relating to taxation; making policy, technical, and clarifying changes to income,
         <br/>
<a id="pl.1.3"></a><var>1.3</var>corporate, estate, special, sales, property, and miscellaneous taxes and tax <br/>
<a id="pl.1.4"></a><var>1.4</var>provisions;amending Minnesota Statutes 2016, sections 13.51, subdivision 2; <br/>
<a id="pl.1.5"></a><var>1.5</var>69.021, subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision; <br/>
<a id="pl.1.6"></a><var>1.6</var>270.072, subdivisions 2, 3, by adding a subdivision; 270.12, by adding a <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision; 270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision <br/>
<a id="pl.1.8"></a><var>1.8</var>1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.35, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445, by <br/>
<a id="pl.1.10"></a><var>1.10</var>adding a subdivision; 270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision 1; 271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10; 272.0211, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by adding a <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 273.061, subdivision
         <br/>
<a id="pl.1.14"></a><var>1.14</var>7; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 22; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 2, 4; <br/>
<a id="pl.1.16"></a><var>1.16</var>274.01, subdivision 1; 274.13, subdivision 1; 274.135, subdivision 3; 275.065, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivision 1; 275.62, subdivision 2; 278.01, subdivision 1; 282.01, subdivisions
         <br/>
<a id="pl.1.18"></a><var>1.18</var>1a, 1d; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; 289A.09,
         <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, <br/>
<a id="pl.1.21"></a><var>1.21</var>subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 7; 289A.60, subdivision 28, by adding a subdivision; 289A.63, by <br/>
<a id="pl.1.23"></a><var>1.23</var>adding a subdivision; 290.0672, subdivision 1; 290.068, subdivision 2; 290.0922, <br/>
<a id="pl.1.24"></a><var>1.24</var>subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.19; 290C.03; <br/>
<a id="pl.1.25"></a><var>1.25</var>291.016, subdivisions 2, 3; 291.03, subdivisions 9, 11; 295.54, subdivision 2; <br/>
<a id="pl.1.26"></a><var>1.26</var>295.55, subdivision 6; 296A.01, subdivisions 33, 42, by adding a subdivision; <br/>
<a id="pl.1.27"></a><var>1.27</var>296A.02, by adding a subdivision; 296A.07, subdivision 1; 296A.22, subdivision <br/>
<a id="pl.1.28"></a><var>1.28</var>9; 296A.26; 297A.61, subdivision 10; 297A.82, subdivisions 4, 4a; 297D.02; <br/>
<a id="pl.1.29"></a><var>1.29</var>297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; <br/>
<a id="pl.1.30"></a><var>1.30</var>297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision <br/>
<a id="pl.1.31"></a><var>1.31</var>1; 297G.22; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions
         <br/>
<a id="pl.1.32"></a><var>1.32</var>1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 298.01, subdivision
         <br/>
<a id="pl.1.33"></a><var>1.33</var>4c; 469.319, subdivision 5; 477A.013, by adding a subdivision; 477A.19, by adding
         <br/>
<a id="pl.1.34"></a><var>1.34</var>subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 2014, chapter
         <br/>
<a id="pl.1.35"></a><var>1.35</var>308, article 9, section 94; Laws 2016, chapter 187, section 5; proposing coding <br/>
<a id="pl.1.36"></a><var>1.36</var>for new law in Minnesota Statutes, chapters 273; 289A; 290B; 290C; 293; repealing
         <br/>
<a id="pl.2.1"></a><var>2.1</var>Minnesota Statutes 2016, sections 281.22; 290C.02, subdivisions 5, 9; 290C.06; <br/>
<a id="pl.2.2"></a><var>2.2</var>Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700.<br/>
<a id="pl.2.3"></a><var>2.3</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.6"></a><var>2.6</var>    Section 1. <b>LEGISLATIVE PURPOSE AND INTENT.</b><br/>
<a id="pl.2.7"></a><var>2.7</var>This bill contains nonbudget policy and technical provisions that were proposed by
         the <br/>
<a id="pl.2.8"></a><var>2.8</var>Department of Revenue during the 2015 and 2016 regular legislative sessions. The provisions
         <br/>
<a id="pl.2.9"></a><var>2.9</var>are identical to those passed by the legislature in HF848 during the 2016 regular
         legislative <br/>
<a id="pl.2.10"></a><var>2.10</var>session. The effective dates have been updated and other nonsubstantive edits have
         been <br/>
<a id="pl.2.11"></a><var>2.11</var>made. The intent of this bill is to recreate, as closely as possible, the agreed-upon
         policy <br/>
<a id="pl.2.12"></a><var>2.12</var>and technical provisions of 2016 HF848.<br/>
<a id="pl.2.13"></a><var>2.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.2.16"></a><var>2.16</var>    Section 1. <b>[289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; </b><br/>
<a id="pl.2.17"></a><var>2.17</var><b>DEFINITIONS.</b><br/>
<a id="pl.2.18"></a><var>2.18</var>(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12,
         and <br/>
<a id="pl.2.19"></a><var>2.19</var>609.5316, subdivision 3, the following terms have the meanings given.<br/>
<a id="pl.2.20"></a><var>2.20</var>(b) "Automated sales suppression device" or "zapper" means a software program, carried
         <br/>
<a id="pl.2.21"></a><var>2.21</var>on any tangible medium, or accessed through any other means, that falsifies the electronic
         <br/>
<a id="pl.2.22"></a><var>2.22</var>records of electronic cash registers and other point-of-sale systems including, but
         not limited <br/>
<a id="pl.2.23"></a><var>2.23</var>to, transaction data and transaction reports.<br/>
<a id="pl.2.24"></a><var>2.24</var>(c) "Electronic cash register" means a device that keeps a register or supporting
         documents <br/>
<a id="pl.2.25"></a><var>2.25</var>through the means of an electronic device or computer system designed to record transaction
         <br/>
<a id="pl.2.26"></a><var>2.26</var>data for the purpose of computing, compiling, or processing retail sales transaction
         data in <br/>
<a id="pl.2.27"></a><var>2.27</var>whatever manner.<br/>
<a id="pl.2.28"></a><var>2.28</var>(d) "Phantom-ware" means hidden preinstalled or later-installed programming option
         <br/>
<a id="pl.2.29"></a><var>2.29</var>embedded in the operating system of an electronic cash register or hardwired into
         the <br/>
<a id="pl.2.30"></a><var>2.30</var>electronic cash register that can be used to create a virtual second electronic cash
         register <br/>
<a id="pl.2.31"></a><var>2.31</var>or may eliminate or manipulate transaction records that may or may not be preserved
         in <br/>
<a id="pl.3.1"></a><var>3.1</var>digital formats to represent the true or manipulated record of transactions in the
         electronic <br/>
<a id="pl.3.2"></a><var>3.2</var>cash register.<br/>
<a id="pl.3.3"></a><var>3.3</var>(e) "Transaction data" includes items purchased by a customer, the price of each item,
         <br/>
<a id="pl.3.4"></a><var>3.4</var>the taxability determination for each item, a segregated tax amount for each of the
         taxed <br/>
<a id="pl.3.5"></a><var>3.5</var>items, the date and time of the purchase, the name, address, and identification number
         of <br/>
<a id="pl.3.6"></a><var>3.6</var>the vendor, and the receipt or invoice number of the transaction.<br/>
<a id="pl.3.7"></a><var>3.7</var>(f) "Transaction report" means a report documenting, but not limited to, the sales,
         taxes <br/>
<a id="pl.3.8"></a><var>3.8</var>collected, media totals, and discount voids at an electronic cash register that is
         printed on <br/>
<a id="pl.3.9"></a><var>3.9</var>cash register tape at the end of a day or shift, or a report documenting every action
         at an <br/>
<a id="pl.3.10"></a><var>3.10</var>electronic cash register that is stored electronically.<br/>
<a id="pl.3.11"></a><var>3.11</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated in Minnesota <br/>
<a id="pl.3.12"></a><var>3.12</var>Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur
         on or after <br/>
<a id="pl.3.13"></a><var>3.13</var>August 1, 2017.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.3.14"></a><var>3.14</var>    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to <br/>
<a id="pl.3.15"></a><var>3.15</var>read:<br/>
<a id="pl.3.16"></a><var>3.16</var>    Subd. 32. <b>Sales suppression.</b> (a) A person who:<br/>
<a id="pl.3.17"></a><var>3.17</var>(1) sells;<br/>
<a id="pl.3.18"></a><var>3.18</var>(2) transfers;<br/>
<a id="pl.3.19"></a><var>3.19</var>(3) develops;<br/>
<a id="pl.3.20"></a><var>3.20</var>(4) manufactures; or<br/>
<a id="pl.3.21"></a><var>3.21</var>(5) possesses with the intent to sell or transfer an automated sales suppression device,
         <br/>
<a id="pl.3.22"></a><var>3.22</var>zapper, phantom-ware, or similar device capable of being used to commit tax fraud
         or <br/>
<a id="pl.3.23"></a><var>3.23</var>suppress sales is liable for a civil penalty calculated under paragraph (b).<br/>
<a id="pl.3.24"></a><var>3.24</var>(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
         <br/>
<a id="pl.3.25"></a><var>3.25</var>amount of all taxes and penalties due that are attributable to the use of any automated
         sales <br/>
<a id="pl.3.26"></a><var>3.26</var>suppression device, zapper, phantom-ware, or similar device facilitated by the sale,
         transfer, <br/>
<a id="pl.3.27"></a><var>3.27</var>development, or manufacture of the automated sales suppression device, zapper, <br/>
<a id="pl.3.28"></a><var>3.28</var>phantom-ware, or similar device by the person.<br/>
<a id="pl.3.29"></a><var>3.29</var>(c) The definitions in section 289A.14 apply to this subdivision.<br/>
<a id="pl.3.30"></a><var>3.30</var>(d) This subdivision does not apply to the commissioner, a person acting at the direction
         <br/>
<a id="pl.3.31"></a><var>3.31</var>of the commissioner, an agent of the commissioner, law enforcement agencies, or <br/>
<a id="pl.4.1"></a><var>4.1</var>postsecondary education institutions that possess an automated sales suppression device,
         <br/>
<a id="pl.4.2"></a><var>4.2</var>zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         <br/>
<a id="pl.4.3"></a><var>4.3</var>sales suppression devices, zappers, or phantom-ware.<br/>
<a id="pl.4.4"></a><var>4.4</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated that occur on <br/>
<a id="pl.4.5"></a><var>4.5</var>or after August 1, 2017.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.4.6"></a><var>4.6</var>    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to <br/>
<a id="pl.4.7"></a><var>4.7</var>read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 12. <b>Felony.</b> (a) A person who sells, purchases, installs, transfers, develops, <br/>
<a id="pl.4.9"></a><var>4.9</var>manufactures, or uses an automated sales suppression device, zapper, phantom-ware,
         or <br/>
<a id="pl.4.10"></a><var>4.10</var>similar device knowing that the device or phantom-ware is capable of being used to
         commit <br/>
<a id="pl.4.11"></a><var>4.11</var>tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment
         for <br/>
<a id="pl.4.12"></a><var>4.12</var>not more than five years or to a payment of a fine of not more than $10,000, or both.<br/>
<a id="pl.4.13"></a><var>4.13</var>(b) An automated sales suppression device, zapper, phantom-ware, and any other device
         <br/>
<a id="pl.4.14"></a><var>4.14</var>containing an automated sales suppression, zapper, or phantom-ware device or software
         is <br/>
<a id="pl.4.15"></a><var>4.15</var>contraband and subject to forfeiture under section 609.5316.<br/>
<a id="pl.4.16"></a><var>4.16</var>(c) The definitions in section 289A.14 apply to this subdivision.<br/>
<a id="pl.4.17"></a><var>4.17</var>(d) This subdivision does not apply to the commissioner, a person acting at the direction
         <br/>
<a id="pl.4.18"></a><var>4.18</var>of the commissioner, an agent of the commissioner, law enforcement agencies, or <br/>
<a id="pl.4.19"></a><var>4.19</var>postsecondary education institutions that possess an automated sales suppression device,
         <br/>
<a id="pl.4.20"></a><var>4.20</var>zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         <br/>
<a id="pl.4.21"></a><var>4.21</var>sales suppression devices, zappers, or phantom-ware.<br/>
<a id="pl.4.22"></a><var>4.22</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated that occur on <br/>
<a id="pl.4.23"></a><var>4.23</var>or after August 1, 2017.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subd. 3. <b>Weapons, telephone cloning paraphernalia, </b><b>automated sales suppression </b><br/>
<a id="pl.4.26"></a><var>4.26</var><b>devices, </b><b>and bullet-resistant vests.</b> Weapons used are contraband and must be summarily <br/>
<a id="pl.4.27"></a><var>4.27</var>forfeited to the appropriate agency upon conviction of the weapon's owner or possessor
         for <br/>
<a id="pl.4.28"></a><var>4.28</var>a controlled substance crime; for any offense of this chapter or chapter 624, or for
         a violation <br/>
<a id="pl.4.29"></a><var>4.29</var>of an order for protection under section 
         <statute_ref>518B.01, subdivision 14</statute_ref>. Bullet-resistant vests, as <br/>
<a id="pl.4.30"></a><var>4.30</var>defined in section 
         <statute_ref>609.486</statute_ref>, worn or possessed during the commission or attempted <br/>
<a id="pl.4.31"></a><var>4.31</var>commission of a crime are contraband and must be summarily forfeited to the appropriate
         <br/>
<a id="pl.4.32"></a><var>4.32</var>agency upon conviction of the owner or possessor for a controlled substance crime
         or for <br/>
<a id="pl.5.1"></a><var>5.1</var>any offense of this chapter. Telephone cloning paraphernalia used in a violation of
         section <br/>
<statute_ref><a id="pl.5.2"></a><var>5.2</var>609.894
         </statute_ref>, and automated sales suppression devices, phantom-ware, and other devices <br/>
<a id="pl.5.3"></a><var>5.3</var>containing an automated sales suppression or phantom-ware device or software used
         in <br/>
<a id="pl.5.4"></a><var>5.4</var>violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited <br/>
<a id="pl.5.5"></a><var>5.5</var>to the appropriate agency upon a conviction.<br/>
<a id="pl.5.6"></a><var>5.6</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated in Minnesota <br/>
<a id="pl.5.7"></a><var>5.7</var>Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="pl.5.10"></a><var>5.10</var><b>CORPORATE FRANCHISE, AND ESTATE TAXES</b><br/>

<a id="bill.3.1.0"></a><a id="pl.5.11"></a><var>5.11</var>    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 11. <b>Information included in income tax return.</b> (a) The return must state:<br/>
<a id="pl.5.13"></a><var>5.13</var>    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
         address <br/>
<a id="pl.5.14"></a><var>5.14</var>of the taxpayer in the same name or names and same address as the taxpayer has used
         in <br/>
<a id="pl.5.15"></a><var>5.15</var>making the taxpayer's income tax return to the United States;<br/>
<a id="pl.5.16"></a><var>5.16</var>    (2) the date or dates of birth of the taxpayer or taxpayers;<br/>
<a id="pl.5.17"></a><var>5.17</var>    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
         number <br/>
<a id="pl.5.18"></a><var>5.18</var>has been issued by the United States with respect to the taxpayers; and<br/>
<a id="pl.5.19"></a><var>5.19</var>    (4) the amount of the taxable income of the taxpayer as it appears on the federal
         return <br/>
<a id="pl.5.20"></a><var>5.20</var>for the taxable year to which the Minnesota state return applies.<br/>
<a id="pl.5.21"></a><var>5.21</var>    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a
         copy <br/>
<a id="pl.5.22"></a><var>5.22</var>of the federal income tax return that the taxpayer has filed or is about to file for
         the period, <br/>
<a id="pl.5.23"></a><var>5.23</var>unless the taxpayer is eligible to telefile the federal return and does file the Minnesota
         return <br/>
<a id="pl.5.24"></a><var>5.24</var>by telefiling.<br/>
<a id="pl.5.25"></a><var>5.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.5.26"></a><var>5.26</var>    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:<br/>
<a id="pl.5.27"></a><var>5.27</var>    Subd. 16. <b>Tax refund or return preparers; electronic filing; paper filing fee imposed.</b><br/>
<a id="pl.5.28"></a><var>5.28</var>(a) A "tax refund or return preparer," as defined in section 
         <statute_ref>289A.60, subdivision 13</statute_ref>, paragraph <br/>
<a id="pl.5.29"></a><var>5.29</var>(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
         <br/>
<a id="pl.5.30"></a><var>5.30</var>Code, and who reasonably expects to prepare more than ten Minnesota individual income, <br/>
<a id="pl.5.31"></a><var>5.31</var>corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior <br/>
<a id="pl.6.1"></a><var>6.1</var>calendar year must file all Minnesota individual income, corporate franchise, S corporation, <br/>
<a id="pl.6.2"></a><var>6.2</var>partnership, or fiduciary income tax returns prepared for that calendar year by electronic <br/>
<a id="pl.6.3"></a><var>6.3</var>means.<br/>
<a id="pl.6.4"></a><var>6.4</var>(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the
         return <br/>
<a id="pl.6.5"></a><var>6.5</var>that the taxpayer did not want the return filed by electronic means.<br/>
<a id="pl.6.6"></a><var>6.6</var>(c) For each return that is not filed electronically by a tax refund or return preparer
         under <br/>
<a id="pl.6.7"></a><var>6.7</var>this subdivision, including returns filed under paragraph (b), a paper filing fee
         of $5 is <br/>
<a id="pl.6.8"></a><var>6.8</var>imposed upon the preparer. The fee is collected from the preparer in the same manner
         as <br/>
<a id="pl.6.9"></a><var>6.9</var>income tax. The fee does not apply to returns that the commissioner requires to be
         filed in <br/>
<a id="pl.6.10"></a><var>6.10</var>paper form.<br/>
<a id="pl.6.11"></a><var>6.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.6.12"></a><var>6.12</var>31, 2016.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.6.13"></a><var>6.13</var>    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 2. <b>Withholding statement.</b> (a) A person required to deduct and withhold from <br/>
<a id="pl.6.15"></a><var>6.15</var>an employee a tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, or <br/>
<a id="pl.6.16"></a><var>6.16</var>who would have been required to deduct and withhold a tax under section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.6.17"></a><var>6.17</var>2a
         </statute_ref> or 3, or persons required to withhold tax under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, determined <br/>
<a id="pl.6.18"></a><var>6.18</var>without regard to section 
         <statute_ref>290.92, subdivision 19</statute_ref>, if the employee or payee had claimed no <br/>
<a id="pl.6.19"></a><var>6.19</var>more than one withholding exemption, or who paid wages or made payments not subject
         <br/>
<a id="pl.6.20"></a><var>6.20</var>to withholding under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, to an <br/>
<a id="pl.6.21"></a><var>6.21</var>employee or person receiving royalty payments in excess of $600, or who has entered
         into <br/>
<a id="pl.6.22"></a><var>6.22</var>a voluntary withholding agreement with a payee under section 
         <statute_ref>290.92, subdivision 20</statute_ref>, must <br/>
<a id="pl.6.23"></a><var>6.23</var>give every employee or person receiving royalty payments in respect to the remuneration
         <br/>
<a id="pl.6.24"></a><var>6.24</var>paid by the person to the employee or person receiving royalty payments during the
         calendar <br/>
<a id="pl.6.25"></a><var>6.25</var>year, on or before January 31 of the succeeding year, or, if employment is terminated
         before <br/>
<a id="pl.6.26"></a><var>6.26</var>the close of the calendar year, within 30 days after the date of receipt of a written
         request <br/>
<a id="pl.6.27"></a><var>6.27</var>from the employee if the 30-day period ends before January 31, a written statement
         showing <br/>
<a id="pl.6.28"></a><var>6.28</var>the following:<br/>
<a id="pl.6.29"></a><var>6.29</var>    (1) name of the person;<br/>
<a id="pl.6.30"></a><var>6.30</var>    (2) the name of the employee or payee and the employee's or payee's Social Security
         <br/>
<a id="pl.6.31"></a><var>6.31</var>account number;<br/>
<a id="pl.6.32"></a><var>6.32</var>    (3) the total amount of wages as that term is defined in section 
         <statute_ref>290.92, subdivision 1</statute_ref>, <br/>
<a id="pl.6.33"></a><var>6.33</var>paragraph (1); the total amount of remuneration subject to withholding under section
         
         <statute_ref>290.92, <br/>
<a id="pl.7.1"></a><var>7.1</var>subdivision 20
         </statute_ref>; the amount of sick pay as required under section 6051(f) of the Internal <br/>
<a id="pl.7.2"></a><var>7.2</var>Revenue Code; and the amount of royalties subject to withholding under section 
         <statute_ref>290.923, <br/>
<a id="pl.7.3"></a><var>7.3</var>subdivision 2
         </statute_ref>; and<br/>
<a id="pl.7.4"></a><var>7.4</var>    (4) the total amount deducted and withheld as tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> <br/>
<a id="pl.7.5"></a><var>7.5</var>or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>.<br/>
<a id="pl.7.6"></a><var>7.6</var>    (b) The statement required to be furnished by paragraph (a) with respect to any <br/>
<a id="pl.7.7"></a><var>7.7</var>remuneration must be furnished at those times, must contain the information required,
         and <br/>
<a id="pl.7.8"></a><var>7.8</var>must be in the form the commissioner prescribes.<br/>
<a id="pl.7.9"></a><var>7.9</var>    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
         <br/>
<a id="pl.7.10"></a><var>7.10</var>not in excess of 30 days, to employers or payers required to give the statements to
         their <br/>
<a id="pl.7.11"></a><var>7.11</var>employees or payees under this subdivision.<br/>
<a id="pl.7.12"></a><var>7.12</var>    (d) A duplicate of any statement made under this subdivision and in accordance with
         <br/>
<a id="pl.7.13"></a><var>7.13</var>rules prescribed by the commissioner, along with a reconciliation in the form the <br/>
<a id="pl.7.14"></a><var>7.14</var>commissioner prescribes of the statements for the calendar year, including a reconciliation
         <br/>
<a id="pl.7.15"></a><var>7.15</var>of the quarterly returns required to be filed under subdivision 1, must be filed with the <br/>
<a id="pl.7.16"></a><var>7.16</var>commissioner on or before February 28 January 31 of the year after the payments were <br/>
<a id="pl.7.17"></a><var>7.17</var>made.<br/>
<a id="pl.7.18"></a><var>7.18</var>    (e) If an employer cancels the employer's Minnesota withholding account number required
         <br/>
<a id="pl.7.19"></a><var>7.19</var>by section 
         <statute_ref>290.92, subdivision 24</statute_ref>, the information required by paragraph (d), must be filed <br/>
<a id="pl.7.20"></a><var>7.20</var>with the commissioner within 30 days of the end of the quarter in which the employer
         <br/>
<a id="pl.7.21"></a><var>7.21</var>cancels its account number.<br/>
<a id="pl.7.22"></a><var>7.22</var>    (f) The employer must submit the statements required to be sent to the commissioner
         in <br/>
<a id="pl.7.23"></a><var>7.23</var>the same manner required to satisfy the federal reporting requirements of section
         6011(e) <br/>
<a id="pl.7.24"></a><var>7.24</var>of the Internal Revenue Code and the regulations issued under it. An employer must
         submit <br/>
<a id="pl.7.25"></a><var>7.25</var>statements to the commissioner required by this section by electronic means if the
         employer <br/>
<a id="pl.7.26"></a><var>7.26</var>is required to send more than 25 statements to the commissioner, even though the employer
         <br/>
<a id="pl.7.27"></a><var>7.27</var>is not required to submit the returns federally by electronic means. For statements
         issued <br/>
<a id="pl.7.28"></a><var>7.28</var>for wages paid in 2011 and after, the threshold is ten. All statements issued for
         withholding <br/>
<a id="pl.7.29"></a><var>7.29</var>required under section 
<statute_ref>290.92</statute_ref> are aggregated for purposes of determining whether the <br/>
<a id="pl.7.30"></a><var>7.30</var>electronic submission threshold is met. The commissioner shall prescribe the content, format, <br/>
<a id="pl.7.31"></a><var>7.31</var>and manner of the statement pursuant to section 270C.30.<br/>
<a id="pl.7.32"></a><var>7.32</var>    (g) A "third-party bulk filer" as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph <br/>
<a id="pl.7.33"></a><var>7.33</var>(a), clause (2), must submit the returns required by this subdivision and subdivision
         1, <br/>
<a id="pl.7.34"></a><var>7.34</var>paragraph (a), with the commissioner by electronic means.<br/>
<a id="pl.8.1"></a><var>8.1</var><b>EFFECTIVE DATE.</b>This section is effective for statements required to be sent to the <br/>
<a id="pl.8.2"></a><var>8.2</var>commissioner after December 31, 2017, except that the date change in paragraph (d)
         is <br/>
<a id="pl.8.3"></a><var>8.3</var>effective for wages paid after December 31, 2016.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.8.4"></a><var>8.4</var>    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:<br/>
<a id="pl.8.5"></a><var>8.5</var>    Subd. 14. <b>Regulated investment companies;</b><b> Reporting</b><b> exempt interest and</b><b> </b><br/>
<a id="pl.8.6"></a><var>8.6</var><b>exempt-interest dividends.</b> (a) A regulated investment company paying $10 or more in <br/>
<a id="pl.8.7"></a><var>8.7</var>exempt-interest dividends to an individual who is a resident of Minnesota, or any person <br/>
<a id="pl.8.8"></a><var>8.8</var>receiving $10 or more of exempt interest or exempt-interest dividends and paying as
         nominee <br/>
<a id="pl.8.9"></a><var>8.9</var>to an individual who is a resident of Minnesota, must make a return indicating the amount <br/>
<a id="pl.8.10"></a><var>8.10</var>of the exempt interest or exempt-interest dividends, the name, address, and Social Security <br/>
<a id="pl.8.11"></a><var>8.11</var>number of the recipient, and any other information that the commissioner specifies.
         The <br/>
<a id="pl.8.12"></a><var>8.12</var>return must be provided to the shareholder recipient by February 15 of the year following <br/>
<a id="pl.8.13"></a><var>8.13</var>the year of the payment. The return provided to the shareholder recipient must include a <br/>
<a id="pl.8.14"></a><var>8.14</var>clear statement, in the form prescribed by the commissioner, that the exempt interest or <br/>
<a id="pl.8.15"></a><var>8.15</var>exempt-interest dividends must be included in the computation of Minnesota taxable
         income. <br/>
<a id="pl.8.16"></a><var>8.16</var>By June 1 of each year, the regulated investment company payor must file a copy of the <br/>
<a id="pl.8.17"></a><var>8.17</var>return with the commissioner.<br/>
<a id="pl.8.18"></a><var>8.18</var>    (b) For purposes of this subdivision, the following definitions apply.<br/>
<a id="pl.8.19"></a><var>8.19</var>    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
         <br/>
<a id="pl.8.20"></a><var>8.20</var>852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
         <br/>
<a id="pl.8.21"></a><var>8.21</var>dividends that are not required to be added to federal taxable income under section
         
         <statute_ref>290.0131, <br/>
<a id="pl.8.22"></a><var>8.22</var>subdivision 2
         </statute_ref>, paragraph (b).<br/>
<a id="pl.8.23"></a><var>8.23</var>    (2) "Regulated investment company" means regulated investment company as defined <br/>
<a id="pl.8.24"></a><var>8.24</var>in section 851(a) of the Internal Revenue Code or a fund of the regulated investment
         company <br/>
<a id="pl.8.25"></a><var>8.25</var>as defined in section 851(g) of the Internal Revenue Code.<br/>
<a id="pl.8.26"></a><var>8.26</var>    (3) "Exempt interest" means income on obligations of any state other than Minnesota,
         <br/>
<a id="pl.8.27"></a><var>8.27</var>or a political or governmental subdivision, municipality, or governmental agency or
         <br/>
<a id="pl.8.28"></a><var>8.28</var>instrumentality of any state other than Minnesota, and exempt from federal income
         taxes <br/>
<a id="pl.8.29"></a><var>8.29</var>under the Internal Revenue Code or any other federal statute.<br/>
<a id="pl.8.30"></a><var>8.30</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed after <br/>
<a id="pl.8.31"></a><var>8.31</var>December 31, 2017.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to <br/>
<a id="pl.9.2"></a><var>9.2</var>read:<br/>
<a id="pl.9.3"></a><var>9.3</var>    Subd. 2a. <b>Annual withholding returns; eligible employers.</b> (a) An employer who <br/>
<a id="pl.9.4"></a><var>9.4</var>deducts and withholds an amount required to be withheld by section 290.92 may file
         an <br/>
<a id="pl.9.5"></a><var>9.5</var>annual return and make an annual payment of the amount required to be deducted and
         <br/>
<a id="pl.9.6"></a><var>9.6</var>withheld for that calendar year if the employer has received a notification under
         paragraph <br/>
<a id="pl.9.7"></a><var>9.7</var>(b). The ability to elect to file an annual return continues through the year following
         the <br/>
<a id="pl.9.8"></a><var>9.8</var>year where an employer is required to deduct and withhold more than $500.<br/>
<a id="pl.9.9"></a><var>9.9</var>(b) The commissioner is authorized to determine which employers are eligible to file
         <br/>
<a id="pl.9.10"></a><var>9.10</var>an annual return and to notify employers who newly qualify to file an annual return
         because <br/>
<a id="pl.9.11"></a><var>9.11</var>the amount an employer is required to deduct and withhold for that calendar year is
         $500 <br/>
<a id="pl.9.12"></a><var>9.12</var>or less based on the most recent period of four consecutive quarters for which the
         <br/>
<a id="pl.9.13"></a><var>9.13</var>commissioner has compiled data on that employer's withholding tax for that period.
         At the <br/>
<a id="pl.9.14"></a><var>9.14</var>time of notification, eligible employers may still decide to file returns and make
         deposits <br/>
<a id="pl.9.15"></a><var>9.15</var>quarterly. An employer who decides to file returns and make deposits quarterly is
         required <br/>
<a id="pl.9.16"></a><var>9.16</var>to make all returns and deposits required by this chapter and, notwithstanding paragraph
         <br/>
<a id="pl.9.17"></a><var>9.17</var>(a), is subject to all applicable penalties for failing to do so.<br/>
<a id="pl.9.18"></a><var>9.18</var>(c) If, at the end of any calendar month other than the last month of the calendar
         year, <br/>
<a id="pl.9.19"></a><var>9.19</var>the aggregate amount of undeposited tax withheld by an employer who has elected to
         file <br/>
<a id="pl.9.20"></a><var>9.20</var>an annual return exceeds $500, the employer must deposit the aggregate amount with
         the <br/>
<a id="pl.9.21"></a><var>9.21</var>commissioner within 30 days of the end of the calendar month.<br/>
<a id="pl.9.22"></a><var>9.22</var>(d) If an employer who has elected to file an annual return ceases to pay wages for
         which <br/>
<a id="pl.9.23"></a><var>9.23</var>withholding is required, the employer must file a final return and deposit any undeposited
         <br/>
<a id="pl.9.24"></a><var>9.24</var>tax within 30 days of the end of the calendar month following the month in which the
         <br/>
<a id="pl.9.25"></a><var>9.25</var>employer ceased paying wages.<br/>
<a id="pl.9.26"></a><var>9.26</var>(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
         <br/>
<a id="pl.9.27"></a><var>9.27</var>must file the return and pay the tax not previously deposited before February 1 of
         the year <br/>
<a id="pl.9.28"></a><var>9.28</var>following the year in which the tax was withheld.<br/>
<a id="pl.9.29"></a><var>9.29</var>(f) A notification to an employer regarding eligibility to file an annual return under
         <br/>
<a id="pl.9.30"></a><var>9.30</var>Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).<br/>
<a id="pl.9.31"></a><var>9.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.9.32"></a><var>9.32</var>31, 2016.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.10.1"></a><var>10.1</var>    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:<br/>
<a id="pl.10.2"></a><var>10.2</var>    Subd. 2. <b>Withholding from wages, entertainer withholding, withholding from </b><br/>
<a id="pl.10.3"></a><var>10.3</var><b>payments to out-of-state contractors, and withholding by partnerships, small business
         </b><br/>
<a id="pl.10.4"></a><var>10.4</var><b>corporations, trusts.</b> (a) Except as provided in section 289A.18, subdivision 2a, a tax <br/>
<a id="pl.10.5"></a><var>10.5</var>required to be deducted and withheld during the quarterly period must be paid on or
         before <br/>
<a id="pl.10.6"></a><var>10.6</var>the last day of the month following the close of the quarterly period, unless an earlier
         time <br/>
<a id="pl.10.7"></a><var>10.7</var>for payment is provided. A tax required to be deducted and withheld from compensation
         <br/>
<a id="pl.10.8"></a><var>10.8</var>of an entertainer and from a payment to an out-of-state contractor must be paid on
         or before <br/>
<a id="pl.10.9"></a><var>10.9</var>the date the return for such tax must be filed under section 
         <statute_ref>289A.18, subdivision 2</statute_ref>. Taxes <br/>
<a id="pl.10.10"></a><var>10.10</var>required to be deducted and withheld by partnerships, S corporations, and trusts must
         be <br/>
<a id="pl.10.11"></a><var>10.11</var>paid on a quarterly basis as estimated taxes under section 
         <statute_ref>289A.25</statute_ref> for partnerships and <br/>
<a id="pl.10.12"></a><var>10.12</var>trusts and under section 
         <statute_ref>289A.26</statute_ref> for S corporations.<br/>
<a id="pl.10.13"></a><var>10.13</var>(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
         <br/>
<a id="pl.10.14"></a><var>10.14</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, must deposit tax <br/>
<a id="pl.10.15"></a><var>10.15</var>withheld under those sections with the commissioner within the time allowed to deposit
         the <br/>
<a id="pl.10.16"></a><var>10.16</var>employer's federal withheld employment taxes under Code of Federal Regulations, title
         26, <br/>
<a id="pl.10.17"></a><var>10.17</var>section 31.6302-1, as amended through December 31, 2001, without regard to the safe
         <br/>
<a id="pl.10.18"></a><var>10.18</var>harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
         Taxpayers <br/>
<a id="pl.10.19"></a><var>10.19</var>must submit a copy of their federal notice of deposit status to the commissioner upon
         request <br/>
<a id="pl.10.20"></a><var>10.20</var>by the commissioner.<br/>
<a id="pl.10.21"></a><var>10.21</var>(c) The commissioner may prescribe by rule other return periods or deposit requirements.
