor 44.4for its consideration. 44.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 44.6    Sec. 24. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read: 44.7    Subdivision 1. Members; meetings; rules for equalizing assessments. The county 44.8commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 44.9present, the deputy county auditor, or, if there is no deputy, the court administrator of the 44.10district court, shall form a board for the equalization of the assessment of the property of 44.11the county, including the property of all cities whose charters provide for a board of 44.12equalization. This board shall be referred to as the county board of appeal and equalization. 44.13The board shall meet annually, on the date specified in section 274.14, at the office of the 44.14auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 44.15Members shall not participate in any actions of the board which result in market value 44.16adjustments or classification changes to property owned by the board member, the spouse, 44.17parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 44.18nephew, or niece of a board member, or property in which a board member has a financial 44.19interest. The relationship may be by blood or marriage. The board shall examine and compare 44.20the returns of the assessment of property of the towns or districts, and equalize them so that 44.21each tract or lot of real property and each article or class of personal property is entered on 44.22the assessment list at its market value, subject to the following rules: 44.23    (1) The board shall raise the valuation of each tract or lot of real property which in its 44.24opinion is returned below its market value to the sum believed to be its market value. The 44.25board must first give notice of intention to raise the valuation to the person in whose name 44.26it is assessed, if the person is a resident of the county. The notice must fix a time and place 44.27for a hearing. 44.28    (2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 44.29above its market value to the sum believed to be its market value. 44.30    (3) The board shall raise the valuation of each class of personal property which in its 44.31opinion is returned below its market value to the sum believed to be its market value. It 44.32shall raise the aggregate value of the personal property of individuals, firms, or corporations, 44.33when it believes that the aggregate valuation, as returned, is less than the market value of 44.34the taxable personal property possessed by the individuals, firms, or corporations, to the 45.1sum it believes to be the market value. The board must first give notice to the persons of 45.2intention to do so. The notice must set a time and place for a hearing. 45.3    (4) The board shall reduce the valuation of each class of personal property that is returned 45.4above its market value to the sum it believes to be its market value. Upon complaint of a 45.5party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 45.6property, or of any class of personal property for which the individual is assessed, which 45.7in its opinion has been assessed at too large a sum, to the sum it believes was the market 45.8value of the individual's personal property of that class. 45.9    (5) The board must not reduce the aggregate value of all the property of its county, as 45.10submitted to the county board of equalization, with the additions made by the auditor under 45.11this chapter, by more than one percent of its whole valuation. The board may raise the 45.12aggregate valuation of real property, and of each class of personal property, of the county, 45.13or of any town or district of the county, when it believes it is below the market value of the 45.14property, or class of property, to the aggregate amount it believes to be its market value. 45.15    (6) The board shall change the classification of any property which in its opinion is not 45.16properly classified. 45.17    (7) The board does not have the authority to grant an exemption or to order property 45.18removed from the tax rolls. 45.19     new text begin (8) The board may not make an individual market value adjustment or classification new text end 45.20 new text begin change that would benefit property if the owner or other person having control over the new text end 45.21 new text begin property has refused the assessor access to inspect the property and the interior of any new text end 45.22 new text begin buildings or structures as provided in section 273.20. new text end 45.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county board of appeal and new text end 45.24 new text begin equalization meetings in 2018 and thereafter. new text end 45.25    Sec. 25. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read: 45.26    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 45.27boards of appeal and equalization meetings must provide proof to the commissioner by 45.28December 1, 2009, and each year thereafter, new text begin February 1 new text end that it is in compliance with the 45.29requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 45.30was a quorum of voting members at each meeting of the board of appeal and equalization 45.31in the current new text begin previous new text end year. A county that does not comply with these requirements is 45.32deemed to have transferred its board of appeal and equalization powers to the special board 45.33of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the 46.1following year's assessment and continuing unless the powers are reinstated under paragraph 46.2(c). A county that does not comply with the requirements of subdivision 2 and has not 46.3appointed a special board of equalization shall appoint a special board of equalization before 46.4the following year's assessment. 46.5    (b) The county shall notify the taxpayers when the board of appeal and equalization for 46.6a county has been transferred to the special board of equalization under this subdivision 46.7and, prior to the meeting time of the special board of equalization, the county shall make 46.8available to those taxpayers a procedure for a review of the assessments, including, but not 46.9limited to, open book meetings. This alternate review process must take place in April and 46.10May. 46.11    (c) A county board whose powers are transferred to the special board of equalization 46.12under this subdivision may be reinstated by resolution of the county board and upon proof 46.13of compliance with the requirements of subdivision 2. The resolution and proofs must be 46.14provided to the commissioner by December new text begin February new text end 1 in order to be effective for the 46.15following new text begin current new text end year's assessment. 46.16(d) If a person who was entitled to appeal to the county board of appeal and equalization 46.17or to the county special board of equalization is not able to do so in a particular year because 46.18the county board or special board did not meet the quorum and training requirements in this 46.19section and section 274.13, or because the special board was not appointed, that person may 46.20instead appeal to the commissioner of revenue, provided that the appeal is received by the 46.21commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 46.22270C.92 . The commissioner must issue an appropriate order to the county assessor in 46.23response to each timely appeal, either upholding or changing the valuation or classification 46.24of the property. Prior to October 1 of each year, the commissioner must charge and bill the 46.25county where the property is located $500 for each tax parcel covered by an order issued 46.26under this paragraph in that year. Amounts received by the commissioner under this paragraph 46.27must be deposited in the state's general fund. If payment of a billed amount is not received 46.28by the commissioner before December 1 of the year when billed, the commissioner must 46.29deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 46.30county under chapter 477A in the next year. Late payments may either be returned to the 46.31county uncashed and undeposited or may be accepted. If a late payment is accepted, the 46.32state aid paid to the county under chapter 477A must be adjusted within 12 months to 46.33eliminate any reduction that occurred because the payment was late. Amounts needed to 46.34make these adjustments are included in the appropriation under section 477A.03, subdivision 46.352 . 47.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county boards of appeal and new text end 47.2 new text begin equalization meetings held in 2018 and thereafter. new text end 47.3    Sec. 26. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read: 47.4    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 47.5on or before September 30, each county and each home rule charter or statutory city shall 47.6certify to the county auditor the proposed property tax levy for taxes payable in the following 47.7year. 47.8    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each 47.9town and each special taxing district shall adopt and certify to the county auditor a proposed 47.10property tax levy for taxes payable in the following year. For towns, the final certified levy 47.11shall also be considered the proposed levy. 47.12    (c) On or before September 30, each school district that has not mutually agreed with 47.13its home county to extend this date shall certify to the county auditor the proposed property 47.14tax levy for taxes payable in the following year. Each school district that has agreed with 47.15its home county to delay the certification of its proposed property tax levy must certify its 47.16proposed property tax levy for the following year no later than October 7. The school district 47.17shall certify the proposed levy as: 47.18    (1) a specific dollar amount by school district fund, broken down between voter-approved 47.19and non-voter-approved levies and between referendum market value and tax capacity 47.20levies; or 47.21    (2) the maximum levy limitation certified by the commissioner of education according 47.22to section 126C.48, subdivision 1. 47.23    (d) If the board of estimate and taxation or any similar board that establishes maximum 47.24tax levies for taxing jurisdictions within a first class city certifies the maximum property 47.25tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 47.26in paragraph (a), the city shall be deemed to have certified its levies for those taxing 47.27jurisdictions. 47.28    (e) For purposes of this section, "special taxing district" means a special taxing district 47.29as defined in section 275.066. Intermediate school districts that levy a tax under chapter 47.30124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 47.31Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 47.32taxing districts for purposes of this section. 48.1(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 48.2tax levy under this subdivision, the taxing authority shall announce the time and place of 48.3its new text begin any new text end subsequent regularly scheduled meetings at which the budget and levy will be 48.4discussed and at which the public will be allowed to speak. The time and place of those 48.5meetings must be included in the proceedings or summary of proceedings published in the 48.6official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191. 48.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.8    Sec. 27. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read: 48.9    Subd. 2. Local governments required to report. For purposes of this section, "local 48.10governmental unit" means a county, home rule charter or statutory city with a population 48.11greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 48.12statutory city or town that receives a distribution from the taconite municipal aid account 48.13in the levy year. 48.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.15    Sec. 28. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read: 48.16    Subdivision 1. Determination of validity. (a) Any person having personal property, or 48.17any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 48.18property has been partially, unfairly, or unequally assessed in comparison with other property 48.19in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 48.20the portion of the county excluding the first class city, or that the parcel has been assessed 48.21at a valuation greater than its real or actual value, or that the tax levied against the same is 48.22illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 48.23levied, may have the validity of the claim, defense, or objection determined by the district 48.24court of the county in which the tax is levied or by the Tax Court by serving one copy of a 48.25petition for such determination upon the county auditor, one copy on the county attorney, 48.26one copy on the county treasurer, and three copies on the county assessor. The county 48.27assessor shall immediately forward one copy of the petition to the appropriate governmental 48.28authority in a home rule charter or statutory city or town in which the property is located if 48.29that city or town employs its own certified assessor. A copy of the petition shall also be 48.30forwarded by the assessor to the school board of the school district in which the property 48.31is located. 48.32(b) In counties where the office of county treasurer has been combined with the office 48.33of county auditor, the county may elect to require the petitioner to serve the number of 49.1copies as determined by the county. The county assessor shall immediately forward one 49.2copy of the petition to the appropriate governmental authority in a home rule charter or 49.3statutory city or town in which the property is located if that city or town employs its own 49.4certified assessor. A list of petitioned properties, including the name of the petitioner, the 49.5identification number of the property, and the estimated market value, shall be sent on or 49.6before the first day of July by the county auditor/treasurer to the school board of the school 49.7district in which the property is located. 49.8(c) For all counties, the petitioner must file the copies with proof of service, in the office 49.9of the court administrator of the district court on or before April 30 of the year in which the 49.10tax becomes payable. A petition for determination under this section may be transferred by 49.11the district court to the Tax Court. An appeal may also be taken to the Tax Court under 49.12chapter 271 at any time following receipt of the valuation notice new text begin that county assessors or new text end 49.13 new text begin city assessors having the powers of a county assessor are new text end required by section 273.121 new text begin to new text end 49.14 new text begin send to persons whose property is to be included on the assessment roll that year, new text end but prior 49.15to May 1 of the year in which the taxes are payable. 49.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 49.17    Sec. 29. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read: 49.18    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency 49.19or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 49.20withheld from sale or lease to others for a maximum of six months. The request must be 49.21submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 49.22from sale or lease to any other party for six months, and must confirm the starting date of 49.23the six-month withholding period to the requesting agency or subdivision. If the request is 49.24from a governmental subdivision of the state, the governmental subdivision must pay the 49.25maintenance costs incurred by the county during the period the parcel is withheld. The 49.26county board may approve a sale or conveyance to the requesting party during the 49.27withholding period. A conveyance of the property to the requesting party terminates the 49.28withholding period. 49.29A governmental subdivision of the state must not make, and a county auditor must not 49.30act upon, a second request to withhold a parcel from sale or lease within 18 months of a 49.31previous request for that parcel. A county may reject a request made under this paragraph 49.32if the request is made more than 30 days after the county has given notice to the requesting 49.33state agency or governmental subdivision of the state that the county intends to sell or 49.34otherwise dispose of the property. 50.1(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 50.2value as determined by the county board, to an organized or incorporated governmental 50.3subdivision of the state for any public purpose for which the subdivision is authorized to 50.4acquire property. When the term "market value" is used in this section, it means an estimate 50.5of the full and actual market value of the parcel as determined by the county board, but in 50.6making this determination, the board and the persons employed by or under contract with 50.7the board in order to perform, conduct, or assist in the determination, are exempt from the 50.8licensure requirements of chapter 82B. 50.9(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 50.10taxing districts on application to new text begin sold by new text end the county board by new text begin , for their market value as new text end 50.11 new text begin determined by the county board, to new text end a state agency for an authorized use at not less than their 50.12market value as determined by the county board new text begin any public purpose for which the agency new text end 50.13 new text begin is authorized to acquire property new text end . 50.14(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 50.15or incorporated governmental subdivision of the state or state agency for less than their 50.16market value if: 50.17(1) the county board determines that a sale at a reduced price is in the public interest 50.18because a reduced price is necessary to provide an incentive to correct the blighted conditions 50.19that make the lands undesirable in the open market, or the reduced price will lead to the 50.20development of affordable housing; and 50.21(2) the governmental subdivision or state agency has documented its specific plans for 50.22correcting the blighted conditions or developing affordable housing, and the specific law 50.23or laws that empower it to acquire real property in furtherance of the plans. 50.24If the sale under this paragraph is to a governmental subdivision of the state, the 50.25commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 50.26If the sale under this paragraph is to a state agency, new text begin the property is released from the trust new text end 50.27 new text begin in favor of the taxing districts and new text end the commissioner new text begin of revenue new text end must issue a conveyance 50.28document that releases the property from the trust in favor of the taxing districts new text begin convey the new text end 50.29 new text begin property on behalf of the state by quitclaim deed to the agency new text end . 50.30(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 50.31be conveyed by the commissioner of revenue in the name of the state to a governmental 50.32subdivision for an authorized public use, if an application is submitted to the commissioner 50.33which includes a statement of facts as to the use to be made of the tract and the favorable 50.34recommendation of the county board. For the purposes of this paragraph, "authorized public 51.1use" means a use that allows an indefinite segment of the public to physically use and enjoy 51.2the property in numbers appropriate to its size and use, or is for a public service facility. 51.3Authorized public uses as defined in this paragraph are limited to: 51.4(1) a road, or right-of-way for a road; 51.5(2) a park that is both available to, and accessible by, the public that contains 51.6improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters; 51.7(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 51.8with a reasonable amount of surrounding land maintained in its natural state; 51.9(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 51.10transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 51.11facilities related to a public transit system; 51.12(5) public beaches or boat launches; 51.13(6) public parking; 51.14(7) civic recreation or conference facilities; and 51.15(8) public service facilities such as fire halls, police stations, lift stations, water towers, 51.16sanitation facilities, water treatment facilities, and administrative offices. 51.17No monetary compensation or consideration is required for the conveyance, except as 51.18provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 51.19including, but not limited to, the reversion provisions of subdivisions 1c and 1d. 51.20(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 51.21land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 51.22upon the favorable recommendation of the county board if the governmental subdivision 51.23has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 51.24under a written development agreement or instrument, but the conveyance failed to occur 51.25prior to forfeiture. No compensation or consideration is required for, and no conditions 51.26attach to, the conveyance. 51.27(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 51.28land to the association of a common interest community by quitclaim deed upon the favorable 51.29recommendation of the county board if the association certifies to the board that prior to 51.30forfeiture the association was entitled to the parcel under a written agreement, but the 51.31conveyance failed to occur prior to forfeiture. No compensation or consideration is required 51.32for, and no conditions attach to, the conveyance. 52.1(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 52.2state for less than its market value for either: (1) creation or preservation of wetlands; (2) 52.3drainage or storage of storm water under a storm water management plan; or (3) preservation, 52.4or restoration and preservation, of the land in its natural state. The deed must contain a 52.5restrictive covenant limiting the use of the land to one of these purposes for 30 years or 52.6until the property is reconveyed back to the state in trust. At any time, the governmental 52.7subdivision may reconvey the property to the state in trust for the taxing districts. The deed 52.8of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 52.9price determined under this paragraph shall be refunded upon a reconveyance, but the 52.10amount paid for a conveyance under this paragraph may be taken into account by the county 52.11board when setting the terms of a future sale of the same property to the same governmental 52.12subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 52.13incorporated municipality and the commissioner of natural resources determines there is a 52.14mineral use potential, the sale is subject to the approval of the commissioner of natural 52.15resources. 52.16(i) A park and recreation board in a city of the first class is a governmental subdivision 52.17for the purposes of this section. 52.18(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 52.19the commissioner of revenue in the name of the state to a governmental subdivision for a 52.20school forest under section 89.41. An application that includes a statement of facts as to the 52.21use to be made of the tract and the favorable recommendation of the county board and the 52.22commissioner of natural resources must be submitted to the commissioner of revenue. No 52.23monetary compensation or consideration is required for the conveyance, but the conveyance 52.24is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 52.25(e). At any time, the governmental subdivision may reconvey the property back to the state 52.26in trust for the taxing districts. The deed of reconveyance is subject to approval by the 52.27commissioner of revenue. 52.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 52.29    Sec. 30. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read: 52.30    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from 52.31the date of any conveyance of tax-forfeited land to a governmental subdivision for an 52.32authorized public use as provided in this section, regardless of when the deed for the 52.33authorized public use was executed, if the governmental subdivision has failed to put the 52.34land to that use, or abandons that use, the governing body of the subdivision must: (1) with 53.1the approval of the county board, purchase the property for an authorized public purpose 53.2at the present market value as determined by the county board, or (2) authorize the proper 53.3officers to convey the land, or the part of the land not required for an authorized public use, 53.4to the state of Minnesota in trust for the taxing districts. If the governing body purchases 53.5the property under clause (1), the commissioner of revenue shall, upon proper application 53.6submitted by the county auditor new text begin and upon the reconveyance of the land subject to the new text end 53.7 new text begin conditional use deed to the state new text end , convey the property on behalf of the state by quitclaim 53.8deed to the subdivision free of a use restriction and the possibility of reversion or 53.9defeasement. If the governing body decides to reconvey the property to the state under this 53.10clause, the officers shall execute a deed of conveyance immediately. The conveyance is 53.11subject to the approval of the commissioner and its form must be approved by the attorney 53.12general. For 15 years from the date of the conveyance, there is no failure to put the land to 53.13the authorized public use and no abandonment of that use if a formal plan of the governmental 53.14subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 53.15intended future use of the land for the authorized public use. 53.16(b) Property held by a governmental subdivision of the state under a conditional use 53.17deed executed under this section by the commissioner of revenue on or after January 1, 53.182007, may be acquired by that governmental subdivision after 15 years from the date of the 53.19conveyance if the commissioner determines upon written application from the subdivision 53.20that the subdivision has in fact put the property to the authorized public use for which it 53.21was conveyed, and the subdivision has made a finding that it has no current plans to change 53.22the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 53.23the county board where the land is located objects to a conveyance of the property to the 53.24subdivision without conditions and without further act by or obligation of the subdivision. 