         <br/>
<a id="pl.10.22"></a><var>10.22</var>In prescribing the reporting period, the commissioner may classify payors according
         to the <br/>
<a id="pl.10.23"></a><var>10.23</var>amount of their tax liability and may adopt an appropriate reporting period for the
         class that <br/>
<a id="pl.10.24"></a><var>10.24</var>the commissioner judges to be consistent with efficient tax collection. In no event
         will the <br/>
<a id="pl.10.25"></a><var>10.25</var>duration of the reporting period be more than one year.<br/>
<a id="pl.10.26"></a><var>10.26</var>(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
         <br/>
<a id="pl.10.27"></a><var>10.27</var>with respect to both the tax and the amount to be deducted must be made, without interest,
         <br/>
<a id="pl.10.28"></a><var>10.28</var>in the manner and at the times the commissioner prescribes. If the underpayment cannot
         be <br/>
<a id="pl.10.29"></a><var>10.29</var>adjusted, the amount of the underpayment will be assessed and collected in the manner
         and <br/>
<a id="pl.10.30"></a><var>10.30</var>at the times the commissioner prescribes.<br/>
<a id="pl.10.31"></a><var>10.31</var>(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year
         ending <br/>
<a id="pl.10.32"></a><var>10.32</var>June 30, the employer must remit each required deposit for wages paid in all subsequent
         <br/>
<a id="pl.10.33"></a><var>10.33</var>calendar years by electronic means.<br/>
<a id="pl.11.1"></a><var>11.1</var>(f) A third-party bulk filer as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph (a), <br/>
<a id="pl.11.2"></a><var>11.2</var>clause (2), who remits withholding deposits must remit all deposits by electronic
         means as <br/>
<a id="pl.11.3"></a><var>11.3</var>provided in paragraph (e), regardless of the aggregate amount of tax withheld during
         a fiscal <br/>
<a id="pl.11.4"></a><var>11.4</var>year for all of the employers.<br/>
<a id="pl.11.5"></a><var>11.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.11.6"></a><var>11.6</var>31, 2016.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.11.7"></a><var>11.7</var>    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:<br/>
<a id="pl.11.8"></a><var>11.8</var>    Subdivision 1. <b>Individual income, fiduciary income, mining company, corporate </b><br/>
<a id="pl.11.9"></a><var>11.9</var><b>franchise, and entertainment taxes.</b> (a) Individual income, fiduciary income, mining <br/>
<a id="pl.11.10"></a><var>11.10</var>company, and corporate franchise taxes, and interest and penalties, must be paid by
         the <br/>
<a id="pl.11.11"></a><var>11.11</var>taxpayer upon whom the tax is imposed, except in the following cases:<br/>
<a id="pl.11.12"></a><var>11.12</var>(1) The tax due from a decedent for that part of the taxable year in which the decedent
         <br/>
<a id="pl.11.13"></a><var>11.13</var>died during which the decedent was alive and the taxes, interest, and penalty due
         for the <br/>
<a id="pl.11.14"></a><var>11.14</var>prior years must be paid by the decedent's personal representative, if any. If there
         is no <br/>
<a id="pl.11.15"></a><var>11.15</var>personal representative, the taxes, interest, and penalty must be paid by the transferees,
         as <br/>
<a id="pl.11.16"></a><var>11.16</var>defined in section 
         <statute_ref>270C.58, subdivision 3</statute_ref>, to the extent they receive property from the <br/>
<a id="pl.11.17"></a><var>11.17</var>decedent;<br/>
<a id="pl.11.18"></a><var>11.18</var>(2) The tax due from an infant or other incompetent person must be paid by the person's
         <br/>
<a id="pl.11.19"></a><var>11.19</var>guardian or other person authorized or permitted by law to act for the person;<br/>
<a id="pl.11.20"></a><var>11.20</var>(3) The tax due from the estate of a decedent must be paid by the estate's personal
         <br/>
<a id="pl.11.21"></a><var>11.21</var>representative;<br/>
<a id="pl.11.22"></a><var>11.22</var>(4) The tax due from a trust, including those within the definition of a corporation,
         as <br/>
<a id="pl.11.23"></a><var>11.23</var>defined in section 
         <statute_ref>290.01, subdivision 4</statute_ref>, must be paid by a trustee; and<br/>
<a id="pl.11.24"></a><var>11.24</var>(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
         <br/>
<a id="pl.11.25"></a><var>11.25</var>trustee in bankruptcy, assignee, or other conservator, must be paid by the person
         in charge <br/>
<a id="pl.11.26"></a><var>11.26</var>of the business or property so far as the tax is due to the income from the business
         or property.<br/>
<a id="pl.11.27"></a><var>11.27</var>(b) Entertainment taxes are the joint and several liability of the entertainer and
         the <br/>
<a id="pl.11.28"></a><var>11.28</var>entertainment entity. The payor is liable to the state for the payment of the tax
         required to <br/>
<a id="pl.11.29"></a><var>11.29</var>be deducted and withheld under section 
         <statute_ref>290.9201, subdivision 7</statute_ref>, and is not liable to the <br/>
<a id="pl.11.30"></a><var>11.30</var>entertainer for the amount of the payment.<br/>
<a id="pl.11.31"></a><var>11.31</var>(c) The tax taxes imposed under section sections 289A.35 and
<statute_ref>290.0922</statute_ref> on partnerships <br/>
<a id="pl.11.32"></a><var>11.32</var>is are the joint and several liability of the partnership and the general partners.<br/>
<a id="pl.12.1"></a><var>12.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.12.2"></a><var>12.2</var>    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:<br/>
<a id="pl.12.3"></a><var>12.3</var><b>289A.35 ASSESSMENTS ON RETURNS.</b><br/>
<a id="pl.12.4"></a><var>12.4</var>(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
         <br/>
<a id="pl.12.5"></a><var>12.5</var>income, items of federal tax preferences, or federal credit amounts to make them conform
         <br/>
<a id="pl.12.6"></a><var>12.6</var>with the provisions of chapter 290 or section 
         <statute_ref>298.01</statute_ref>. If a return has been filed, the <br/>
<a id="pl.12.7"></a><var>12.7</var>commissioner shall enter the liability reported on the return and may make any audit
         or <br/>
<a id="pl.12.8"></a><var>12.8</var>investigation that is considered necessary.<br/>
<a id="pl.12.9"></a><var>12.9</var>(b) Upon petition by a taxpayer, and when the commissioner determines that it is in
         the <br/>
<a id="pl.12.10"></a><var>12.10</var>best interest of the state, the commissioner may allow S corporations and partnerships
         to <br/>
<a id="pl.12.11"></a><var>12.11</var>receive orders of assessment issued under section 270C.33, subdivision 4, on behalf
         of their <br/>
<a id="pl.12.12"></a><var>12.12</var>owners, and to pay liabilities shown on such orders. In such cases, the owners' liability
         must <br/>
<a id="pl.12.13"></a><var>12.13</var>be calculated using the method provided in section 289A.08, subdivision 7, paragraph
         (b).<br/>
<a id="pl.12.14"></a><var>12.14</var>(c) A taxpayer may petition the commissioner for the use of the method described in
         <br/>
<a id="pl.12.15"></a><var>12.15</var>paragraph (b) after the taxpayer is notified that an audit has been initiated and
         before an <br/>
<a id="pl.12.16"></a><var>12.16</var>order of assessment has been issued.<br/>
<a id="pl.12.17"></a><var>12.17</var>(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
         <br/>
<a id="pl.12.18"></a><var>12.18</var>of a taxpayer cannot be appealed to the Tax Court or any other court.<br/>
<a id="pl.12.19"></a><var>12.19</var>(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under <br/>
<a id="pl.12.20"></a><var>12.20</var>chapter 291. In the case of a return filed pursuant to section 
         <statute_ref>289A.10</statute_ref>, the commissioner <br/>
<a id="pl.12.21"></a><var>12.21</var>shall notify the estate no later than nine months after the filing date, as provided
         by section <br/>
<statute_ref><a id="pl.12.22"></a><var>12.22</var>289A.38, subdivision 2
         </statute_ref>, whether the return is under examination or the return has been <br/>
<a id="pl.12.23"></a><var>12.23</var>processed as filed.<br/>
<a id="pl.12.24"></a><var>12.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.12.25"></a><var>12.25</var>    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:<br/>
<a id="pl.12.26"></a><var>12.26</var>    Subd. 28. <b>Preparer identification number.</b> Any Minnesota individual income tax return <br/>
<a id="pl.12.27"></a><var>12.27</var>or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
         <br/>
<a id="pl.12.28"></a><var>12.28</var>13, paragraph (f), shall bear the identification number the preparer is required to
         use federally <br/>
<a id="pl.12.29"></a><var>12.29</var>under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer
         who <br/>
<a id="pl.12.30"></a><var>12.30</var>prepares a Minnesota individual income tax return required by section 289A.08, subdivisions <br/>
<a id="pl.12.31"></a><var>12.31</var>1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required <br/>
<a id="pl.12.32"></a><var>12.32</var>number on the return or claim is subject to a penalty of $50 for each failure.<br/>
<a id="pl.13.1"></a><var>13.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.13.2"></a><var>13.2</var>31, 2016.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.13.3"></a><var>13.3</var>    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:<br/>
<a id="pl.13.4"></a><var>13.4</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.13.5"></a><var>13.5</var>the meanings given.<br/>
<a id="pl.13.6"></a><var>13.6</var>(b) "Long-term care insurance" means a policy that:<br/>
<a id="pl.13.7"></a><var>13.7</var>(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
         <br/>
<a id="pl.13.8"></a><var>13.8</var>the 7.5 percent adjusted gross income test; or meets the requirements given in section 
         <statute_ref>62A.46</statute_ref>; <br/>
<a id="pl.13.9"></a><var>13.9</var>or provides similar coverage issued under the laws of another jurisdiction; and<br/>
<a id="pl.13.10"></a><var>13.10</var>(2) has a lifetime long-term care benefit limit of not less than $100,000; and<br/>
<a id="pl.13.11"></a><var>13.11</var>(3) has been offered in compliance with the inflation protection requirements of section
         <br/>
<statute_ref><a id="pl.13.12"></a><var>13.12</var>62S.23
         </statute_ref>.<br/>
<a id="pl.13.13"></a><var>13.13</var>(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.<br/>
<a id="pl.13.14"></a><var>13.14</var>(d) "Premiums deducted in determining federal taxable income" means the lesser of
         (1) <br/>
<a id="pl.13.15"></a><var>13.15</var>long-term care insurance premiums that qualify as deductions under section 213 of
         the <br/>
<a id="pl.13.16"></a><var>13.16</var>Internal Revenue Code; and (2) the total amount deductible for medical care under
         section <br/>
<a id="pl.13.17"></a><var>13.17</var>213 of the Internal Revenue Code.<br/>
<a id="pl.13.18"></a><var>13.18</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years beginning <br/>
<a id="pl.13.19"></a><var>13.19</var>after December 31, 2012.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.13.20"></a><var>13.20</var>    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:<br/>
<a id="pl.13.21"></a><var>13.21</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the meanings <br/>
<a id="pl.13.22"></a><var>13.22</var>given.<br/>
<a id="pl.13.23"></a><var>13.23</var>    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         research <br/>
<a id="pl.13.24"></a><var>13.24</var>payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
         it does <br/>
<a id="pl.13.25"></a><var>13.25</var>not include expenses incurred for qualified research or basic research conducted outside
         <br/>
<a id="pl.13.26"></a><var>13.26</var>the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code;
         and <br/>
<a id="pl.13.27"></a><var>13.27</var>(ii) contributions to a nonprofit corporation established and operated pursuant to
         the <br/>
<a id="pl.13.28"></a><var>13.28</var>provisions of chapter 317A for the purpose of promoting the establishment and expansion
         <br/>
<a id="pl.13.29"></a><var>13.29</var>of business in this state, provided the contributions are invested by the nonprofit
         corporation <br/>
<a id="pl.13.30"></a><var>13.30</var>for the purpose of providing funds for small, technologically innovative enterprises
         in <br/>
<a id="pl.13.31"></a><var>13.31</var>Minnesota during the early stages of their development.<br/>
<a id="pl.14.1"></a><var>14.1</var>    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         <br/>
<a id="pl.14.2"></a><var>14.2</var>Internal Revenue Code, except that the term does not include qualified research conducted
         <br/>
<a id="pl.14.3"></a><var>14.3</var>outside the state of Minnesota.<br/>
<a id="pl.14.4"></a><var>14.4</var>    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
         <br/>
<a id="pl.14.5"></a><var>14.5</var>Code, except that the average annual gross receipts and aggregate gross receipts must be <br/>
<a id="pl.14.6"></a><var>14.6</var>calculated using Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the definitions <br/>
<a id="pl.14.7"></a><var>14.7</var>contained in clauses paragraphs (a) and (b) shall apply.<br/>
<a id="pl.14.8"></a><var>14.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.14.9"></a><var>14.9</var>    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:<br/>
<a id="pl.14.10"></a><var>14.10</var>    Subd. 2. <b>Income not derived from conduct of a trade or business.</b> The income of a <br/>
<a id="pl.14.11"></a><var>14.11</var>taxpayer subject to the allocation rules that is not derived from the conduct of a
         trade or <br/>
<a id="pl.14.12"></a><var>14.12</var>business must be assigned in accordance with paragraphs (a) to (f):<br/>
<a id="pl.14.13"></a><var>14.13</var>    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
         <br/>
<a id="pl.14.14"></a><var>14.14</var>3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to
         the extent <br/>
<a id="pl.14.15"></a><var>14.15</var>that, the work of the employee is performed within it; all other income from such
         sources <br/>
<a id="pl.14.16"></a><var>14.16</var>is treated as income from sources without this state.<br/>
<a id="pl.14.17"></a><var>14.17</var>    Severance pay shall be considered income from labor or personal or professional services.<br/>
<a id="pl.14.18"></a><var>14.18</var>    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
         <br/>
<a id="pl.14.19"></a><var>14.19</var>or entertainer, income from compensation for labor or personal services performed
         within <br/>
<a id="pl.14.20"></a><var>14.20</var>this state shall be determined in the following manner:<br/>
<a id="pl.14.21"></a><var>14.21</var>    (i) The amount of income to be assigned to Minnesota for an individual who is a <br/>
<a id="pl.14.22"></a><var>14.22</var>nonresident salaried athletic team employee shall be determined by using a fraction
         in which <br/>
<a id="pl.14.23"></a><var>14.23</var>the denominator contains the total number of days in which the individual is under
         a duty <br/>
<a id="pl.14.24"></a><var>14.24</var>to perform for the employer, and the numerator is the total number of those days spent
         in <br/>
<a id="pl.14.25"></a><var>14.25</var>Minnesota. For purposes of this paragraph, off-season training activities, unless
         conducted <br/>
<a id="pl.14.26"></a><var>14.26</var>at the team's facilities as part of a team imposed program, are not included in the
         total number <br/>
<a id="pl.14.27"></a><var>14.27</var>of duty days. Bonuses earned as a result of play during the regular season or for
         participation <br/>
<a id="pl.14.28"></a><var>14.28</var>in championship, play-off, or all-star games must be allocated under the formula.
         Signing <br/>
<a id="pl.14.29"></a><var>14.29</var>bonuses are not subject to allocation under the formula if they are not conditional
         on playing <br/>
<a id="pl.14.30"></a><var>14.30</var>any games for the team, are payable separately from any other compensation, and are
         <br/>
<a id="pl.14.31"></a><var>14.31</var>nonrefundable; and<br/>
<a id="pl.14.32"></a><var>14.32</var>    (ii) The amount of income to be assigned to Minnesota for an individual who is a <br/>
<a id="pl.14.33"></a><var>14.33</var>nonresident, and who is an athlete or entertainer not listed in clause (i), for that
         person's <br/>
<a id="pl.15.1"></a><var>15.1</var>athletic or entertainment performance in Minnesota shall be determined by assigning
         to this <br/>
<a id="pl.15.2"></a><var>15.2</var>state all income from performances or athletic contests in this state.<br/>
<a id="pl.15.3"></a><var>15.3</var>    (3) For purposes of this section, amounts received by a nonresident as "retirement
         income" <br/>
<a id="pl.15.4"></a><var>15.4</var>as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
         <br/>
<a id="pl.15.5"></a><var>15.5</var>Law 104-95, are not considered income derived from carrying on a trade or business
         or <br/>
<a id="pl.15.6"></a><var>15.6</var>from wages or other compensation for work an employee performed in Minnesota, and
         are <br/>
<a id="pl.15.7"></a><var>15.7</var>not taxable under this chapter.<br/>
<a id="pl.15.8"></a><var>15.8</var>    (b) Income or gains from tangible property located in this state that is not employed
         in <br/>
<a id="pl.15.9"></a><var>15.9</var>the business of the recipient of the income or gains must be assigned to this state.<br/>
<a id="pl.15.10"></a><var>15.10</var>    (c) Income or gains from intangible personal property not employed in the business
         of <br/>
<a id="pl.15.11"></a><var>15.11</var>the recipient of the income or gains must be assigned to this state if the recipient
         of the <br/>
<a id="pl.15.12"></a><var>15.12</var>income or gains is a resident of this state or is a resident trust or estate.<br/>
<a id="pl.15.13"></a><var>15.13</var>    Gain on the sale of a partnership interest is allocable to this state in the ratio
         of the <br/>
<a id="pl.15.14"></a><var>15.14</var>original cost of partnership tangible property in this state to the original cost
         of partnership <br/>
<a id="pl.15.15"></a><var>15.15</var>tangible property everywhere, determined at the time of the sale. If more than 50
         percent <br/>
<a id="pl.15.16"></a><var>15.16</var>of the value of the partnership's assets consists of intangibles, gain or loss from
         the sale of <br/>
<a id="pl.15.17"></a><var>15.17</var>the partnership interest is allocated to this state in accordance with the sales factor
         of the <br/>
<a id="pl.15.18"></a><var>15.18</var>partnership for its first full tax period immediately preceding the tax period of
         the partnership <br/>
<a id="pl.15.19"></a><var>15.19</var>during which the partnership interest was sold.<br/>
<a id="pl.15.20"></a><var>15.20</var>Gain on the sale of an interest in a single member limited liability company that
         is <br/>
<a id="pl.15.21"></a><var>15.21</var>disregarded for federal income tax purposes is allocable to this state as if the single
         member <br/>
<a id="pl.15.22"></a><var>15.22</var>limited liability company did not exist and the assets of the limited liability company
         are <br/>
<a id="pl.15.23"></a><var>15.23</var>personally owned by the sole member.<br/>
<a id="pl.15.24"></a><var>15.24</var>    Gain on the sale of goodwill or income from a covenant not to compete that is connected
         <br/>
<a id="pl.15.25"></a><var>15.25</var>with a business operating all or partially in Minnesota is allocated to this state
         to the extent <br/>
<a id="pl.15.26"></a><var>15.26</var>that the income from the business in the year preceding the year of sale was assignable <br/>
<a id="pl.15.27"></a><var>15.27</var>allocable to Minnesota under subdivision 3.<br/>
<a id="pl.15.28"></a><var>15.28</var>    When an employer pays an employee for a covenant not to compete, the income allocated
         <br/>
<a id="pl.15.29"></a><var>15.29</var>to this state is in the ratio of the employee's service in Minnesota in the calendar
         year <br/>
<a id="pl.15.30"></a><var>15.30</var>preceding leaving the employment of the employer over the total services performed
         by the <br/>
<a id="pl.15.31"></a><var>15.31</var>employee for the employer in that year.<br/>
<a id="pl.16.1"></a><var>16.1</var>    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned
         <br/>
<a id="pl.16.2"></a><var>16.2</var>to this state. In this paragraph, "bet" has the meaning given in section 
         <statute_ref>609.75, subdivision <br/>
<a id="pl.16.3"></a><var>16.3</var>2
         </statute_ref>, as limited by section 
         <statute_ref>609.75, subdivision 3</statute_ref>, clauses (1), (2), and (3).<br/>
<a id="pl.16.4"></a><var>16.4</var>    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of
         the <br/>
<a id="pl.16.5"></a><var>16.5</var>taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.<br/>
<a id="pl.16.6"></a><var>16.6</var>    (f) For the purposes of this section, working as an employee shall not be considered
         to <br/>
<a id="pl.16.7"></a><var>16.7</var>be conducting a trade or business.<br/>
<a id="pl.16.8"></a><var>16.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.16.9"></a><var>16.9</var>    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:<br/>
<a id="pl.16.10"></a><var>16.10</var>    Subdivision 1. <b>Partners, not partnership, subject to tax.</b> Except as provided under <br/>
<a id="pl.16.11"></a><var>16.11</var>section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax <br/>
<a id="pl.16.12"></a><var>16.12</var>imposed by this chapter, but is subject to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>. Persons <br/>
<a id="pl.16.13"></a><var>16.13</var>carrying on business as partners shall be liable for income tax only in their separate
         or <br/>
<a id="pl.16.14"></a><var>16.14</var>individual capacities.<br/>
<a id="pl.16.15"></a><var>16.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.16.16"></a><var>16.16</var>    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:<br/>
<a id="pl.16.17"></a><var>16.17</var><b>290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.</b><br/>
<a id="pl.16.18"></a><var>16.18</var>(a) The owner or managing agent of any property for which rent is paid for occupancy <br/>
<a id="pl.16.19"></a><var>16.19</var>as a homestead must furnish a certificate of rent paid to a person who is a renter
         on December <br/>
<a id="pl.16.20"></a><var>16.20</var>31, in the form prescribed by the commissioner. If the renter moves before December
         31, <br/>
<a id="pl.16.21"></a><var>16.21</var>the owner or managing agent may give the certificate to the renter at the time of
         moving, <br/>
<a id="pl.16.22"></a><var>16.22</var>or mail the certificate to the forwarding address if an address has been provided
         by the <br/>
<a id="pl.16.23"></a><var>16.23</var>renter. The certificate must be made available to the renter before February 1 of
         the year <br/>
<a id="pl.16.24"></a><var>16.24</var>following the year in which the rent was paid. The owner or managing agent must retain
         a <br/>
<a id="pl.16.25"></a><var>16.25</var>duplicate of each certificate or an equivalent record showing the same information
         for a <br/>
<a id="pl.16.26"></a><var>16.26</var>period of three years. The duplicate or other record must be made available to the
         <br/>
<a id="pl.16.27"></a><var>16.27</var>commissioner upon request.<br/>
<a id="pl.16.28"></a><var>16.28</var>(b) The commissioner may require the owner or managing agent, through a simple <br/>
<a id="pl.16.29"></a><var>16.29</var>process, to furnish to the commissioner on or before March 1 a copy of each certificate
         of <br/>
<a id="pl.16.30"></a><var>16.30</var>rent paid furnished to a renter for rent paid in the prior year, in the content, format,
         and <br/>
<a id="pl.16.31"></a><var>16.31</var>manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
         <br/>
<a id="pl.16.32"></a><var>16.32</var>the commissioner, after consulting with representatives of owners or managing agents,
         shall <br/>
<a id="pl.17.1"></a><var>17.1</var>develop an implementation and administration plan for the requirements of this paragraph
         <br/>
<a id="pl.17.2"></a><var>17.2</var>that attempts to minimize financial burdens, administration and compliance costs,
         and takes <br/>
<a id="pl.17.3"></a><var>17.3</var>into consideration existing systems of owners and managing agents.<br/>
<a id="pl.17.4"></a><var>17.4</var>(c) For the purposes of this section, "owner" includes a park owner as defined under
         <br/>
<a id="pl.17.5"></a><var>17.5</var>section 
         <statute_ref>327C.01, subdivision 6</statute_ref>, and "property" includes a lot as defined under section <br/>
<statute_ref><a id="pl.17.6"></a><var>17.6</var>327C.01, subdivision 3
         </statute_ref>.<br/>
<a id="pl.17.7"></a><var>17.7</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of rent paid furnished to <br/>
<a id="pl.17.8"></a><var>17.8</var>a renter for rent paid after December 31, 2016.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.17.9"></a><var>17.9</var>    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:<br/>
<a id="pl.17.10"></a><var>17.10</var>    Subd. 2. <b>Additions.</b> The following amounts, to the extent deducted in computing or <br/>
<a id="pl.17.11"></a><var>17.11</var>otherwise excluded from the federal taxable estate, must be added in computing the <br/>
<a id="pl.17.12"></a><var>17.12</var>Minnesota taxable estate:<br/>
<a id="pl.17.13"></a><var>17.13</var>(1) the amount of the deduction for state death taxes allowed under section 2058 of
         the <br/>
<a id="pl.17.14"></a><var>17.14</var>Internal Revenue Code;<br/>
<a id="pl.17.15"></a><var>17.15</var>(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
         <br/>
<a id="pl.17.16"></a><var>17.16</var>of the Internal Revenue Code; and<br/>
<a id="pl.17.17"></a><var>17.17</var>(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
         <br/>
<a id="pl.17.18"></a><var>17.18</var>Revenue Code, made by the decedent within three years of the date of death. For purposes
         <br/>
<a id="pl.17.19"></a><var>17.19</var>of this clause, the amount of the addition equals the value of the gift under section
         2512 of <br/>
<a id="pl.17.20"></a><var>17.20</var>the Internal Revenue Code and excludes any value of the gift included in the federal
         estate.<br/>
<a id="pl.17.21"></a><var>17.21</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.17.22"></a><var>17.22</var>dying after June 30, 2013.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.17.23"></a><var>17.23</var>    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:<br/>
<a id="pl.17.24"></a><var>17.24</var>    Subd. 3. <b>Subtraction.</b> The following amounts, to the extent included in computing the <br/>
<a id="pl.17.25"></a><var>17.25</var>federal taxable estate, may be subtracted in computing the Minnesota taxable estate
         but <br/>
<a id="pl.17.26"></a><var>17.26</var>must not reduce the Minnesota taxable estate to less than zero:<br/>
<a id="pl.17.27"></a><var>17.27</var>(1) the value of property subject to an election under section 291.03, subdivision
         1d; <br/>
<a id="pl.17.28"></a><var>17.28</var>and<br/>
<a id="pl.17.29"></a><var>17.29</var>(2) the value of qualified small business property under section 
         <statute_ref>291.03, subdivision 9</statute_ref>, <br/>
<a id="pl.17.30"></a><var>17.30</var>and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision 10</statute_ref>, or the result <br/>
<a id="pl.17.31"></a><var>17.31</var>of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) items (i) <br/>
<a id="pl.18.1"></a><var>18.1</var>to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but <br/>
<a id="pl.18.2"></a><var>18.2</var>must not reduce the Minnesota taxable estate to less than zero:<br/>
<a id="pl.18.3"></a><var>18.3</var>(1) (i) $1,200,000 for estates of decedents dying in 2014;<br/>
<a id="pl.18.4"></a><var>18.4</var>(2) (ii) $1,400,000 for estates of decedents dying in 2015;<br/>
<a id="pl.18.5"></a><var>18.5</var>(3) (iii) $1,600,000 for estates of decedents dying in 2016;<br/>
<a id="pl.18.6"></a><var>18.6</var>(4) (iv) $1,800,000 for estates of decedents dying in 2017; and<br/>
<a id="pl.18.7"></a><var>18.7</var>(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.<br/>
<a id="pl.18.8"></a><var>18.8</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.18.9"></a><var>18.9</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.18.10"></a><var>18.10</var>    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:<br/>
<a id="pl.18.11"></a><var>18.11</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.18.12"></a><var>18.12</var>requirements is qualified small business property:<br/>
<a id="pl.18.13"></a><var>18.13</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.18.14"></a><var>18.14</var>(2) The property consists of the assets of a trade or business or shares of stock
         or other <br/>
<a id="pl.18.15"></a><var>18.15</var>ownership interests in a corporation or other entity engaged in a trade or business.