53.25If the county does not object within 60 days, and the commissioner makes a favorable 53.26determination, the commissioner shall issue a quitclaim deed on behalf of the state 53.27unconditionally conveying the property to the governmental subdivision. For purposes of 53.28this paragraph, demonstration of an intended future use for the authorized public use in a 53.29formal plan of the governmental subdivision does not constitute use for that authorized 53.30public use. 53.31(c) Property held by a governmental subdivision of the state under a conditional use 53.32deed executed under this section by the commissioner of revenue before January 1, 2007, 53.33is released from the use restriction and possibility of reversion on January 1, 2022, if the 53.34county board records a resolution describing the land and citing this paragraph. The county 54.1board may authorize the county treasurer to deduct the amount of the recording fees from 54.2future settlements of property taxes to the subdivision. 54.3(d) Except for tax-forfeited land conveyed to establish a school forest under section 54.489.41 , property conveyed under a conditional use deed executed under this section by the 54.5commissioner of revenue, regardless of when the deed for the authorized public use was 54.6executed, is released from the use restriction and reverter, and any use restriction or reverter 54.7for which no declaration of reversion has been recorded with the county recorder or registrar 54.8of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 54.9the date the deed was acknowledged; or (3) final resolution of an appeal to district court 54.10under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 54.11county recorder or registrar of titles, as appropriate, prior to January 1, 2015. 54.12(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 54.13school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 54.14The property reverts to the state in trust for the taxing districts by operation of law if the 54.15commissioner of natural resources determines and reports to the commissioner of revenue 54.16under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 54.17land for school forest purposes for three consecutive years. The commissioner of revenue 54.18shall record a declaration of reversion for land that has reverted under this paragraph. 54.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 54.20    Sec. 31. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 54.21to read: 54.22     new text begin Subd. 14. new text end new text begin Communication by electronic mail. new text end new text begin Prior to receiving aid pursuant to this new text end 54.23 new text begin section, a city must register an official electronic mail address with the commissioner, which new text end 54.24 new text begin the commissioner may use as an exclusive means to communicate with the city. new text end new text begin new text end 54.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 54.26    Sec. 32. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 54.27to read: 54.28     new text begin Subd. 3a. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of natural new text end 54.29 new text begin resources shall certify to the commissioner of revenue the number of watercraft launches new text end 54.30 new text begin and the number of watercraft trailer parking spaces in each county. new text end 54.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 55.1    Sec. 33. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 55.2to read: 55.3     new text begin Subd. 3b. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of natural new text end 55.4 new text begin resources shall certify to the commissioner of revenue the counties that complied with the new text end 55.5 new text begin requirements of subdivision 3 the prior year and are eligible to receive aid under this section. new text end 55.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 55.7    Sec. 34. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read: 55.8    Subd. 2. Exception. This section does not apply new text begin to sales made under chapter 282 or new text end if 55.9the purchaser is represented throughout the transaction by either: 55.10(1) a person licensed to practice law in this state; or 55.11(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 55.12that the representation does not create a dual agency, as that term is defined in section 82.55, 55.13subdivision 6 . 55.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales of tax-forfeited land occurring new text end 55.15 new text begin the day following final enactment and thereafter. new text end 55.16    Sec. 35. Laws 2014, chapter 308, article 9, section 94, is amended to read: 55.17    Sec. 94. REPEALER. 55.18(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 55.1919e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 55.20part 8007.0200, are repealed. 55.21(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 55.222; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 55.2382; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 55.24273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 55.258; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 55.26subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 55.27subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 55.28subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 55.29469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 55.302013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 56.1Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 56.2repealed. 56.3(c) Minnesota Statutes 2012, section 469.1764, is repealed. 56.4(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 56.5469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 56.6469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 56.7section 469.340, subdivision 4, are repealed. 56.8(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed. 56.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from May 20, 2014, and new text end 56.10 new text begin pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, new text end 56.11 new text begin subdivision 2, is revived and reenacted as of that date. new text end 56.12    Sec. 36. new text begin REPEALER. new text end new text begin new text end 56.13 new text begin (a) new text end new text begin Minnesota Statutes 2016, section 281.22, new text end new text begin is repealed. new text end 56.14 new text begin (b) new text end new text begin Minnesota Rules, part 8100.0700, new text end new text begin is repealed. new text end 56.15 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective the day following final enactment. new text end 56.16 new text begin Paragraph (b) is effective for assessment year 2017 and thereafter. new text end 56.17ARTICLE 6 56.18DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS 56.19    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read: 56.20    Subdivision 1. Annual report required. Every railroad company doing business in 56.21Minnesota shall annually file with the commissioner on or before March 31 a report under 56.22oath setting forth the information prescribed by the commissioner to enable the commissioner 56.23to make the valuation and equalization required by sections 270.80 to 270.87. new text begin The new text end 56.24 new text begin commissioner shall prescribe the content, format, and manner of the report pursuant to new text end 56.25 new text begin section 270C.30, except that a "law administered by the commissioner" includes the property new text end 56.26 new text begin tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant new text end 56.27 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 56.28 new text begin property tax laws. new text end 56.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 57.1    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read: 57.2    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 57.3certain amount of money, which equals or exceeds $25 and which is due and payable to a 57.4claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 57.5fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 57.6restitution. A debt may arise under a contractual or statutory obligation, a court order, or 57.7other legal obligation, but need not have been reduced to judgment. 57.8    A debt includes any legal obligation of a current recipient of assistance which is based 57.9on overpayment of an assistance grant where that payment is based on a client waiver or 57.10an administrative or judicial finding of an intentional program violation; or where the debt 57.11is owed to a program wherein the debtor is not a client at the time notification is provided 57.12to initiate recovery under this chapter and the debtor is not a current recipient of food support, 57.13transitional child care, or transitional medical assistance. 57.14    (b) A debt does not include any legal obligation to pay a claimant agency for medical 57.15care, including hospitalization if the income of the debtor at the time when the medical care 57.16was rendered does not exceed the following amount: 57.17    (1) for an unmarried debtor, an income of $8,800 new text begin $12,560 new text end or less; 57.18    (2) for a debtor with one dependent, an income of $11,270 new text begin $16,080 new text end or less; 57.19    (3) for a debtor with two dependents, an income of $13,330 new text begin $19,020 new text end or less; 57.20    (4) for a debtor with three dependents, an income of $15,120 new text begin $21,580 new text end or less; 57.21    (5) for a debtor with four dependents, an income of $15,950 new text begin $22,760 new text end or less; and 57.22    (6) for a debtor with five or more dependents, an income of $16,630 new text begin $23,730 new text end or less. 57.23 new text begin For purposes of this paragraph, "debtor" means the individual whose income, together new text end 57.24 new text begin with the income of the individual's spouse, other than a separated spouse, brings the new text end 57.25 new text begin individual within the income provisions of this paragraph. For purposes of this paragraph, new text end 57.26 new text begin a spouse, other than a separated spouse, shall be considered a dependent. new text end 57.27    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 57.28determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 57.29that in section 1(f)(3)(B) the word "1999 new text begin 2014 new text end " shall be substituted for the word "1992." 57.30For 2001 new text begin 2016 new text end , the commissioner shall then determine the percent change from the 12 57.31months ending on August 31, 1999 new text begin 2014 new text end , to the 12 months ending on August 31, 2000 new text begin 2015 new text end , 57.32and in each subsequent year, from the 12 months ending on August 31, 1999 new text begin 2014 new text end , to the 58.112 months ending on August 31 of the year preceding the taxable year. The determination 58.2of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 58.3not be subject to the Administrative Procedure Act contained in chapter 14. The income 58.4amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 58.5the amount is rounded up to the nearest $10 amount. 58.6    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 58.7dollar amount of the premium authorized under section 256L.15, subdivision 1a. 58.8 new text begin EFFECTIVE DATE. new text end new text begin The section is effective retroactively for debts incurred after new text end 58.9 new text begin December 31, 2014. new text end 58.10    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read: 58.11    Subdivision 1. Disclosure to commissioner of human services. (a) On the request of 58.12the commissioner of human services, the commissioner shall disclose return information 58.13regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 58.14extent provided in paragraph (b) and for the purposes set forth in paragraph (c). 58.15    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 58.16employment, income, and property of a person owing or alleged to be owing an obligation 58.17of child support. 58.18    (c) The commissioner of human services may request data only for the purposes of 58.19carrying out the child support enforcement program and to assist in the location of parents 58.20who have, or appear to have, deserted their children. Data received may be used only as set 58.21forth in section 256.978. 58.22    (d) The commissioner shall provide the records and information necessary to administer 58.23the supplemental housing allowance to the commissioner of human services. 58.24    (e) At the request of the commissioner of human services, the commissioner of revenue 58.25shall electronically match the Social Security numbers and names of participants in the 58.26telephone assistance plan operated under sections 237.69 to 237.71, with those of property 58.27tax refund filers, and determine whether each participant's household income is within the 58.28eligibility standards for the telephone assistance plan. 58.29    (f) The commissioner may provide records and information collected under sections 58.30295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 58.31Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 58.32102-234. Upon the written agreement by the United States Department of Health and Human 58.33Services to maintain the confidentiality of the data, the commissioner may provide records 59.1and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 59.2Medicaid Services section of the United States Department of Health and Human Services 59.3for purposes of meeting federal reporting requirements. 