         Shares <br/>
<a id="pl.18.16"></a><var>18.16</var>of stock in a corporation or an ownership interest in another type of entity do not
         qualify <br/>
<a id="pl.18.17"></a><var>18.17</var>under this subdivision if the shares or ownership interests are traded on a public
         stock <br/>
<a id="pl.18.18"></a><var>18.18</var>exchange at any time during the three-year period ending on the decedent's date of
         death. <br/>
<a id="pl.18.19"></a><var>18.19</var>For purposes of this subdivision, an ownership interest includes the interest the
         decedent is <br/>
<a id="pl.18.20"></a><var>18.20</var>deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br/>
<a id="pl.18.21"></a><var>18.21</var>(3) During the taxable year that ended before the decedent's death, the trade or business
         <br/>
<a id="pl.18.22"></a><var>18.22</var>must not have been a passive activity within the meaning of section 469(c) of the
         Internal <br/>
<a id="pl.18.23"></a><var>18.23</var>Revenue Code, and the decedent or the decedent's spouse must have materially participated
         <br/>
<a id="pl.18.24"></a><var>18.24</var>in the trade or business within the meaning of section 469(h) of the Internal Revenue
         Code, <br/>
<a id="pl.18.25"></a><var>18.25</var>excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
         <br/>
<a id="pl.18.26"></a><var>18.26</var>by United States Treasury Department regulation that substitutes material participation
         in <br/>
<a id="pl.18.27"></a><var>18.27</var>prior taxable years for material participation in the taxable year that ended before
         the <br/>
<a id="pl.18.28"></a><var>18.28</var>decedent's death.<br/>
<a id="pl.18.29"></a><var>18.29</var>(4) The gross annual sales of the trade or business were $10,000,000 or less for the
         last <br/>
<a id="pl.18.30"></a><var>18.30</var>taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.18.31"></a><var>18.31</var>(5) The property does not consist of include:<br/>
<a id="pl.19.1"></a><var>19.1</var>(i) cash,;<br/>
<a id="pl.19.2"></a><var>19.2</var>(ii) cash equivalents,;<br/>
<a id="pl.19.3"></a><var>19.3</var>(iii) publicly traded securities,; or<br/>
<a id="pl.19.4"></a><var>19.4</var>(iv) any assets not used in the operation of the trade or business.<br/>
<a id="pl.19.5"></a><var>19.5</var>(6) For property consisting of shares of stock or other ownership interests in an entity,
         <br/>
<a id="pl.19.6"></a><var>19.6</var>the value of cash, cash equivalents, publicly traded securities, or assets not used in the <br/>
<a id="pl.19.7"></a><var>19.7</var>operation of the trade or business held by the corporation or other entity items described in <br/>
<a id="pl.19.8"></a><var>19.8</var>clause (5) must be deducted from the value of the property qualifying under this subdivision <br/>
<a id="pl.19.9"></a><var>19.9</var>in proportion to the decedent's share of ownership of the entity on the date of death excluded <br/>
<a id="pl.19.10"></a><var>19.10</var>in the valuation of the decedent's interest in the entity.<br/>
<a id="pl.19.11"></a><var>19.11</var>(6) (7) The decedent continuously owned the property, including property the decedent <br/>
<a id="pl.19.12"></a><var>19.12</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,
         for <br/>
<a id="pl.19.13"></a><var>19.13</var>the three-year period ending on the date of death of the decedent. In the case of
         a sole <br/>
<a id="pl.19.14"></a><var>19.14</var>proprietor, if the property replaced similar property within the three-year period,
         the <br/>
<a id="pl.19.15"></a><var>19.15</var>replacement property will be treated as having been owned for the three-year period
         ending <br/>
<a id="pl.19.16"></a><var>19.16</var>on the date of death of the decedent.<br/>
<a id="pl.19.17"></a><var>19.17</var>(7) (8) For three years following the date of death of the decedent, the trade or business
         <br/>
<a id="pl.19.18"></a><var>19.18</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue
         Code, <br/>
<a id="pl.19.19"></a><var>19.19</var>and a family member materially participates in the operation of the trade or business
         within <br/>
<a id="pl.19.20"></a><var>19.20</var>the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
         <br/>
<a id="pl.19.21"></a><var>19.21</var>of the Internal Revenue Code and any other provision provided by United States Treasury
         <br/>
<a id="pl.19.22"></a><var>19.22</var>Department regulation that substitutes material participation in prior taxable years
         for <br/>
<a id="pl.19.23"></a><var>19.23</var>material participation in the three years following the date of death of the decedent.<br/>
<a id="pl.19.24"></a><var>19.24</var>(8) (9) The estate and the qualified heir elect to treat the property as qualified small
         <br/>
<a id="pl.19.25"></a><var>19.25</var>business property and agree, in the form prescribed by the commissioner, to pay the
         recapture <br/>
<a id="pl.19.26"></a><var>19.26</var>tax under subdivision 11, if applicable.<br/>
<a id="pl.19.27"></a><var>19.27</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.19.28"></a><var>19.28</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.19.29"></a><var>19.29</var>    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:<br/>
<a id="pl.19.30"></a><var>19.30</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and before <br/>
<a id="pl.19.31"></a><var>19.31</var>the death of the qualified heir, the qualified heir disposes of any interest in the
         qualified <br/>
<a id="pl.19.32"></a><var>19.32</var>property, other than by a disposition to a family member, or a family member ceases
         to <br/>
<a id="pl.20.1"></a><var>20.1</var>satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
         estate <br/>
<a id="pl.20.2"></a><var>20.2</var>tax is imposed on the property. In the case of a sole proprietor, if the qualified
         heir replaces <br/>
<a id="pl.20.3"></a><var>20.3</var>qualified small business property excluded under subdivision 9 with similar property,
         then <br/>
<a id="pl.20.4"></a><var>20.4</var>the qualified heir will not be treated as having disposed of an interest in the qualified
         property.<br/>
<a id="pl.20.5"></a><var>20.5</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by
         the <br/>
<a id="pl.20.6"></a><var>20.6</var>estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.20.7"></a><var>20.7</var>(c) The additional tax under this subdivision is due on the day which is six months
         after <br/>
<a id="pl.20.8"></a><var>20.8</var>the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.20.9"></a><var>20.9</var>(d) This subdivision shall not apply as a result of any of the following:<br/>
<a id="pl.20.10"></a><var>20.10</var>(1) a portion of qualified farm property consisting of less than one-fifth of the
         acreage <br/>
<a id="pl.20.11"></a><var>20.11</var>of the property is reclassified as class 2b property under section 273.13, subdivision
         23, and <br/>
<a id="pl.20.12"></a><var>20.12</var>the qualified heir has not substantially altered the reclassified property during
         the three-year <br/>
<a id="pl.20.13"></a><var>20.13</var>holding period; or<br/>
<a id="pl.20.14"></a><var>20.14</var>(2) a portion of qualified farm property classified as 2a property at the death of
         the <br/>
<a id="pl.20.15"></a><var>20.15</var>decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of
         a residence, <br/>
<a id="pl.20.16"></a><var>20.16</var>garage, and immediately surrounding one acre of land is reclassified as 4bb property
         during <br/>
<a id="pl.20.17"></a><var>20.17</var>the three-year holding period, and the qualified heir has not substantially altered
         the property.<br/>
<a id="pl.20.18"></a><var>20.18</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.20.19"></a><var>20.19</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.20.20"></a><var>20.20</var>    Sec. 19. <b> REPEALER.</b><br/>
<a id="pl.20.21"></a><var>20.21</var>(a) Minnesota Rules, part 8092.1400, is repealed.<br/>
<a id="pl.20.22"></a><var>20.22</var>(b) Minnesota Rules, part 8092.2000, is repealed.<br/>
<a id="pl.20.23"></a><var>20.23</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br/>
<a id="pl.20.24"></a><var>20.24</var>December 31, 2016, except that notifications from the Department of Revenue to employers
         <br/>
<a id="pl.20.25"></a><var>20.25</var>regarding eligibility to file an annual return for taxes withheld in calendar year
         2017 remain <br/>
<a id="pl.20.26"></a><var>20.26</var>in force. Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="pl.20.29"></a><var>20.29</var><b>AND SALES AND USE TAXES</b><br/>

<a id="bill.4.1.0"></a><a id="pl.20.30"></a><var>20.30</var>    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:<br/>
<a id="pl.21.1"></a><var>21.1</var>    Subd. 5. <b>Calculation of state aid.</b> (a) The amount of fire state aid available for <br/>
<a id="pl.21.2"></a><var>21.2</var>apportionment, before the addition of the minimum fire state aid allocation amount
         under <br/>
<a id="pl.21.3"></a><var>21.3</var>subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
         state upon <br/>
<a id="pl.21.4"></a><var>21.4</var>the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
         the <br/>
<a id="pl.21.5"></a><var>21.5</var>commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
         <br/>
<a id="pl.21.6"></a><var>21.6</var>be reduced by the amount required to pay the state auditor's costs and expenses of
         the audits <br/>
<a id="pl.21.7"></a><var>21.7</var>or exams of the firefighters relief associations.<br/>
<a id="pl.21.8"></a><var>21.8</var>The total amount for apportionment in respect to fire state aid must not be less than
         two <br/>
<a id="pl.21.9"></a><var>21.9</var>percent of the premiums reported to the commissioner by insurers on the Minnesota
         Firetown <br/>
<a id="pl.21.10"></a><var>21.10</var>Premium Report after subtracting the following amounts:<br/>
<a id="pl.21.11"></a><var>21.11</var>(1) the amount required to pay the state auditor's costs and expenses of the audits
         or <br/>
<a id="pl.21.12"></a><var>21.12</var>exams of the firefighters relief associations; and<br/>
<a id="pl.21.13"></a><var>21.13</var>(2) one percent of the premiums reported by town and farmers' township mutual insurance <br/>
<a id="pl.21.14"></a><var>21.14</var>companies and mutual property and casualty companies with total assets of $5,000,000
         or <br/>
<a id="pl.21.15"></a><var>21.15</var>less.<br/>
<a id="pl.21.16"></a><var>21.16</var>(b) The total amount for apportionment as police state aid is equal to 104 percent
         of the <br/>
<a id="pl.21.17"></a><var>21.17</var>amount of premium taxes paid to the state on the premiums reported to the commissioner
         <br/>
<a id="pl.21.18"></a><var>21.18</var>by insurers on the Minnesota Aid to Police Premium Report. The total amount for <br/>
<a id="pl.21.19"></a><var>21.19</var>apportionment in respect to the police state aid program must not be less than two
         percent <br/>
<a id="pl.21.20"></a><var>21.20</var>of the amount of premiums reported to the commissioner by insurers on the Minnesota
         Aid <br/>
<a id="pl.21.21"></a><var>21.21</var>to Police Premium Report.<br/>
<a id="pl.21.22"></a><var>21.22</var>(c) The commissioner shall calculate the percentage of increase or decrease reflected
         in <br/>
<a id="pl.21.23"></a><var>21.23</var>the apportionment over or under the previous year's available state aid using the
         same <br/>
<a id="pl.21.24"></a><var>21.24</var>premiums as a basis for comparison.<br/>
<a id="pl.21.25"></a><var>21.25</var>(d) In addition to the amount for apportionment of police state aid under paragraph
         (b), <br/>
<a id="pl.21.26"></a><var>21.26</var>each year $100,000 must be apportioned for police state aid. An amount sufficient
         to pay <br/>
<a id="pl.21.27"></a><var>21.27</var>this increase is annually appropriated from the general fund.<br/>
<a id="pl.21.28"></a><var>21.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.21.29"></a><var>21.29</var>    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:<br/>
<a id="pl.21.30"></a><var>21.30</var>    Subd. 6. <b>Omission in excess of 25 percent.</b> Additional taxes may be assessed within <br/>
<a id="pl.21.31"></a><var>21.31</var>6-1/2 years after the due date of the return or the date the return was filed, whichever
         is <br/>
<a id="pl.21.32"></a><var>21.32</var>later, if:<br/>
<a id="pl.22.1"></a><var>22.1</var>(1) the taxpayer omits from gross income an amount properly includable in it that
         is in <br/>
<a id="pl.22.2"></a><var>22.2</var>excess of 25 percent of the amount of gross income stated in the return;<br/>
<a id="pl.22.3"></a><var>22.3</var>(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax <br/>
<a id="pl.22.4"></a><var>22.4</var>imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes <br/>
<a id="pl.22.5"></a><var>22.5</var>reported in the return; or<br/>
<a id="pl.22.6"></a><var>22.6</var>(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
         gross <br/>
<a id="pl.22.7"></a><var>22.7</var>estate reported in the return.<br/>
<a id="pl.22.8"></a><var>22.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.22.9"></a><var>22.9</var>    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:<br/>
<a id="pl.22.10"></a><var>22.10</var>    Subd. 2. <b>Exemptions.</b> The following entities are exempt from the tax imposed by this <br/>
<a id="pl.22.11"></a><var>22.11</var>section:<br/>
<a id="pl.22.12"></a><var>22.12</var>(1) corporations exempt from tax under section 
         <statute_ref>290.05</statute_ref>;<br/>
<a id="pl.22.13"></a><var>22.13</var>(2) real estate investment trusts;<br/>
<a id="pl.22.14"></a><var>22.14</var>(3) regulated investment companies or a fund thereof; and<br/>
<a id="pl.22.15"></a><var>22.15</var>(4) entities having a valid election in effect under section 860D(b) of the Internal
         Revenue <br/>
<a id="pl.22.16"></a><var>22.16</var>Code;<br/>
<a id="pl.22.17"></a><var>22.17</var>(5) town and farmers' township mutual insurance companies;<br/>
<a id="pl.22.18"></a><var>22.18</var>(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
         <br/>
<a id="pl.22.19"></a><var>22.19</var>to persons age 55 and over and are classified as homesteads under section 
         <statute_ref>273.124, <br/>
<a id="pl.22.20"></a><var>22.20</var>subdivision 3
         </statute_ref>; and<br/>
<a id="pl.22.21"></a><var>22.21</var>(7) a qualified business as defined under section 
         <statute_ref>469.310, subdivision 11</statute_ref>, if for the <br/>
<a id="pl.22.22"></a><var>22.22</var>taxable year all of its property is located in a job opportunity building zone designated
         under <br/>
<a id="pl.22.23"></a><var>22.23</var>section 
         <statute_ref>469.314</statute_ref> and all of its payroll is a job opportunity building zone payroll under section <br/>
<statute_ref><a id="pl.22.24"></a><var>22.24</var>469.310
         </statute_ref>.<br/>
<a id="pl.22.25"></a><var>22.25</var>Entities not specifically exempted by this subdivision are subject to tax under this
         section, <br/>
<a id="pl.22.26"></a><var>22.26</var>notwithstanding section 
         <statute_ref>290.05</statute_ref>.<br/>
<a id="pl.22.27"></a><var>22.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.22.28"></a><var>22.28</var>    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:<br/>
<a id="pl.22.29"></a><var>22.29</var>    Subd. 2. <b>Pharmacy refund.</b> A pharmacy may claim an annual refund against the total <br/>
<a id="pl.22.30"></a><var>22.30</var>amount of tax, if any, the pharmacy owes during that calendar year under section 
         <statute_ref>295.52, <br/>
<a id="pl.23.1"></a><var>23.1</var>subdivision
         </statute_ref> 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug <br/>
<a id="pl.23.2"></a><var>23.2</var>distributor subject to tax under section 
         <statute_ref>295.52, subdivision 3</statute_ref>, for legend drugs delivered by <br/>
<a id="pl.23.3"></a><var>23.3</var>the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
         <br/>
<statute_ref><a id="pl.23.4"></a><var>23.4</var>295.52
         </statute_ref>, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
         <br/>
<a id="pl.23.5"></a><var>23.5</var>under section 
         <statute_ref>295.52, subdivision</statute_ref> 4, the commissioner shall provide the pharmacy with a <br/>
<a id="pl.23.6"></a><var>23.6</var>refund equal to the excess amount. Each qualifying pharmacy must apply for the refund
         on <br/>
<a id="pl.23.7"></a><var>23.7</var>the annual return as provided under section 
<statute_ref>295.55, subdivision 5</statute_ref> prescribed by the <br/>
<a id="pl.23.8"></a><var>23.8</var>commissioner, on or before March 15 of the year following the calendar year the legend
         <br/>
<a id="pl.23.9"></a><var>23.9</var>drugs were delivered outside Minnesota. The refund must be claimed within 18 months <br/>
<a id="pl.23.10"></a><var>23.10</var>from the date the drugs were delivered outside of Minnesota shall not be allowed if the <br/>
<a id="pl.23.11"></a><var>23.11</var>initial claim for refund is filed more than one year after the original due date of
         the return. <br/>
<a id="pl.23.12"></a><var>23.12</var>Interest on refunds paid under this subdivision will begin to accrue 60 days after
         the date a <br/>
<a id="pl.23.13"></a><var>23.13</var>claim for refund is filed. For purposes of this subdivision, the date a claim is filed
         is the due <br/>
<a id="pl.23.14"></a><var>23.14</var>date of the return if a return is due or the date of the actual claim for refund,
         whichever is <br/>
<a id="pl.23.15"></a><var>23.15</var>later.<br/>
<a id="pl.23.16"></a><var>23.16</var><b>EFFECTIVE DATE.</b>This section is effective for qualifying legend drugs delivered <br/>
<a id="pl.23.17"></a><var>23.17</var>outside Minnesota after December 31, 2017.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.23.18"></a><var>23.18</var>    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to <br/>
<a id="pl.23.19"></a><var>23.19</var>read:<br/>
<a id="pl.23.20"></a><var>23.20</var>    Subd. 9a. <b>Bulk storage or bulk storage facility.</b> "Bulk storage" or "bulk storage facility" <br/>
<a id="pl.23.21"></a><var>23.21</var>means a single property, or contiguous or adjacent properties used for a common purpose
         <br/>
<a id="pl.23.22"></a><var>23.22</var>and owned or operated by the same person, on or in which are located one or more stationary
         <br/>
<a id="pl.23.23"></a><var>23.23</var>tanks that are used singularly or in combination for the storage or containment of
         more than <br/>
<a id="pl.23.24"></a><var>23.24</var>1,100 gallons of petroleum.<br/>
<a id="pl.23.25"></a><var>23.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.23.26"></a><var>23.26</var>    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:<br/>
<a id="pl.23.27"></a><var>23.27</var>    Subd. 33. <b>Motor fuel.</b> "Motor fuel" means a liquid or gaseous form of fuel, regardless <br/>
<a id="pl.23.28"></a><var>23.28</var>of its composition or properties, used to propel a motor vehicle.<br/>
<a id="pl.23.29"></a><var>23.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.23.30"></a><var>23.30</var>    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:<br/>
<a id="pl.23.31"></a><var>23.31</var>    Subd. 42. <b>Petroleum products.</b> "Petroleum products" means all of the products defined <br/>
<a id="pl.23.32"></a><var>23.32</var>in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.<br/>
<a id="pl.24.1"></a><var>24.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.24.2"></a><var>24.2</var>    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:<br/>
<a id="pl.24.3"></a><var>24.3</var>    Subdivision 1. <b>Tax imposed.</b> There is imposed an excise tax on gasoline, gasoline <br/>
<a id="pl.24.4"></a><var>24.4</var>blended with ethanol, and agricultural alcohol gasoline used in producing and generating
         <br/>
<a id="pl.24.5"></a><var>24.5</var>power for propelling motor vehicles used on the public highways of this state. The
         tax is <br/>
<a id="pl.24.6"></a><var>24.6</var>imposed on the first licensed distributor who received the product in Minnesota. For
         purposes <br/>
<a id="pl.24.7"></a><var>24.7</var>of this section, gasoline is defined in section 
         <statute_ref>296A.01, subdivisions 8b, 10, 18, 20, 23, 24, <br/>
<a id="pl.24.8"></a><var>24.8</var>25, 32, and 34
         </statute_ref>. The tax is payable at the time and in the form and manner prescribed by the <br/>
<a id="pl.24.9"></a><var>24.9</var>commissioner. The tax is payable at the rates specified in subdivision 3, subject
         to the <br/>
<a id="pl.24.10"></a><var>24.10</var>exceptions and reductions specified in section 
         <statute_ref>296A.17</statute_ref>.<br/>
<a id="pl.24.11"></a><var>24.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.24.12"></a><var>24.12</var>    Sec. 9. Minnesota Statutes 2016, section 297A.61, subdivision 10, is amended to read:<br/>
<a id="pl.24.13"></a><var>24.13</var>    Subd. 10. <b>Tangible personal property.</b> (a) "Tangible personal property" means personal <br/>
<a id="pl.24.14"></a><var>24.14</var>property that can be seen, weighed, measured, felt, or touched, or that is in any
         other manner <br/>
<a id="pl.24.15"></a><var>24.15</var>perceptible to the senses. "Tangible personal property" includes, but is not limited
         to, <br/>
<a id="pl.24.16"></a><var>24.16</var>electricity, water, gas, steam, and prewritten computer software.<br/>
<a id="pl.24.17"></a><var>24.17</var>    (b) Tangible personal property does not include:<br/>
<a id="pl.24.18"></a><var>24.18</var>    (1) large ponderous machinery and equipment used in a business or production activity
         <br/>
<a id="pl.24.19"></a><var>24.19</var>which at common law would be considered to be real property;<br/>
<a id="pl.24.20"></a><var>24.20</var>    (2) (1) property which is subject to an ad valorem property tax;<br/>
<a id="pl.24.21"></a><var>24.21</var>    (3) (2) property described in section 
         <statute_ref>272.02, subdivision 9</statute_ref>, clauses (a) to (d);<br/>
<a id="pl.24.22"></a><var>24.22</var>    (4) (3) property described in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clauses (3) and (5); and<br/>
<a id="pl.24.23"></a><var>24.23</var>(5) (4) specified digital products, or other digital products, transferred electronically.<br/>
<a id="pl.24.24"></a><var>24.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.24.25"></a><var>24.25</var>    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:<br/>
<a id="pl.24.26"></a><var>24.26</var>    Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax imposed <br/>
<a id="pl.24.27"></a><var>24.27</var>in this chapter to the extent provided.<br/>
<a id="pl.24.28"></a><var>24.28</var>(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
         <br/>
<a id="pl.24.29"></a><var>24.29</var>or partnership is exempt if the transfer constitutes a transfer within the meaning
         of section <br/>
<a id="pl.24.30"></a><var>24.30</var>351 or 721 of the Internal Revenue Code.<br/>
<a id="pl.25.1"></a><var>25.1</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
         of <br/>
<a id="pl.25.2"></a><var>25.2</var>an aircraft for which a commercial use permit has been issued pursuant to section
         
         <statute_ref>360.654</statute_ref> <br/>
<a id="pl.25.3"></a><var>25.3</var>is exempt, if the aircraft is resold while the permit is in effect.<br/>
<a id="pl.25.4"></a><var>25.4</var>(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
         airline <br/>
<a id="pl.25.5"></a><var>25.5</var>companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes of this <br/>
<a id="pl.25.6"></a><var>25.6</var>subdivision, "air flight equipment" includes airplanes and parts necessary for the
         repair and <br/>
<a id="pl.25.7"></a><var>25.7</var>maintenance of such air flight equipment, and flight simulators, but does not include
         airplanes <br/>
<a id="pl.25.8"></a><var>25.8</var>aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on <br/>
<a id="pl.25.9"></a><var>25.9</var>intermittent or irregularly timed flights.<br/>
<a id="pl.25.10"></a><var>25.10</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
         in <br/>
<a id="pl.25.11"></a><var>25.11</var>section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the seller <br/>
<a id="pl.25.12"></a><var>25.12</var>delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped
         or <br/>
<a id="pl.25.13"></a><var>25.13</var>transported outside Minnesota by the purchaser are exempt, but only if the purchaser
         is not <br/>
<a id="pl.25.14"></a><var>25.14</var>a resident of Minnesota and provided that the aircraft is not thereafter returned
         to a point <br/>
<a id="pl.25.15"></a><var>25.15</var>within Minnesota, except in the course of interstate commerce or isolated and occasional
         <br/>
<a id="pl.25.16"></a><var>25.16</var>use, and will be registered in another state or country upon its removal from Minnesota.
         <br/>
<a id="pl.25.17"></a><var>25.17</var>This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
         <br/>
<a id="pl.25.18"></a><var>25.18</var>and uses the aircraft in the state exclusively for training purposes for a period
         not to exceed <br/>
<a id="pl.25.19"></a><var>25.19</var>ten days prior to removing the aircraft from this state.<br/>
<a id="pl.25.20"></a><var>25.20</var>(f) The sale or purchase of the following items that relate to aircraft operated under
         <br/>
<a id="pl.25.21"></a><var>25.21</var>Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
         <br/>
<a id="pl.25.22"></a><var>25.22</var>equipment and parts necessary for repair and maintenance of aircraft; and equipment
         and <br/>
<a id="pl.25.23"></a><var>25.23</var>parts to upgrade and improve aircraft.<br/>
<a id="pl.25.24"></a><var>25.24</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.25.25"></a><var>25.25</var>December 31, 2017.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.25.26"></a><var>25.26</var>    Sec. 11. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:<br/>
<a id="pl.25.27"></a><var>25.27</var>    Subd. 4a. <b>Deposit in state airports fund.</b> Tax revenue, including interest and penalties, <br/>
<a id="pl.25.28"></a><var>25.28</var>collected from the sale or purchase of an aircraft taxable under this chapter must
         be deposited <br/>
<a id="pl.25.29"></a><var>25.29</var>in the state airports fund established in section 
         <statute_ref>360.017</statute_ref>. For purposes of this subdivision, <br/>
<a id="pl.25.30"></a><var>25.30</var>"revenue" does not include the revenue, including interest and penalties, generated
         by the <br/>
<a id="pl.25.31"></a><var>25.31</var>sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
         <br/>
<a id="pl.25.32"></a><var>25.32</var>provided under article XI, section 15, of the Minnesota Constitution.<br/>
<a id="pl.25.33"></a><var>25.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.26.1"></a><var>26.1</var>    Sec. 12. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:<br/>
<a id="pl.26.2"></a><var>26.2</var>    Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal sanctions <br/>
<a id="pl.26.3"></a><var>26.3</var>imposed by this chapter, a person, organization, or business entity possessing or
         selling a <br/>
<a id="pl.26.4"></a><var>26.4</var>pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed
         by <br/>
<a id="pl.26.5"></a><var>26.5</var>this chapter has not been paid is liable for a tax of six percent of the ideal gross
         of each <br/>
<a id="pl.26.6"></a><var>26.6</var>pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial
         deal must <br/>
<a id="pl.26.7"></a><var>26.7</var>be assessed as if it were a full deal.<br/>
<a id="pl.26.8"></a><var>26.8</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) <br/>
<a id="pl.26.9"></a><var>26.9</var>not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
         raffles, <br/>
<a id="pl.26.10"></a><var>26.10</var>or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to <br/>
<a id="pl.26.11"></a><var>26.11</var>609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six <br/>
<a id="pl.26.12"></a><var>26.12</var>percent of the gross receipts from that activity.<br/>
<a id="pl.26.13"></a><var>26.13</var>(c) The tax must may be assessed by the commissioner. An assessment must be considered <br/>
<a id="pl.26.14"></a><var>26.14</var>a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. The <br/>
<a id="pl.26.15"></a><var>26.15</var>commissioner shall assess the tax based on personal knowledge or information available
         to <br/>
<a id="pl.26.16"></a><var>26.16</var>the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last
         known <br/>
<a id="pl.26.17"></a><var>26.17</var>address, or serve in person, a written notice of the amount of tax, demand its immediate
         <br/>
<a id="pl.26.18"></a><var>26.18</var>payment, and, if payment is not immediately made, collect the tax by any method described
         <br/>
<a id="pl.26.19"></a><var>26.19</var>in chapter 270C, except that the commissioner need not await the expiration of the
         times <br/>
<a id="pl.26.20"></a><var>26.20</var>specified in chapter 270C. The tax assessed by the commissioner is presumed to be
         valid <br/>
<a id="pl.26.21"></a><var>26.21</var>and correctly determined and assessed. The burden is upon the taxpayer to show its
         <br/>
<a id="pl.26.22"></a><var>26.22</var>incorrectness or invalidity. The tax imposed under this subdivision does not apply
         to gambling <br/>
<a id="pl.26.23"></a><var>26.23</var>that is exempt from taxation under subdivision 2.<br/>
<a id="pl.26.24"></a><var>26.24</var>(d) A person, organization, or business entity conducting gambling activity under
         this <br/>
<a id="pl.26.25"></a><var>26.25</var>subdivision must file monthly tax returns with the commissioner, in the form required
         by <br/>
<a id="pl.26.26"></a><var>26.26</var>the commissioner. The returns must be filed on or before the 20th day of the month
         following <br/>
<a id="pl.26.27"></a><var>26.27</var>the month in which the gambling activity occurred. The tax imposed by this section
         is due <br/>
<a id="pl.26.28"></a><var>26.28</var>and payable at the time when the returns are required to be filed.<br/>
<a id="pl.26.29"></a><var>26.29</var>(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
         <br/>
<a id="pl.26.30"></a><var>26.30</var>employee may reveal facts contained in a tax return filed with the commissioner of
         revenue <br/>
<a id="pl.26.31"></a><var>26.31</var>as required by this subdivision, nor can any information contained in the report or
         return <br/>
<a id="pl.26.32"></a><var>26.32</var>be used against the tax obligor in any criminal proceeding, unless independently obtained,
         <br/>
<a id="pl.26.33"></a><var>26.33</var>except in connection with a proceeding involving taxes due under this section, or
         as provided <br/>
<a id="pl.26.34"></a><var>26.34</var>in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
         <br/>
<a id="pl.27.1"></a><var>27.1</var>commissioner from publishing statistics that do not disclose the identity of tax obligors
         or <br/>
<a id="pl.27.2"></a><var>27.2</var>the contents of particular returns or reports. Any person violating this paragraph
         is guilty <br/>
<a id="pl.27.3"></a><var>27.3</var>of a gross misdemeanor.<br/>
<a id="pl.27.4"></a><var>27.4</var><b>EFFECTIVE DATE.</b>This section is effective for games played or purchased after June <br/>
<a id="pl.27.5"></a><var>27.5</var>30, 2017.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.27.6"></a><var>27.6</var>    Sec. 13. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:<br/>
<a id="pl.27.7"></a><var>27.7</var>    Subd. 2. <b>Materials.</b> The tax is not imposed upon charges to generators of mixed municipal <br/>
<a id="pl.27.8"></a><var>27.8</var>solid waste or upon the volume of nonmixed municipal solid waste for waste management
         <br/>
<a id="pl.27.9"></a><var>27.9</var>services to manage the following materials:<br/>
<a id="pl.27.10"></a><var>27.10</var>(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
         <br/>
<a id="pl.27.11"></a><var>27.11</var>of Minnesota;<br/>
<a id="pl.27.12"></a><var>27.12</var>(2) recyclable materials that are separated for recycling by the generator, collected
         <br/>
<a id="pl.27.13"></a><var>27.13</var>separately from other waste, and recycled, to the extent the price of the service
         for handling <br/>
<a id="pl.27.14"></a><var>27.14</var>recyclable material is separately itemized on a bill to the generator;<br/>
<a id="pl.27.15"></a><var>27.15</var>(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
         <br/>
<a id="pl.27.16"></a><var>27.16</var>generator, collected separately from other waste, delivered to a waste facility for
         the purpose <br/>
<a id="pl.27.17"></a><var>27.17</var>of recycling, and recycled;<br/>
<a id="pl.27.18"></a><var>27.18</var>(4) industrial waste, when it is transported to a facility owned and operated by the
         same <br/>
<a id="pl.27.19"></a><var>27.19</var>person that generated it;<br/>
<a id="pl.27.20"></a><var>27.20</var>(5) mixed municipal solid waste from a recycling facility that separates or processes
         <br/>
<a id="pl.27.21"></a><var>27.21</var>recyclable materials and reduces the volume of the waste by at least 85 percent, provided
         <br/>
<a id="pl.27.22"></a><var>27.22</var>that the exempted waste is managed separately from other waste;<br/>
<a id="pl.27.23"></a><var>27.23</var>(6) recyclable materials that are separated from mixed municipal solid waste by the
         <br/>
<a id="pl.27.24"></a><var>27.24</var>generator, collected and delivered to a waste facility that recycles at least 85 percent
         of its <br/>
<a id="pl.27.25"></a><var>27.25</var>waste, and are collected with mixed municipal solid waste that is segregated in leakproof
         <br/>
<a id="pl.27.26"></a><var>27.26</var>bags, provided that the mixed municipal solid waste does not exceed five percent of
         the <br/>
<a id="pl.27.27"></a><var>27.27</var>total weight of the materials delivered to the facility and is ultimately delivered
         to a waste <br/>
<a id="pl.27.28"></a><var>27.28</var>facility identified as a preferred waste management facility in county solid waste
         plans <br/>
<a id="pl.27.29"></a><var>27.29</var>under section 
         <statute_ref>115A.46</statute_ref>;<br/>
<a id="pl.27.30"></a><var>27.30</var>(7) source-separated compostable waste materials, if the waste is materials are delivered <br/>
<a id="pl.27.31"></a><var>27.31</var>to a facility exempted as described in this clause. To initially qualify for an exemption,
         a <br/>
<a id="pl.27.32"></a><var>27.32</var>facility must apply for an exemption in its application for a new or amended solid
         waste <br/>
<a id="pl.28.1"></a><var>28.1</var>permit to the Pollution Control Agency. The first time a facility applies to the agency
         it <br/>
<a id="pl.28.2"></a><var>28.2</var>must certify in its application that it will comply with the criteria in items (i)
         to (v) and the <br/>
<a id="pl.28.3"></a><var>28.3</var>commissioner of the agency shall so certify to the commissioner of revenue who must
         grant <br/>
<a id="pl.28.4"></a><var>28.4</var>the exemption. The facility must annually apply to the agency for certification to
         renew its <br/>
<a id="pl.28.5"></a><var>28.5</var>exemption for the following year. The application must be filed according to the procedures
         <br/>
<a id="pl.28.6"></a><var>28.6</var>of, and contain the information required by, the agency. The commissioner of revenue
         shall <br/>
<a id="pl.28.7"></a><var>28.7</var>grant the exemption if the commissioner of the Pollution Control Agency finds and
         certifies <br/>
<a id="pl.28.8"></a><var>28.8</var>to the commissioner of revenue that based on an evaluation of the composition of incoming
         <br/>
<a id="pl.28.9"></a><var>28.9</var>waste and residuals and the quality and use of the product:<br/>
<a id="pl.28.10"></a><var>28.10</var>(i) generators separate materials at the source;<br/>
<a id="pl.28.11"></a><var>28.11</var>(ii) the separation is performed in a manner appropriate to the technology specific
         to the <br/>
<a id="pl.28.12"></a><var>28.12</var>facility that:<br/>
<a id="pl.28.13"></a><var>28.13</var>(A) maximizes the quality of the product;<br/>
<a id="pl.28.14"></a><var>28.14</var>(B) minimizes the toxicity and quantity of residuals rejects; and<br/>
<a id="pl.28.15"></a><var>28.15</var>(C) provides an opportunity for significant improvement in the environmental efficiency
         <br/>
<a id="pl.28.16"></a><var>28.16</var>of the operation;<br/>
<a id="pl.28.17"></a><var>28.17</var>(iii) the operator of the facility educates generators, in coordination with each
         county <br/>
<a id="pl.28.18"></a><var>28.18</var>using the facility, about separating the waste to maximize the quality of the waste
         stream <br/>
<a id="pl.28.19"></a><var>28.19</var>for technology specific to the facility;<br/>
<a id="pl.28.20"></a><var>28.20</var>(iv) process residuals rejects do not exceed 15 percent of the weight of the total material <br/>
<a id="pl.28.21"></a><var>28.21</var>delivered to the facility; and<br/>
<a id="pl.28.22"></a><var>28.22</var>(v) the final product is accepted for use;<br/>
<a id="pl.28.23"></a><var>28.23</var>(8) waste and waste by-products for which the tax has been paid; and<br/>
<a id="pl.28.24"></a><var>28.24</var>(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
         <br/>
<a id="pl.28.25"></a><var>28.25</var>Control Agency.<br/>
<a id="pl.28.26"></a><var>28.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.28.27"></a><var>28.27</var>    Sec. 14. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:<br/>
<a id="pl.28.28"></a><var>28.28</var>    Subd. 2. <b>Town and farmers'</b><b> Township</b><b> mutual insurance.</b> A tax is imposed on town <br/>
<a id="pl.28.29"></a><var>28.29</var>and farmers' township mutual insurance companies. The rate of tax is equal to one percent <br/>
<a id="pl.28.30"></a><var>28.30</var>of gross premiums less return premiums on all direct business received by the insurer
         or <br/>
<a id="pl.28.31"></a><var>28.31</var>agents of the insurer in Minnesota, in cash or otherwise, during the year.<br/>
<a id="pl.29.1"></a><var>29.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.29.2"></a><var>29.2</var>    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:<br/>
<a id="pl.29.3"></a><var>29.3</var>    Subdivision 1. <b>Cities of the first class.</b> (a) The commissioner shall order and direct a <br/>
<a id="pl.29.4"></a><var>29.4</var>surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage
         gross <br/>
<a id="pl.29.5"></a><var>29.5</var>premiums, less return premiums, on all direct business received by any licensed foreign
         or <br/>
<a id="pl.29.6"></a><var>29.6</var>domestic fire insurance company on property in a city of the first class, or by its
         agents for <br/>
<a id="pl.29.7"></a><var>29.7</var>it, in cash or otherwise.<br/>
<a id="pl.29.8"></a><var>29.8</var>(b) By July 31 and December 31 of each year, the commissioner of management and <br/>
<a id="pl.29.9"></a><var>29.9</var>budget shall pay to each city of the first class a warrant for an amount equal to the total
         <br/>
<a id="pl.29.10"></a><var>29.10</var>amount of the surcharge on the premiums collected within that city since the previous
         <br/>
<a id="pl.29.11"></a><var>29.11</var>payment.<br/>
<a id="pl.29.12"></a><var>29.12</var>(c) The treasurer of the city shall place the money received under this subdivision
         in a <br/>
<a id="pl.29.13"></a><var>29.13</var>special account or fund to defray all or a portion of the employer contribution requirement
         <br/>
<a id="pl.29.14"></a><var>29.14</var>of public employees police and fire plan coverage for city firefighters.<br/>
<a id="pl.29.15"></a><var>29.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.29.16"></a><var>29.16</var>    Sec. 16. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:<br/>
<a id="pl.29.17"></a><var>29.17</var>    Subd. 3. <b>Appropriation.</b> The amount necessary to make the payments required under <br/>
<a id="pl.29.18"></a><var>29.18</var>this section is appropriated to the commissioner of management and budget from the general <br/>
<a id="pl.29.19"></a><var>29.19</var>fund.<br/>
<a id="pl.29.20"></a><var>29.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.29.21"></a><var>29.21</var>    Sec. 17. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:<br/>
<a id="pl.29.22"></a><var>29.22</var>    Subd. 4c. <b>Special deductions; net operating loss.</b> (a) For purposes of determining <br/>
<a id="pl.29.23"></a><var>29.23</var>taxable income under subdivision 4, the provisions of sections 
         <statute_ref>290.0133, subdivisions 7</statute_ref> <br/>
<a id="pl.29.24"></a><var>29.24</var>and 9, and 
         <statute_ref>290.0134, subdivisions 7</statute_ref> and 9, are not used to determine taxable income.<br/>
<a id="pl.29.25"></a><var>29.25</var>(b) The amount of net operating loss incurred in a taxable year beginning before January
         <br/>
<a id="pl.29.26"></a><var>29.26</var>1, 1990, that may be carried over to a taxable year beginning after December 31, 1989,
         is <br/>
<a id="pl.29.27"></a><var>29.27</var>the amount of net operating loss carryover determined in the calculation of the hypothetical
         <br/>
<a id="pl.29.28"></a><var>29.28</var>corporate franchise tax under Minnesota Statutes 1988, sections 
<statute_ref>298.40</statute_ref> and 
<statute_ref>298.402</statute_ref>.<br/>
<a id="pl.29.29"></a><var>29.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="pl.30.3"></a><var>30.3</var><b>PROVISIONS</b><br/>

<a id="bill.5.1.0"></a><a id="pl.30.4"></a><var>30.4</var>    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:<br/>
<a id="pl.30.5"></a><var>30.5</var>    Subd. 2. <b>Income property assessment data.</b> The following data collected by political <br/>
<a id="pl.30.6"></a><var>30.6</var>subdivisions and the state from individuals or business entities concerning income properties <br/>
<a id="pl.30.7"></a><var>30.7</var>are classified as private or nonpublic data pursuant to section 
         <statute_ref>13.02, subdivisions 9</statute_ref> and 12:<br/>
<a id="pl.30.8"></a><var>30.8</var>(a) detailed income and expense figures;<br/>
<a id="pl.30.9"></a><var>30.9</var>(b) average vacancy factors;<br/>
<a id="pl.30.10"></a><var>30.10</var>(c) verified net rentable areas or net usable areas, whichever is appropriate;<br/>
<a id="pl.30.11"></a><var>30.11</var>(d) anticipated income and expenses;<br/>
<a id="pl.30.12"></a><var>30.12</var>(e) projected vacancy factors; and<br/>
<a id="pl.30.13"></a><var>30.13</var>(f) lease information.<br/>
<a id="pl.30.14"></a><var>30.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.30.15"></a><var>30.15</var>    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:<br/>
<a id="pl.30.16"></a><var>30.16</var>    Subd. 2. <b>Air commerce.</b> (a) "Air commerce" means the transportation by aircraft of <br/>
<a id="pl.30.17"></a><var>30.17</var>persons or property for hire in interstate, intrastate, or international transportation
         on regularly <br/>
<a id="pl.30.18"></a><var>30.18</var>scheduled flights or on intermittent or irregularly timed flights by airline companies and <br/>
<a id="pl.30.19"></a><var>30.19</var>includes transportation by any airline company making three or more flights in or
         out of <br/>
<a id="pl.30.20"></a><var>30.20</var>Minnesota, or within Minnesota, during a calendar year.<br/>
<a id="pl.30.21"></a><var>30.21</var>(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
         <br/>
<a id="pl.30.22"></a><var>30.22</var>flight, a flight arranged at the convenience of an airline and the person contracting
         for the <br/>
<a id="pl.30.23"></a><var>30.23</var>transportation, or a charter flight. It includes any airline company making three
         or more <br/>
<a id="pl.30.24"></a><var>30.24</var>flights in or out of Minnesota during a calendar year.<br/>