59.4    (g) The commissioner may provide records and information to the commissioner of 59.5human services as necessary to administer the early refund of refundable tax credits. 59.6    (h) The commissioner may disclose information to the commissioner of human services 59.7 new text begin as new text end necessary to verify income new text begin for income verification new text end for eligibility and premium payment 59.8under the MinnesotaCare program, under section 256L.05, subdivision 2 new text begin , as well as the new text end 59.9 new text begin medical assistance program under chapter 256B new text end . 59.10    (i) The commissioner may disclose information to the commissioner of human services 59.11necessary to verify whether applicants or recipients for the Minnesota family investment 59.12program, general assistance, food support, Minnesota supplemental aid program, and child 59.13care assistance have claimed refundable tax credits under chapter 290 and the property tax 59.14refund under chapter 290A, and the amounts of the credits. 59.15    (j) The commissioner may disclose information to the commissioner of human services 59.16necessary to verify income for purposes of calculating parental contribution amounts under 59.17section 252.27, subdivision 2a. 59.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.19    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read: 59.20270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING. 59.21 new text begin Except as otherwise provided by law, new text end the commissioner shall prescribe the content and new text begin , new text end 59.22format new text begin , and manner new text end of all returns and other forms required to be filed under a law 59.23administered by the commissioner, and may furnish them subject to charge on application. 59.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.25    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read: 59.26    Subd. 5. Prohibition against collection during appeal period of an order. No collection 59.27action can be taken on an order of assessment, or any other order imposing a liability, 59.28including the filing of liens under section 270C.63, and no late payment penalties may be 59.29imposed when a return has been filed for the tax type and period upon which the order is 59.30based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 59.31after the order has been mailed to the taxpayer new text begin notice date designated new text end by the commissioner new text begin new text end 60.1 new text begin on the order new text end ; (2) if an administrative appeal is filed under section 270C.35, 60 days after new text begin new text end 60.2 new text begin the notice date designated by the commissioner on the written new text end determination of the 60.3administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 60.4decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 60.5is based upon a constitutional challenge to the tax, 60 days after final determination of the 60.6appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 60.7or a jeopardy collection under section 270C.36. 60.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 60.9 new text begin 2017. new text end 60.10    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read: 60.11    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent 60.12postage prepaid by United States mail to the taxpayer at the taxpayer's last known address, 60.13or sent by electronic mail to the taxpayer's last known electronic mailing address as provided 60.14for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal 60.15disability, or, in the case of a corporation, has terminated its existence, unless the 60.16commissioner has been provided with a new address by a party authorized to receive notices 60.17of assessment. new text begin Notice of an assessment is sufficient if it is sent on or before the notice date new text end 60.18 new text begin designated by the commissioner on the assessment. new text end 60.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments dated after December new text end 60.20 new text begin 31, 2017. new text end 60.21    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read: 60.22    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 60.23section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 60.24charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the notice 60.25was mailed to the taxpayer's last known address, stating that a penalty has been imposed new text begin or new text end 60.26 new text begin additional tax charge. For purposes of this section, "notice date" means the notice date new text end 60.27 new text begin designated by the commissioner on the order or other notice that a penalty or additional tax new text end 60.28 new text begin charge has been imposed new text end . 60.29(b) If the commissioner issues an order denying a request for abatement of penalty, 60.30interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 60.31in section 270C.35 or appeal to Tax Court as provided in section 271.06. 61.1(c) If the commissioner does not issue an order on the abatement request within 60 days 61.2from the date the request is received, the taxpayer may appeal to Tax Court as provided in 61.3section 271.06. 61.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 61.5 new text begin December 31, 2017. new text end 61.6    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read: 61.7    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the new text begin new text end 61.8 new text begin notice new text end date of new text begin designated by the commissioner on new text end the order adjusting the tax or order denying 61.9a request for abatement, or, in the case of a denied refund, the new text begin notice new text end date of new text begin designated by new text end 61.10 new text begin the commissioner on new text end the notice of denial. 61.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 61.12 new text begin December 31, 2017. new text end 61.13    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 61.14read: 61.15     new text begin Subd. 11. new text end new text begin Dismissal of administrative appeal. new text end new text begin If a taxpayer files an administrative new text end 61.16 new text begin appeal for an order of the commissioner and also files an appeal to the Tax Court for that new text end 61.17 new text begin same order of the commissioner, the administrative appeal is dismissed and the commissioner new text end 61.18 new text begin is no longer required to make a determination of appeal under subdivision 6. new text end 61.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all administrative appeals filed after new text end 61.20 new text begin June 30, 2017. new text end 61.21    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read: 61.22    Subdivision 1. Sufficient notice. (a) If no method of notification of a written 61.23determination or action of the commissioner is otherwise specifically provided for by law, 61.24notice of the determination or action sent postage prepaid by United States mail to the 61.25taxpayer or other person affected by the determination or action at the taxpayer's or person's 61.26last known address, is sufficient. If the taxpayer or person being notified is deceased or is 61.27under a legal disability, or, in the case of a corporation being notified that has terminated 61.28its existence, notice to the last known address of the taxpayer, person, or corporation is 61.29sufficient, unless the department has been provided with a new address by a party authorized 61.30to receive notices from the commissioner. 62.1(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 62.2of a determination or action of the commissioner sent by electronic mail to the taxpayer's 62.3or person's last known electronic mailing address as provided for in section 325L.08 is 62.4sufficient. 62.5 new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent on new text end 62.6 new text begin or before the notice date designated by the commissioner on the notice. new text end 62.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices dated after December 31, new text end 62.8 new text begin 2017. new text end 62.9    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 62.10to read: 62.11     new text begin Subd. 9. new text end new text begin Enforcement; limitations. new text end new text begin (a) Notwithstanding any other law, the imposition new text end 62.12 new text begin of a penalty or any other action against a tax return preparer authorized by subdivision 6 new text end 62.13 new text begin with respect to a return may be taken by the commissioner within the period provided by new text end 62.14 new text begin section 289A.38 to assess tax on that return. new text end 62.15 new text begin (b) Imposition of a penalty or other action against a tax return preparer authorized by new text end 62.16 new text begin subdivision 6 other than with respect to a return must be taken by the commissioner within new text end 62.17 new text begin five years of the violation of statute. new text end 62.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax preparation services provided new text end 62.19 new text begin after the day following final enactment. new text end 62.20    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read: 62.21    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 62.22from the list of tax preparers published under this section: 62.23(1) when the commissioner determines that the name was included on the list in error; 62.24(2) within 90 days new text begin three years new text end after the preparer has demonstrated to the commissioner 62.25that the preparer fully paid all fines new text begin or penalties new text end imposed, served any suspension, satisfied 62.26any sentence imposed, new text begin successfully completed any probationary period imposed, new text end and 62.27successfully completed any remedial actions required by the commissioner, the State Board 62.28of Accountancy, or the Lawyers Board of Professional Responsibility; or 62.29(3) when the commissioner has been notified that the tax preparer is deceased. 62.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 63.1    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read: 63.2    Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant 63.3to provide the applicant's Social Security number new text begin or individual taxpayer identification new text end 63.4 new text begin number new text end and Minnesota business identification number new text begin , as applicable, new text end on all license 63.5applications. Upon request of the commissioner, the licensing authority must provide the 63.6commissioner with a list of all applicants, including the name, address, business name and 63.7address, new text begin and new text end Social Security number, new text begin or individual taxpayer identification number new text end and 63.8business identification number new text begin , as applicable, new text end of each applicant. The commissioner may 63.9request from a licensing authority a list of the applicants no more than once each calendar 63.10year. 63.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 63.12    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read: 63.13    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60 63.14days after new text begin the new text end notice of the making and filing new text begin date new text end of an order of the commissioner of revenue, 63.15the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 63.16and file the original, with proof of such service, with the Tax Court administrator or with 63.17the court administrator of district court acting as court administrator of the Tax Court; 63.18provided, that the Tax Court, for cause shown, may by written order extend the time for 63.19appealing for an additional period not exceeding 30 days. new text begin For purposes of this section, new text end 63.20 new text begin "notice date" means the notice date designated by the commissioner on the order. new text end The notice 63.21of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt, 63.22the commissioner shall transmit a copy of the notice of appeal to the attorney general. The 63.23attorney general shall represent the commissioner, if requested, upon all such appeals except 63.24in cases where the attorney general has appealed in behalf of the state, or in other cases 63.25where the attorney general deems it against the interests of the state to represent the 63.26commissioner, in which event the attorney general may intervene or be substituted as an 63.27appellant in behalf of the state at any stage of the proceedings. 63.28Upon a final determination of any other matter over which the court is granted jurisdiction 63.29under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 63.30petition or notice of appeal as provided by law with the court administrator of district court, 63.31acting in the capacity of court administrator of the Tax Court, with proof of service of the 63.32petition or notice of appeal as required by law and within the time required by law. As used 63.33in this subdivision, "final determination" includes a notice of assessment and equalization 64.1for the year in question received from the local assessor, an order of the local board of 64.2equalization, or an order of a county board of equalization. 64.3The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 64.4with the district court administrator acting as court administrator of the Tax Court is 64.5forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 64.6property valuation for which the assessor, a local board of equalization, a county board of 64.7equalization or the commissioner of revenue has issued an order, the officer issuing the 64.8order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 64.9in the form prescribed by the Tax Court. 64.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 64.11 new text begin 2017. new text end 64.12    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read: 64.13    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of 64.14Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 64.15in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the new text end 64.16 new text begin 60-day period of time to file a notice of appeal provided in subdivision 2. new text end The Tax Court 64.17may adopt rules under chapter 14. 64.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 64.19 new text begin 2017. new text end 64.20    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read: 64.21    Subd. 10. Personal property used for pollution control. Personal property used 64.22primarily for the abatement and control of air, water, or land pollution is exempt to the 64.23extent that it is so used, and real property is exempt if it is used primarily for abatement and 64.24control of air, water, or land pollution as part of an agricultural operation, as a part of a 64.25centralized treatment and recovery facility operating under a permit issued by the Minnesota 64.26Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 64.277001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 64.28and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 64.29or inorganic materials from hazardous industrial wastes, or as part of an electric generation 64.30system. For purposes of this subdivision, personal property includes ponderous machinery 64.31and equipment used in a business or production activity that at common law is considered 64.32real property. 65.1Any taxpayer requesting exemption of all or a portion of any real property or any 65.2equipment or device, or part thereof, operated primarily for the control or abatement of air, 65.3water, or land pollution shall file an application with the commissioner of revenue. The 65.4commissioner shall develop an electronic means to notify interested parties when electric 65.5power generation facilities have filed an application. new text begin The commissioner shall prescribe the new text end 65.6 new text begin content, format, and manner of the application pursuant to section 270C.30, except that a new text end 65.7 new text begin "law administered by the commissioner" includes the property tax laws, and if an application new text end 65.8 new text begin is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, new text end 65.9 new text begin except that a "law administered by the commissioner" includes the property tax laws. new text end The 65.10Minnesota Pollution Control Agency shall upon request of the commissioner furnish 65.11information and advice to the commissioner. 65.12The information and advice furnished by the Minnesota Pollution Control Agency must 65.13include statements as to whether the equipment, device, or real property meets a standard, 65.14rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 65.15whether the equipment, device, or real property is installed or operated in accordance with 65.16it. On determining that property qualifies for exemption, the commissioner shall issue an 65.17order exempting the property from taxation. The commissioner shall develop an electronic 65.18means to notify interested parties when the commissioner has issued an order exempting 65.19property from taxation under this subdivision. The equipment, device, or real property shall 65.20continue to be exempt from taxation as long as the order issued by the commissioner remains 65.21in effect. 65.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 65.23    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read: 65.24    Subdivision 1. Efficiency determination and certification. An owner or operator of a 65.25new or existing electric power generation facility, excluding wind energy conversion systems, 65.26may apply to the commissioner of revenue for a market value exclusion on the property as 65.27provided for in this section. This exclusion shall apply only to the market value of the 65.28equipment of the facility, and shall not apply to the structures and the land upon which the 65.29facility is located. The commissioner of revenue shall prescribe the forms new text begin content, format, new text end 65.30 new text begin manner, new text end and procedures for this application new text begin pursuant to section 270C.30, except that a "law new text end 65.31 new text begin administered by the commissioner" includes the property tax laws. If an application is made new text end 65.32 new text begin by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except new text end 65.33 new text begin that a "law administered by the commissioner" includes the property tax laws new text end . Upon receiving 65.34the application, the commissioner of revenue shall: (1) request the commissioner of commerce 66.1to make a determination of the efficiency of the applicant's electric power generation facility; 66.2and (2) shall develop an electronic means to notify interested parties when electric power 66.3generation facilities have filed an application. The commissioner of commerce shall calculate 66.4efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 66.5based on the performance of the facility's equipment during normal full load operation. The 66.6commissioner must include in this formula the energy used in any on-site preparation of 66.7materials necessary to convert the materials into the fuel used to generate electricity, such 66.8as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 66.9(HHV) for all substances in the commissioner's efficiency calculations, except for wood 66.10for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 66.11commissioner shall adjust the heating value to allow for energy consumed for evaporation 66.12of the moisture in the wood. The applicant shall provide the commissioner of commerce 66.13with whatever information the commissioner deems necessary to make the determination. 66.14Within 30 days of the receipt of the necessary information, the commissioner of commerce 66.15shall certify the findings of the efficiency determination to the commissioner of revenue 66.16and to the applicant. The commissioner of commerce shall determine the efficiency of the 66.17facility and certify the findings of that determination to the commissioner of revenue every 66.18two years thereafter from the date of the original certification. 66.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 66.20    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read: 66.21    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 66.22the state of Minnesota or any political subdivision thereof, and property exempt from taxation 66.23under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 66.24provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 66.25described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 66.26the assessor of the assessment district in which the property is located. 66.27(b) A taxpayer claiming an exemption from taxation on property described in section 66.28272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue, 66.29on or before February 15 of each year for which the taxpayer claims an exemption. 66.30(c) In case of sickness, absence or other disability or for good cause, the assessor or the 66.31commissioner may extend the time for filing the statement of exemption for a period not to 66.32exceed 60 days. 67.1(d) The commissioner of revenue shall prescribe the form and contents new text begin content, format, new text end 67.2 new text begin and manner new text end of the statement of exemption new text begin pursuant to section 270C.30, except that a "law new text end 67.3 new text begin administered by the commissioner" includes the property tax laws new text end . 67.4 new text begin (e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant new text end 67.5 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 67.6 new text begin property tax laws. new text end 67.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.8    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read: 67.9    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under 67.10subdivision 3 shall file a report with the commissioner of revenue annually on or before 67.11February 1 new text begin January 15 new text end detailing the amount of electricity in kilowatt-hours that was produced 67.12by the wind energy conversion system for the previous calendar year. The commissioner 67.13shall prescribe the form new text begin content, format, and manner new text end of the report new text begin pursuant to section new text end 67.14 new text begin 270C.30, except that a "law administered by the commissioner" includes the property tax new text end 67.15 new text begin laws new text end . The report must contain the information required by the commissioner to determine 67.16the tax due to each county under this section for the current year. If an owner of a wind 67.17energy conversion system subject to taxation under this section fails to file the report by 67.18the due date, the commissioner of revenue shall determine the tax based upon the nameplate 67.19capacity of the system multiplied by a capacity factor of 60 percent. 67.20 new text begin (b) If a report is made by electronic means, the taxpayer's signature is defined pursuant new text end 67.21 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 67.22 new text begin property tax laws. new text end 67.23(b) new text begin (c) new text end On or before February 28, the commissioner of revenue shall notify the owner 67.24of the wind energy conversion systems of the tax due to each county for the current year 67.25and shall certify to the county auditor of each county in which the systems are located the 67.26tax due from each owner for the current year. 67.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, except new text end 67.28 new text begin that the amendment in paragraph (a) moving the date to file the report is effective for reports new text end 67.29 new text begin filed in 2018 and thereafter. new text end 67.30    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read: 67.31    Subd. 4. Reports. An owner of a solar energy generating system subject to tax under 67.32this section shall file a report with the commissioner of revenue annually on or before 68.1January 15 detailing the amount of electricity in megawatt-hours that was produced by the 68.2system in the previous calendar year. The commissioner shall prescribe the form new text begin content, new text end 68.3 new text begin format, and manner new text end of the report new text begin pursuant to section 270C.30 new text end . The report must contain the 68.4information required by the commissioner to determine the tax due to each county under 68.5this section for the current year. If an owner of a solar energy generating system subject to 68.6taxation under this section fails to file the report by the due date, the commissioner of 68.7revenue shall determine the tax based upon the nameplate capacity of the system multiplied 68.8by a capacity factor of 30 percent. 68.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 68.10    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read: 68.11    Subd. 2. Form; information required. The certificate of value shall require such facts 68.12and information as may be determined by the commissioner to be reasonably necessary in 68.13the administration of the state education aid formulas. The form new text begin commissioner shall prescribe new text end 68.14 new text begin the content, format, and manner new text end of the certificate of value shall be prescribed by the 68.15Department of Revenue which shall provide an adequate supply of forms to each county 68.16auditor new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" new text end 68.17 new text begin includes the property tax laws new text end . 68.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 68.19    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read: 68.20    Subd. 13. Homestead application. (a) A person who meets the homestead requirements 68.21under subdivision 1 must file a homestead application with the county assessor to initially 68.22obtain homestead classification. 