<a id="pl.30.25"></a><var>30.25</var>(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
         <br/>
<a id="pl.30.26"></a><var>30.26</var>owned and used for private air flight purposes if the person furnishing the transportation
         <br/>
<a id="pl.30.27"></a><var>30.27</var>does not hold out to be engaged regularly in transportation for hire.<br/>
<a id="pl.30.28"></a><var>30.28</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.31.1"></a><var>31.1</var>    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:<br/>
<a id="pl.31.2"></a><var>31.2</var>    Subd. 7. <b>Flight property.</b> "Flight property" means all aircraft and flight equipment used <br/>
<a id="pl.31.3"></a><var>31.3</var>in connection therewith, including spare flight equipment. Flight property also includes
         <br/>
<a id="pl.31.4"></a><var>31.4</var>computers and computer software used in operating, controlling, or regulating aircraft
         and <br/>
<a id="pl.31.5"></a><var>31.5</var>flight equipment. Flight property does not include aircraft with a maximum takeoff weight <br/>
<a id="pl.31.6"></a><var>31.6</var>of less than 30,000 pounds.<br/>
<a id="pl.31.7"></a><var>31.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.31.8"></a><var>31.8</var>    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:<br/>
<a id="pl.31.9"></a><var>31.9</var>    Subd. 8. <b>Person.</b> "Person" means any an individual, corporation, firm, copartnership, <br/>
<a id="pl.31.10"></a><var>31.10</var>company, or association, and includes any guardian, trustee, executor, administrator,
         receiver, <br/>
<a id="pl.31.11"></a><var>31.11</var>conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary, <br/>
<a id="pl.31.12"></a><var>31.12</var>partnership, company, corporation, limited liability company, association, governmental
         <br/>
<a id="pl.31.13"></a><var>31.13</var>unit or agency, public or private organization of any kind, or other legal entity.<br/>
<a id="pl.31.14"></a><var>31.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.31.15"></a><var>31.15</var>    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to <br/>
<a id="pl.31.16"></a><var>31.16</var>read:<br/>
<a id="pl.31.17"></a><var>31.17</var>    Subd. 10. <b>Intermittent or irregularly timed flights.</b> "Intermittently or irregularly timed <br/>
<a id="pl.31.18"></a><var>31.18</var>flights" means any flight in which the departure time, departure location, and arrival
         location <br/>
<a id="pl.31.19"></a><var>31.19</var>are specifically negotiated with the customer or the customer's representative, including
         but <br/>
<a id="pl.31.20"></a><var>31.20</var>not limited to charter flights.<br/>
<a id="pl.31.21"></a><var>31.21</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.31.22"></a><var>31.22</var>    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:<br/>
<a id="pl.31.23"></a><var>31.23</var>    Subd. 2. <b>Assessment of flight property.</b>  Flight property that is owned by, or is leased, <br/>
<a id="pl.31.24"></a><var>31.24</var>loaned, or otherwise made available to an airline company operating in Minnesota shall
         be <br/>
<a id="pl.31.25"></a><var>31.25</var>assessed and appraised annually by the commissioner with reference to its value on
         January <br/>
<a id="pl.31.26"></a><var>31.26</var>2 of the assessment year in the manner prescribed by sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref>. Aircraft <br/>
<a id="pl.31.27"></a><var>31.27</var>with a gross weight of less than 30,000 pounds and used on intermittent or irregularly
         timed <br/>
<a id="pl.31.28"></a><var>31.28</var>flights shall be excluded from the provisions of sections 
<statute_ref>270.071</statute_ref> to 
<statute_ref>270.079</statute_ref>.<br/>
<a id="pl.31.29"></a><var>31.29</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.32.1"></a><var>32.1</var>    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:<br/>
<a id="pl.32.2"></a><var>32.2</var>    Subd. 3. <b>Report by airline company.</b> (a) Each year, on or before July 1, every airline <br/>
<a id="pl.32.3"></a><var>32.3</var>company engaged in air commerce in this state shall file with the commissioner a report
         <br/>
<a id="pl.32.4"></a><var>32.4</var>under oath setting forth specifically the information prescribed by the commissioner
         to <br/>
<a id="pl.32.5"></a><var>32.5</var>enable the commissioner to make the assessment required in sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref>, <br/>
<a id="pl.32.6"></a><var>32.6</var>unless the commissioner determines that the airline company or person should be excluded <br/>
<a id="pl.32.7"></a><var>32.7</var>from is exempt from filing because its activities do not constitute air commerce as defined <br/>
<a id="pl.32.8"></a><var>32.8</var>herein.<br/>
<a id="pl.32.9"></a><var>32.9</var>    (b) The commissioner shall prescribe the content, format, and manner of the report
         <br/>
<a id="pl.32.10"></a><var>32.10</var>pursuant to section 270C.30, except that a "law administered by the commissioner"
         includes <br/>
<a id="pl.32.11"></a><var>32.11</var>the property tax laws. If a report is made by electronic means, the taxpayer's signature
         is <br/>
<a id="pl.32.12"></a><var>32.12</var>defined pursuant to section 270C.304, except that a "law administered by the commissioner"
         <br/>
<a id="pl.32.13"></a><var>32.13</var>includes the property tax laws.<br/>
<a id="pl.32.14"></a><var>32.14</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a) is effective for reports filed in <br/>
<a id="pl.32.15"></a><var>32.15</var>2018 and thereafter. The amendment adding paragraph (b) is effective the day following
         <br/>
<a id="pl.32.16"></a><var>32.16</var>final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.32.17"></a><var>32.17</var>    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to <br/>
<a id="pl.32.18"></a><var>32.18</var>read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 3a. <b>Commissioner filed reports.</b> If an airline company fails to file a report required <br/>
<a id="pl.32.20"></a><var>32.20</var>by subdivision 3, the commissioner may, from information in the commissioner's possession
         <br/>
<a id="pl.32.21"></a><var>32.21</var>or obtainable by the commissioner, make and file a report for the airline company,
         or may <br/>
<a id="pl.32.22"></a><var>32.22</var>issue a notice of net tax capacity and tax under section 270.075, subdivision 2.<br/>
<a id="pl.32.23"></a><var>32.23</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to <br/>
<a id="pl.32.25"></a><var>32.25</var>read:<br/>
<a id="pl.32.26"></a><var>32.26</var>    Subd. 6. <b>Reassessment orders.</b> If the State Board of Equalization determines that a <br/>
<a id="pl.32.27"></a><var>32.27</var>considerable amount of property has been undervalued or overvalued compared to like
         <br/>
<a id="pl.32.28"></a><var>32.28</var>property such that the assessment is grossly unfair or inequitable, the State Board
         of <br/>
<a id="pl.32.29"></a><var>32.29</var>Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue
         orders <br/>
<a id="pl.32.30"></a><var>32.30</var>to the county assessor to reassess all parcels or an identified set of parcels in
         a county.<br/>
<a id="pl.32.31"></a><var>32.31</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.33.1"></a><var>33.1</var>    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:<br/>
<a id="pl.33.2"></a><var>33.2</var>    Subdivision 1. <b>Initial report.</b> Each county assessor shall file by April 1 with the <br/>
<a id="pl.33.3"></a><var>33.3</var>commissioner a copy of the abstract that will be acted upon by the local and county
         boards <br/>
<a id="pl.33.4"></a><var>33.4</var>of review. The abstract must list the real and personal property in the county itemized
         by <br/>
<a id="pl.33.5"></a><var>33.5</var>assessment districts. The assessor of each county in the state shall file with the
         commissioner, <br/>
<a id="pl.33.6"></a><var>33.6</var>within ten working days following final action of the local board of review or equalization
         <br/>
<a id="pl.33.7"></a><var>33.7</var>and within five days following final action of the county board of equalization, any
         changes <br/>
<a id="pl.33.8"></a><var>33.8</var>made by the local or county board. The information must be filed in the manner prescribed
         <br/>
<a id="pl.33.9"></a><var>33.9</var>by the commissioner. It must be accompanied by a printed or typewritten copy of the <br/>
<a id="pl.33.10"></a><var>33.10</var>proceedings of the appropriate board.<br/>
<a id="pl.33.11"></a><var>33.11</var><b>EFFECTIVE DATE.</b>This section is effective for local and county boards of appeal <br/>
<a id="pl.33.12"></a><var>33.12</var>and equalization meetings held in 2017 and thereafter.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.33.13"></a><var>33.13</var>    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:<br/>
<a id="pl.33.14"></a><var>33.14</var>    Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br/>
<a id="pl.33.15"></a><var>33.15</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br/>
<a id="pl.33.16"></a><var>33.16</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br/>
<a id="pl.33.17"></a><var>33.17</var>The following personal property shall be taxable:<br/>
<a id="pl.33.18"></a><var>33.18</var>(a) personal property which is part of (1) an electric generating, transmission, or <br/>
<a id="pl.33.19"></a><var>33.19</var>distribution system or; (2) a pipeline system transporting or distributing water, gas, crude <br/>
<a id="pl.33.20"></a><var>33.20</var>oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot <br/>
<a id="pl.33.21"></a><var>33.21</var>or chilled water for heating or cooling buildings and structures;<br/>
<a id="pl.33.22"></a><var>33.22</var>(b) railroad docks and wharves which are part of the operating property of a railroad
         <br/>
<a id="pl.33.23"></a><var>33.23</var>company as defined in section 
         <statute_ref>270.80</statute_ref>;<br/>
<a id="pl.33.24"></a><var>33.24</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br/>
<a id="pl.33.25"></a><var>33.25</var>(d) leasehold or other personal property interests which are taxed pursuant to section
         <br/>
<statute_ref><a id="pl.33.26"></a><var>33.26</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br/>
<a id="pl.33.27"></a><var>33.27</var>providing the property is taxable as if the lessee or user were the fee owner;<br/>
<a id="pl.33.28"></a><var>33.28</var>(e) manufactured homes and sectional structures, including storage sheds, decks, and
         <br/>
<a id="pl.33.29"></a><var>33.29</var>similar removable improvements constructed on the site of a manufactured home, sectional
         <br/>
<a id="pl.33.30"></a><var>33.30</var>structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, paragraph <br/>
<a id="pl.33.31"></a><var>33.31</var>(f); and<br/>
<a id="pl.33.32"></a><var>33.32</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br/>
<a id="pl.34.1"></a><var>34.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.34.2"></a><var>34.2</var>    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:<br/>
<a id="pl.34.3"></a><var>34.3</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br/>
<a id="pl.34.4"></a><var>34.4</var>(1) "wind energy conversion system" has the meaning given in section 216C.06, <br/>
<a id="pl.34.5"></a><var>34.5</var>subdivision 19, and also includes a substation that is used and owned by one or more
         wind <br/>
<a id="pl.34.6"></a><var>34.6</var>energy conversion facilities;<br/>
<a id="pl.34.7"></a><var>34.7</var>(2) "large scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.34.8"></a><var>34.8</var>of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.34.9"></a><var>34.9</var>combined with other systems as provided in paragraph (b);<br/>
<a id="pl.34.10"></a><var>34.10</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.34.11"></a><var>34.11</var>system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         <br/>
<a id="pl.34.12"></a><var>34.12</var>of the system or as combined with other systems as provided in paragraph (b); and<br/>
<a id="pl.34.13"></a><var>34.13</var>(4) "small scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.34.14"></a><var>34.14</var>of two megawatts and under, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.34.15"></a><var>34.15</var>combined with other systems as provided in paragraph (b).<br/>
<a id="pl.34.16"></a><var>34.16</var>(b) For systems installed and contracted for after January 1, 2002, the total size
         of a <br/>
<a id="pl.34.17"></a><var>34.17</var>wind energy conversion system under this subdivision shall be determined according
         to this <br/>
<a id="pl.34.18"></a><var>34.18</var>paragraph. Unless the systems are interconnected with different distribution systems,
         the <br/>
<a id="pl.34.19"></a><var>34.19</var>nameplate capacity of one wind energy conversion system shall be combined with the
         <br/>
<a id="pl.34.20"></a><var>34.20</var>nameplate capacity of any other wind energy conversion system that is:<br/>
<a id="pl.34.21"></a><var>34.21</var>(1) located within five miles of the wind energy conversion system;<br/>
<a id="pl.34.22"></a><var>34.22</var>(2) constructed within the same calendar year 12-month period as the wind energy <br/>
<a id="pl.34.23"></a><var>34.23</var>conversion system; and<br/>
<a id="pl.34.24"></a><var>34.24</var>(3) under common ownership.<br/>
<a id="pl.34.25"></a><var>34.25</var>In the case of a dispute, the commissioner of commerce shall determine the total size
         of <br/>
<a id="pl.34.26"></a><var>34.26</var>the system, and shall draw all reasonable inferences in favor of combining the systems.<br/>
<a id="pl.34.27"></a><var>34.27</var>(c) In making a determination under paragraph (b), the commissioner of commerce may
         <br/>
<a id="pl.34.28"></a><var>34.28</var>determine that two wind energy conversion systems are under common ownership when
         <br/>
<a id="pl.34.29"></a><var>34.29</var>the underlying ownership structure contains similar persons or entities, even if the
         ownership <br/>
<a id="pl.34.30"></a><var>34.30</var>shares differ between the two systems. Wind energy conversion systems are not under
         <br/>
<a id="pl.34.31"></a><var>34.31</var>common ownership solely because the same person or entity provided equity financing
         for <br/>
<a id="pl.34.32"></a><var>34.32</var>the systems.<br/>
<a id="pl.35.1"></a><var>35.1</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.35.2"></a><var>35.2</var>    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision <br/>
<a id="pl.35.3"></a><var>35.3</var>to read:<br/>
<a id="pl.35.4"></a><var>35.4</var>    Subd. 8. <b>Extension.</b> The commissioner may, for good cause, extend the time for filing <br/>
<a id="pl.35.5"></a><var>35.5</var>the report required by subdivision 4. The extension must not exceed 15 days.<br/>
<a id="pl.35.6"></a><var>35.6</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.35.7"></a><var>35.7</var>    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:<br/>
<a id="pl.35.8"></a><var>35.8</var>    Subd. 7. <b>Division of duties between local and county assessor.</b> The duty of the duly <br/>
<a id="pl.35.9"></a><var>35.9</var>appointed local assessor shall be to view and appraise the value of all property as
         provided <br/>
<a id="pl.35.10"></a><var>35.10</var>by law, but all the book work shall be done by the county assessor, or the assessor's
         assistants, <br/>
<a id="pl.35.11"></a><var>35.11</var>and the value of all property subject to assessment and taxation shall be determined
         by the <br/>
<a id="pl.35.12"></a><var>35.12</var>county assessor, except as otherwise hereinafter provided. If directed by the county
         assessor, <br/>
<a id="pl.35.13"></a><var>35.13</var>the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), <br/>
<a id="pl.35.14"></a><var>35.14</var>and must enter construction and valuation data into the records in the manner prescribed
         <br/>
<a id="pl.35.15"></a><var>35.15</var>by the county assessor.<br/>
<a id="pl.35.16"></a><var>35.16</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.35.17"></a><var>35.17</var>    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:<br/>
<a id="pl.35.18"></a><var>35.18</var><b>273.08 ASSESSOR'S DUTIES.</b><br/>
<a id="pl.35.19"></a><var>35.19</var>The assessor shall actually view, and determine the market value of each tract or
         lot of <br/>
<a id="pl.35.20"></a><var>35.20</var>real property listed for taxation, including the value of all improvements and structures
         <br/>
<a id="pl.35.21"></a><var>35.21</var>thereon, at maximum intervals of five years and shall enter the value opposite each
         <br/>
<a id="pl.35.22"></a><var>35.22</var>description. When directed by the county assessor, local assessors must enter construction <br/>
<a id="pl.35.23"></a><var>35.23</var>and valuation data into the records in the manner prescribed by the county assessor.<br/>
<a id="pl.35.24"></a><var>35.24</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.35.25"></a><var>35.25</var>    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision <br/>
<a id="pl.35.26"></a><var>35.26</var>to read:<br/>
<a id="pl.35.27"></a><var>35.27</var>    Subd. 3. <b>Compliance.</b> A county assessor, or a city assessor having the powers of a <br/>
<a id="pl.35.28"></a><var>35.28</var>county assessor, who does not comply with the timely notice requirement under subdivision
         <br/>
<a id="pl.35.29"></a><var>35.29</var>1 must:<br/>
<a id="pl.36.1"></a><var>36.1</var>(1) mail an additional valuation notice to each person who was not provided timely
         <br/>
<a id="pl.36.2"></a><var>36.2</var>notice; and<br/>
<a id="pl.36.3"></a><var>36.3</var>(2) convene a supplemental local board of appeal and equalization or local review
         session <br/>
<a id="pl.36.4"></a><var>36.4</var>no sooner than ten days after sending the additional notices required by clause (1).<br/>
<a id="pl.36.5"></a><var>36.5</var><b>EFFECTIVE DATE.</b>This section is effective for valuation notices sent in 2018 and <br/>
<a id="pl.36.6"></a><var>36.6</var>thereafter.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.36.7"></a><var>36.7</var>    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:<br/>
<a id="pl.36.8"></a><var>36.8</var>    Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) and <br/>
<a id="pl.36.9"></a><var>36.9</var>(c), real estate which is residential and used for homestead purposes is class 1a.
         In the case <br/>
<a id="pl.36.10"></a><var>36.10</var>of a duplex or triplex in which one of the units is used for homestead purposes, the
         entire <br/>
<a id="pl.36.11"></a><var>36.11</var>property is deemed to be used for homestead purposes. The market value of class 1a
         property <br/>
<a id="pl.36.12"></a><var>36.12</var>must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.36.13"></a><var>36.13</var>    The first $500,000 of market value of class 1a property has a net classification rate
         of <br/>
<a id="pl.36.14"></a><var>36.14</var>one percent of its market value; and the market value of class 1a property that exceeds
         <br/>
<a id="pl.36.15"></a><var>36.15</var>$500,000 has a classification rate of 1.25 percent of its market value.<br/>
<a id="pl.36.16"></a><var>36.16</var>    (b) Class 1b property includes homestead real estate or homestead manufactured homes
         <br/>
<a id="pl.36.17"></a><var>36.17</var>used for the purposes of a homestead by:<br/>
<a id="pl.36.18"></a><var>36.18</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and the <br/>
<a id="pl.36.19"></a><var>36.19</var>blind person's spouse;<br/>
<a id="pl.36.20"></a><var>36.20</var>    (2) any person who is permanently and totally disabled or by the disabled person and
         <br/>
<a id="pl.36.21"></a><var>36.21</var>the disabled person's spouse; or<br/>
<a id="pl.36.22"></a><var>36.22</var>    (3) the surviving spouse of a permanently and totally disabled veteran homesteading
         a <br/>
<a id="pl.36.23"></a><var>36.23</var>property classified under this paragraph for taxes payable in 2008.<br/>
<a id="pl.36.24"></a><var>36.24</var>    Property is classified and assessed under clause (2) only if the government agency
         or <br/>
<a id="pl.36.25"></a><var>36.25</var>income-providing source certifies, upon the request of the homestead occupant, that
         the <br/>
<a id="pl.36.26"></a><var>36.26</var>homestead occupant satisfies the disability requirements of this paragraph, and that
         the <br/>
<a id="pl.36.27"></a><var>36.27</var>property is not eligible for the valuation exclusion under subdivision 34.<br/>
<a id="pl.36.28"></a><var>36.28</var>    Property is classified and assessed under paragraph (b) only if the commissioner of
         <br/>
<a id="pl.36.29"></a><var>36.29</var>revenue or the county assessor certifies that the homestead occupant satisfies the
         requirements <br/>
<a id="pl.36.30"></a><var>36.30</var>of this paragraph.<br/>
<a id="pl.36.31"></a><var>36.31</var>    Permanently and totally disabled for the purpose of this subdivision means a condition
         <br/>
<a id="pl.36.32"></a><var>36.32</var>which is permanent in nature and totally incapacitates the person from working at
         an <br/>
<a id="pl.37.1"></a><var>37.1</var>occupation which brings the person an income. The first $50,000 market value of class
         1b <br/>
<a id="pl.37.2"></a><var>37.2</var>property has a net classification rate of .45 percent of its market value. The remaining
         market <br/>
<a id="pl.37.3"></a><var>37.3</var>value of class 1b property has a classification rate using the rates for is classified as class <br/>
<a id="pl.37.4"></a><var>37.4</var>1a or class 2a property, whichever is appropriate, of similar market value.<br/>
<a id="pl.37.5"></a><var>37.5</var>    (c) Class 1c property is commercial use real and personal property that abuts public
         <br/>
<a id="pl.37.6"></a><var>37.6</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, and is devoted to temporary and <br/>
<a id="pl.37.7"></a><var>37.7</var>seasonal residential occupancy for recreational purposes but not devoted to commercial
         <br/>
<a id="pl.37.8"></a><var>37.8</var>purposes for more than 250 days in the year preceding the year of assessment, and
         that <br/>
<a id="pl.37.9"></a><var>37.9</var>includes a portion used as a homestead by the owner, which includes a dwelling occupied
         <br/>
<a id="pl.37.10"></a><var>37.10</var>as a homestead by a shareholder of a corporation that owns the resort, a partner in
         a <br/>
<a id="pl.37.11"></a><var>37.11</var>partnership that owns the resort, or a member of a limited liability company that
         owns the <br/>
<a id="pl.37.12"></a><var>37.12</var>resort even if the title to the homestead is held by the corporation, partnership,
         or limited <br/>
<a id="pl.37.13"></a><var>37.13</var>liability company. For purposes of this paragraph, property is devoted to a commercial
         <br/>
<a id="pl.37.14"></a><var>37.14</var>purpose on a specific day if any portion of the property, excluding the portion used
         <br/>
<a id="pl.37.15"></a><var>37.15</var>exclusively as a homestead, is used for residential occupancy and a fee is charged
         for <br/>
<a id="pl.37.16"></a><var>37.16</var>residential occupancy. Class 1c property must contain three or more rental units.
         A "rental <br/>
<a id="pl.37.17"></a><var>37.17</var>unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
         camping <br/>
<a id="pl.37.18"></a><var>37.18</var>site equipped with water and electrical hookups for recreational vehicles. Class 1c
         property <br/>
<a id="pl.37.19"></a><var>37.19</var>must provide recreational activities such as the rental of ice fishing houses, boats
         and motors, <br/>
<a id="pl.37.20"></a><var>37.20</var>snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
         <br/>
<a id="pl.37.21"></a><var>37.21</var>services, or guide services; or sell bait and fishing tackle. Any unit in which the
         right to use <br/>
<a id="pl.37.22"></a><var>37.22</var>the property is transferred to an individual or entity by deeded interest, or the
         sale of shares <br/>
<a id="pl.37.23"></a><var>37.23</var>or stock, no longer qualifies for class 1c even though it may remain available for
         rent. A <br/>
<a id="pl.37.24"></a><var>37.24</var>camping pad offered for rent by a property that otherwise qualifies for class 1c is
         also class <br/>
<a id="pl.37.25"></a><var>37.25</var>1c, regardless of the term of the rental agreement, as long as the use of the camping
         pad <br/>
<a id="pl.37.26"></a><var>37.26</var>does not exceed 250 days. If the same owner owns two separate parcels that are located
         in <br/>
<a id="pl.37.27"></a><var>37.27</var>the same township, and one of those properties is classified as a class 1c property
         and the <br/>
<a id="pl.37.28"></a><var>37.28</var>other would be eligible to be classified as a class 1c property if it was used as
         the homestead <br/>
<a id="pl.37.29"></a><var>37.29</var>of the owner, both properties will be assessed as a single class 1c property; for
         purposes of <br/>
<a id="pl.37.30"></a><var>37.30</var>this sentence, properties are deemed to be owned by the same owner if each of them
         is <br/>
<a id="pl.37.31"></a><var>37.31</var>owned by a limited liability company, and both limited liability companies have the
         same <br/>
<a id="pl.37.32"></a><var>37.32</var>membership. The portion of the property used as a homestead is class 1a property under
         <br/>
<a id="pl.37.33"></a><var>37.33</var>paragraph (a). The remainder of the property is classified as follows: the first $600,000
         of <br/>
<a id="pl.37.34"></a><var>37.34</var>market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
         <br/>
<a id="pl.37.35"></a><var>37.35</var>market value is tier III. The classification rates for class 1c are: tier I, 0.50
         percent; tier II, <br/>
<a id="pl.37.36"></a><var>37.36</var>1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted
         to <br/>
<a id="pl.38.1"></a><var>38.1</var>temporary and seasonal residential occupancy for recreation purposes in which all
         or a <br/>
<a id="pl.38.2"></a><var>38.2</var>portion of the property was devoted to commercial purposes for not more than 250 days
         in <br/>
<a id="pl.38.3"></a><var>38.3</var>the year preceding the year of assessment desiring classification as class 1c, must
         submit a <br/>
<a id="pl.38.4"></a><var>38.4</var>declaration to the assessor designating the cabins or units occupied for 250 days
         or less in <br/>
<a id="pl.38.5"></a><var>38.5</var>the year preceding the year of assessment by January 15 of the assessment year. Those
         <br/>
<a id="pl.38.6"></a><var>38.6</var>cabins or units and a proportionate share of the land on which they are located must
         be <br/>
<a id="pl.38.7"></a><var>38.7</var>designated as class 1c as otherwise provided. The remainder of the cabins or units
         and a <br/>
<a id="pl.38.8"></a><var>38.8</var>proportionate share of the land on which they are located must be designated as class
         3a <br/>
<a id="pl.38.9"></a><var>38.9</var>commercial. The owner of property desiring designation as class 1c property must provide
         <br/>
<a id="pl.38.10"></a><var>38.10</var>guest registers or other records demonstrating that the units for which class 1c designation
         <br/>
<a id="pl.38.11"></a><var>38.11</var>is sought were not occupied for more than 250 days in the year preceding the assessment
         <br/>
<a id="pl.38.12"></a><var>38.12</var>if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
         (3) gift shop, <br/>
<a id="pl.38.13"></a><var>38.13</var>(4) conference center or meeting room, and (5) other nonresidential facility operated
         on a <br/>
<a id="pl.38.14"></a><var>38.14</var>commercial basis not directly related to temporary and seasonal residential occupancy
         for <br/>
<a id="pl.38.15"></a><var>38.15</var>recreation purposes does not qualify for class 1c.<br/>
<a id="pl.38.16"></a><var>38.16</var>    (d) Class 1d property includes structures that meet all of the following criteria:<br/>
<a id="pl.38.17"></a><var>38.17</var>    (1) the structure is located on property that is classified as agricultural property
         under <br/>
<a id="pl.38.18"></a><var>38.18</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br/>
<a id="pl.38.19"></a><var>38.19</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time
         when <br/>
<a id="pl.38.20"></a><var>38.20</var>they work on that farm, and the occupants are not charged rent for the privilege of
         occupying <br/>
<a id="pl.38.21"></a><var>38.21</var>the property, provided that use of the structure for storage of farm equipment and
         produce <br/>
<a id="pl.38.22"></a><var>38.22</var>does not disqualify the property from classification under this paragraph;<br/>
<a id="pl.38.23"></a><var>38.23</var>    (3) the structure meets all applicable health and safety requirements for the appropriate
         <br/>
<a id="pl.38.24"></a><var>38.24</var>season; and<br/>
<a id="pl.38.25"></a><var>38.25</var>    (4) the structure is not salable as residential property because it does not comply
         with <br/>
<a id="pl.38.26"></a><var>38.26</var>local ordinances relating to location in relation to streets or roads.<br/>
<a id="pl.38.27"></a><var>38.27</var>    The market value of class 1d property has the same classification rates as class 1a
         property <br/>
<a id="pl.38.28"></a><var>38.28</var>under paragraph (a).<br/>
<a id="pl.38.29"></a><var>38.29</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.38.30"></a><var>38.30</var>    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:<br/>
<a id="pl.38.31"></a><var>38.31</var>    Subdivision 1. <b>Listing and assessment in county.</b> The personal property of express, <br/>
<a id="pl.38.32"></a><var>38.32</var>stage and transportation companies, and of pipeline companies engaged in the business
         of <br/>
<a id="pl.38.33"></a><var>38.33</var>transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise <br/>
<a id="pl.39.1"></a><var>39.1</var>provided by law, shall be listed and assessed in the county, town or district where
         the same <br/>
<a id="pl.39.2"></a><var>39.2</var>is usually kept.<br/>
<a id="pl.39.3"></a><var>39.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.39.4"></a><var>39.4</var>    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:<br/>
<a id="pl.39.5"></a><var>39.5</var>    Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, consisting <br/>
<a id="pl.39.6"></a><var>39.6</var>of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline
         companies <br/>
<a id="pl.39.7"></a><var>39.7</var>and others engaged in the operations or business of transporting natural gas, gasoline, crude <br/>
<a id="pl.39.8"></a><var>39.8</var>oil, or other petroleum products by pipelines, shall be listed with and assessed by the <br/>
<a id="pl.39.9"></a><var>39.9</var>commissioner of revenue and the values provided to the city or county assessor by
         order. <br/>
<a id="pl.39.10"></a><var>39.10</var>This subdivision shall not apply to the assessment of the products transported through
         the <br/>
<a id="pl.39.11"></a><var>39.11</var>pipelines nor to the lines of local commercial gas companies engaged primarily in
         the <br/>
<a id="pl.39.12"></a><var>39.12</var>business of distributing gas products to consumers at retail nor to pipelines used by the <br/>
<a id="pl.39.13"></a><var>39.13</var>owner thereof to supply natural gas or other petroleum products exclusively for such owner's <br/>
<a id="pl.39.14"></a><var>39.14</var>own consumption and not for resale to others. If more than 85 percent of the natural gas or <br/>
<a id="pl.39.15"></a><var>39.15</var>other petroleum products actually transported over the pipeline is used for the owner's own <br/>
<a id="pl.39.16"></a><var>39.16</var>consumption and not for resale to others, then this subdivision shall not apply; provided,
         <br/>
<a id="pl.39.17"></a><var>39.17</var>however, that in that event, the pipeline shall be assessed in proportion to the percentage
         <br/>
<a id="pl.39.18"></a><var>39.18</var>of gas products actually transported over such pipeline that is not used for the owner's own <br/>
<a id="pl.39.19"></a><var>39.19</var>consumption. On or before August 1, the commissioner shall certify to the auditor
         of each <br/>
<a id="pl.39.20"></a><var>39.20</var>county, the amount of such personal property assessment against each company in each
         <br/>
<a id="pl.39.21"></a><var>39.21</var>district in which such property is located. If the commissioner determines that the
         amount <br/>
<a id="pl.39.22"></a><var>39.22</var>of personal property assessment certified on or before August 1 is in error, the commissioner
         <br/>
<a id="pl.39.23"></a><var>39.23</var>may issue a corrected certification on or before October 1. The commissioner may correct
         <br/>
<a id="pl.39.24"></a><var>39.24</var>errors that are merely clerical in nature until December 31.<br/>
<a id="pl.39.25"></a><var>39.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.39.26"></a><var>39.26</var>    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:<br/>
<a id="pl.39.27"></a><var>39.27</var>    Subd. 2. <b>Contents and filing of petition.</b> (a) In all appeals to court that are required to <br/>
<a id="pl.39.28"></a><var>39.28</var>be brought against the commissioner under this section, the petition initiating the
         appeal <br/>
<a id="pl.39.29"></a><var>39.29</var>must be served on the commissioner and must be filed with the Tax Court in Ramsey
         County, <br/>
<a id="pl.39.30"></a><var>39.30</var>as provided in paragraph (b) or (c).<br/>
<a id="pl.39.31"></a><var>39.31</var>(b) If the appeal to court is from an order of the commissioner, it must be brought
         under <br/>
<a id="pl.39.32"></a><var>39.32</var>chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, <br/>
<a id="pl.39.33"></a><var>39.33</var>except that when the provisions of this section conflict with chapter 271 or 278, this section <br/>
<a id="pl.40.1"></a><var>40.1</var>prevails. In addition, the petition must include all the parcels encompassed by that
         order <br/>
<a id="pl.40.2"></a><var>40.2</var>which the petitioner claims have been partially, unfairly, or unequally assessed,
         assessed <br/>
<a id="pl.40.3"></a><var>40.3</var>at a valuation greater than their real or actual value, misclassified, or are exempt.
         For this <br/>
<a id="pl.40.4"></a><var>40.4</var>purpose, an order of the commissioner is either (1) a certification or notice of value
         by the <br/>
<a id="pl.40.5"></a><var>40.5</var>commissioner for property described in subdivision 1, or (2) the final determination
         by the <br/>
<a id="pl.40.6"></a><var>40.6</var>commissioner of either an administrative appeal conference or informal administrative
         <br/>
<a id="pl.40.7"></a><var>40.7</var>appeal described in subdivision 4.<br/>
<a id="pl.40.8"></a><var>40.8</var>(c) If the appeal is from the tax that results from implementation of the commissioner's
         <br/>
<a id="pl.40.9"></a><var>40.9</var>order, certification, or recommendation, it must be brought under chapter 278, and
         the <br/>
<a id="pl.40.10"></a><var>40.10</var>provisions in that chapter apply, except that service shall be on the commissioner
         only and <br/>
<a id="pl.40.11"></a><var>40.11</var>not on the local officials specified in section 
         <statute_ref>278.01, subdivision 1</statute_ref>, and if any other provision <br/>
<a id="pl.40.12"></a><var>40.12</var>of this section conflicts with chapter 278, this section prevails. In addition, the
         petition must <br/>
<a id="pl.40.13"></a><var>40.13</var>include either all the utility parcels or all the railroad parcels in the state in
         which the <br/>
<a id="pl.40.14"></a><var>40.14</var>petitioner claims an interest and which the petitioner claims have been partially,
         unfairly, <br/>
<a id="pl.40.15"></a><var>40.15</var>or unequally assessed, assessed at a valuation greater than their real or actual value,
         <br/>
<a id="pl.40.16"></a><var>40.16</var>misclassified, or are exempt.<br/>
<a id="pl.40.17"></a><var>40.17</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.40.18"></a><var>40.18</var>    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:<br/>
<a id="pl.40.19"></a><var>40.19</var>    Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under section <br/>
<statute_ref><a id="pl.40.20"></a><var>40.20</var>270.82
         </statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified by the <br/>
<a id="pl.40.21"></a><var>40.21</var>commissioner in an extension, may appeal administratively to the commissioner prior
         to <br/>
<a id="pl.40.22"></a><var>40.22</var>bringing an action in court.<br/>
<a id="pl.40.23"></a><var>40.23</var>    (b) Companies that must submit reports under section 
<statute_ref>270.82</statute_ref> must submit file a written <br/>
<a id="pl.40.24"></a><var>40.24</var>request to for an appeal with the commissioner for a conference within ten 30 days after <br/>
<a id="pl.40.25"></a><var>40.25</var>the notice date of the commissioner's valuation certification or other notice to the company, <br/>
<a id="pl.40.26"></a><var>40.26</var>or by June 15, whichever is earlier. For purposes of this section, "notice date" means the <br/>
<a id="pl.40.27"></a><var>40.27</var>notice date of the valuation certification, commissioner's order, recommendation,
         or other <br/>
<a id="pl.40.28"></a><var>40.28</var>notice.<br/>
<a id="pl.40.29"></a><var>40.29</var>    (c) Companies that submit reports under section 
<statute_ref>273.371</statute_ref> must submit a written request <br/>
<a id="pl.40.30"></a><var>40.30</var>to the commissioner for a conference within ten days after the date of the commissioner's
         <br/>
<a id="pl.40.31"></a><var>40.31</var>valuation certification or notice to the company, or by July 1, whichever is earlier. The <br/>
<a id="pl.40.32"></a><var>40.32</var>appeal need not be in any particular form but must contain the following information:<br/>
<a id="pl.40.33"></a><var>40.33</var>    (1) name and address of the company;<br/>
<a id="pl.41.1"></a><var>41.1</var>    (2) the date;<br/>
<a id="pl.41.2"></a><var>41.2</var>    (3) its Minnesota identification number;<br/>
<a id="pl.41.3"></a><var>41.3</var>    (4) the assessment year or period involved;<br/>
<a id="pl.41.4"></a><var>41.4</var>    (5) the findings in the valuation that the company disputes;<br/>
<a id="pl.41.5"></a><var>41.5</var>    (6) a summary statement specifying its reasons for disputing each item; and<br/>
<a id="pl.41.6"></a><var>41.6</var>    (7) the signature of the company's duly authorized agent or representative.<br/>
<a id="pl.41.7"></a><var>41.7</var>    (d) When requested in writing and within the time allowed for filing an administrative
         <br/>
<a id="pl.41.8"></a><var>41.8</var>appeal, the commissioner may extend the time for filing an appeal for a period of
         not more <br/>
<a id="pl.41.9"></a><var>41.9</var>than 15 days from the expiration of the time for filing the appeal.<br/>
<a id="pl.41.10"></a><var>41.10</var>    (d) (e) The commissioner shall conduct the conference either in person or by telephone <br/>
<a id="pl.41.11"></a><var>41.11</var>upon the commissioner's entire files and records and such further information as may
         be <br/>
<a id="pl.41.12"></a><var>41.12</var>offered. The conference must be held no later than 20 days after the date of the <br/>
<a id="pl.41.13"></a><var>41.13</var>commissioner's valuation certification or notice to the company, or by the date specified
         by <br/>
<a id="pl.41.14"></a><var>41.14</var>the commissioner in an extension request for an appeal. Within 60 30 days after the <br/>
<a id="pl.41.15"></a><var>41.15</var>conference the commissioner shall make a final determination of the matter and shall
         notify <br/>
<a id="pl.41.16"></a><var>41.16</var>the company promptly of the determination. The conference is not a contested case
         hearing <br/>
<a id="pl.41.17"></a><var>41.17</var>subject to chapter 14.<br/>
<a id="pl.41.18"></a><var>41.18</var>    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
         <br/>
<a id="pl.41.19"></a><var>41.19</var>shall also provide the railroad and utility companies the opportunity to discuss any
         questions <br/>
<a id="pl.41.20"></a><var>41.20</var>or concerns relating to the values established by the commissioner through certification
         or <br/>
<a id="pl.41.21"></a><var>41.21</var>notice in a less formal manner. This does not change or modify the deadline for requesting
         <br/>
<a id="pl.41.22"></a><var>41.22</var>a conference under paragraph (a), the deadline in section 
<statute_ref>271.06</statute_ref> for appealing an order of <br/>
<a id="pl.41.23"></a><var>41.23</var>the commissioner, or the deadline in section 
<statute_ref>278.01</statute_ref> for appealing property taxes in court.<br/>
<a id="pl.41.24"></a><var>41.24</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.41.25"></a><var>41.25</var>    Sec. 22. <b>[273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.</b><br/>
<a id="pl.41.26"></a><var>41.26</var>After making the apportionment provided in Minnesota Rules, part 8100.0600, the <br/>
<a id="pl.41.27"></a><var>41.27</var>commissioner must equalize the values of the operating structures to the level accepted
         by <br/>
<a id="pl.41.28"></a><var>41.28</var>the State Board of Equalization if the appropriate sales ratio for each county, as
         conducted <br/>
<a id="pl.41.29"></a><var>41.29</var>by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6),
         is <br/>
<a id="pl.41.30"></a><var>41.30</var>outside the range accepted by the State Board of Equalization. The commissioner must
         not <br/>
<a id="pl.41.31"></a><var>41.31</var>equalize the value of the operating structures if the sales ratio determined pursuant
         to this <br/>
<a id="pl.41.32"></a><var>41.32</var>subdivision is within the range accepted by the State Board of Equalization.<br/>
<a id="pl.42.1"></a><var>42.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2017.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.42.2"></a><var>42.2</var>    Sec. 23. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.42.3"></a><var>42.3</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town board <br/>
<a id="pl.42.4"></a><var>42.4</var>of a town, or the council or other governing body of a city, is the local board of appeal and <br/>
<a id="pl.42.5"></a><var>42.5</var>equalization except (1) in cities whose charters provide for a board of equalization
         or (2) <br/>
<a id="pl.42.6"></a><var>42.6</var>in any city or town that has transferred its local board of review power and duties
         to the <br/>
<a id="pl.42.7"></a><var>42.7</var>county board as provided in subdivision 3. The county assessor shall fix a day and
         time <br/>
<a id="pl.42.8"></a><var>42.8</var>when the board or the local board of equalization shall meet in the assessment districts of <br/>
<a id="pl.42.9"></a><var>42.9</var>the county. Notwithstanding any law or city charter to the contrary, a city board
         of <br/>
<a id="pl.42.10"></a><var>42.10</var>equalization shall be referred to as a local board of appeal and equalization. On or before <br/>
<a id="pl.42.11"></a><var>42.11</var>February 15 of each year the assessor shall give written notice of the time to the
         city or <br/>
<a id="pl.42.12"></a><var>42.12</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
         must <br/>
<a id="pl.42.13"></a><var>42.13</var>be held between April 1 and May 31 each year. The clerk shall give published and posted
         <br/>
<a id="pl.42.14"></a><var>42.14</var>notice of the meeting at least ten days before the date of the meeting.<br/>
<a id="pl.42.15"></a><var>42.15</var>    The board shall meet either at a central location within the county or at the office
         of the <br/>
<a id="pl.42.16"></a><var>42.16</var>clerk to review the assessment and classification of property in the town or city.