68.23    (b) The format and contents of a uniform homestead application shall be prescribed by 68.24the commissioner of revenue. new text begin The commissioner shall prescribe the content, format, and new text end 68.25 new text begin manner of the homestead application required to be filed under this chapter pursuant to new text end 68.26 new text begin section 270C.30. new text end The application must clearly inform the taxpayer that this application must 68.27be signed by all owners who occupy the property or by the qualifying relative and returned 68.28to the county assessor in order for the property to receive homestead treatment. 68.29    (c) Every property owner applying for homestead classification must furnish to the 68.30county assessor the Social Security number of each occupant who is listed as an owner of 68.31the property on the deed of record, the name and address of each owner who does not occupy 68.32the property, and the name and Social Security number of each owner's spouse who occupies 69.1the property. The application must be signed by each owner who occupies the property and 69.2by each owner's spouse who occupies the property, or, in the case of property that qualifies 69.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 69.4    If a property owner occupies a homestead, the property owner's spouse may not claim 69.5another property as a homestead unless the property owner and the property owner's spouse 69.6file with the assessor an affidavit or other proof required by the assessor stating that the 69.7property qualifies as a homestead under subdivision 1, paragraph (e). 69.8    Owners or spouses occupying residences owned by their spouses and previously occupied 69.9with the other spouse, either of whom fail to include the other spouse's name and Social 69.10Security number on the homestead application or provide the affidavits or other proof 69.11requested, will be deemed to have elected to receive only partial homestead treatment of 69.12their residence. The remainder of the residence will be classified as nonhomestead residential. 69.13When an owner or spouse's name and Social Security number appear on homestead 69.14applications for two separate residences and only one application is signed, the owner or 69.15spouse will be deemed to have elected to homestead the residence for which the application 69.16was signed. 69.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative 69.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 69.19the property to receive homestead status, a homestead application must be filed with the 69.20assessor. The Social Security number of each relative and spouse of a relative occupying 69.21the property shall be required on the homestead application filed under this subdivision. If 69.22a different relative of the owner subsequently occupies the property, the owner of the property 69.23must notify the assessor within 30 days of the change in occupancy. The Social Security 69.24number of a relative or relative's spouse occupying the property is private data on individuals 69.25as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 69.26revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 69.27personal property taxes owing, to the county treasurer. 69.28    (e) The homestead application shall also notify the property owners that if the property 69.29is granted homestead status for any assessment year, that same property shall remain 69.30classified as homestead until the property is sold or transferred to another person, or the 69.31owners, the spouse of the owner, or the relatives no longer use the property as their 69.32homestead. Upon the sale or transfer of the homestead property, a certificate of value must 69.33be timely filed with the county auditor as provided under section 272.115. Failure to notify 69.34the assessor within 30 days that the property has been sold, transferred, or that the owner, 69.35the spouse of the owner, or the relative is no longer occupying the property as a homestead, 70.1shall result in the penalty provided under this subdivision and the property will lose its 70.2current homestead status. 70.3    (f) If a homestead application has not been filed with the county by December 15, the 70.4assessor shall classify the property as nonhomestead for the current assessment year for 70.5taxes payable in the following year, provided that the owner may be entitled to receive the 70.6homestead classification by proper application under section 375.192. 70.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.8    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read: 70.9273.371 REPORTS OF UTILITY COMPANIES. 70.10    Subdivision 1. Report required. Every electric light, power, gas, water, express, stage, 70.11and transportation company new text begin , new text end and pipeline new text begin company new text end doing business in Minnesota shall 70.12annually file with the commissioner on or before March 31 a report under oath setting forth 70.13the information prescribed by the commissioner to enable the commissioner to make 70.14valuations, recommended valuations, and equalization required under sections 273.33, 70.15273.35 , 273.36, 273.37, and 273.3711. new text begin The commissioner shall prescribe the content, format, new text end 70.16 new text begin and manner of the report pursuant to section 270C.30, except that a "law administered by new text end 70.17 new text begin the commissioner" includes the property tax laws. new text end If all the required information is not 70.18available on March 31, the company or pipeline shall file the information that is available 70.19on or before March 31, and the balance of the information as soon as it becomes available. new text begin new text end 70.20 new text begin If a report is made by electronic means, the taxpayer's signature is defined pursuant to section new text end 70.21 new text begin 270C.304, except that a "law administered by the commissioner" includes the property tax new text end 70.22 new text begin laws. new text end 70.23    Subd. 2. Extension. The commissioner for good cause may extend the time for filing 70.24the report required by subdivision 1. The extension may new text begin must new text end not exceed 15 days. 70.25     new text begin Subd. 3. new text end new text begin Reports filed by the commissioner. new text end new text begin If a company fails to file a report required new text end 70.26 new text begin by subdivision 1, the commissioner may, from information in the commissioner's possession new text end 70.27 new text begin or obtainable by the commissioner, make and file a report for the company or make the new text end 70.28 new text begin valuations, recommended valuations, and equalizations required under sections 273.33, new text end 70.29 new text begin 273.35 to 273.37, and 273.3711. new text end 70.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.31    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read: 70.32287.2205 TAX-FORFEITED LAND. 71.1    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 71.2the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 71.3private sale or a repurchase of tax-forfeited land. State agencies and local units of government 71.4that acquire tax-forfeited land by purchase or any other means are subject to this section. 71.5The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 71.6for an authorized public use under section 282.01, subdivision 1a, new text begin for a school forest under new text end 71.7 new text begin section 282.01, subdivision 1a, new text end or for redevelopment purposes under section 282.01, 71.8subdivision 1b . 71.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 71.10    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 71.11to read: 71.12     new text begin Subd. 17. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and manner new text end 71.13 new text begin of the returns and other documents pursuant to section 270C.30. This does not authorize new text end 71.14 new text begin the commissioner to require individual income taxpayers to file individual income tax returns new text end 71.15 new text begin electronically. new text end 71.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 71.17    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read: 71.18    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 71.19under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 71.20under section 290.923, subdivision 2, must file a return with the commissioner for each 71.21quarterly period unless otherwise prescribed by the commissioner. 71.22(b) A person or corporation required to make deposits under section 290.9201, subdivision 71.238 , must file an entertainer withholding tax return with the commissioner. 71.24(c) A person required to withhold an amount under section 290.9705, subdivision 1, 71.25must file a return. 71.26(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 71.274b , must file a return. 71.28(e) An S corporation required to deduct and withhold tax under section 290.92, 71.29subdivision 4c , must also file a return. 71.30(f) Returns must be filed in the form and manner, and contain the information prescribed 71.31by the commissioner. new text begin The commissioner shall prescribe the content, format, and manner new text end 72.1 new text begin of the returns pursuant to section 270C.30. new text end Every return for taxes withheld must be signed 72.2by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 72.3designee. 72.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 72.5    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read: 72.6    Subdivision 1. Return required. (a) Except as provided in section 289A.18, subdivision 72.74 , for the month in which taxes imposed by chapter 297A are payable, or for which a return 72.8is due, a return for the preceding reporting period must be filed with the commissioner in 72.9the form and manner the commissioner prescribes. new text begin The commissioner shall prescribe the new text end 72.10 new text begin content, format, and manner of the returns pursuant to section 270C.30. new text end A person making 72.11sales at retail at two or more places of business may file a consolidated return subject to 72.12rules prescribed by the commissioner. In computing the dollar amount of items on the return, 72.13the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 72.14cents and increasing amounts of 50 cents to 99 cents to the next highest dollar. 72.15(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 72.16permit under chapter 297A and who makes annual purchases, for use in a trade or business, 72.17of less than $18,500, or a person who is not required to hold a sales tax permit and who 72.18makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 72.19may file an annual use tax return on a form prescribed by the commissioner. new text begin The new text end 72.20 new text begin commissioner shall prescribe the content, format, and manner of the return pursuant to new text end 72.21 new text begin section 270C.30. new text end If a person who qualifies for an annual use tax reporting period is required 72.22to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 72.23excess of $18,500 during the calendar year, the reporting period must be considered ended 72.24at the end of the month in which the permit is applied for or the purchase in excess of 72.25$18,500 is made and a return must be filed for the preceding reporting period. 72.26(c) Notwithstanding paragraph new text begin paragraphs new text end (a) new text begin and (b) new text end , a person prohibited by the person's 72.27religious beliefs from using electronics shall be allowed to file by mail, without any additional 72.28fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 72.29form prescribed by the commissioner. A return filed under this paragraph must be postmarked 72.30no later than the day the return is due in order to be considered filed on a timely basis. 72.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 73.1    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read: 73.2    Subdivision 1. Individual income, fiduciary income, corporate franchise, and 73.3entertainment taxes; partnership and S corporation returns; information returns; 73.4mining company returns. The returns required to be made under sections 289A.08 and 73.5289A.12 must be filed at the following times: 73.6    (1) returns made on the basis of the calendar year must be filed on April 15 following 73.7the close of the calendar year, except that returns of corporations new text begin and partnerships new text end must be 73.8filed on the due date for filing the federal income tax return; 73.9    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 73.10month following the close of the fiscal year, except that returns of corporations new text begin and new text end 73.11 new text begin partnerships new text end must be filed on the due date for filing the federal income tax return; 73.12    (3) returns for a fractional part of a year must be filed on the due date for filing the 73.13federal income tax return; 73.14    (4) in the case of a final return of a decedent for a fractional part of a year, the return 73.15must be filed on the 15th day of the fourth month following the close of the 12-month period 73.16that began with the first day of that fractional part of a year; 73.17    (5) in the case of the return of a cooperative association, returns must be filed on or 73.18before the 15th day of the ninth month following the close of the taxable year; 73.19    (6) if a corporation has been divested from a unitary group and files a return for a 73.20fractional part of a year in which it was a member of a unitary business that files a combined 73.21report under section 290.17, subdivision 4, the divested corporation's return must be filed 73.22on the 15th day of the third month following the close of the common accounting period 73.23that includes the fractional year; 73.24    (7) returns of entertainment entities must be filed on April 15 following the close of the 73.25calendar year; 73.26    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 73.27the 15th day of the fifth month following the close of the taxable year; 73.28    (9) returns of mining companies must be filed on May 1 following the close of the 73.29calendar year; and 73.30    (10) returns required to be filed with the commissioner under section 289A.12, 73.31subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the 73.32commissioner. 74.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 74.2    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read: 74.3    Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment of 74.4tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 74.5be made at any time within two years from the making of the refund. If part of the refund 74.6was induced by fraud or misrepresentation of a material fact, the assessment may be made 74.7at any time. new text begin (a) Except as provided in paragraph (b), an erroneous refund occurs when the new text end 74.8 new text begin commissioner issues a payment to a person that exceeds the amount the person is entitled new text end 74.9 new text begin to receive under law. An erroneous refund is considered an underpayment of tax on the date new text end 74.10 new text begin issued. new text end 74.11 new text begin (b) To the extent that the amount paid does not exceed the amount claimed by the new text end 74.12 new text begin taxpayer, an erroneous refund does not include the following: new text end 74.13 new text begin (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a new text end 74.14 new text begin taxpayer, including but not limited to refunds of claims made under section 290.06, new text end 74.15 new text begin subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; new text end 74.16 new text begin 290.0681; or 290.0692; or chapter 290A; or new text end 74.17 new text begin (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a new text end 74.18 new text begin taxpayer. new text end 74.19 new text begin (c) The commissioner may make an assessment to recover an erroneous refund at any new text end 74.20 new text begin time within two years from the issuance of the erroneous refund. If all or part of the erroneous new text end 74.21 new text begin refund was induced by fraud or misrepresentation of a material fact, the assessment may new text end 74.22 new text begin be made at any time. new text end 74.23 new text begin (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be new text end 74.24 new text begin conducted under section 289A.38. new text end 74.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 74.26    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read: 74.27    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund 74.28claim is denied in whole or in part, the taxpayer may: 74.29(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 74.30Tax Court, within 60 days after issuance new text begin the notice date new text end of the commissioner's notice of 74.31denial; or 75.1(2) file an action in the district court to recover the refund. 75.2(b) An action in the district court on a denied claim for refund must be brought within 75.318 months of the new text begin notice new text end date of the denial of the claim by the commissioner. new text begin For the purposes new text end 75.4 new text begin of this section, "notice date" has the meaning given in section 270C.35, subdivision 3. new text end 75.5(c) No action in the district court or the Tax Court shall be brought within six months 75.6of the filing of the refund claim unless the commissioner denies the claim within that period. 75.7(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 75.8of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 75.9time after the expiration of six months from the time the claim was filed. 75.10(e) The commissioner and the taxpayer may agree to extend the period for bringing an 75.11action in the district court. 75.12(f) An action for refund of tax by the taxpayer must be brought in the district court of 75.13the district in which lies the county of the taxpayer's residence or principal place of business. 75.14In the case of an estate or trust, the action must be brought at the principal place of its 75.15administration. Any action may be brought in the district court for Ramsey County. 75.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 75.17 new text begin December 31, 2017. new text end 75.18    Sec. 31. new text begin [290B.11] FORMS. new text end new text begin new text end 75.19 new text begin The commissioner shall prescribe the content, format, and manner of all forms and other new text end 75.20 new text begin documents required to be filed under this chapter pursuant to section 270C.30. new text end 75.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 75.22    Sec. 32. new text begin [293.15] FORMS. new text end new text begin new text end 75.23 new text begin The commissioner shall prescribe the content, format, and manner of all forms and other new text end 75.24 new text begin documents required to be filed under this chapter pursuant to section 270C.30. new text end 75.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 75.26    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read: 75.27    Subd. 6. Form of returns. The estimated payments and annual return must contain the 75.28information and be in the form prescribed by the commissioner. new text begin The commissioner shall new text end 75.29 new text begin prescribe the content, format, and manner of the estimated payment forms and annual return new text end 75.30 new text begin pursuant to section 270C.30. new text end 76.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 76.2    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 76.3to read: 76.4     new text begin Subd. 5. new text end new text begin Forms. new text end new text begin The commissioner shall prescribe the content, format, and manner of new text end 76.5 new text begin all forms and other documents required to be filed under this chapter pursuant to section new text end 76.6 new text begin 270C.30. new text end 76.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 76.8    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read: 76.9    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any 76.10penalty imposed under this section, if in the commissioner's opinion there is reasonable 76.11cause to do so. 76.12(b) A request for abatement of penalty must be filed with the commissioner within 60 76.13days of the new text begin notice new text end date new text begin of new text end the notice stating that a penalty has been imposed was mailed to 76.14the taxpayer's last known address. new text begin For purposes of this section, "notice date" means the new text end 76.15 new text begin notice date designated by the commissioner on the order or other notice that a penalty has new text end 76.16 new text begin been imposed. new text end 76.17(c) If the commissioner issues an order denying a request for abatement of penalty, the 76.18taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 76.19Court as provided in section 271.06. If the commissioner does not issue an order on the 76.20abatement request within 60 days from the date the request is received, the taxpayer may 76.21appeal to Tax Court as provided in section 271.06. 76.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 76.23 new text begin December 31, 2017. new text end 76.24    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read: 76.25296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT. 76.26In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 76.27order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 76.2860 days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 76.29provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice new text end 76.30 new text begin date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 77.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 77.2 new text begin 2017. new text end 77.3    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read: 77.4297D.02 ADMINISTRATION. 77.5The commissioner of revenue shall administer this chapter. new text begin The commissioner shall new text end 77.6 new text begin prescribe the content, format, and manner of all forms and other documents required to be new text end 77.7 new text begin filed under this chapter pursuant to section 270C.30. new text end Payments required by this chapter 77.8must be made to the commissioner on the form provided by the commissioner. Tax obligors 77.9are not required to give their name, address, Social Security number, or other identifying 77.10information on the form. The commissioner shall collect all taxes under this chapter. 77.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 77.12    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read: 77.13    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable 77.14to the commissioner when the gambling tax return is required to be filed. Distributors must 77.15file their monthly sales figures with the commissioner on a form prescribed by the 77.16commissioner. Returns covering the taxes imposed under this section must be filed with 77.17the commissioner on or before the 20th day of the month following the close of the previous 77.18calendar month. The commissioner may require that the returns be filed via magnetic media 77.19or electronic data transfer. new text begin The commissioner shall prescribe the content, format, and manner new text end 77.20 new text begin of returns or other documents pursuant to section 270C.30. new text end The proceeds, along with the 77.21revenue received from all license fees and other fees under sections 349.11 to 349.191, 77.22349.211 , and 349.213, must be paid to the commissioner of management and budget for 77.23deposit in the general fund. 77.24(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 77.25distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 77.26the organization is exempt from taxes imposed by chapter 297A and is exempt from all 77.27local taxes and license fees except a fee authorized under section 349.16, subdivision 8. 77.28(c) One-half of one percent of the revenue deposited in the general fund under paragraph 77.29(a), is appropriated to the commissioner of human services for the compulsive gambling 77.30treatment program established under section 245.98. One-half of one percent of the revenue 77.31deposited in the general fund under paragraph (a), is appropriated to the commissioner of 77.32human services for a grant to the state affiliate recognized by the National Council on 78.1Problem Gambling to increase public awareness of problem gambling, education and training 78.2for individuals and organizations providing effective treatment services to problem gamblers 78.3and their families, and research relating to problem gambling. Money appropriated by this 78.4paragraph must supplement and must not replace existing state funding for these programs. 78.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 78.6    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read: 78.7    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or 78.8resale in this state, or for receipt by a person or entity in this state, shall file with the 78.9commissioner, on a form prescribed by the commissioner, a report of gambling product 78.10sold to any person in the state, including the established governing body of an Indian tribe 78.11recognized by the United States Department of the Interior. The report must be filed monthly 78.12on or before the 20th day of the month succeeding the month in which the sale was made. 78.13The commissioner may require that the report be submitted via magnetic media or electronic 78.14data transfer. new text begin The commissioner shall prescribe the content, format, and manner of returns new text end 78.15 new text begin or other documents pursuant to section 270C.30. new text end The commissioner may inspect the premises, 78.16books, records, and inventory of a manufacturer without notice during the normal business 78.17hours of the manufacturer. A person violating this section is guilty of a misdemeanor. 78.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 78.19    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read: 78.20    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the 78.21commissioner prescribes, its sales of each type of gambling product. This report must be 78.22filed monthly on or before the 20th day of the month succeeding the month in which the 78.23sale was made. The commissioner may require that a distributor submit the monthly report 78.24and invoices required in this subdivision via magnetic media or electronic data transfer. new text begin new text end 78.25 new text begin The commissioner shall prescribe the content, format, and manner of returns or other new text end 78.26 new text begin documents pursuant to section 270C.30. new text end 78.