         No changes <br/>
<a id="pl.42.17"></a><var>42.17</var>in valuation or classification which are intended to correct errors in judgment by
         the county <br/>
<a id="pl.42.18"></a><var>42.18</var>assessor may be made by the county assessor after the board has adjourned in those
         cities <br/>
<a id="pl.42.19"></a><var>42.19</var>or towns that hold a local board of review; however, corrections of errors that are
         merely <br/>
<a id="pl.42.20"></a><var>42.20</var>clerical in nature or changes that extend homestead treatment to property are permitted
         after <br/>
<a id="pl.42.21"></a><var>42.21</var>adjournment until the tax extension date for that assessment year. The changes must
         be fully <br/>
<a id="pl.42.22"></a><var>42.22</var>documented and maintained in the assessor's office and must be available for review
         by any <br/>
<a id="pl.42.23"></a><var>42.23</var>person. A copy of the changes made during this period in those cities or towns that
         hold a <br/>
<a id="pl.42.24"></a><var>42.24</var>local board of review must be sent to the county board no later than December 31 of
         the <br/>
<a id="pl.42.25"></a><var>42.25</var>assessment year.<br/>
<a id="pl.42.26"></a><var>42.26</var>    (b) The board shall determine whether the taxable property in the town or city has
         been <br/>
<a id="pl.42.27"></a><var>42.27</var>properly placed on the list and properly valued by the assessor. If real or personal
         property <br/>
<a id="pl.42.28"></a><var>42.28</var>has been omitted, the board shall place it on the list with its market value, and
         correct the <br/>
<a id="pl.42.29"></a><var>42.29</var>assessment so that each tract or lot of real property, and each article, parcel, or
         class of <br/>
<a id="pl.42.30"></a><var>42.30</var>personal property, is entered on the assessment list at its market value. No assessment
         of <br/>
<a id="pl.42.31"></a><var>42.31</var>the property of any person may be raised unless the person has been duly notified
         of the <br/>
<a id="pl.42.32"></a><var>42.32</var>intent of the board to do so. On application of any person feeling aggrieved, the
         board shall <br/>
<a id="pl.42.33"></a><var>42.33</var>review the assessment or classification, or both, and correct it as appears just.
         The board <br/>
<a id="pl.42.34"></a><var>42.34</var>may not make an individual market value adjustment or classification change that would
         <br/>
<a id="pl.43.1"></a><var>43.1</var>benefit the property if the owner or other person having control over the property
         has refused <br/>
<a id="pl.43.2"></a><var>43.2</var>the assessor access to inspect the property and the interior of any buildings or structures
         as <br/>
<a id="pl.43.3"></a><var>43.3</var>provided in section 
         <statute_ref>273.20</statute_ref>. A board member shall not participate in any actions of the board <br/>
<a id="pl.43.4"></a><var>43.4</var>which result in market value adjustments or classification changes to property owned
         by <br/>
<a id="pl.43.5"></a><var>43.5</var>the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
         <br/>
<a id="pl.43.6"></a><var>43.6</var>brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which
         a <br/>
<a id="pl.43.7"></a><var>43.7</var>board member has a financial interest. The relationship may be by blood or marriage.<br/>
<a id="pl.43.8"></a><var>43.8</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total
         <br/>
<a id="pl.43.9"></a><var>43.9</var>reductions must not reduce the aggregate assessment made by the county assessor by
         more <br/>
<a id="pl.43.10"></a><var>43.10</var>than one percent. If the total reductions would lower the aggregate assessments made
         by <br/>
<a id="pl.43.11"></a><var>43.11</var>the county assessor by more than one percent, none of the adjustments may be made.
         The <br/>
<a id="pl.43.12"></a><var>43.12</var>assessor shall correct any clerical errors or double assessments discovered by the
         board <br/>
<a id="pl.43.13"></a><var>43.13</var>without regard to the one percent limitation.<br/>
<a id="pl.43.14"></a><var>43.14</var>    (d) A local board does not have authority to grant an exemption or to order property
         <br/>
<a id="pl.43.15"></a><var>43.15</var>removed from the tax rolls.<br/>
<a id="pl.43.16"></a><var>43.16</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day
         until <br/>
<a id="pl.43.17"></a><var>43.17</var>they finish hearing the cases presented. The assessor shall attend and take part in
         the <br/>
<a id="pl.43.18"></a><var>43.18</var>proceedings, but must not vote. The county assessor, or an assistant delegated by
         the county <br/>
<a id="pl.43.19"></a><var>43.19</var>assessor shall attend the meetings. The board shall list separately all omitted property
         added <br/>
<a id="pl.43.20"></a><var>43.20</var>to the list by the board and all items of property increased or decreased, with the
         market <br/>
<a id="pl.43.21"></a><var>43.21</var>value of each item of property, added or changed by the board. The county assessor
         shall <br/>
<a id="pl.43.22"></a><var>43.22</var>enter all changes made by the board.<br/>
<a id="pl.43.23"></a><var>43.23</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
         counsel, <br/>
<a id="pl.43.24"></a><var>43.24</var>or by written communication before the board after being duly notified of the board's
         intent <br/>
<a id="pl.43.25"></a><var>43.25</var>to raise the assessment of the property, or if a person feeling aggrieved by an assessment
         <br/>
<a id="pl.43.26"></a><var>43.26</var>or classification fails to apply for a review of the assessment or classification,
         the person <br/>
<a id="pl.43.27"></a><var>43.27</var>may not appear before the county board of appeal and equalization for a review. This
         <br/>
<a id="pl.43.28"></a><var>43.28</var>paragraph does not apply if an assessment was made after the local board meeting,
         as <br/>
<a id="pl.43.29"></a><var>43.29</var>provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can establish not having received notice of <br/>
<a id="pl.43.30"></a><var>43.30</var>market value at least five days before the local board meeting.<br/>
<a id="pl.43.31"></a><var>43.31</var>    (g) The local board must complete its work and adjourn within 20 days from the time
         <br/>
<a id="pl.43.32"></a><var>43.32</var>of convening stated in the notice of the clerk, unless a longer period is approved
         by the <br/>
<a id="pl.43.33"></a><var>43.33</var>commissioner of revenue. No action taken after that date is valid. All complaints
         about an <br/>
<a id="pl.43.34"></a><var>43.34</var>assessment or classification made after the meeting of the board must be heard and
         <br/>
<a id="pl.44.1"></a><var>44.1</var>determined by the county board of equalization. A nonresident may, at any time, before
         the <br/>
<a id="pl.44.2"></a><var>44.2</var>meeting of the board file written objections to an assessment or classification with
         the county <br/>
<a id="pl.44.3"></a><var>44.3</var>assessor. The objections must be presented to the board at its meeting by the county
         assessor <br/>
<a id="pl.44.4"></a><var>44.4</var>for its consideration.<br/>
<a id="pl.44.5"></a><var>44.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.44.6"></a><var>44.6</var>    Sec. 24. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:<br/>
<a id="pl.44.7"></a><var>44.7</var>    Subdivision 1. <b>Members; meetings; rules for equalizing assessments.</b> The county <br/>
<a id="pl.44.8"></a><var>44.8</var>commissioners, or a majority of them, with the county auditor, or, if the auditor
         cannot be <br/>
<a id="pl.44.9"></a><var>44.9</var>present, the deputy county auditor, or, if there is no deputy, the court administrator
         of the <br/>
<a id="pl.44.10"></a><var>44.10</var>district court, shall form a board for the equalization of the assessment of the property
         of <br/>
<a id="pl.44.11"></a><var>44.11</var>the county, including the property of all cities whose charters provide for a board
         of <br/>
<a id="pl.44.12"></a><var>44.12</var>equalization. This board shall be referred to as the county board of appeal and equalization.
         <br/>
<a id="pl.44.13"></a><var>44.13</var>The board shall meet annually, on the date specified in section 
         <statute_ref>274.14</statute_ref>, at the office of the <br/>
<a id="pl.44.14"></a><var>44.14</var>auditor. Each member shall take an oath to fairly and impartially perform duties as
         a member. <br/>
<a id="pl.44.15"></a><var>44.15</var>Members shall not participate in any actions of the board which result in market value
         <br/>
<a id="pl.44.16"></a><var>44.16</var>adjustments or classification changes to property owned by the board member, the spouse,
         <br/>
<a id="pl.44.17"></a><var>44.17</var>parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
         aunt, <br/>
<a id="pl.44.18"></a><var>44.18</var>nephew, or niece of a board member, or property in which a board member has a financial
         <br/>
<a id="pl.44.19"></a><var>44.19</var>interest. The relationship may be by blood or marriage. The board shall examine and
         compare <br/>
<a id="pl.44.20"></a><var>44.20</var>the returns of the assessment of property of the towns or districts, and equalize
         them so that <br/>
<a id="pl.44.21"></a><var>44.21</var>each tract or lot of real property and each article or class of personal property
         is entered on <br/>
<a id="pl.44.22"></a><var>44.22</var>the assessment list at its market value, subject to the following rules:<br/>
<a id="pl.44.23"></a><var>44.23</var>    (1) The board shall raise the valuation of each tract or lot of real property which
         in its <br/>
<a id="pl.44.24"></a><var>44.24</var>opinion is returned below its market value to the sum believed to be its market value.
         The <br/>
<a id="pl.44.25"></a><var>44.25</var>board must first give notice of intention to raise the valuation to the person in
         whose name <br/>
<a id="pl.44.26"></a><var>44.26</var>it is assessed, if the person is a resident of the county. The notice must fix a time
         and place <br/>
<a id="pl.44.27"></a><var>44.27</var>for a hearing.<br/>
<a id="pl.44.28"></a><var>44.28</var>    (2) The board shall reduce the valuation of each tract or lot which in its opinion
         is returned <br/>
<a id="pl.44.29"></a><var>44.29</var>above its market value to the sum believed to be its market value.<br/>
<a id="pl.44.30"></a><var>44.30</var>    (3) The board shall raise the valuation of each class of personal property which in
         its <br/>
<a id="pl.44.31"></a><var>44.31</var>opinion is returned below its market value to the sum believed to be its market value.
         It <br/>
<a id="pl.44.32"></a><var>44.32</var>shall raise the aggregate value of the personal property of individuals, firms, or
         corporations, <br/>
<a id="pl.44.33"></a><var>44.33</var>when it believes that the aggregate valuation, as returned, is less than the market
         value of <br/>
<a id="pl.44.34"></a><var>44.34</var>the taxable personal property possessed by the individuals, firms, or corporations,
         to the <br/>
<a id="pl.45.1"></a><var>45.1</var>sum it believes to be the market value. The board must first give notice to the persons
         of <br/>
<a id="pl.45.2"></a><var>45.2</var>intention to do so. The notice must set a time and place for a hearing.<br/>
<a id="pl.45.3"></a><var>45.3</var>    (4) The board shall reduce the valuation of each class of personal property that is
         returned <br/>
<a id="pl.45.4"></a><var>45.4</var>above its market value to the sum it believes to be its market value. Upon complaint
         of a <br/>
<a id="pl.45.5"></a><var>45.5</var>party aggrieved, the board shall reduce the aggregate valuation of the individual's
         personal <br/>
<a id="pl.45.6"></a><var>45.6</var>property, or of any class of personal property for which the individual is assessed,
         which <br/>
<a id="pl.45.7"></a><var>45.7</var>in its opinion has been assessed at too large a sum, to the sum it believes was the
         market <br/>
<a id="pl.45.8"></a><var>45.8</var>value of the individual's personal property of that class.<br/>
<a id="pl.45.9"></a><var>45.9</var>    (5) The board must not reduce the aggregate value of all the property of its county,
         as <br/>
<a id="pl.45.10"></a><var>45.10</var>submitted to the county board of equalization, with the additions made by the auditor
         under <br/>
<a id="pl.45.11"></a><var>45.11</var>this chapter, by more than one percent of its whole valuation. The board may raise
         the <br/>
<a id="pl.45.12"></a><var>45.12</var>aggregate valuation of real property, and of each class of personal property, of the
         county, <br/>
<a id="pl.45.13"></a><var>45.13</var>or of any town or district of the county, when it believes it is below the market
         value of the <br/>
<a id="pl.45.14"></a><var>45.14</var>property, or class of property, to the aggregate amount it believes to be its market
         value.<br/>
<a id="pl.45.15"></a><var>45.15</var>    (6) The board shall change the classification of any property which in its opinion
         is not <br/>
<a id="pl.45.16"></a><var>45.16</var>properly classified.<br/>
<a id="pl.45.17"></a><var>45.17</var>    (7) The board does not have the authority to grant an exemption or to order property
         <br/>
<a id="pl.45.18"></a><var>45.18</var>removed from the tax rolls.<br/>
<a id="pl.45.19"></a><var>45.19</var>    (8) The board may not make an individual market value adjustment or classification
         <br/>
<a id="pl.45.20"></a><var>45.20</var>change that would benefit property if the owner or other person having control over
         the <br/>
<a id="pl.45.21"></a><var>45.21</var>property has refused the assessor access to inspect the property and the interior
         of any <br/>
<a id="pl.45.22"></a><var>45.22</var>buildings or structures as provided in section 273.20.<br/>
<a id="pl.45.23"></a><var>45.23</var><b>EFFECTIVE DATE.</b>This section is effective for county board of appeal and <br/>
<a id="pl.45.24"></a><var>45.24</var>equalization meetings in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.45.25"></a><var>45.25</var>    Sec. 25. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:<br/>
<a id="pl.45.26"></a><var>45.26</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any county that conducts county <br/>
<a id="pl.45.27"></a><var>45.27</var>boards of appeal and equalization meetings must provide proof to the commissioner
         by <br/>
<a id="pl.45.28"></a><var>45.28</var>December 1, 2009, and each year thereafter, February 1  that it is in compliance with the <br/>
<a id="pl.45.29"></a><var>45.29</var>requirements of subdivision 2. Beginning in 2009, This notice must also verify that there <br/>
<a id="pl.45.30"></a><var>45.30</var>was a quorum of voting members at each meeting of the board of appeal and equalization
         <br/>
<a id="pl.45.31"></a><var>45.31</var>in the current previous year. A county that does not comply with these requirements is <br/>
<a id="pl.45.32"></a><var>45.32</var>deemed to have transferred its board of appeal and equalization powers to the special
         board <br/>
<a id="pl.45.33"></a><var>45.33</var>of equalization appointed pursuant to section 
         <statute_ref>274.13, subdivision 2</statute_ref>, beginning with the <br/>
<a id="pl.46.1"></a><var>46.1</var>following year's assessment and continuing unless the powers are reinstated under
         paragraph <br/>
<a id="pl.46.2"></a><var>46.2</var>(c). A county that does not comply with the requirements of subdivision 2 and has
         not <br/>
<a id="pl.46.3"></a><var>46.3</var>appointed a special board of equalization shall appoint a special board of equalization
         before <br/>
<a id="pl.46.4"></a><var>46.4</var>the following year's assessment.<br/>
<a id="pl.46.5"></a><var>46.5</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for <br/>
<a id="pl.46.6"></a><var>46.6</var>a county has been transferred to the special board of equalization under this subdivision
         <br/>
<a id="pl.46.7"></a><var>46.7</var>and, prior to the meeting time of the special board of equalization, the county shall
         make <br/>
<a id="pl.46.8"></a><var>46.8</var>available to those taxpayers a procedure for a review of the assessments, including,
         but not <br/>
<a id="pl.46.9"></a><var>46.9</var>limited to, open book meetings. This alternate review process must take place in April
         and <br/>
<a id="pl.46.10"></a><var>46.10</var>May.<br/>
<a id="pl.46.11"></a><var>46.11</var>    (c) A county board whose powers are transferred to the special board of equalization
         <br/>
<a id="pl.46.12"></a><var>46.12</var>under this subdivision may be reinstated by resolution of the county board and upon
         proof <br/>
<a id="pl.46.13"></a><var>46.13</var>of compliance with the requirements of subdivision 2. The resolution and proofs must
         be <br/>
<a id="pl.46.14"></a><var>46.14</var>provided to the commissioner by December February 1 in order to be effective for the <br/>
<a id="pl.46.15"></a><var>46.15</var>following current year's assessment.<br/>
<a id="pl.46.16"></a><var>46.16</var>(d) If a person who was entitled to appeal to the county board of appeal and equalization
         <br/>
<a id="pl.46.17"></a><var>46.17</var>or to the county special board of equalization is not able to do so in a particular
         year because <br/>
<a id="pl.46.18"></a><var>46.18</var>the county board or special board did not meet the quorum and training requirements
         in this <br/>
<a id="pl.46.19"></a><var>46.19</var>section and section 
         <statute_ref>274.13</statute_ref>, or because the special board was not appointed, that person may <br/>
<a id="pl.46.20"></a><var>46.20</var>instead appeal to the commissioner of revenue, provided that the appeal is received
         by the <br/>
<a id="pl.46.21"></a><var>46.21</var>commissioner prior to August 1. The appeal is not subject to either chapter 14 or
         section <br/>
<statute_ref><a id="pl.46.22"></a><var>46.22</var>270C.92
         </statute_ref>. The commissioner must issue an appropriate order to the county assessor in <br/>
<a id="pl.46.23"></a><var>46.23</var>response to each timely appeal, either upholding or changing the valuation or classification
         <br/>
<a id="pl.46.24"></a><var>46.24</var>of the property. Prior to October 1 of each year, the commissioner must charge and
         bill the <br/>
<a id="pl.46.25"></a><var>46.25</var>county where the property is located $500 for each tax parcel covered by an order
         issued <br/>
<a id="pl.46.26"></a><var>46.26</var>under this paragraph in that year. Amounts received by the commissioner under this
         paragraph <br/>
<a id="pl.46.27"></a><var>46.27</var>must be deposited in the state's general fund. If payment of a billed amount is not
         received <br/>
<a id="pl.46.28"></a><var>46.28</var>by the commissioner before December 1 of the year when billed, the commissioner must
         <br/>
<a id="pl.46.29"></a><var>46.29</var>deduct that unpaid amount from any state aid the commissioner would otherwise pay
         to the <br/>
<a id="pl.46.30"></a><var>46.30</var>county under chapter 477A in the next year. Late payments may either be returned to
         the <br/>
<a id="pl.46.31"></a><var>46.31</var>county uncashed and undeposited or may be accepted. If a late payment is accepted,
         the <br/>
<a id="pl.46.32"></a><var>46.32</var>state aid paid to the county under chapter 477A must be adjusted within 12 months
         to <br/>
<a id="pl.46.33"></a><var>46.33</var>eliminate any reduction that occurred because the payment was late. Amounts needed
         to <br/>
<a id="pl.46.34"></a><var>46.34</var>make these adjustments are included in the appropriation under section 
         <statute_ref>477A.03, subdivision <br/>
<a id="pl.46.35"></a><var>46.35</var>2
         </statute_ref>.<br/>
<a id="pl.47.1"></a><var>47.1</var><b>EFFECTIVE DATE.</b>This section is effective for county boards of appeal and <br/>
<a id="pl.47.2"></a><var>47.2</var>equalization meetings held in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.47.3"></a><var>47.3</var>    Sec. 26. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.47.4"></a><var>47.4</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the contrary, <br/>
<a id="pl.47.5"></a><var>47.5</var>on or before September 30, each county and each home rule charter or statutory city
         shall <br/>
<a id="pl.47.6"></a><var>47.6</var>certify to the county auditor the proposed property tax levy for taxes payable in
         the following <br/>
<a id="pl.47.7"></a><var>47.7</var>year.<br/>
<a id="pl.47.8"></a><var>47.8</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         each <br/>
<a id="pl.47.9"></a><var>47.9</var>town and each special taxing district shall adopt and certify to the county auditor
         a proposed <br/>
<a id="pl.47.10"></a><var>47.10</var>property tax levy for taxes payable in the following year. For towns, the final certified
         levy <br/>
<a id="pl.47.11"></a><var>47.11</var>shall also be considered the proposed levy.<br/>
<a id="pl.47.12"></a><var>47.12</var>    (c) On or before September 30, each school district that has not mutually agreed with
         <br/>
<a id="pl.47.13"></a><var>47.13</var>its home county to extend this date shall certify to the county auditor the proposed
         property <br/>
<a id="pl.47.14"></a><var>47.14</var>tax levy for taxes payable in the following year. Each school district that has agreed
         with <br/>
<a id="pl.47.15"></a><var>47.15</var>its home county to delay the certification of its proposed property tax levy must
         certify its <br/>
<a id="pl.47.16"></a><var>47.16</var>proposed property tax levy for the following year no later than October 7. The school
         district <br/>
<a id="pl.47.17"></a><var>47.17</var>shall certify the proposed levy as:<br/>
<a id="pl.47.18"></a><var>47.18</var>    (1) a specific dollar amount by school district fund, broken down between voter-approved
         <br/>
<a id="pl.47.19"></a><var>47.19</var>and non-voter-approved levies and between referendum market value and tax capacity
         <br/>
<a id="pl.47.20"></a><var>47.20</var>levies; or<br/>
<a id="pl.47.21"></a><var>47.21</var>    (2) the maximum levy limitation certified by the commissioner of education according
         <br/>
<a id="pl.47.22"></a><var>47.22</var>to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.47.23"></a><var>47.23</var>    (d) If the board of estimate and taxation or any similar board that establishes maximum
         <br/>
<a id="pl.47.24"></a><var>47.24</var>tax levies for taxing jurisdictions within a first class city certifies the maximum
         property <br/>
<a id="pl.47.25"></a><var>47.25</var>tax levies for funds under its jurisdiction by charter to the county auditor by the
         date specified <br/>
<a id="pl.47.26"></a><var>47.26</var>in paragraph (a), the city shall be deemed to have certified its levies for those
         taxing <br/>
<a id="pl.47.27"></a><var>47.27</var>jurisdictions.<br/>
<a id="pl.47.28"></a><var>47.28</var>    (e) For purposes of this section, "special taxing district" means a special taxing
         district <br/>
<a id="pl.47.29"></a><var>47.29</var>as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter <br/>
<a id="pl.47.30"></a><var>47.30</var>124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and <br/>
<a id="pl.47.31"></a><var>47.31</var>Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
         <br/>
<a id="pl.47.32"></a><var>47.32</var>taxing districts for purposes of this section.<br/>
<a id="pl.48.1"></a><var>48.1</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         <br/>
<a id="pl.48.2"></a><var>48.2</var>tax levy under this subdivision, the taxing authority shall announce the time and
         place of <br/>
<a id="pl.48.3"></a><var>48.3</var>its any subsequent regularly scheduled meetings at which the budget and levy will be <br/>
<a id="pl.48.4"></a><var>48.4</var>discussed and at which the public will be allowed to speak. The time and place of
         those <br/>
<a id="pl.48.5"></a><var>48.5</var>meetings must be included in the proceedings or summary of proceedings published in
         the <br/>
<a id="pl.48.6"></a><var>48.6</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.48.7"></a><var>48.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.48.8"></a><var>48.8</var>    Sec. 27. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:<br/>
<a id="pl.48.9"></a><var>48.9</var>    Subd. 2. <b>Local governments required to report.</b> For purposes of this section, "local <br/>
<a id="pl.48.10"></a><var>48.10</var>governmental unit" means a county, home rule charter or statutory city with a population
         <br/>
<a id="pl.48.11"></a><var>48.11</var>greater than 2,500, a town with a population greater than 5,000, or a home rule charter or <br/>
<a id="pl.48.12"></a><var>48.12</var>statutory city or town that receives a distribution from the taconite municipal aid
         account <br/>
<a id="pl.48.13"></a><var>48.13</var>in the levy year.<br/>
<a id="pl.48.14"></a><var>48.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.48.15"></a><var>48.15</var>    Sec. 28. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:<br/>
<a id="pl.48.16"></a><var>48.16</var>    Subdivision 1. <b>Determination of validity.</b> (a) Any person having personal property, or <br/>
<a id="pl.48.17"></a><var>48.17</var>any estate, right, title, or interest in or lien upon any parcel of land, who claims
         that such <br/>
<a id="pl.48.18"></a><var>48.18</var>property has been partially, unfairly, or unequally assessed in comparison with other
         property <br/>
<a id="pl.48.19"></a><var>48.19</var>in the (1) city, or (2) county, or (3) in the case of a county containing a city of
         the first class, <br/>
<a id="pl.48.20"></a><var>48.20</var>the portion of the county excluding the first class city, or that the parcel has been
         assessed <br/>
<a id="pl.48.21"></a><var>48.21</var>at a valuation greater than its real or actual value, or that the tax levied against
         the same is <br/>
<a id="pl.48.22"></a><var>48.22</var>illegal, in whole or in part, or has been paid, or that the property is exempt from
         the tax so <br/>
<a id="pl.48.23"></a><var>48.23</var>levied, may have the validity of the claim, defense, or objection determined by the
         district <br/>
<a id="pl.48.24"></a><var>48.24</var>court of the county in which the tax is levied or by the Tax Court by serving one
         copy of a <br/>
<a id="pl.48.25"></a><var>48.25</var>petition for such determination upon the county auditor, one copy on the county attorney,
         <br/>
<a id="pl.48.26"></a><var>48.26</var>one copy on the county treasurer, and three copies on the county assessor. The county
         <br/>
<a id="pl.48.27"></a><var>48.27</var>assessor shall immediately forward one copy of the petition to the appropriate governmental
         <br/>
<a id="pl.48.28"></a><var>48.28</var>authority in a home rule charter or statutory city or town in which the property is
         located if <br/>
<a id="pl.48.29"></a><var>48.29</var>that city or town employs its own certified assessor. A copy of the petition shall
         also be <br/>
<a id="pl.48.30"></a><var>48.30</var>forwarded by the assessor to the school board of the school district in which the
         property <br/>
<a id="pl.48.31"></a><var>48.31</var>is located.<br/>
<a id="pl.48.32"></a><var>48.32</var>(b) In counties where the office of county treasurer has been combined with the office
         <br/>
<a id="pl.48.33"></a><var>48.33</var>of county auditor, the county may elect to require the petitioner to serve the number
         of <br/>
<a id="pl.49.1"></a><var>49.1</var>copies as determined by the county. The county assessor shall immediately forward
         one <br/>
<a id="pl.49.2"></a><var>49.2</var>copy of the petition to the appropriate governmental authority in a home rule charter
         or <br/>
<a id="pl.49.3"></a><var>49.3</var>statutory city or town in which the property is located if that city or town employs
         its own <br/>
<a id="pl.49.4"></a><var>49.4</var>certified assessor. A list of petitioned properties, including the name of the petitioner,
         the <br/>
<a id="pl.49.5"></a><var>49.5</var>identification number of the property, and the estimated market value, shall be sent
         on or <br/>
<a id="pl.49.6"></a><var>49.6</var>before the first day of July by the county auditor/treasurer to the school board of
         the school <br/>
<a id="pl.49.7"></a><var>49.7</var>district in which the property is located.<br/>
<a id="pl.49.8"></a><var>49.8</var>(c) For all counties, the petitioner must file the copies with proof of service, in
         the office <br/>
<a id="pl.49.9"></a><var>49.9</var>of the court administrator of the district court on or before April 30 of the year
         in which the <br/>
<a id="pl.49.10"></a><var>49.10</var>tax becomes payable. A petition for determination under this section may be transferred
         by <br/>
<a id="pl.49.11"></a><var>49.11</var>the district court to the Tax Court. An appeal may also be taken to the Tax Court
         under <br/>
<a id="pl.49.12"></a><var>49.12</var>chapter 271 at any time following receipt of the valuation notice that county assessors or <br/>
<a id="pl.49.13"></a><var>49.13</var>city assessors having the powers of a county assessor are required by section 
         <statute_ref>273.121</statute_ref> to <br/>
<a id="pl.49.14"></a><var>49.14</var>send to persons whose property is to be included on the assessment roll that year, but prior <br/>
<a id="pl.49.15"></a><var>49.15</var>to May 1 of the year in which the taxes are payable.<br/>
<a id="pl.49.16"></a><var>49.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.49.17"></a><var>49.17</var>    Sec. 29. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:<br/>
<a id="pl.49.18"></a><var>49.18</var>    Subd. 1a. <b>Conveyance to public entities.</b> (a) Upon written request from a state agency <br/>
<a id="pl.49.19"></a><var>49.19</var>or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
         must be <br/>
<a id="pl.49.20"></a><var>49.20</var>withheld from sale or lease to others for a maximum of six months. The request must
         be <br/>
<a id="pl.49.21"></a><var>49.21</var>submitted to the county auditor. Upon receipt, the county auditor must withhold the
         parcel <br/>
<a id="pl.49.22"></a><var>49.22</var>from sale or lease to any other party for six months, and must confirm the starting
         date of <br/>
<a id="pl.49.23"></a><var>49.23</var>the six-month withholding period to the requesting agency or subdivision. If the request
         is <br/>
<a id="pl.49.24"></a><var>49.24</var>from a governmental subdivision of the state, the governmental subdivision must pay
         the <br/>
<a id="pl.49.25"></a><var>49.25</var>maintenance costs incurred by the county during the period the parcel is withheld.
         The <br/>
<a id="pl.49.26"></a><var>49.26</var>county board may approve a sale or conveyance to the requesting party during the <br/>
<a id="pl.49.27"></a><var>49.27</var>withholding period. A conveyance of the property to the requesting party terminates
         the <br/>
<a id="pl.49.28"></a><var>49.28</var>withholding period.<br/>
<a id="pl.49.29"></a><var>49.29</var>A governmental subdivision of the state must not make, and a county auditor must not
         <br/>
<a id="pl.49.30"></a><var>49.30</var>act upon, a second request to withhold a parcel from sale or lease within 18 months
         of a <br/>
<a id="pl.49.31"></a><var>49.31</var>previous request for that parcel. A county may reject a request made under this paragraph
         <br/>
<a id="pl.49.32"></a><var>49.32</var>if the request is made more than 30 days after the county has given notice to the
         requesting <br/>
<a id="pl.49.33"></a><var>49.33</var>state agency or governmental subdivision of the state that the county intends to sell
         or <br/>
<a id="pl.49.34"></a><var>49.34</var>otherwise dispose of the property.<br/>
<a id="pl.50.1"></a><var>50.1</var>(b) Nonconservation tax-forfeited lands may be sold by the county board, for their
         market <br/>
<a id="pl.50.2"></a><var>50.2</var>value as determined by the county board, to an organized or incorporated governmental
         <br/>
<a id="pl.50.3"></a><var>50.3</var>subdivision of the state for any public purpose for which the subdivision is authorized
         to <br/>
<a id="pl.50.4"></a><var>50.4</var>acquire property. When the term "market value" is used in this section, it means an
         estimate <br/>
<a id="pl.50.5"></a><var>50.5</var>of the full and actual market value of the parcel as determined by the county board,
         but in <br/>
<a id="pl.50.6"></a><var>50.6</var>making this determination, the board and the persons employed by or under contract
         with <br/>
<a id="pl.50.7"></a><var>50.7</var>the board in order to perform, conduct, or assist in the determination, are exempt
         from the <br/>
<a id="pl.50.8"></a><var>50.8</var>licensure requirements of chapter 82B.<br/>
<a id="pl.50.9"></a><var>50.9</var>(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the <br/>
<a id="pl.50.10"></a><var>50.10</var>taxing districts on application to  sold by the county board by, for their market value as <br/>
<a id="pl.50.11"></a><var>50.11</var>determined by the county board, to a state agency for an authorized use at not less than their <br/>
<a id="pl.50.12"></a><var>50.12</var>market value as determined by the county board any public purpose for which the agency <br/>
<a id="pl.50.13"></a><var>50.13</var>is authorized to acquire property.<br/>
<a id="pl.50.14"></a><var>50.14</var>(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
         <br/>
<a id="pl.50.15"></a><var>50.15</var>or incorporated governmental subdivision of the state or state agency for less than
         their <br/>
<a id="pl.50.16"></a><var>50.16</var>market value if:<br/>
<a id="pl.50.17"></a><var>50.17</var>(1) the county board determines that a sale at a reduced price is in the public interest
         <br/>
<a id="pl.50.18"></a><var>50.18</var>because a reduced price is necessary to provide an incentive to correct the blighted
         conditions <br/>
<a id="pl.50.19"></a><var>50.19</var>that make the lands undesirable in the open market, or the reduced price will lead
         to the <br/>
<a id="pl.50.20"></a><var>50.20</var>development of affordable housing; and<br/>
<a id="pl.50.21"></a><var>50.21</var>(2) the governmental subdivision or state agency has documented its specific plans
         for <br/>
<a id="pl.50.22"></a><var>50.22</var>correcting the blighted conditions or developing affordable housing, and the specific
         law <br/>
<a id="pl.50.23"></a><var>50.23</var>or laws that empower it to acquire real property in furtherance of the plans.<br/>
<a id="pl.50.24"></a><var>50.24</var>If the sale under this paragraph is to a governmental subdivision of the state, the
         <br/>
<a id="pl.50.25"></a><var>50.25</var>commissioner of revenue must convey the property on behalf of the state by quitclaim
         deed. <br/>
<a id="pl.50.26"></a><var>50.26</var>If the sale under this paragraph is to a state agency, the property is released from the trust <br/>
<a id="pl.50.27"></a><var>50.27</var>in favor of the taxing districts and the commissioner of revenue must issue a conveyance <br/>
<a id="pl.50.28"></a><var>50.28</var>document that releases the property from the trust in favor of the taxing districts convey the <br/>
<a id="pl.50.29"></a><var>50.29</var>property on behalf of the state by quitclaim deed to the agency.<br/>
<a id="pl.50.30"></a><var>50.30</var>(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
         may <br/>
<a id="pl.50.31"></a><var>50.31</var>be conveyed by the commissioner of revenue in the name of the state to a governmental
         <br/>
<a id="pl.50.32"></a><var>50.32</var>subdivision for an authorized public use, if an application is submitted to the commissioner
         <br/>
<a id="pl.50.33"></a><var>50.33</var>which includes a statement of facts as to the use to be made of the tract and the
         favorable <br/>
<a id="pl.50.34"></a><var>50.34</var>recommendation of the county board. For the purposes of this paragraph, "authorized
         public <br/>
<a id="pl.51.1"></a><var>51.1</var>use" means a use that allows an indefinite segment of the public to physically use
         and enjoy <br/>
<a id="pl.51.2"></a><var>51.2</var>the property in numbers appropriate to its size and use, or is for a public service
         facility. <br/>
<a id="pl.51.3"></a><var>51.3</var>Authorized public uses as defined in this paragraph are limited to:<br/>
<a id="pl.51.4"></a><var>51.4</var>(1) a road, or right-of-way for a road;<br/>
<a id="pl.51.5"></a><var>51.5</var>(2) a park that is both available to, and accessible by, the public that contains
         <br/>
<a id="pl.51.6"></a><var>51.6</var>improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;<br/>
<a id="pl.51.7"></a><var>51.7</var>(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
         <br/>
<a id="pl.51.8"></a><var>51.8</var>with a reasonable amount of surrounding land maintained in its natural state;<br/>
<a id="pl.51.9"></a><var>51.9</var>(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
         including <br/>
<a id="pl.51.10"></a><var>51.10</var>transit ways, park-and-ride lots, transit stations, maintenance and garage facilities,
         and other <br/>
<a id="pl.51.11"></a><var>51.11</var>facilities related to a public transit system;<br/>
<a id="pl.51.12"></a><var>51.12</var>(5) public beaches or boat launches;<br/>
<a id="pl.51.13"></a><var>51.13</var>(6) public parking;<br/>
<a id="pl.51.14"></a><var>51.14</var>(7) civic recreation or conference facilities; and<br/>
<a id="pl.51.15"></a><var>51.15</var>(8) public service facilities such as fire halls, police stations, lift stations,
         water towers, <br/>
<a id="pl.51.16"></a><var>51.16</var>sanitation facilities, water treatment facilities, and administrative offices.<br/>
<a id="pl.51.17"></a><var>51.17</var>No monetary compensation or consideration is required for the conveyance, except as
         <br/>
<a id="pl.51.18"></a><var>51.18</var>provided in subdivision 1g, but the conveyance is subject to the conditions provided
         in law, <br/>
<a id="pl.51.19"></a><var>51.19</var>including, but not limited to, the reversion provisions of subdivisions 1c and 1d.<br/>
<a id="pl.51.20"></a><var>51.20</var>(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         <br/>
<a id="pl.51.21"></a><var>51.21</var>land to a local governmental subdivision of the state by quitclaim deed on behalf
         of the state <br/>
<a id="pl.51.22"></a><var>51.22</var>upon the favorable recommendation of the county board if the governmental subdivision
         <br/>
<a id="pl.51.23"></a><var>51.23</var>has certified to the board that prior to forfeiture the subdivision was entitled to
         the parcel <br/>
<a id="pl.51.24"></a><var>51.24</var>under a written development agreement or instrument, but the conveyance failed to
         occur <br/>
<a id="pl.51.25"></a><var>51.25</var>prior to forfeiture. No compensation or consideration is required for, and no conditions
         <br/>
<a id="pl.51.26"></a><var>51.26</var>attach to, the conveyance.<br/>
<a id="pl.51.27"></a><var>51.27</var>(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         <br/>
<a id="pl.51.28"></a><var>51.28</var>land to the association of a common interest community by quitclaim deed upon the
         favorable <br/>
<a id="pl.51.29"></a><var>51.29</var>recommendation of the county board if the association certifies to the board that
         prior to <br/>
<a id="pl.51.30"></a><var>51.30</var>forfeiture the association was entitled to the parcel under a written agreement, but
         the <br/>
<a id="pl.51.31"></a><var>51.31</var>conveyance failed to occur prior to forfeiture. No compensation or consideration is
         required <br/>
<a id="pl.51.32"></a><var>51.32</var>for, and no conditions attach to, the conveyance.<br/>
<a id="pl.52.1"></a><var>52.1</var>(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
         <br/>
<a id="pl.52.2"></a><var>52.2</var>state for less than its market value for either: (1) creation or preservation of wetlands;
         (2) <br/>
<a id="pl.52.3"></a><var>52.3</var>drainage or storage of storm water under a storm water management plan; or (3) preservation,
         <br/>
<a id="pl.52.4"></a><var>52.4</var>or restoration and preservation, of the land in its natural state. The deed must contain
         a <br/>
<a id="pl.52.5"></a><var>52.5</var>restrictive covenant limiting the use of the land to one of these purposes for 30
         years or <br/>
<a id="pl.52.6"></a><var>52.6</var>until the property is reconveyed back to the state in trust. At any time, the governmental
         <br/>
<a id="pl.52.7"></a><var>52.7</var>subdivision may reconvey the property to the state in trust for the taxing districts.
         The deed <br/>
<a id="pl.52.8"></a><var>52.8</var>of reconveyance is subject to approval by the commissioner of revenue. No part of
         a purchase <br/>
<a id="pl.52.9"></a><var>52.9</var>price determined under this paragraph shall be refunded upon a reconveyance, but the
         <br/>
<a id="pl.52.10"></a><var>52.10</var>amount paid for a conveyance under this paragraph may be taken into account by the
         county <br/>
<a id="pl.52.11"></a><var>52.11</var>board when setting the terms of a future sale of the same property to the same governmental
         <br/>
<a id="pl.52.12"></a><var>52.12</var>subdivision under paragraph (b) or (d). If the lands are unplatted and located outside
         of an <br/>
<a id="pl.52.13"></a><var>52.13</var>incorporated municipality and the commissioner of natural resources determines there
         is a <br/>
<a id="pl.52.14"></a><var>52.14</var>mineral use potential, the sale is subject to the approval of the commissioner of
         natural <br/>
<a id="pl.52.15"></a><var>52.15</var>resources.<br/>
<a id="pl.52.16"></a><var>52.16</var>(i) A park and recreation board in a city of the first class is a governmental subdivision
         <br/>
<a id="pl.52.17"></a><var>52.17</var>for the purposes of this section.<br/>
<a id="pl.52.18"></a><var>52.18</var>(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
         by <br/>
<a id="pl.52.19"></a><var>52.19</var>the commissioner of revenue in the name of the state to a governmental subdivision
         for a <br/>
<a id="pl.52.20"></a><var>52.20</var>school forest under section 
         <statute_ref>89.41</statute_ref>. An application that includes a statement of facts as to the <br/>
<a id="pl.52.21"></a><var>52.21</var>use to be made of the tract and the favorable recommendation of the county board and
         the <br/>
<a id="pl.52.22"></a><var>52.22</var>commissioner of natural resources must be submitted to the commissioner of revenue.
         No <br/>
<a id="pl.52.23"></a><var>52.23</var>monetary compensation or consideration is required for the conveyance, but the conveyance
         <br/>
<a id="pl.52.24"></a><var>52.24</var>is subject to the conditional use and reversion provisions of subdivisions 1c and
         1d, paragraph <br/>
<a id="pl.52.25"></a><var>52.25</var>(e). At any time, the governmental subdivision may reconvey the property back to the
         state <br/>
<a id="pl.52.26"></a><var>52.26</var>in trust for the taxing districts. The deed of reconveyance is subject to approval
         by the <br/>
<a id="pl.52.27"></a><var>52.27</var>commissioner of revenue.<br/>
<a id="pl.52.28"></a><var>52.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.52.29"></a><var>52.29</var>    Sec. 30. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:<br/>
<a id="pl.52.30"></a><var>52.30</var>    Subd. 1d. <b>Reverter for failure to use; conveyance to state.</b> (a) After three years from <br/>
<a id="pl.52.31"></a><var>52.31</var>the date of any conveyance of tax-forfeited land to a governmental subdivision for
         an <br/>
<a id="pl.52.32"></a><var>52.32</var>authorized public use as provided in this section, regardless of when the deed for
         the <br/>
<a id="pl.52.33"></a><var>52.33</var>authorized public use was executed, if the governmental subdivision has failed to
         put the <br/>
<a id="pl.52.34"></a><var>52.34</var>land to that use, or abandons that use, the governing body of the subdivision must:
         (1) with <br/>
<a id="pl.53.1"></a><var>53.1</var>the approval of the county board, purchase the property for an authorized public purpose
         <br/>
<a id="pl.53.2"></a><var>53.2</var>at the present market value as determined by the county board, or (2) authorize the
         proper <br/>
<a id="pl.53.3"></a><var>53.3</var>officers to convey the land, or the part of the land not required for an authorized
         public use, <br/>
<a id="pl.53.4"></a><var>53.4</var>to the state of Minnesota in trust for the taxing districts. If the governing body
         purchases <br/>
<a id="pl.53.5"></a><var>53.5</var>the property under clause (1), the commissioner of revenue shall, upon proper application
         <br/>
<a id="pl.53.6"></a><var>53.6</var>submitted by the county auditor and upon the reconveyance of the land subject to the <br/>
<a id="pl.53.7"></a><var>53.7</var>conditional use deed to the state, convey the property on behalf of the state by quitclaim <br/>
<a id="pl.53.8"></a><var>53.8</var>deed to the subdivision free of a use restriction and the possibility of reversion
         or <br/>
<a id="pl.53.9"></a><var>53.9</var>defeasement. If the governing body decides to reconvey the property to the state under
         this <br/>
<a id="pl.53.10"></a><var>53.10</var>clause, the officers shall execute a deed of conveyance immediately. The conveyance
         is <br/>
<a id="pl.53.11"></a><var>53.11</var>subject to the approval of the commissioner and its form must be approved by the attorney
         <br/>
<a id="pl.53.12"></a><var>53.12</var>general. For 15 years from the date of the conveyance, there is no failure to put
         the land to <br/>
<a id="pl.53.13"></a><var>53.13</var>the authorized public use and no abandonment of that use if a formal plan of the governmental
         <br/>
<a id="pl.53.14"></a><var>53.14</var>subdivision, including, but not limited to, a comprehensive plan or land use plan,
         shows an <br/>
<a id="pl.53.15"></a><var>53.15</var>intended future use of the land for the authorized public use.<br/>
<a id="pl.53.16"></a><var>53.16</var>(b) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.53.17"></a><var>53.17</var>deed executed under this section by the commissioner of revenue on or after January
         1, <br/>
<a id="pl.53.18"></a><var>53.18</var>2007, may be acquired by that governmental subdivision after 15 years from the date
         of the <br/>
<a id="pl.53.19"></a><var>53.19</var>conveyance if the commissioner determines upon written application from the subdivision
         <br/>
<a id="pl.53.20"></a><var>53.20</var>that the subdivision has in fact put the property to the authorized public use for
         which it <br/>
<a id="pl.53.21"></a><var>53.21</var>was conveyed, and the subdivision has made a finding that it has no current plans
         to change <br/>
<a id="pl.53.22"></a><var>53.22</var>the use of the lands. Prior to conveying the property, the commissioner shall inquire
         whether <br/>
<a id="pl.53.23"></a><var>53.23</var>the county board where the land is located objects to a conveyance of the property
         to the <br/>
<a id="pl.53.24"></a><var>53.24</var>subdivision without conditions and without further act by or obligation of the subdivision.
         <br/>
<a id="pl.53.25"></a><var>53.25</var>If the county does not object within 60 days, and the commissioner makes a favorable
         <br/>
<a id="pl.53.26"></a><var>53.26</var>determination, the commissioner shall issue a quitclaim deed on behalf of the state
         <br/>
<a id="pl.53.27"></a><var>53.27</var>unconditionally conveying the property to the governmental subdivision. For purposes
         of <br/>
<a id="pl.53.28"></a><var>53.28</var>this paragraph, demonstration of an intended future use for the authorized public
         use in a <br/>
<a id="pl.53.29"></a><var>53.29</var>formal plan of the governmental subdivision does not constitute use for that authorized
         <br/>
<a id="pl.53.30"></a><var>53.30</var>public use.<br/>
<a id="pl.53.31"></a><var>53.31</var>(c) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.53.32"></a><var>53.32</var>deed executed under this section by the commissioner of revenue before January 1,
         2007, <br/>
<a id="pl.53.33"></a><var>53.33</var>is released from the use restriction and possibility of reversion on January 1, 2022,
         if the <br/>
<a id="pl.53.34"></a><var>53.34</var>county board records a resolution describing the land and citing this paragraph. The
         county <br/>
<a id="pl.54.1"></a><var>54.1</var>board may authorize the county treasurer to deduct the amount of the recording fees
         from <br/>
<a id="pl.54.2"></a><var>54.2</var>future settlements of property taxes to the subdivision.<br/>
<a id="pl.54.3"></a><var>54.3</var>(d) Except for tax-forfeited land conveyed to establish a school forest under section
         <br/>
<statute_ref><a id="pl.54.4"></a><var>54.4</var>89.41
         </statute_ref>, property conveyed under a conditional use deed executed under this section by the
         <br/>
<a id="pl.54.5"></a><var>54.5</var>commissioner of revenue, regardless of when the deed for the authorized public use
         was <br/>
<a id="pl.54.6"></a><var>54.6</var>executed, is released from the use restriction and reverter, and any use restriction
         or reverter <br/>
<a id="pl.54.7"></a><var>54.7</var>for which no declaration of reversion has been recorded with the county recorder or
         registrar <br/>
<a id="pl.54.8"></a><var>54.8</var>of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2)
         30 years from <br/>
<a id="pl.54.9"></a><var>54.9</var>the date the deed was acknowledged; or (3) final resolution of an appeal to district
         court <br/>
<a id="pl.54.10"></a><var>54.10</var>under subdivision 1e, if a lis pendens related to the appeal is recorded in the office
         of the <br/>
<a id="pl.54.11"></a><var>54.11</var>county recorder or registrar of titles, as appropriate, prior to January 1, 2015.<br/>
<a id="pl.54.12"></a><var>54.12</var>(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish
         a <br/>
<a id="pl.54.13"></a><var>54.13</var>school forest under section 
         <statute_ref>89.41</statute_ref> is subject to a perpetual conditional use deed and reverter. <br/>
<a id="pl.54.14"></a><var>54.14</var>The property reverts to the state in trust for the taxing districts by operation of
         law if the <br/>
<a id="pl.54.15"></a><var>54.15</var>commissioner of natural resources determines and reports to the commissioner of revenue
         <br/>
<a id="pl.54.16"></a><var>54.16</var>under section 
         <statute_ref>89.41, subdivision 3</statute_ref>, that the governmental subdivision has failed to use the <br/>
<a id="pl.54.17"></a><var>54.17</var>land for school forest purposes for three consecutive years. The commissioner of revenue
         <br/>
<a id="pl.54.18"></a><var>54.18</var>shall record a declaration of reversion for land that has reverted under this paragraph.<br/>
<a id="pl.54.19"></a><var>54.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.54.20"></a><var>54.20</var>    Sec. 31. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision <br/>
<a id="pl.54.21"></a><var>54.21</var>to read:<br/>
<a id="pl.54.22"></a><var>54.22</var>    Subd. 14. <b>Communication by electronic mail.</b> Prior to receiving aid pursuant to this <br/>
<a id="pl.54.23"></a><var>54.23</var>section, a city must register an official electronic mail address with the commissioner,
         which <br/>
<a id="pl.54.24"></a><var>54.24</var>the commissioner may use as an exclusive means to communicate with the city.<br/>
 <a id="pl.54.25"></a><var>54.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.54.26"></a><var>54.26</var>    Sec. 32. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision <br/>
<a id="pl.54.27"></a><var>54.27</var>to read:<br/>
<a id="pl.54.28"></a><var>54.28</var>    Subd. 3a. <b>Certification.</b> On or before June 1 of each year, the commissioner of natural <br/>
<a id="pl.54.29"></a><var>54.29</var>resources shall certify to the commissioner of revenue the number of watercraft launches
         <br/>
<a id="pl.54.30"></a><var>54.30</var>and the number of watercraft trailer parking spaces in each county.<br/>
<a id="pl.54.31"></a><var>54.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.55.1"></a><var>55.1</var>    Sec. 33. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision <br/>
<a id="pl.55.2"></a><var>55.2</var>to read:<br/>
<a id="pl.55.3"></a><var>55.3</var>    Subd. 3b. <b>Certification.</b> On or before June 1 of each year, the commissioner of natural <br/>
<a id="pl.55.4"></a><var>55.4</var>resources shall certify to the commissioner of revenue the counties that complied
         with the <br/>
<a id="pl.55.5"></a><var>55.5</var>requirements of subdivision 3 the prior year and are eligible to receive aid under
         this section.<br/>
<a id="pl.55.6"></a><var>55.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.55.7"></a><var>55.7</var>    Sec. 34. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:<br/>
<a id="pl.55.8"></a><var>55.8</var>    Subd. 2. <b>Exception.</b> This section does not apply to sales made under chapter 282 or if <br/>
<a id="pl.55.9"></a><var>55.9</var>the purchaser is represented throughout the transaction by either:<br/>
<a id="pl.55.10"></a><var>55.10</var>(1) a person licensed to practice law in this state; or<br/>
<a id="pl.55.11"></a><var>55.11</var>(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
         <br/>
<a id="pl.55.12"></a><var>55.12</var>that the representation does not create a dual agency, as that term is defined in
         section 
         <statute_ref>82.55, <br/>
<a id="pl.55.13"></a><var>55.13</var>subdivision 6
         </statute_ref>.<br/>
<a id="pl.55.14"></a><var>55.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited land occurring <br/>
<a id="pl.55.15"></a><var>55.15</var>the day following final enactment and thereafter.<br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.55.16"></a><var>55.16</var>    Sec. 35. Laws 2014, chapter 308, article 9, section 94, is amended to read:<br/>
<a id="pl.55.17"></a><var>55.17</var>    Sec. 94. <b>REPEALER.</b><br/>
<a id="pl.55.18"></a><var>55.18</var>(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision <br/>
<a id="pl.55.19"></a><var>55.19</var>19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, <br/>
<a id="pl.55.20"></a><var>55.20</var>part 8007.0200, are repealed.<br/>
<a id="pl.55.21"></a><var>55.21</var>(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
         <br/>
<a id="pl.55.22"></a><var>55.22</var>2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67,
         72, and <br/>
<a id="pl.55.23"></a><var>55.23</var>82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; <br/>
<a id="pl.55.24"></a><var>55.24</var>273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
         <br/>
<a id="pl.55.25"></a><var>55.25</var>8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
         <br/>
<a id="pl.55.26"></a><var>55.26</var>subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
         <br/>
<a id="pl.55.27"></a><var>55.27</var>subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
         <br/>
<a id="pl.55.28"></a><var>55.28</var>subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision
         1i; <br/>
<a id="pl.55.29"></a><var>55.29</var>469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes <br/>
<a id="pl.55.30"></a><var>55.30</var>2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and <br/>
<a id="pl.56.1"></a><var>56.1</var>Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7,
         are <br/>
<a id="pl.56.2"></a><var>56.2</var>repealed.<br/>
<a id="pl.56.3"></a><var>56.3</var>(c) Minnesota Statutes 2012, section 469.1764, is repealed.<br/>
<a id="pl.56.4"></a><var>56.4</var>(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
         <br/>
<a id="pl.56.5"></a><var>56.5</var>469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
         <br/>
<a id="pl.56.6"></a><var>56.6</var>469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, <br/>
<a id="pl.56.7"></a><var>56.7</var>section 469.340, subdivision 4, are repealed.<br/>
<a id="pl.56.8"></a><var>56.8</var>(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.<br/>
<a id="pl.56.9"></a><var>56.9</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 20, 2014, and <br/>
<a id="pl.56.10"></a><var>56.10</var>pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
         <br/>
<a id="pl.56.11"></a><var>56.11</var>subdivision 2, is revived and reenacted as of that date.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.56.12"></a><var>56.12</var>    Sec. 36. <b> REPEALER.</b><br/>
<b> </b><a id="pl.56.13"></a><var>56.13</var>(a) Minnesota Statutes 2016, section 281.22, is repealed.<br/>
<a id="pl.56.14"></a><var>56.14</var>(b) Minnesota Rules, part 8100.0700, is repealed.<br/>
<a id="pl.56.15"></a><var>56.15</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.56.16"></a><var>56.16</var>Paragraph (b) is effective for assessment year 2017 and thereafter.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.56.19"></a><var>56.19</var>    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:<br/>
<a id="pl.56.20"></a><var>56.20</var>    Subdivision 1. <b>Annual report required.</b> Every railroad company doing business in <br/>
<a id="pl.56.21"></a><var>56.21</var>Minnesota shall annually file with the commissioner on or before March 31 a report
         under <br/>
<a id="pl.56.22"></a><var>56.22</var>oath setting forth the information prescribed by the commissioner to enable the commissioner
         <br/>
<a id="pl.56.23"></a><var>56.23</var>to make the valuation and equalization required by sections 
         <statute_ref>270.80</statute_ref> to 
         <statute_ref>270.87</statute_ref>. The <br/>
<a id="pl.56.24"></a><var>56.24</var>commissioner shall prescribe the content, format, and manner of the report pursuant
         to <br/>
<a id="pl.56.25"></a><var>56.25</var>section 270C.30, except that a "law administered by the commissioner" includes the
         property <br/>
<a id="pl.56.26"></a><var>56.26</var>tax laws. If a report is made by electronic means, the taxpayer's signature is defined
         pursuant <br/>
<a id="pl.56.27"></a><var>56.27</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.56.28"></a><var>56.28</var>property tax laws.<br/>
<a id="pl.56.29"></a><var>56.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.57.1"></a><var>57.1</var>    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:<br/>
<a id="pl.57.2"></a><var>57.2</var>    Subd. 5. <b>Debt.</b> (a) "Debt" means a legal obligation of a natural person to pay a fixed and <br/>
<a id="pl.57.3"></a><var>57.3</var>certain amount of money, which equals or exceeds $25 and which is due and payable
         to a <br/>
<a id="pl.57.4"></a><var>57.4</var>claimant agency. The term includes criminal fines imposed under section 
         <statute_ref>609.10</statute_ref> or 
         <statute_ref>609.125</statute_ref>, <br/>
<a id="pl.57.5"></a><var>57.5</var>fines imposed for petty misdemeanors as defined in section 
         <statute_ref>609.02, subdivision 4a</statute_ref>, and <br/>
<a id="pl.57.6"></a><var>57.6</var>restitution. A debt may arise under a contractual or statutory obligation, a court
         order, or <br/>
<a id="pl.57.7"></a><var>57.7</var>other legal obligation, but need not have been reduced to judgment.<br/>
<a id="pl.57.8"></a><var>57.8</var>    A debt includes any legal obligation of a current recipient of assistance which is
         based <br/>
<a id="pl.57.9"></a><var>57.9</var>on overpayment of an assistance grant where that payment is based on a client waiver
         or <br/>
<a id="pl.57.10"></a><var>57.10</var>an administrative or judicial finding of an intentional program violation; or where
         the debt <br/>
<a id="pl.57.11"></a><var>57.11</var>is owed to a program wherein the debtor is not a client at the time notification is
         provided <br/>
<a id="pl.57.12"></a><var>57.12</var>to initiate recovery under this chapter and the debtor is not a current recipient
         of food support, <br/>
<a id="pl.57.13"></a><var>57.13</var>transitional child care, or transitional medical assistance.<br/>
<a id="pl.57.14"></a><var>57.14</var>    (b) A debt does not include any legal obligation to pay a claimant agency for medical
         <br/>
<a id="pl.57.15"></a><var>57.15</var>care, including hospitalization if the income of the debtor at the time when the medical
         care <br/>
<a id="pl.57.16"></a><var>57.16</var>was rendered does not exceed the following amount:<br/>
<a id="pl.57.17"></a><var>57.17</var>    (1) for an unmarried debtor, an income of $8,800 $12,560 or less;<br/>
<a id="pl.57.18"></a><var>57.18</var>    (2) for a debtor with one dependent, an income of $11,270 $16,080 or less;<br/>
<a id="pl.57.19"></a><var>57.19</var>    (3) for a debtor with two dependents, an income of $13,330 $19,020 or less;<br/>
<a id="pl.57.20"></a><var>57.20</var>    (4) for a debtor with three dependents, an income of $15,120 $21,580 or less;<br/>
<a id="pl.57.21"></a><var>57.21</var>    (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and<br/>
<a id="pl.57.22"></a><var>57.22</var>    (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.<br/>
<a id="pl.57.23"></a><var>57.23</var>For purposes of this paragraph, "debtor" means the individual whose income, together
         <br/>
<a id="pl.57.24"></a><var>57.24</var>with the income of the individual's spouse, other than a separated spouse, brings
         the <br/>
<a id="pl.57.25"></a><var>57.25</var>individual within the income provisions of this paragraph. For purposes of this paragraph,
         <br/>
<a id="pl.57.26"></a><var>57.26</var>a spouse, other than a separated spouse, shall be considered a dependent.<br/>
<a id="pl.57.27"></a><var>57.27</var>    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
         <br/>
<a id="pl.57.28"></a><var>57.28</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except <br/>
<a id="pl.57.29"></a><var>57.29</var>that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." <br/>
<a id="pl.57.30"></a><var>57.30</var>For 2001 2016, the commissioner shall then determine the percent change from the 12 <br/>
<a id="pl.57.31"></a><var>57.31</var>months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, <br/>
<a id="pl.57.32"></a><var>57.32</var>and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the <br/>
<a id="pl.58.1"></a><var>58.1</var>12 months ending on August 31 of the year preceding the taxable year. The determination
         <br/>
<a id="pl.58.2"></a><var>58.2</var>of the commissioner pursuant to this subdivision shall not be considered a "rule"
         and shall <br/>
<a id="pl.58.3"></a><var>58.3</var>not be subject to the Administrative Procedure Act contained in chapter 14. The income
         <br/>
<a id="pl.58.4"></a><var>58.4</var>amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
         $5, <br/>
<a id="pl.58.5"></a><var>58.5</var>the amount is rounded up to the nearest $10 amount.<br/>
<a id="pl.58.6"></a><var>58.6</var>    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
         the <br/>
<a id="pl.58.7"></a><var>58.7</var>dollar amount of the premium authorized under section 
         <statute_ref>256L.15, subdivision 1a</statute_ref>.<br/>
<a id="pl.58.8"></a><var>58.8</var><b>EFFECTIVE DATE.</b>The section is effective retroactively for debts incurred after <br/>
<a id="pl.58.9"></a><var>58.9</var>December 31, 2014.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.58.10"></a><var>58.10</var>    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:<br/>
<a id="pl.58.11"></a><var>58.11</var>    Subdivision 1. <b>Disclosure to commissioner of human services.</b> (a) On the request of <br/>
<a id="pl.58.12"></a><var>58.12</var>the commissioner of human services, the commissioner shall disclose return information
         <br/>
<a id="pl.58.13"></a><var>58.13</var>regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A,
         to the <br/>
<a id="pl.58.14"></a><var>58.14</var>extent provided in paragraph (b) and for the purposes set forth in paragraph (c).<br/>
<a id="pl.58.15"></a><var>58.15</var>    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
         <br/>
<a id="pl.58.16"></a><var>58.16</var>employment, income, and property of a person owing or alleged to be owing an obligation
         <br/>
<a id="pl.58.17"></a><var>58.17</var>of child support.<br/>
<a id="pl.58.18"></a><var>58.18</var>    (c) The commissioner of human services may request data only for the purposes of <br/>
<a id="pl.58.19"></a><var>58.19</var>carrying out the child support enforcement program and to assist in the location of
         parents <br/>
<a id="pl.58.20"></a><var>58.20</var>who have, or appear to have, deserted their children. Data received may be used only
         as set <br/>
<a id="pl.58.21"></a><var>58.21</var>forth in section 
         <statute_ref>256.978</statute_ref>.<br/>
<a id="pl.58.22"></a><var>58.22</var>    (d) The commissioner shall provide the records and information necessary to administer
         <br/>
<a id="pl.58.23"></a><var>58.23</var>the supplemental housing allowance to the commissioner of human services.<br/>
<a id="pl.58.24"></a><var>58.24</var>    (e) At the request of the commissioner of human services, the commissioner of revenue
         <br/>
<a id="pl.58.25"></a><var>58.25</var>shall electronically match the Social Security numbers and names of participants in
         the <br/>
<a id="pl.58.26"></a><var>58.26</var>telephone assistance plan operated under sections 
         <statute_ref>237.69</statute_ref> to 
         <statute_ref>237.71</statute_ref>, with those of property <br/>
<a id="pl.58.27"></a><var>58.27</var>tax refund filers, and determine whether each participant's household income is within
         the <br/>
<a id="pl.58.28"></a><var>58.28</var>eligibility standards for the telephone assistance plan.<br/>
<a id="pl.58.29"></a><var>58.29</var>    (f) The commissioner may provide records and information collected under sections
         <br/>
<statute_ref><a id="pl.58.30"></a><var>58.30</var>295.50
         </statute_ref> to 
         <statute_ref>295.59</statute_ref> to the commissioner of human services for purposes of the Medicaid <br/>
<a id="pl.58.31"></a><var>58.31</var>Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law <br/>
<a id="pl.58.32"></a><var>58.32</var>102-234. Upon the written agreement by the United States Department of Health and
         Human <br/>
<a id="pl.58.33"></a><var>58.33</var>Services to maintain the confidentiality of the data, the commissioner may provide
         records <br/>
<a id="pl.59.1"></a><var>59.1</var>and information collected under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref> to the Centers for Medicare and <br/>
<a id="pl.59.2"></a><var>59.2</var>Medicaid Services section of the United States Department of Health and Human Services
         <br/>
<a id="pl.59.3"></a><var>59.3</var>for purposes of meeting federal reporting requirements.<br/>
<a id="pl.59.4"></a><var>59.4</var>    (g) The commissioner may provide records and information to the commissioner of <br/>
<a id="pl.59.5"></a><var>59.5</var>human services as necessary to administer the early refund of refundable tax credits.<br/>
<a id="pl.59.6"></a><var>59.6</var>    (h) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.59.7"></a><var>59.7</var>as necessary to verify income for income verification for eligibility and premium payment <br/>
<a id="pl.59.8"></a><var>59.8</var>under the MinnesotaCare program, under section 
         <statute_ref>256L.05, subdivision 2</statute_ref>, as well as the <br/>
<a id="pl.59.9"></a><var>59.9</var>medical assistance program under chapter 256B.<br/>
<a id="pl.59.10"></a><var>59.10</var>    (i) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.59.11"></a><var>59.11</var>necessary to verify whether applicants or recipients for the Minnesota family investment
         <br/>
<a id="pl.59.12"></a><var>59.12</var>program, general assistance, food support, Minnesota supplemental aid program, and
         child <br/>
<a id="pl.59.13"></a><var>59.13</var>care assistance have claimed refundable tax credits under chapter 290 and the property
         tax <br/>
<a id="pl.59.14"></a><var>59.14</var>refund under chapter 290A, and the amounts of the credits.<br/>
<a id="pl.59.15"></a><var>59.15</var>    (j) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.59.16"></a><var>59.16</var>necessary to verify income for purposes of calculating parental contribution amounts
         under <br/>
<a id="pl.59.17"></a><var>59.17</var>section 
         <statute_ref>252.27, subdivision 2a</statute_ref>.<br/>
<a id="pl.59.18"></a><var>59.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.59.19"></a><var>59.19</var>    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:<br/>
<a id="pl.59.20"></a><var>59.20</var><b>270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.</b><br/>
<a id="pl.59.21"></a><var>59.21</var>Except as otherwise provided by law, the commissioner shall prescribe the content and, <br/>