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 78.28    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read: 78.29    Subdivision 1. Reports. An organization must file with the commissioner, on a form 78.30prescribed by the commissioner, a report showing all gambling activity conducted by that 78.31organization for each month. Gambling activity includes all gross receipts, prizes, all 78.32gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 79.1purpose and board-approved expenditures. The report must be filed with the commissioner 79.2on or before the 20th day of the month following the month in which the gambling activity 79.3takes place. The commissioner may require that the reports be filed via magnetic media or 79.4electronic data transfer. new text begin The commissioner shall prescribe the content, format, and manner new text end 79.5 new text begin of returns or other documents pursuant to section 270C.30. new text end 79.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 79.7    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read: 79.8    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of 79.9each calendar month, a distributor with a place of business in this state shall file a return 79.10with the commissioner showing the quantity of cigarettes manufactured or brought in from 79.11outside the state or purchased during the preceding calendar month and the quantity of 79.12cigarettes sold or otherwise disposed of in this state and outside this state during that month. 79.13A licensed distributor outside this state shall in like manner file a return showing the quantity 79.14of cigarettes shipped or transported into this state during the preceding calendar month. 79.15Returns must be made in the form and manner prescribed by The commissioner new text begin shall new text end 79.16 new text begin prescribe the content, format, and manner of returns pursuant to section 270C.30, new text end and new text begin the new text end 79.17 new text begin returns new text end must contain any other information required by the commissioner. The return must 79.18be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 79.19subject to the accelerated tax payment requirements in subdivision 10, the return for the 79.20May liability is due two business days before June 30th of the year and the return for the 79.21June liability is due on or before August 18th of the year. 79.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 79.23    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read: 79.24297F.23 JUDICIAL REVIEW. 79.25In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 79.26order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 79.2760 days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 79.28provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice new text end 79.29 new text begin date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 79.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 79.31 new text begin 2017. new text end 80.1    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read: 80.2    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers. 80.3On or before the 18th day of each calendar month following the month in which a licensed 80.4manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 80.5or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 80.6acquires title to or possession of untaxed fermented malt beverages, the licensed 80.7manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 80.8with the commissioner, and in addition must keep records and render reports as required 80.9by the commissioner. Returns must be made in a form and manner prescribed by the 80.10commissioner, and new text begin The commissioner shall prescribe the content, format, and manner of new text end 80.11 new text begin returns pursuant to section 270C.30. The returns new text end must contain any other information required 80.12by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 80.13liability. Returns must be filed regardless of whether a tax is due. 80.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 80.15    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read: 80.16297G.22 JUDICIAL REVIEW. 80.17In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 80.18the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 80.19from the date of the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided 80.20under section 271.06. new text begin For purposes of this section, "notice date" means the notice date new text end 80.21 new text begin designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 80.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 80.23 new text begin 2017. new text end 80.24    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 80.25to read: 80.26     new text begin Subd. 11. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and manner new text end 80.27 new text begin of returns or other documents pursuant to section 270C.30. new text end 80.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 80.29    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read: 80.30    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 80.31or in part, the taxpayer may contest the denial by: 81.1(1) filing an administrative appeal with the commissioner under section 270C.35; 81.2(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the notice of denial; 81.3or 81.4(3) filing an action in the district court to recover the refund. 81.5(b) An action in the district court must be brought within 18 months following new text begin of new text end the 81.6 new text begin notice new text end date of the notice of denial. new text begin For purposes of this section, "notice date" has the meaning new text end 81.7 new text begin given in section 270C.35, subdivision 3. new text end An action for refund of tax or surcharge must be 81.8brought in the district court of the district in which lies the taxpayer's principal place of 81.9business or in the District Court for Ramsey County. If a taxpayer files a claim for refund 81.10and the commissioner has not issued a denial of the claim, the taxpayer may bring an action 81.11in the district court or the Tax Court at any time after the expiration of six months from the 81.12time the claim was filed. 81.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 81.14 new text begin December 31, 2017. new text end 81.15    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read: 81.16    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment 81.17required under subdivision 1, if the commissioner, in consultation with the commissioner 81.18of employment and economic development and appropriate officials from the local 81.19government units in which the qualified business is located, determines that requiring 81.20repayment of the tax is not in the best interest of the state or the local government units and 81.21the business ceased operating as a result of circumstances beyond its control including, but 81.22not limited to: 81.23    (1) a natural disaster; 81.24    (2) unforeseen industry trends; or 81.25    (3) loss of a major supplier or customer. 81.26    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the 81.27commissioner has waived repayment by the operating business under subdivision 1, unless 81.28the person that received benefits without having to operate a business in the zone was a 81.29contributing factor in the qualified business becoming subject to repayment under subdivision 81.301; 81.31    (2) the commissioner shall waive the repayment required under subdivision 1a, even if 81.32the repayment has not been waived for the operating business if: 82.1    (i) the person that received benefits without having to operate a business in the zone and 82.2the business that operated in the zone are not related parties as defined in section 267(b) of 82.3the Internal Revenue Code of 1986, as amended through December 31, 2007; and 82.4    (ii) actions of the person were not a contributing factor in the qualified business becoming 82.5subject to repayment under subdivision 1. 82.6(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 82.7date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 82.8issued under subdivision 4, paragraph (c). new text begin For purposes of this section, "notice date" means new text end 82.9 new text begin the notice date designated by the commissioner on the order. new text end 82.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders of the commissioner of revenue new text end 82.11 new text begin dated after December 31, 2017. new text end 82.12    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read: 82.13EFFECTIVE DATE.This section is effective for orders and notices dated after 82.14September 30, 2015 new text begin December 31, 2017 new text end . 82.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from September 30, 2015. new text end 82.16ARTICLE 7 82.17SUSTAINABLE FOREST INCENTIVE ACT PROVISIONS 82.18    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read: 82.19290C.03 ELIGIBILITY REQUIREMENTS. 82.20(a) Land may be enrolled in the sustainable forest incentive program under this chapter 82.21if all of the following conditions are met: 82.22(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 82.23must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment; 82.24(2) a forest management plan for the land must be new text begin (i) new text end prepared by an approved plan 82.25writer and implemented during the period in which the land is enrolled new text begin , and (ii) registered new text end 82.26 new text begin with the Department of Natural Resources new text end ; 82.27(3) timber harvesting and forest management guidelines must be used in conjunction 82.28with any timber harvesting or forest management activities conducted on the land during 82.29the period in which the land is enrolled; 82.30(4) the land must be enrolled for a minimum of eight years; 83.1(5) there are no delinquent property taxes on the land; and 83.2(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program 83.3must allow year-round, nonmotorized access to fish and wildlife resources and motorized 83.4access on established and maintained roads and trails, unless the road or trail is temporarily 83.5closed for safety, natural resource, or road damage reasons on enrolled land except within 83.6one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 83.7by the commissioner of natural resources. new text begin ; and new text end 83.8 new text begin (7) the land is not classified as 2c managed forest land. new text end 83.9(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 83.10action: 83.11(1) extend any assurance that the land is safe for any purpose; 83.12(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 83.13care is owed; or 83.14(3) assume responsibility for or incur liability for any injury to the person or property 83.15caused by an act or omission of the person. 83.16 new text begin (c) A minimum of three acres must be excluded from enrolled land when the land is new text end 83.17 new text begin improved with a structure that is not a minor, ancillary, or nonresidential structure. If land new text end 83.18 new text begin does not meet the definition of forest land in section 290C.02, subdivision 6, because the new text end 83.19 new text begin land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal new text end 83.20 new text begin conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject new text end 83.21 new text begin to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural new text end 83.22 new text begin land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan new text end 83.23 new text begin Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is new text end 83.24 new text begin not eligible to be enrolled in the program. new text end 83.25 new text begin EFFECTIVE DATE. new text end new text begin The amendment to paragraph (a), clause (2), is effective for new text end 83.26 new text begin certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is new text end 83.27 new text begin effective for certifications and applications due in 2017 and thereafter. The amendment new text end 83.28 new text begin adding paragraph (c) is effective the day following final enactment. new text end 83.29    Sec. 2. new text begin [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN. new text end 83.30 new text begin On request of the commissioner, the commissioner of natural resources must annually new text end 83.31 new text begin provide verification that the claimant has a current forest management plan on file with the new text end 83.32 new text begin Department of Natural Resources. new text end 84.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications filed after July 1, 2018. new text end 84.2    Sec. 3. new text begin REPEALER. new text end 84.3 new text begin Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, new text end new text begin are new text end 84.4 new text begin repealed. new text end 84.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end