<a id="pl.59.22"></a><var>59.22</var>format, and manner of all returns and other forms required to be filed under a law <br/>
<a id="pl.59.23"></a><var>59.23</var>administered by the commissioner, and may furnish them subject to charge on application.<br/>
<a id="pl.59.24"></a><var>59.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.59.25"></a><var>59.25</var>    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:<br/>
<a id="pl.59.26"></a><var>59.26</var>    Subd. 5. <b>Prohibition against collection during appeal period of an order.</b> No collection <br/>
<a id="pl.59.27"></a><var>59.27</var>action can be taken on an order of assessment, or any other order imposing a liability,
         <br/>
<a id="pl.59.28"></a><var>59.28</var>including the filing of liens under section 
         <statute_ref>270C.63</statute_ref>, and no late payment penalties may be <br/>
<a id="pl.59.29"></a><var>59.29</var>imposed when a return has been filed for the tax type and period upon which the order
         is <br/>
<a id="pl.59.30"></a><var>59.30</var>based, during the appeal period of an order. The appeal period of an order ends: (1)
         60 days <br/>
<a id="pl.59.31"></a><var>59.31</var>after the order has been mailed to the taxpayer notice date designated by the commissioner <br/>
<a id="pl.60.1"></a><var>60.1</var>on the order; (2) if an administrative appeal is filed under section 
         <statute_ref>270C.35</statute_ref>, 60 days after <br/>
<a id="pl.60.2"></a><var>60.2</var>the notice date designated by the commissioner on the written determination of the <br/>
<a id="pl.60.3"></a><var>60.3</var>administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
         the <br/>
<a id="pl.60.4"></a><var>60.4</var>decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
         appeal <br/>
<a id="pl.60.5"></a><var>60.5</var>is based upon a constitutional challenge to the tax, 60 days after final determination
         of the <br/>
<a id="pl.60.6"></a><var>60.6</var>appeal. This subdivision does not apply to a jeopardy assessment under section 
         <statute_ref>270C.36</statute_ref>, <br/>
<a id="pl.60.7"></a><var>60.7</var>or a jeopardy collection under section 
         <statute_ref>270C.36</statute_ref>.<br/>
<a id="pl.60.8"></a><var>60.8</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.60.9"></a><var>60.9</var>2017.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.60.10"></a><var>60.10</var>    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:<br/>
<a id="pl.60.11"></a><var>60.11</var>    Subd. 8. <b>Sufficiency of notice.</b> An assessment of tax made by the commissioner, sent <br/>
<a id="pl.60.12"></a><var>60.12</var>postage prepaid by United States mail to the taxpayer at the taxpayer's last known
         address, <br/>
<a id="pl.60.13"></a><var>60.13</var>or sent by electronic mail to the taxpayer's last known electronic mailing address
         as provided <br/>
<a id="pl.60.14"></a><var>60.14</var>for in section 
         <statute_ref>325L.08</statute_ref>, is sufficient even if the taxpayer is deceased or is under a legal <br/>
<a id="pl.60.15"></a><var>60.15</var>disability, or, in the case of a corporation, has terminated its existence, unless
         the <br/>
<a id="pl.60.16"></a><var>60.16</var>commissioner has been provided with a new address by a party authorized to receive
         notices <br/>
<a id="pl.60.17"></a><var>60.17</var>of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date
         <br/>
<a id="pl.60.18"></a><var>60.18</var>designated by the commissioner on the assessment.<br/>
<a id="pl.60.19"></a><var>60.19</var><b>EFFECTIVE DATE.</b>This section is effective for assessments dated after December <br/>
<a id="pl.60.20"></a><var>60.20</var>31, 2017.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.60.21"></a><var>60.21</var>    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:<br/>
<a id="pl.60.22"></a><var>60.22</var>    Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br/>
<a id="pl.60.23"></a><var>60.23</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br/>
<a id="pl.60.24"></a><var>60.24</var>charge, must be filed with the commissioner within 60 days of the notice date of the notice <br/>
<a id="pl.60.25"></a><var>60.25</var>was mailed to the taxpayer's last known address, stating that a penalty has been imposed or <br/>
<a id="pl.60.26"></a><var>60.26</var>additional tax charge. For purposes of this section, "notice date" means the notice
         date <br/>
<a id="pl.60.27"></a><var>60.27</var>designated by the commissioner on the order or other notice that a penalty or additional
         tax <br/>
<a id="pl.60.28"></a><var>60.28</var>charge has been imposed.<br/>
<a id="pl.60.29"></a><var>60.29</var>(b) If the commissioner issues an order denying a request for abatement of penalty,
         <br/>
<a id="pl.60.30"></a><var>60.30</var>interest, or additional tax charge, the taxpayer may file an administrative appeal
         as provided <br/>
<a id="pl.60.31"></a><var>60.31</var>in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.61.1"></a><var>61.1</var>(c) If the commissioner does not issue an order on the abatement request within 60
         days <br/>
<a id="pl.61.2"></a><var>61.2</var>from the date the request is received, the taxpayer may appeal to Tax Court as provided
         in <br/>
<a id="pl.61.3"></a><var>61.3</var>section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.61.4"></a><var>61.4</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.61.5"></a><var>61.5</var>December 31, 2017.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.61.6"></a><var>61.6</var>    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:<br/>
<a id="pl.61.7"></a><var>61.7</var>    Subd. 3. <b>Notice date.</b> For purposes of this section, the term "notice date" means the <br/>
<a id="pl.61.8"></a><var>61.8</var>notice date of designated by the commissioner on the order adjusting the tax or order denying <br/>
<a id="pl.61.9"></a><var>61.9</var>a request for abatement, or, in the case of a denied refund, the notice date of designated by <br/>
<a id="pl.61.10"></a><var>61.10</var>the commissioner on the notice of denial.<br/>
<a id="pl.61.11"></a><var>61.11</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.61.12"></a><var>61.12</var>December 31, 2017.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.61.13"></a><var>61.13</var>    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to <br/>
<a id="pl.61.14"></a><var>61.14</var>read:<br/>
<a id="pl.61.15"></a><var>61.15</var>    Subd. 11. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br/>
<a id="pl.61.16"></a><var>61.16</var>appeal for an order of the commissioner and also files an appeal to the Tax Court
         for that <br/>
<a id="pl.61.17"></a><var>61.17</var>same order of the commissioner, the administrative appeal is dismissed and the commissioner
         <br/>
<a id="pl.61.18"></a><var>61.18</var>is no longer required to make a determination of appeal under subdivision 6.<br/>
<a id="pl.61.19"></a><var>61.19</var><b>EFFECTIVE DATE.</b>This section is effective for all administrative appeals filed after <br/>
<a id="pl.61.20"></a><var>61.20</var>June 30, 2017.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.61.21"></a><var>61.21</var>    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:<br/>
<a id="pl.61.22"></a><var>61.22</var>    Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br/>
<a id="pl.61.23"></a><var>61.23</var>determination or action of the commissioner is otherwise specifically provided for
         by law, <br/>
<a id="pl.61.24"></a><var>61.24</var>notice of the determination or action sent postage prepaid by United States mail to
         the <br/>
<a id="pl.61.25"></a><var>61.25</var>taxpayer or other person affected by the determination or action at the taxpayer's
         or person's <br/>
<a id="pl.61.26"></a><var>61.26</var>last known address, is sufficient. If the taxpayer or person being notified is deceased
         or is <br/>
<a id="pl.61.27"></a><var>61.27</var>under a legal disability, or, in the case of a corporation being notified that has
         terminated <br/>
<a id="pl.61.28"></a><var>61.28</var>its existence, notice to the last known address of the taxpayer, person, or corporation
         is <br/>
<a id="pl.61.29"></a><var>61.29</var>sufficient, unless the department has been provided with a new address by a party
         authorized <br/>
<a id="pl.61.30"></a><var>61.30</var>to receive notices from the commissioner.<br/>
<a id="pl.62.1"></a><var>62.1</var>(b) If a taxpayer or other person agrees to accept notification by electronic means,
         notice <br/>
<a id="pl.62.2"></a><var>62.2</var>of a determination or action of the commissioner sent by electronic mail to the taxpayer's
         <br/>
<a id="pl.62.3"></a><var>62.3</var>or person's last known electronic mailing address as provided for in section 
         <statute_ref>325L.08</statute_ref> is <br/>
<a id="pl.62.4"></a><var>62.4</var>sufficient.<br/>
<a id="pl.62.5"></a><var>62.5</var>(c) Notice of a determination or action of the commissioner is sufficient if it is
         sent on <br/>
<a id="pl.62.6"></a><var>62.6</var>or before the notice date designated by the commissioner on the notice.<br/>
<a id="pl.62.7"></a><var>62.7</var><b>EFFECTIVE DATE.</b>This section is effective for notices dated after December 31, <br/>
<a id="pl.62.8"></a><var>62.8</var>2017.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.62.9"></a><var>62.9</var>    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision <br/>
<a id="pl.62.10"></a><var>62.10</var>to read:<br/>
<a id="pl.62.11"></a><var>62.11</var>    Subd. 9. <b>Enforcement; limitations.</b> (a) Notwithstanding any other law, the imposition <br/>
<a id="pl.62.12"></a><var>62.12</var>of a penalty or any other action against a tax return preparer authorized by subdivision
         6 <br/>
<a id="pl.62.13"></a><var>62.13</var>with respect to a return may be taken by the commissioner within the period provided
         by <br/>
<a id="pl.62.14"></a><var>62.14</var>section 289A.38 to assess tax on that return.<br/>
<a id="pl.62.15"></a><var>62.15</var>(b) Imposition of a penalty or other action against a tax return preparer authorized
         by <br/>
<a id="pl.62.16"></a><var>62.16</var>subdivision 6 other than with respect to a return must be taken by the commissioner
         within <br/>
<a id="pl.62.17"></a><var>62.17</var>five years of the violation of statute.<br/>
<a id="pl.62.18"></a><var>62.18</var><b>EFFECTIVE DATE.</b>This section is effective for tax preparation services provided <br/>
<a id="pl.62.19"></a><var>62.19</var>after the day following final enactment.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.62.20"></a><var>62.20</var>    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:<br/>
<a id="pl.62.21"></a><var>62.21</var>    Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax preparer <br/>
<a id="pl.62.22"></a><var>62.22</var>from the list of tax preparers published under this section:<br/>
<a id="pl.62.23"></a><var>62.23</var>(1) when the commissioner determines that the name was included on the list in error;<br/>
<a id="pl.62.24"></a><var>62.24</var>(2) within 90 days three years after the preparer has demonstrated to the commissioner <br/>
<a id="pl.62.25"></a><var>62.25</var>that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied <br/>
<a id="pl.62.26"></a><var>62.26</var>any sentence imposed, successfully completed any probationary period imposed, and <br/>
<a id="pl.62.27"></a><var>62.27</var>successfully completed any remedial actions required by the commissioner, the State
         Board <br/>
<a id="pl.62.28"></a><var>62.28</var>of Accountancy, or the Lawyers Board of Professional Responsibility; or<br/>
<a id="pl.62.29"></a><var>62.29</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br/>
<a id="pl.62.30"></a><var>62.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:<br/>
<a id="pl.63.2"></a><var>63.2</var>    Subd. 4. <b>Licensing authority; duties.</b> All licensing authorities must require the applicant <br/>
<a id="pl.63.3"></a><var>63.3</var>to provide the applicant's Social Security number or individual taxpayer identification <br/>
<a id="pl.63.4"></a><var>63.4</var>number and Minnesota business identification number, as applicable, on all license <br/>
<a id="pl.63.5"></a><var>63.5</var>applications. Upon request of the commissioner, the licensing authority must provide
         the <br/>
<a id="pl.63.6"></a><var>63.6</var>commissioner with a list of all applicants, including the name, address, business
         name and <br/>
<a id="pl.63.7"></a><var>63.7</var>address, and Social Security number, or individual taxpayer identification number and <br/>
<a id="pl.63.8"></a><var>63.8</var>business identification number, as applicable, of each applicant. The commissioner may <br/>
<a id="pl.63.9"></a><var>63.9</var>request from a licensing authority a list of the applicants no more than once each
         calendar <br/>
<a id="pl.63.10"></a><var>63.10</var>year.<br/>
<a id="pl.63.11"></a><var>63.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.63.12"></a><var>63.12</var>    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:<br/>
<a id="pl.63.13"></a><var>63.13</var>    Subd. 2. <b>Time; notice; intervention.</b> Except as otherwise provided by law, within 60 <br/>
<a id="pl.63.14"></a><var>63.14</var>days after the notice of the making and filing date of an order of the commissioner of revenue, <br/>
<a id="pl.63.15"></a><var>63.15</var>the appellant, or the appellant's attorney, shall serve a notice of appeal upon the
         commissioner <br/>
<a id="pl.63.16"></a><var>63.16</var>and file the original, with proof of such service, with the Tax Court administrator
         or with <br/>
<a id="pl.63.17"></a><var>63.17</var>the court administrator of district court acting as court administrator of the Tax
         Court; <br/>
<a id="pl.63.18"></a><var>63.18</var>provided, that the Tax Court, for cause shown, may by written order extend the time
         for <br/>
<a id="pl.63.19"></a><var>63.19</var>appealing for an additional period not exceeding 30 days. For purposes of this section, <br/>
<a id="pl.63.20"></a><var>63.20</var>"notice date" means the notice date designated by the commissioner on the order. The notice <br/>
<a id="pl.63.21"></a><var>63.21</var>of appeal shall be in the form prescribed by the Tax Court. Within five days after
         receipt, <br/>
<a id="pl.63.22"></a><var>63.22</var>the commissioner shall transmit a copy of the notice of appeal to the attorney general.
         The <br/>
<a id="pl.63.23"></a><var>63.23</var>attorney general shall represent the commissioner, if requested, upon all such appeals
         except <br/>
<a id="pl.63.24"></a><var>63.24</var>in cases where the attorney general has appealed in behalf of the state, or in other
         cases <br/>
<a id="pl.63.25"></a><var>63.25</var>where the attorney general deems it against the interests of the state to represent
         the <br/>
<a id="pl.63.26"></a><var>63.26</var>commissioner, in which event the attorney general may intervene or be substituted
         as an <br/>
<a id="pl.63.27"></a><var>63.27</var>appellant in behalf of the state at any stage of the proceedings.<br/>
<a id="pl.63.28"></a><var>63.28</var>Upon a final determination of any other matter over which the court is granted jurisdiction
         <br/>
<a id="pl.63.29"></a><var>63.29</var>under section 
         <statute_ref>271.01, subdivision 5</statute_ref>, the taxpayer or the taxpayer's attorney shall file a <br/>
<a id="pl.63.30"></a><var>63.30</var>petition or notice of appeal as provided by law with the court administrator of district
         court, <br/>
<a id="pl.63.31"></a><var>63.31</var>acting in the capacity of court administrator of the Tax Court, with proof of service
         of the <br/>
<a id="pl.63.32"></a><var>63.32</var>petition or notice of appeal as required by law and within the time required by law.
         As used <br/>
<a id="pl.63.33"></a><var>63.33</var>in this subdivision, "final determination" includes a notice of assessment and equalization
         <br/>
<a id="pl.64.1"></a><var>64.1</var>for the year in question received from the local assessor, an order of the local board
         of <br/>
<a id="pl.64.2"></a><var>64.2</var>equalization, or an order of a county board of equalization.<br/>
<a id="pl.64.3"></a><var>64.3</var>The Tax Court shall prescribe a filing system so that the notice of appeal or petition
         filed <br/>
<a id="pl.64.4"></a><var>64.4</var>with the district court administrator acting as court administrator of the Tax Court
         is <br/>
<a id="pl.64.5"></a><var>64.5</var>forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
         <br/>
<a id="pl.64.6"></a><var>64.6</var>property valuation for which the assessor, a local board of equalization, a county
         board of <br/>
<a id="pl.64.7"></a><var>64.7</var>equalization or the commissioner of revenue has issued an order, the officer issuing
         the <br/>
<a id="pl.64.8"></a><var>64.8</var>order shall be notified of the filing of the appeal. The notice of appeal or petition
         shall be <br/>
<a id="pl.64.9"></a><var>64.9</var>in the form prescribed by the Tax Court.<br/>
<a id="pl.64.10"></a><var>64.10</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.64.11"></a><var>64.11</var>2017.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.64.12"></a><var>64.12</var>    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:<br/>
<a id="pl.64.13"></a><var>64.13</var>    Subd. 7. <b>Rules.</b> Except as provided in section 
         <statute_ref>278.05, subdivision 6</statute_ref>, the Rules of <br/>
<a id="pl.64.14"></a><var>64.14</var>Evidence and Civil Procedure for the district court of Minnesota shall govern the
         procedures <br/>
<a id="pl.64.15"></a><var>64.15</var>in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the <br/>
<a id="pl.64.16"></a><var>64.16</var>60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court <br/>
<a id="pl.64.17"></a><var>64.17</var>may adopt rules under chapter 14.<br/>
<a id="pl.64.18"></a><var>64.18</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.64.19"></a><var>64.19</var>2017.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.64.20"></a><var>64.20</var>    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.64.21"></a><var>64.21</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.64.22"></a><var>64.22</var>primarily for the abatement and control of air, water, or land pollution is exempt
         to the <br/>
<a id="pl.64.23"></a><var>64.23</var>extent that it is so used, and real property is exempt if it is used primarily for
         abatement and <br/>
<a id="pl.64.24"></a><var>64.24</var>control of air, water, or land pollution as part of an agricultural operation, as
         a part of a <br/>
<a id="pl.64.25"></a><var>64.25</var>centralized treatment and recovery facility operating under a permit issued by the
         Minnesota <br/>
<a id="pl.64.26"></a><var>64.26</var>Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
         <br/>
<a id="pl.64.27"></a><var>64.27</var>7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility <br/>
<a id="pl.64.28"></a><var>64.28</var>and for the treatment, recovery, and stabilization of metals, oils, chemicals, water,
         sludges, <br/>
<a id="pl.64.29"></a><var>64.29</var>or inorganic materials from hazardous industrial wastes, or as part of an electric
         generation <br/>
<a id="pl.64.30"></a><var>64.30</var>system. For purposes of this subdivision, personal property includes ponderous machinery
         <br/>
<a id="pl.64.31"></a><var>64.31</var>and equipment used in a business or production activity that at common law is considered
         <br/>
<a id="pl.64.32"></a><var>64.32</var>real property.<br/>
<a id="pl.65.1"></a><var>65.1</var>Any taxpayer requesting exemption of all or a portion of any real property or any
         <br/>
<a id="pl.65.2"></a><var>65.2</var>equipment or device, or part thereof, operated primarily for the control or abatement
         of air, <br/>
<a id="pl.65.3"></a><var>65.3</var>water, or land pollution shall file an application with the commissioner of revenue.
         The <br/>
<a id="pl.65.4"></a><var>65.4</var>commissioner shall develop an electronic means to notify interested parties when electric
         <br/>
<a id="pl.65.5"></a><var>65.5</var>power generation facilities have filed an application. The commissioner shall prescribe the <br/>
<a id="pl.65.6"></a><var>65.6</var>content, format, and manner of the application pursuant to section 270C.30, except
         that a <br/>
<a id="pl.65.7"></a><var>65.7</var>"law administered by the commissioner" includes the property tax laws, and if an application
         <br/>
<a id="pl.65.8"></a><var>65.8</var>is made by electronic means, the taxpayer's signature is defined pursuant to section
         270C.304, <br/>
<a id="pl.65.9"></a><var>65.9</var>except that a "law administered by the commissioner" includes the property tax laws. The <br/>
<a id="pl.65.10"></a><var>65.10</var>Minnesota Pollution Control Agency shall upon request of the commissioner furnish
         <br/>
<a id="pl.65.11"></a><var>65.11</var>information and advice to the commissioner.<br/>
<a id="pl.65.12"></a><var>65.12</var>The information and advice furnished by the Minnesota Pollution Control Agency must
         <br/>
<a id="pl.65.13"></a><var>65.13</var>include statements as to whether the equipment, device, or real property meets a standard,
         <br/>
<a id="pl.65.14"></a><var>65.14</var>rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency,
         and <br/>
<a id="pl.65.15"></a><var>65.15</var>whether the equipment, device, or real property is installed or operated in accordance
         with <br/>
<a id="pl.65.16"></a><var>65.16</var>it. On determining that property qualifies for exemption, the commissioner shall issue
         an <br/>
<a id="pl.65.17"></a><var>65.17</var>order exempting the property from taxation. The commissioner shall develop an electronic
         <br/>
<a id="pl.65.18"></a><var>65.18</var>means to notify interested parties when the commissioner has issued an order exempting
         <br/>
<a id="pl.65.19"></a><var>65.19</var>property from taxation under this subdivision. The equipment, device, or real property
         shall <br/>
<a id="pl.65.20"></a><var>65.20</var>continue to be exempt from taxation as long as the order issued by the commissioner
         remains <br/>
<a id="pl.65.21"></a><var>65.21</var>in effect.<br/>
<a id="pl.65.22"></a><var>65.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.65.23"></a><var>65.23</var>    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:<br/>
<a id="pl.65.24"></a><var>65.24</var>    Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator of a <br/>
<a id="pl.65.25"></a><var>65.25</var>new or existing electric power generation facility, excluding wind energy conversion
         systems, <br/>
<a id="pl.65.26"></a><var>65.26</var>may apply to the commissioner of revenue for a market value exclusion on the property
         as <br/>
<a id="pl.65.27"></a><var>65.27</var>provided for in this section. This exclusion shall apply only to the market value
         of the <br/>
<a id="pl.65.28"></a><var>65.28</var>equipment of the facility, and shall not apply to the structures and the land upon
         which the <br/>
<a id="pl.65.29"></a><var>65.29</var>facility is located. The commissioner of revenue shall prescribe the forms content, format, <br/>
<a id="pl.65.30"></a><var>65.30</var>manner, and procedures for this application pursuant to section 270C.30, except that a "law <br/>
<a id="pl.65.31"></a><var>65.31</var>administered by the commissioner" includes the property tax laws. If an application
         is made <br/>
<a id="pl.65.32"></a><var>65.32</var>by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
         except <br/>
<a id="pl.65.33"></a><var>65.33</var>that a "law administered by the commissioner" includes the property tax laws. Upon receiving <br/>
<a id="pl.65.34"></a><var>65.34</var>the application, the commissioner of revenue shall: (1) request the commissioner of
         commerce <br/>
<a id="pl.66.1"></a><var>66.1</var>to make a determination of the efficiency of the applicant's electric power generation
         facility; <br/>
<a id="pl.66.2"></a><var>66.2</var>and (2) shall develop an electronic means to notify interested parties when electric
         power <br/>
<a id="pl.66.3"></a><var>66.3</var>generation facilities have filed an application. The commissioner of commerce shall
         calculate <br/>
<a id="pl.66.4"></a><var>66.4</var>efficiency as the ratio of useful energy outputs to energy inputs, expressed as a
         percentage, <br/>
<a id="pl.66.5"></a><var>66.5</var>based on the performance of the facility's equipment during normal full load operation.
         The <br/>
<a id="pl.66.6"></a><var>66.6</var>commissioner must include in this formula the energy used in any on-site preparation
         of <br/>
<a id="pl.66.7"></a><var>66.7</var>materials necessary to convert the materials into the fuel used to generate electricity,
         such <br/>
<a id="pl.66.8"></a><var>66.8</var>as a process to gasify petroleum coke. The commissioner shall use the Higher Heating
         Value <br/>
<a id="pl.66.9"></a><var>66.9</var>(HHV) for all substances in the commissioner's efficiency calculations, except for
         wood <br/>
<a id="pl.66.10"></a><var>66.10</var>for fuel in a biomass-eligible project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the <br/>
<a id="pl.66.11"></a><var>66.11</var>commissioner shall adjust the heating value to allow for energy consumed for evaporation
         <br/>
<a id="pl.66.12"></a><var>66.12</var>of the moisture in the wood. The applicant shall provide the commissioner of commerce
         <br/>
<a id="pl.66.13"></a><var>66.13</var>with whatever information the commissioner deems necessary to make the determination.
         <br/>
<a id="pl.66.14"></a><var>66.14</var>Within 30 days of the receipt of the necessary information, the commissioner of commerce
         <br/>
<a id="pl.66.15"></a><var>66.15</var>shall certify the findings of the efficiency determination to the commissioner of
         revenue <br/>
<a id="pl.66.16"></a><var>66.16</var>and to the applicant. The commissioner of commerce shall determine the efficiency
         of the <br/>
<a id="pl.66.17"></a><var>66.17</var>facility and certify the findings of that determination to the commissioner of revenue
         every <br/>
<a id="pl.66.18"></a><var>66.18</var>two years thereafter from the date of the original certification.<br/>
<a id="pl.66.19"></a><var>66.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.18.0"></a><a id="pl.66.20"></a><var>66.20</var>    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.66.21"></a><var>66.21</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned by <br/>
<a id="pl.66.22"></a><var>66.22</var>the state of Minnesota or any political subdivision thereof, and property exempt from
         taxation <br/>
<a id="pl.66.23"></a><var>66.23</var>under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at the times <br/>
<a id="pl.66.24"></a><var>66.24</var>provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
         <br/>
<a id="pl.66.25"></a><var>66.25</var>described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 2 to 33, must file a statement of exemption with <br/>
<a id="pl.66.26"></a><var>66.26</var>the assessor of the assessment district in which the property is located.<br/>
<a id="pl.66.27"></a><var>66.27</var>(b) A taxpayer claiming an exemption from taxation on property described in section
         <br/>
<statute_ref><a id="pl.66.28"></a><var>66.28</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of revenue, <br/>
<a id="pl.66.29"></a><var>66.29</var>on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.66.30"></a><var>66.30</var>(c) In case of sickness, absence or other disability or for good cause, the assessor
         or the <br/>
<a id="pl.66.31"></a><var>66.31</var>commissioner may extend the time for filing the statement of exemption for a period
         not to <br/>
<a id="pl.66.32"></a><var>66.32</var>exceed 60 days.<br/>
<a id="pl.67.1"></a><var>67.1</var>(d) The commissioner of revenue shall prescribe the form and contents content, format, <br/>
<a id="pl.67.2"></a><var>67.2</var>and manner of the statement of exemption pursuant to section 270C.30, except that a "law <br/>
<a id="pl.67.3"></a><var>67.3</var>administered by the commissioner" includes the property tax laws.<br/>
<a id="pl.67.4"></a><var>67.4</var>(e) If a statement is made by electronic means, the taxpayer's signature is defined
         pursuant <br/>
<a id="pl.67.5"></a><var>67.5</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.67.6"></a><var>67.6</var>property tax laws.<br/>
<a id="pl.67.7"></a><var>67.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.19.0"></a><a id="pl.67.8"></a><var>67.8</var>    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:<br/>
<a id="pl.67.9"></a><var>67.9</var>    Subd. 4. <b>Reports.</b> (a) An owner of a wind energy conversion system subject to tax under <br/>
<a id="pl.67.10"></a><var>67.10</var>subdivision 3 shall file a report with the commissioner of revenue annually on or
         before <br/>
<a id="pl.67.11"></a><var>67.11</var>February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced <br/>
<a id="pl.67.12"></a><var>67.12</var>by the wind energy conversion system for the previous calendar year. The commissioner
         <br/>
<a id="pl.67.13"></a><var>67.13</var>shall prescribe the form content, format, and manner of the report pursuant to section <br/>
<a id="pl.67.14"></a><var>67.14</var>270C.30, except that a "law administered by the commissioner" includes the property
         tax <br/>
<a id="pl.67.15"></a><var>67.15</var>laws. The report must contain the information required by the commissioner to determine
         <br/>
<a id="pl.67.16"></a><var>67.16</var>the tax due to each county under this section for the current year. If an owner of
         a wind <br/>
<a id="pl.67.17"></a><var>67.17</var>energy conversion system subject to taxation under this section fails to file the
         report by <br/>
<a id="pl.67.18"></a><var>67.18</var>the due date, the commissioner of revenue shall determine the tax based upon the nameplate
         <br/>
<a id="pl.67.19"></a><var>67.19</var>capacity of the system multiplied by a capacity factor of 60 percent.<br/>
<a id="pl.67.20"></a><var>67.20</var>(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
         <br/>
<a id="pl.67.21"></a><var>67.21</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.67.22"></a><var>67.22</var>property tax laws.<br/>
<a id="pl.67.23"></a><var>67.23</var>(b) (c) On or before February 28, the commissioner of revenue shall notify the owner <br/>
<a id="pl.67.24"></a><var>67.24</var>of the wind energy conversion systems of the tax due to each county for the current
         year <br/>
<a id="pl.67.25"></a><var>67.25</var>and shall certify to the county auditor of each county in which the systems are located
         the <br/>
<a id="pl.67.26"></a><var>67.26</var>tax due from each owner for the current year.<br/>
<a id="pl.67.27"></a><var>67.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, except <br/>
<a id="pl.67.28"></a><var>67.28</var>that the amendment in paragraph (a) moving the date to file the report is effective
         for reports <br/>
<a id="pl.67.29"></a><var>67.29</var>filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.6.20.0"></a><a id="pl.67.30"></a><var>67.30</var>    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:<br/>
<a id="pl.67.31"></a><var>67.31</var>    Subd. 4. <b>Reports.</b> An owner of a solar energy generating system subject to tax under <br/>
<a id="pl.67.32"></a><var>67.32</var>this section shall file a report with the commissioner of revenue annually on or before
         <br/>
<a id="pl.68.1"></a><var>68.1</var>January 15 detailing the amount of electricity in megawatt-hours that was produced
         by the <br/>
<a id="pl.68.2"></a><var>68.2</var>system in the previous calendar year. The commissioner shall prescribe the form content, <br/>
<a id="pl.68.3"></a><var>68.3</var>format, and manner of the report pursuant to section 270C.30. The report must contain the <br/>
<a id="pl.68.4"></a><var>68.4</var>information required by the commissioner to determine the tax due to each county under
         <br/>
<a id="pl.68.5"></a><var>68.5</var>this section for the current year. If an owner of a solar energy generating system
         subject to <br/>
<a id="pl.68.6"></a><var>68.6</var>taxation under this section fails to file the report by the due date, the commissioner
         of <br/>
<a id="pl.68.7"></a><var>68.7</var>revenue shall determine the tax based upon the nameplate capacity of the system multiplied
         <br/>
<a id="pl.68.8"></a><var>68.8</var>by a capacity factor of 30 percent.<br/>
<a id="pl.68.9"></a><var>68.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.21.0"></a><a id="pl.68.10"></a><var>68.10</var>    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:<br/>
<a id="pl.68.11"></a><var>68.11</var>    Subd. 2. <b>Form; information required.</b> The certificate of value shall require such facts <br/>
<a id="pl.68.12"></a><var>68.12</var>and information as may be determined by the commissioner to be reasonably necessary
         in <br/>
<a id="pl.68.13"></a><var>68.13</var>the administration of the state education aid formulas. The form commissioner shall prescribe <br/>
<a id="pl.68.14"></a><var>68.14</var>the content, format, and manner of the certificate of value shall be prescribed by the <br/>
<a id="pl.68.15"></a><var>68.15</var>Department of Revenue which shall provide an adequate supply of forms to each county
         <br/>
<a id="pl.68.16"></a><var>68.16</var>auditor pursuant to section 270C.30, except that a "law administered by the commissioner"
         <br/>
<a id="pl.68.17"></a><var>68.17</var>includes the property tax laws.<br/>
<a id="pl.68.18"></a><var>68.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.22.0"></a><a id="pl.68.19"></a><var>68.19</var>    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.68.20"></a><var>68.20</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead requirements <br/>
<a id="pl.68.21"></a><var>68.21</var>under subdivision 1 must file a homestead application with the county assessor to
         initially <br/>
<a id="pl.68.22"></a><var>68.22</var>obtain homestead classification.<br/>
<a id="pl.68.23"></a><var>68.23</var>    (b) The format and contents of a uniform homestead application shall be prescribed by
         <br/>
<a id="pl.68.24"></a><var>68.24</var>the commissioner of revenue.  The commissioner shall prescribe the content, format, and <br/>
<a id="pl.68.25"></a><var>68.25</var>manner of the homestead application required to be filed under this chapter pursuant
         to <br/>
<a id="pl.68.26"></a><var>68.26</var>section 270C.30. The application must clearly inform the taxpayer that this application must <br/>
<a id="pl.68.27"></a><var>68.27</var>be signed by all owners who occupy the property or by the qualifying relative and
         returned <br/>
<a id="pl.68.28"></a><var>68.28</var>to the county assessor in order for the property to receive homestead treatment.<br/>
<a id="pl.68.29"></a><var>68.29</var>    (c) Every property owner applying for homestead classification must furnish to the
         <br/>
<a id="pl.68.30"></a><var>68.30</var>county assessor the Social Security number of each occupant who is listed as an owner
         of <br/>
<a id="pl.68.31"></a><var>68.31</var>the property on the deed of record, the name and address of each owner who does not
         occupy <br/>
<a id="pl.68.32"></a><var>68.32</var>the property, and the name and Social Security number of each owner's spouse who occupies
         <br/>
<a id="pl.69.1"></a><var>69.1</var>the property. The application must be signed by each owner who occupies the property
         and <br/>
<a id="pl.69.2"></a><var>69.2</var>by each owner's spouse who occupies the property, or, in the case of property that
         qualifies <br/>
<a id="pl.69.3"></a><var>69.3</var>as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.69.4"></a><var>69.4</var>    If a property owner occupies a homestead, the property owner's spouse may not claim
         <br/>
<a id="pl.69.5"></a><var>69.5</var>another property as a homestead unless the property owner and the property owner's
         spouse <br/>
<a id="pl.69.6"></a><var>69.6</var>file with the assessor an affidavit or other proof required by the assessor stating
         that the <br/>
<a id="pl.69.7"></a><var>69.7</var>property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.69.8"></a><var>69.8</var>    Owners or spouses occupying residences owned by their spouses and previously occupied
         <br/>
<a id="pl.69.9"></a><var>69.9</var>with the other spouse, either of whom fail to include the other spouse's name and
         Social <br/>
<a id="pl.69.10"></a><var>69.10</var>Security number on the homestead application or provide the affidavits or other proof
         <br/>
<a id="pl.69.11"></a><var>69.11</var>requested, will be deemed to have elected to receive only partial homestead treatment
         of <br/>
<a id="pl.69.12"></a><var>69.12</var>their residence. The remainder of the residence will be classified as nonhomestead
         residential. <br/>
<a id="pl.69.13"></a><var>69.13</var>When an owner or spouse's name and Social Security number appear on homestead <br/>
<a id="pl.69.14"></a><var>69.14</var>applications for two separate residences and only one application is signed, the owner
         or <br/>
<a id="pl.69.15"></a><var>69.15</var>spouse will be deemed to have elected to homestead the residence for which the application
         <br/>
<a id="pl.69.16"></a><var>69.16</var>was signed.<br/>
<a id="pl.69.17"></a><var>69.17</var>    (d) If residential real estate is occupied and used for purposes of a homestead by
         a relative <br/>
<a id="pl.69.18"></a><var>69.18</var>of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
         order for <br/>
<a id="pl.69.19"></a><var>69.19</var>the property to receive homestead status, a homestead application must be filed with
         the <br/>
<a id="pl.69.20"></a><var>69.20</var>assessor. The Social Security number of each relative and spouse of a relative occupying
         <br/>
<a id="pl.69.21"></a><var>69.21</var>the property shall be required on the homestead application filed under this subdivision.
         If <br/>
<a id="pl.69.22"></a><var>69.22</var>a different relative of the owner subsequently occupies the property, the owner of
         the property <br/>
<a id="pl.69.23"></a><var>69.23</var>must notify the assessor within 30 days of the change in occupancy. The Social Security
         <br/>
<a id="pl.69.24"></a><var>69.24</var>number of a relative or relative's spouse occupying the property is private data on
         individuals <br/>
<a id="pl.69.25"></a><var>69.25</var>as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be disclosed to the commissioner of <br/>
<a id="pl.69.26"></a><var>69.26</var>revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
         <br/>
<a id="pl.69.27"></a><var>69.27</var>personal property taxes owing, to the county treasurer.<br/>
<a id="pl.69.28"></a><var>69.28</var>    (e) The homestead application shall also notify the property owners that if the property
         <br/>
<a id="pl.69.29"></a><var>69.29</var>is granted homestead status for any assessment year, that same property shall remain
         <br/>
<a id="pl.69.30"></a><var>69.30</var>classified as homestead until the property is sold or transferred to another person,
         or the <br/>
<a id="pl.69.31"></a><var>69.31</var>owners, the spouse of the owner, or the relatives no longer use the property as their
         <br/>
<a id="pl.69.32"></a><var>69.32</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must <br/>
<a id="pl.69.33"></a><var>69.33</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to notify <br/>
<a id="pl.69.34"></a><var>69.34</var>the assessor within 30 days that the property has been sold, transferred, or that
         the owner, <br/>
<a id="pl.69.35"></a><var>69.35</var>the spouse of the owner, or the relative is no longer occupying the property as a
         homestead, <br/>
<a id="pl.70.1"></a><var>70.1</var>shall result in the penalty provided under this subdivision and the property will
         lose its <br/>
<a id="pl.70.2"></a><var>70.2</var>current homestead status.<br/>
<a id="pl.70.3"></a><var>70.3</var>    (f) If a homestead application has not been filed with the county by December 15,
         the <br/>
<a id="pl.70.4"></a><var>70.4</var>assessor shall classify the property as nonhomestead for the current assessment year
         for <br/>
<a id="pl.70.5"></a><var>70.5</var>taxes payable in the following year, provided that the owner may be entitled to receive
         the <br/>
<a id="pl.70.6"></a><var>70.6</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.70.7"></a><var>70.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.23.0"></a><a id="pl.70.8"></a><var>70.8</var>    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:<br/>
<a id="pl.70.9"></a><var>70.9</var><b>273.371 REPORTS OF UTILITY COMPANIES.</b><br/>
<a id="pl.70.10"></a><var>70.10</var>    Subdivision 1. <b>Report required.</b> Every electric light, power, gas, water, express, stage, <br/>
<a id="pl.70.11"></a><var>70.11</var>and transportation company, and pipeline company doing business in Minnesota shall <br/>
<a id="pl.70.12"></a><var>70.12</var>annually file with the commissioner on or before March 31 a report under oath setting
         forth <br/>
<a id="pl.70.13"></a><var>70.13</var>the information prescribed by the commissioner to enable the commissioner to make
         <br/>
<a id="pl.70.14"></a><var>70.14</var>valuations, recommended valuations, and equalization required under sections 
         <statute_ref>273.33</statute_ref>, <br/>
<statute_ref><a id="pl.70.15"></a><var>70.15</var>273.35
         </statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, and 
         <statute_ref>273.3711</statute_ref>. The commissioner shall prescribe the content, format, <br/>
<a id="pl.70.16"></a><var>70.16</var>and manner of the report pursuant to section 270C.30, except that a "law administered
         by <br/>
<a id="pl.70.17"></a><var>70.17</var>the commissioner" includes the property tax laws. If all the required information is not <br/>
<a id="pl.70.18"></a><var>70.18</var>available on March 31, the company or pipeline shall file the information that is
         available <br/>
<a id="pl.70.19"></a><var>70.19</var>on or before March 31, and the balance of the information as soon as it becomes available. <br/>
<a id="pl.70.20"></a><var>70.20</var>If a report is made by electronic means, the taxpayer's signature is defined pursuant
         to section <br/>
<a id="pl.70.21"></a><var>70.21</var>270C.304, except that a "law administered by the commissioner" includes the property
         tax <br/>
<a id="pl.70.22"></a><var>70.22</var>laws.<br/>
<a id="pl.70.23"></a><var>70.23</var>    Subd. 2. <b>Extension.</b> The commissioner for good cause may extend the time for filing <br/>
<a id="pl.70.24"></a><var>70.24</var>the report required by subdivision 1. The extension may must not exceed 15 days.<br/>
<a id="pl.70.25"></a><var>70.25</var>    Subd. 3. <b>Reports filed by the commissioner.</b> If a company fails to file a report required <br/>
<a id="pl.70.26"></a><var>70.26</var>by subdivision 1, the commissioner may, from information in the commissioner's possession
         <br/>
<a id="pl.70.27"></a><var>70.27</var>or obtainable by the commissioner, make and file a report for the company or make
         the <br/>
<a id="pl.70.28"></a><var>70.28</var>valuations, recommended valuations, and equalizations required under sections 273.33,
         <br/>
<a id="pl.70.29"></a><var>70.29</var>273.35 to 273.37, and 273.3711.<br/>
<a id="pl.70.30"></a><var>70.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.24.0"></a><a id="pl.70.31"></a><var>70.31</var>    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:<br/>
<a id="pl.70.32"></a><var>70.32</var><b>287.2205 TAX-FORFEITED LAND.</b><br/>
<a id="pl.71.1"></a><var>71.1</var>    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
         by <br/>
<a id="pl.71.2"></a><var>71.2</var>the purchaser of tax-forfeited land whether the purchase is the result of a public
         auction or <br/>
<a id="pl.71.3"></a><var>71.3</var>private sale or a repurchase of tax-forfeited land. State agencies and local units
         of government <br/>
<a id="pl.71.4"></a><var>71.4</var>that acquire tax-forfeited land by purchase or any other means are subject to this
         section. <br/>
<a id="pl.71.5"></a><var>71.5</var>The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
         <br/>
<a id="pl.71.6"></a><var>71.6</var>for an authorized public use under section 
         <statute_ref>282.01, subdivision 1a</statute_ref>, for a school forest under <br/>
<a id="pl.71.7"></a><var>71.7</var>section 282.01, subdivision 1a, or for redevelopment purposes under section 
         <statute_ref>282.01, <br/>
<a id="pl.71.8"></a><var>71.8</var>subdivision 1b
         </statute_ref>.<br/>
<a id="pl.71.9"></a><var>71.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.25.0"></a><a id="pl.71.10"></a><var>71.10</var>    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision <br/>
<a id="pl.71.11"></a><var>71.11</var>to read:<br/>
<a id="pl.71.12"></a><var>71.12</var>    Subd. 17. <b>Format.</b> The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.71.13"></a><var>71.13</var>of the returns and other documents pursuant to section 270C.30. This does not authorize
         <br/>
<a id="pl.71.14"></a><var>71.14</var>the commissioner to require individual income taxpayers to file individual income
         tax returns <br/>
<a id="pl.71.15"></a><var>71.15</var>electronically.<br/>
<a id="pl.71.16"></a><var>71.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.26.0"></a><a id="pl.71.17"></a><var>71.17</var>    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:<br/>
<a id="pl.71.18"></a><var>71.18</var>    Subdivision 1. <b>Returns.</b> (a) An employer who is required to deduct and withhold tax <br/>
<a id="pl.71.19"></a><var>71.19</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, and a person required to deduct and withhold tax <br/>
<a id="pl.71.20"></a><var>71.20</var>under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, must file a return with the commissioner for each <br/>
<a id="pl.71.21"></a><var>71.21</var>quarterly period unless otherwise prescribed by the commissioner.<br/>
<a id="pl.71.22"></a><var>71.22</var>(b) A person or corporation required to make deposits under section 
         <statute_ref>290.9201, subdivision <br/>
<a id="pl.71.23"></a><var>71.23</var>8
         </statute_ref>, must file an entertainer withholding tax return with the commissioner.<br/>
<a id="pl.71.24"></a><var>71.24</var>(c) A person required to withhold an amount under section 
         <statute_ref>290.9705, subdivision 1</statute_ref>, <br/>
<a id="pl.71.25"></a><var>71.25</var>must file a return.<br/>
<a id="pl.71.26"></a><var>71.26</var>(d) A partnership required to deduct and withhold tax under section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.71.27"></a><var>71.27</var>4b
         </statute_ref>, must file a return.<br/>
<a id="pl.71.28"></a><var>71.28</var>(e) An S corporation required to deduct and withhold tax under section 
         <statute_ref>290.92, <br/>
<a id="pl.71.29"></a><var>71.29</var>subdivision 4c
         </statute_ref>, must also file a return.<br/>
<a id="pl.71.30"></a><var>71.30</var>(f) Returns must be filed in the form and manner, and contain the information prescribed
         <br/>
<a id="pl.71.31"></a><var>71.31</var>by the commissioner.  The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.72.1"></a><var>72.1</var>of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed <br/>
<a id="pl.72.2"></a><var>72.2</var>by the employer, entertainment entity, contract payor, partnership, or S corporation,
         or a <br/>
<a id="pl.72.3"></a><var>72.3</var>designee.<br/>
<a id="pl.72.4"></a><var>72.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.27.0"></a><a id="pl.72.5"></a><var>72.5</var>    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:<br/>
<a id="pl.72.6"></a><var>72.6</var>    Subdivision 1. <b>Return required.</b> (a) Except as provided in section 
         <statute_ref>289A.18, subdivision <br/>
<a id="pl.72.7"></a><var>72.7</var>4
         </statute_ref>, for the month in which taxes imposed by chapter 297A are payable, or for which a
         return <br/>
<a id="pl.72.8"></a><var>72.8</var>is due, a return for the preceding reporting period must be filed with the commissioner
         in <br/>
<a id="pl.72.9"></a><var>72.9</var>the form and manner the commissioner prescribes. The commissioner shall prescribe the <br/>
<a id="pl.72.10"></a><var>72.10</var>content, format, and manner of the returns pursuant to section 270C.30. A person making <br/>
<a id="pl.72.11"></a><var>72.11</var>sales at retail at two or more places of business may file a consolidated return subject
         to <br/>
<a id="pl.72.12"></a><var>72.12</var>rules prescribed by the commissioner. In computing the dollar amount of items on the
         return, <br/>
<a id="pl.72.13"></a><var>72.13</var>the amounts are rounded off to the nearest whole dollar, disregarding amounts less
         than 50 <br/>
<a id="pl.72.14"></a><var>72.14</var>cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.<br/>
<a id="pl.72.15"></a><var>72.15</var>(b) Notwithstanding this subdivision, a person who is not required to hold a sales
         tax <br/>
<a id="pl.72.16"></a><var>72.16</var>permit under chapter 297A and who makes annual purchases, for use in a trade or business,
         <br/>
<a id="pl.72.17"></a><var>72.17</var>of less than $18,500, or a person who is not required to hold a sales tax permit and
         who <br/>
<a id="pl.72.18"></a><var>72.18</var>makes purchases for personal use, that are subject to the use tax imposed by section
         
         <statute_ref>297A.63</statute_ref>, <br/>
<a id="pl.72.19"></a><var>72.19</var>may file an annual use tax return on a form prescribed by the commissioner. The <br/>
<a id="pl.72.20"></a><var>72.20</var>commissioner shall prescribe the content, format, and manner of the return pursuant
         to <br/>
<a id="pl.72.21"></a><var>72.21</var>section 270C.30. If a person who qualifies for an annual use tax reporting period is required <br/>
<a id="pl.72.22"></a><var>72.22</var>to obtain a sales tax permit or makes use tax purchases, for use in a trade or business,
         in <br/>
<a id="pl.72.23"></a><var>72.23</var>excess of $18,500 during the calendar year, the reporting period must be considered
         ended <br/>
<a id="pl.72.24"></a><var>72.24</var>at the end of the month in which the permit is applied for or the purchase in excess
         of <br/>
<a id="pl.72.25"></a><var>72.25</var>$18,500 is made and a return must be filed for the preceding reporting period.<br/>
<a id="pl.72.26"></a><var>72.26</var>(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's <br/>
<a id="pl.72.27"></a><var>72.27</var>religious beliefs from using electronics shall be allowed to file by mail, without
         any additional <br/>
<a id="pl.72.28"></a><var>72.28</var>fees. The filer must notify the commissioner of revenue of the intent to file by mail
         on a <br/>
<a id="pl.72.29"></a><var>72.29</var>form prescribed by the commissioner. A return filed under this paragraph must be postmarked
         <br/>
<a id="pl.72.30"></a><var>72.30</var>no later than the day the return is due in order to be considered filed on a timely
         basis.<br/>
<a id="pl.72.31"></a><var>72.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.28.0"></a><a id="pl.73.1"></a><var>73.1</var>    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:<br/>
<a id="pl.73.2"></a><var>73.2</var>    Subdivision 1. <b>Individual income, fiduciary income, corporate franchise, and </b><br/>
<a id="pl.73.3"></a><var>73.3</var><b>entertainment taxes; partnership and S corporation returns; information returns; </b><br/>
<a id="pl.73.4"></a><var>73.4</var><b>mining company returns.</b> The returns required to be made under sections 
         <statute_ref>289A.08</statute_ref> and <br/>
<statute_ref><a id="pl.73.5"></a><var>73.5</var>289A.12
         </statute_ref> must be filed at the following times:<br/>
<a id="pl.73.6"></a><var>73.6</var>    (1) returns made on the basis of the calendar year must be filed on April 15 following
         <br/>
<a id="pl.73.7"></a><var>73.7</var>the close of the calendar year, except that returns of corporations and partnerships must be <br/>
<a id="pl.73.8"></a><var>73.8</var>filed on the due date for filing the federal income tax return;<br/>
<a id="pl.73.9"></a><var>73.9</var>    (2) returns made on the basis of the fiscal year must be filed on the 15th day of
         the fourth <br/>
<a id="pl.73.10"></a><var>73.10</var>month following the close of the fiscal year, except that returns of corporations and <br/>
<a id="pl.73.11"></a><var>73.11</var>partnerships must be filed on the due date for filing the federal income tax return;<br/>
<a id="pl.73.12"></a><var>73.12</var>    (3) returns for a fractional part of a year must be filed on the due date for filing
         the <br/>
<a id="pl.73.13"></a><var>73.13</var>federal income tax return;<br/>
<a id="pl.73.14"></a><var>73.14</var>    (4) in the case of a final return of a decedent for a fractional part of a year, the
         return <br/>
<a id="pl.73.15"></a><var>73.15</var>must be filed on the 15th day of the fourth month following the close of the 12-month
         period <br/>
<a id="pl.73.16"></a><var>73.16</var>that began with the first day of that fractional part of a year;<br/>
<a id="pl.73.17"></a><var>73.17</var>    (5) in the case of the return of a cooperative association, returns must be filed
         on or <br/>
<a id="pl.73.18"></a><var>73.18</var>before the 15th day of the ninth month following the close of the taxable year;<br/>
<a id="pl.73.19"></a><var>73.19</var>    (6) if a corporation has been divested from a unitary group and files a return for
         a <br/>
<a id="pl.73.20"></a><var>73.20</var>fractional part of a year in which it was a member of a unitary business that files
         a combined <br/>
<a id="pl.73.21"></a><var>73.21</var>report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, the divested corporation's return must be filed <br/>
<a id="pl.73.22"></a><var>73.22</var>on the 15th day of the third month following the close of the common accounting period
         <br/>
<a id="pl.73.23"></a><var>73.23</var>that includes the fractional year;<br/>
<a id="pl.73.24"></a><var>73.24</var>    (7) returns of entertainment entities must be filed on April 15 following the close
         of the <br/>
<a id="pl.73.25"></a><var>73.25</var>calendar year;<br/>
<a id="pl.73.26"></a><var>73.26</var>    (8) returns required to be filed under section 
         <statute_ref>289A.08, subdivision 4</statute_ref>, must be filed on <br/>
<a id="pl.73.27"></a><var>73.27</var>the 15th day of the fifth month following the close of the taxable year;<br/>
<a id="pl.73.28"></a><var>73.28</var>    (9) returns of mining companies must be filed on May 1 following the close of the
         <br/>
<a id="pl.73.29"></a><var>73.29</var>calendar year; and<br/>
<a id="pl.73.30"></a><var>73.30</var>    (10) returns required to be filed with the commissioner under section 
         <statute_ref>289A.12, <br/>
<a id="pl.73.31"></a><var>73.31</var>subdivision 2
         </statute_ref>, 4 to 10, or 16 must be filed within 30 days after being demanded by the <br/>
<a id="pl.73.32"></a><var>73.32</var>commissioner.<br/>
<a id="pl.74.1"></a><var>74.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.29.0"></a><a id="pl.74.2"></a><var>74.2</var>    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:<br/>
<a id="pl.74.3"></a><var>74.3</var>    Subd. 2. <b>Erroneous refunds.</b> An erroneous refund is considered an underpayment of <br/>
<a id="pl.74.4"></a><var>74.4</var>tax on the date made. An assessment of a deficiency arising out of an erroneous refund
         may <br/>
<a id="pl.74.5"></a><var>74.5</var>be made at any time within two years from the making of the refund. If part of the
         refund <br/>
<a id="pl.74.6"></a><var>74.6</var>was induced by fraud or misrepresentation of a material fact, the assessment may be
         made <br/>
<a id="pl.74.7"></a><var>74.7</var>at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs when the <br/>
<a id="pl.74.8"></a><var>74.8</var>commissioner issues a payment to a person that exceeds the amount the person is entitled
         <br/>
<a id="pl.74.9"></a><var>74.9</var>to receive under law. An erroneous refund is considered an underpayment of tax on
         the date <br/>
<a id="pl.74.10"></a><var>74.10</var>issued.<br/>
<a id="pl.74.11"></a><var>74.11</var>(b) To the extent that the amount paid does not exceed the amount claimed by the <br/>
<a id="pl.74.12"></a><var>74.12</var>taxpayer, an erroneous refund does not include the following:<br/>
<a id="pl.74.13"></a><var>74.13</var>(1) any amount of a refund or credit paid pursuant to a claim for refund filed by
         a <br/>
<a id="pl.74.14"></a><var>74.14</var>taxpayer, including but not limited to refunds of claims made under section 290.06,
         <br/>
<a id="pl.74.15"></a><var>74.15</var>subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
         <br/>
<a id="pl.74.16"></a><var>74.16</var>290.0681; or 290.0692; or chapter 290A; or<br/>
<a id="pl.74.17"></a><var>74.17</var>(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed
         by a <br/>
<a id="pl.74.18"></a><var>74.18</var>taxpayer.<br/>
<a id="pl.74.19"></a><var>74.19</var>(c) The commissioner may make an assessment to recover an erroneous refund at any
         <br/>
<a id="pl.74.20"></a><var>74.20</var>time within two years from the issuance of the erroneous refund. If all or part of
         the erroneous <br/>
<a id="pl.74.21"></a><var>74.21</var>refund was induced by fraud or misrepresentation of a material fact, the assessment
         may <br/>
<a id="pl.74.22"></a><var>74.22</var>be made at any time.<br/>
<a id="pl.74.23"></a><var>74.23</var>(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must
         be <br/>
<a id="pl.74.24"></a><var>74.24</var>conducted under section 289A.38.<br/>
<a id="pl.74.25"></a><var>74.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.6.30.0"></a><a id="pl.74.26"></a><var>74.26</var>    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:<br/>
<a id="pl.74.27"></a><var>74.27</var>    Subd. 7. <b>Remedies.</b> (a) If the taxpayer is notified by the commissioner that the refund <br/>
<a id="pl.74.28"></a><var>74.28</var>claim is denied in whole or in part, the taxpayer may:<br/>
<a id="pl.74.29"></a><var>74.29</var>(1) file an administrative appeal as provided in section 
         <statute_ref>270C.35</statute_ref>, or an appeal with the <br/>
<a id="pl.74.30"></a><var>74.30</var>Tax Court, within 60 days after issuance the notice date of the commissioner's notice of <br/>
<a id="pl.74.31"></a><var>74.31</var>denial; or<br/>
<a id="pl.75.1"></a><var>75.1</var>(2) file an action in the district court to recover the refund.<br/>
<a id="pl.75.2"></a><var>75.2</var>(b) An action in the district court on a denied claim for refund must be brought within
         <br/>
<a id="pl.75.3"></a><var>75.3</var>18 months of the notice date of the denial of the claim by the commissioner. For the purposes <br/>
<a id="pl.75.4"></a><var>75.4</var>of this section, "notice date" has the meaning given in section 270C.35, subdivision
         3.<br/>
<a id="pl.75.5"></a><var>75.5</var>(c) No action in the district court or the Tax Court shall be brought within six months
         <br/>
<a id="pl.75.6"></a><var>75.6</var>of the filing of the refund claim unless the commissioner denies the claim within
         that period.<br/>
<a id="pl.75.7"></a><var>75.7</var>(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
         <br/>
<a id="pl.75.8"></a><var>75.8</var>of the claim, the taxpayer may bring an action in the district court or the Tax Court
         at any <br/>
<a id="pl.75.9"></a><var>75.9</var>time after the expiration of six months from the time the claim was filed.<br/>
<a id="pl.75.10"></a><var>75.10</var>(e) The commissioner and the taxpayer may agree to extend the period for bringing
         an <br/>
<a id="pl.75.11"></a><var>75.11</var>action in the district court.<br/>
<a id="pl.75.12"></a><var>75.12</var>(f) An action for refund of tax by the taxpayer must be brought in the district court
         of <br/>
<a id="pl.75.13"></a><var>75.13</var>the district in which lies the county of the taxpayer's residence or principal place
         of business. <br/>
<a id="pl.75.14"></a><var>75.14</var>In the case of an estate or trust, the action must be brought at the principal place
         of its <br/>
<a id="pl.75.15"></a><var>75.15</var>administration. Any action may be brought in the district court for Ramsey County.<br/>
<a id="pl.75.16"></a><var>75.16</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.75.17"></a><var>75.17</var>December 31, 2017.<br/>
<br/>
<a id="bill.6.31.0"></a><a id="pl.75.18"></a><var>75.18</var>    Sec. 31. <b>[290B.11] FORMS.</b><br/>
<b> </b><a id="pl.75.19"></a><var>75.19</var>The commissioner shall prescribe the content, format, and manner of all forms and
         other <br/>
<a id="pl.75.20"></a><var>75.20</var>documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.75.21"></a><var>75.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.32.0"></a><a id="pl.75.22"></a><var>75.22</var>    Sec. 32. <b>[293.15] FORMS.</b><br/>
<b> </b><a id="pl.75.23"></a><var>75.23</var>The commissioner shall prescribe the content, format, and manner of all forms and
         other <br/>
<a id="pl.75.24"></a><var>75.24</var>documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.75.25"></a><var>75.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.33.0"></a><a id="pl.75.26"></a><var>75.26</var>    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:<br/>
<a id="pl.75.27"></a><var>75.27</var>    Subd. 6. <b>Form of returns.</b> The estimated payments and annual return must contain the <br/>
<a id="pl.75.28"></a><var>75.28</var>information and be in the form prescribed by the commissioner. The commissioner shall <br/>
<a id="pl.75.29"></a><var>75.29</var>prescribe the content, format, and manner of the estimated payment forms and annual
         return <br/>
<a id="pl.75.30"></a><var>75.30</var>pursuant to section 270C.30.<br/>
<a id="pl.76.1"></a><var>76.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.34.0"></a><a id="pl.76.2"></a><var>76.2</var>    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision <br/>
<a id="pl.76.3"></a><var>76.3</var>to read:<br/>
<a id="pl.76.4"></a><var>76.4</var>    Subd. 5. <b>Forms.</b>  The commissioner shall prescribe the content, format, and manner of <br/>
<a id="pl.76.5"></a><var>76.5</var>all forms and other documents required to be filed under this chapter pursuant to
         section <br/>
<a id="pl.76.6"></a><var>76.6</var>270C.30.<br/>
<a id="pl.76.7"></a><var>76.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.35.0"></a><a id="pl.76.8"></a><var>76.8</var>    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:<br/>
<a id="pl.76.9"></a><var>76.9</var>    Subd. 9. <b>Abatement of penalty.</b> (a) The commissioner may by written order abate any <br/>
<a id="pl.76.10"></a><var>76.10</var>penalty imposed under this section, if in the commissioner's opinion there is reasonable
         <br/>
<a id="pl.76.11"></a><var>76.11</var>cause to do so.<br/>
<a id="pl.76.12"></a><var>76.12</var>(b) A request for abatement of penalty must be filed with the commissioner within
         60 <br/>
<a id="pl.76.13"></a><var>76.13</var>days of the notice date of the notice stating that a penalty has been imposed was mailed to <br/>
<a id="pl.76.14"></a><var>76.14</var>the taxpayer's last known address. For purposes of this section, "notice date" means the <br/>
<a id="pl.76.15"></a><var>76.15</var>notice date designated by the commissioner on the order or other notice that a penalty
         has <br/>
<a id="pl.76.16"></a><var>76.16</var>been imposed.<br/>
<a id="pl.76.17"></a><var>76.17</var>(c) If the commissioner issues an order denying a request for abatement of penalty,
         the <br/>
<a id="pl.76.18"></a><var>76.18</var>taxpayer may file an administrative appeal as provided in section 270C.35 or appeal
         to Tax <br/>
<a id="pl.76.19"></a><var>76.19</var>Court as provided in section 
         <statute_ref>271.06</statute_ref>. If the commissioner does not issue an order on the <br/>
<a id="pl.76.20"></a><var>76.20</var>abatement request within 60 days from the date the request is received, the taxpayer
         may <br/>
<a id="pl.76.21"></a><var>76.21</var>appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.76.22"></a><var>76.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.76.23"></a><var>76.23</var>December 31, 2017.<br/>
<br/>
<a id="bill.6.36.0"></a><a id="pl.76.24"></a><var>76.24</var>    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:<br/>
<a id="pl.76.25"></a><var>76.25</var><b>296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.</b><br/>
<a id="pl.76.26"></a><var>76.26</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, any person aggrieved by an <br/>
<a id="pl.76.27"></a><var>76.27</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within <br/>
<a id="pl.76.28"></a><var>76.28</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.76.29"></a><var>76.29</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice <br/>
<a id="pl.76.30"></a><var>76.30</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.77.1"></a><var>77.1</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.77.2"></a><var>77.2</var>2017.<br/>
<br/>
<a id="bill.6.37.0"></a><a id="pl.77.3"></a><var>77.3</var>    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:<br/>
<a id="pl.77.4"></a><var>77.4</var><b>297D.02 ADMINISTRATION.</b><br/>
<a id="pl.77.5"></a><var>77.5</var>The commissioner of revenue shall administer this chapter. The commissioner shall <br/>
<a id="pl.77.6"></a><var>77.6</var>prescribe the content, format, and manner of all forms and other documents required
         to be <br/>
<a id="pl.77.7"></a><var>77.7</var>filed under this chapter pursuant to section 270C.30. Payments required by this chapter <br/>
<a id="pl.77.8"></a><var>77.8</var>must be made to the commissioner on the form provided by the commissioner. Tax obligors
         <br/>
<a id="pl.77.9"></a><var>77.9</var>are not required to give their name, address, Social Security number, or other identifying
         <br/>
<a id="pl.77.10"></a><var>77.10</var>information on the form. The commissioner shall collect all taxes under this chapter.<br/>
<a id="pl.77.11"></a><var>77.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.38.0"></a><a id="pl.77.12"></a><var>77.12</var>    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:<br/>
<a id="pl.77.13"></a><var>77.13</var>    Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section are due and payable <br/>
<a id="pl.77.14"></a><var>77.14</var>to the commissioner when the gambling tax return is required to be filed. Distributors
         must <br/>
<a id="pl.77.15"></a><var>77.15</var>file their monthly sales figures with the commissioner on a form prescribed by the
         <br/>
<a id="pl.77.16"></a><var>77.16</var>commissioner. Returns covering the taxes imposed under this section must be filed
         with <br/>
<a id="pl.77.17"></a><var>77.17</var>the commissioner on or before the 20th day of the month following the close of the
         previous <br/>
<a id="pl.77.18"></a><var>77.18</var>calendar month. The commissioner may require that the returns be filed via magnetic media <br/>
<a id="pl.77.19"></a><var>77.19</var>or electronic data transfer. The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.77.20"></a><var>77.20</var>of returns or other documents pursuant to section 270C.30. The proceeds, along with the <br/>
<a id="pl.77.21"></a><var>77.21</var>revenue received from all license fees and other fees under sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, <br/>
<statute_ref><a id="pl.77.22"></a><var>77.22</var>349.211
         </statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of management and budget for <br/>
<a id="pl.77.23"></a><var>77.23</var>deposit in the general fund.<br/>
<a id="pl.77.24"></a><var>77.24</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
         the <br/>
<a id="pl.77.25"></a><var>77.25</var>distributor is imposed on the retail sales price. The retail sale of pull-tabs or
         tipboards by <br/>
<a id="pl.77.26"></a><var>77.26</var>the organization is exempt from taxes imposed by chapter 297A and is exempt from all
         <br/>
<a id="pl.77.27"></a><var>77.27</var>local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, subdivision 8</statute_ref>.<br/>
<a id="pl.77.28"></a><var>77.28</var>(c) One-half of one percent of the revenue deposited in the general fund under paragraph
         <br/>
<a id="pl.77.29"></a><var>77.29</var>(a), is appropriated to the commissioner of human services for the compulsive gambling
         <br/>
<a id="pl.77.30"></a><var>77.30</var>treatment program established under section 
         <statute_ref>245.98</statute_ref>. One-half of one percent of the revenue <br/>
<a id="pl.77.31"></a><var>77.31</var>deposited in the general fund under paragraph (a), is appropriated to the commissioner
         of <br/>
<a id="pl.77.32"></a><var>77.32</var>human services for a grant to the state affiliate recognized by the National Council
         on <br/>
<a id="pl.78.1"></a><var>78.1</var>Problem Gambling to increase public awareness of problem gambling, education and training
         <br/>
<a id="pl.78.2"></a><var>78.2</var>for individuals and organizations providing effective treatment services to problem
         gamblers <br/>
<a id="pl.78.3"></a><var>78.3</var>and their families, and research relating to problem gambling. Money appropriated
         by this <br/>
<a id="pl.78.4"></a><var>78.4</var>paragraph must supplement and must not replace existing state funding for these programs.<br/>
<a id="pl.78.5"></a><var>78.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.39.0"></a><a id="pl.78.6"></a><var>78.6</var>    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:<br/>
<a id="pl.78.7"></a><var>78.7</var>    Subdivision 1. <b>Reports of sales.</b> A manufacturer who sells gambling product for use or <br/>
<a id="pl.78.8"></a><var>78.8</var>resale in this state, or for receipt by a person or entity in this state, shall file
         with the <br/>
<a id="pl.78.9"></a><var>78.9</var>commissioner, on a form prescribed by the commissioner, a report of gambling product
         <br/>
<a id="pl.78.10"></a><var>78.10</var>sold to any person in the state, including the established governing body of an Indian
         tribe <br/>
<a id="pl.78.11"></a><var>78.11</var>recognized by the United States Department of the Interior. The report must be filed
         monthly <br/>
<a id="pl.78.12"></a><var>78.12</var>on or before the 20th day of the month succeeding the month in which the sale was
         made. <br/>
<a id="pl.78.13"></a><var>78.13</var>The commissioner may require that the report be submitted via magnetic media or electronic
         <br/>
<a id="pl.78.14"></a><var>78.14</var>data transfer. The commissioner shall prescribe the content, format, and manner of returns <br/>
<a id="pl.78.15"></a><var>78.15</var>or other documents pursuant to section 270C.30. The commissioner may inspect the premises, <br/>
<a id="pl.78.16"></a><var>78.16</var>books, records, and inventory of a manufacturer without notice during the normal business
         <br/>
<a id="pl.78.17"></a><var>78.17</var>hours of the manufacturer. A person violating this section is guilty of a misdemeanor.<br/>
<a id="pl.78.18"></a><var>78.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.40.0"></a><a id="pl.78.19"></a><var>78.19</var>    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 4. <b>Reports.</b> A distributor shall report monthly to the commissioner, on a form the <br/>
<a id="pl.78.21"></a><var>78.21</var>commissioner prescribes, its sales of each type of gambling product. This report must
         be <br/>
<a id="pl.78.22"></a><var>78.22</var>filed monthly on or before the 20th day of the month succeeding the month in which
         the <br/>
<a id="pl.78.23"></a><var>78.23</var>sale was made. The commissioner may require that a distributor submit the monthly report <br/>
<a id="pl.78.24"></a><var>78.24</var>and invoices required in this subdivision via magnetic media or electronic data transfer. <br/>
<a id="pl.78.25"></a><var>78.25</var>The commissioner shall prescribe the content, format, and manner of returns or other
         <br/>
<a id="pl.78.26"></a><var>78.26</var>documents pursuant to section 270C.30.<br/>
<a id="pl.78.27"></a><var>78.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.41.0"></a><a id="pl.78.28"></a><var>78.28</var>    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:<br/>
<a id="pl.78.29"></a><var>78.29</var>    Subdivision 1. <b>Reports.</b> An organization must file with the commissioner, on a form <br/>
<a id="pl.78.30"></a><var>78.30</var>prescribed by the commissioner, a report showing all gambling activity conducted by
         that <br/>
<a id="pl.78.31"></a><var>78.31</var>organization for each month. Gambling activity includes all gross receipts, prizes,
         all <br/>
<a id="pl.78.32"></a><var>78.32</var>gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
         <br/>
<a id="pl.79.1"></a><var>79.1</var>purpose and board-approved expenditures. The report must be filed with the commissioner
         <br/>
<a id="pl.79.2"></a><var>79.2</var>on or before the 20th day of the month following the month in which the gambling activity
         <br/>
<a id="pl.79.3"></a><var>79.3</var>takes place. The commissioner may require that the reports be filed via magnetic media or <br/>
<a id="pl.79.4"></a><var>79.4</var>electronic data transfer. The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.79.5"></a><var>79.5</var>of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.79.6"></a><var>79.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.42.0"></a><a id="pl.79.7"></a><var>79.7</var>    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:<br/>
<a id="pl.79.8"></a><var>79.8</var>    Subdivision 1. <b>Monthly return; cigarette distributor.</b> On or before the 18th day of <br/>
<a id="pl.79.9"></a><var>79.9</var>each calendar month, a distributor with a place of business in this state shall file
         a return <br/>
<a id="pl.79.10"></a><var>79.10</var>with the commissioner showing the quantity of cigarettes manufactured or brought in
         from <br/>
<a id="pl.79.11"></a><var>79.11</var>outside the state or purchased during the preceding calendar month and the quantity
         of <br/>
<a id="pl.79.12"></a><var>79.12</var>cigarettes sold or otherwise disposed of in this state and outside this state during
         that month. <br/>
<a id="pl.79.13"></a><var>79.13</var>A licensed distributor outside this state shall in like manner file a return showing
         the quantity <br/>
<a id="pl.79.14"></a><var>79.14</var>of cigarettes shipped or transported into this state during the preceding calendar
         month. <br/>
<a id="pl.79.15"></a><var>79.15</var>Returns must be made in the form and manner prescribed by The commissioner  shall <br/>
<a id="pl.79.16"></a><var>79.16</var>prescribe the content, format, and manner of returns pursuant to section 270C.30,
         and the <br/>
<a id="pl.79.17"></a><var>79.17</var>returns must contain any other information required by the commissioner. The return must <br/>
<a id="pl.79.18"></a><var>79.18</var>be accompanied by a remittance for the full unpaid tax liability shown by it. For
         distributors <br/>
<a id="pl.79.19"></a><var>79.19</var>subject to the accelerated tax payment requirements in subdivision 10, the return
         for the <br/>
<a id="pl.79.20"></a><var>79.20</var>May liability is due two business days before June 30th of the year and the return
         for the <br/>
<a id="pl.79.21"></a><var>79.21</var>June liability is due on or before August 18th of the year.<br/>
<a id="pl.79.22"></a><var>79.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.43.0"></a><a id="pl.79.23"></a><var>79.23</var>    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:<br/>
<a id="pl.79.24"></a><var>79.24</var><b>297F.23 JUDICIAL REVIEW.</b><br/>
<a id="pl.79.25"></a><var>79.25</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, a person aggrieved by an <br/>
<a id="pl.79.26"></a><var>79.26</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within <br/>
<a id="pl.79.27"></a><var>79.27</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.79.28"></a><var>79.28</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice <br/>
<a id="pl.79.29"></a><var>79.29</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.79.30"></a><var>79.30</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.79.31"></a><var>79.31</var>2017.<br/>
<br/>
<a id="bill.6.44.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:<br/>
<a id="pl.80.2"></a><var>80.2</var>    Subdivision 1. <b>Monthly returns; manufacturers, wholesalers, brewers, or importers.</b><br/>
<a id="pl.80.3"></a><var>80.3</var>On or before the 18th day of each calendar month following the month in which a licensed
         <br/>
<a id="pl.80.4"></a><var>80.4</var>manufacturer or wholesaler first sells wine and distilled spirits within the state,
         or a brewer <br/>
<a id="pl.80.5"></a><var>80.5</var>or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
         <br/>
<a id="pl.80.6"></a><var>80.6</var>acquires title to or possession of untaxed fermented malt beverages, the licensed
         <br/>
<a id="pl.80.7"></a><var>80.7</var>manufacturer, wholesaler, brewer, or importer liable for the excise tax must file
         a return <br/>
<a id="pl.80.8"></a><var>80.8</var>with the commissioner, and in addition must keep records and render reports as required
         <br/>
<a id="pl.80.9"></a><var>80.9</var>by the commissioner. Returns must be made in a form and manner prescribed by the <br/>
<a id="pl.80.10"></a><var>80.10</var>commissioner, and  The commissioner shall prescribe the content, format, and manner of <br/>
<a id="pl.80.11"></a><var>80.11</var>returns pursuant to section 270C.30. The returns must contain any other information required <br/>
<a id="pl.80.12"></a><var>80.12</var>by the commissioner. Returns must be accompanied by a remittance for the full unpaid
         tax <br/>
<a id="pl.80.13"></a><var>80.13</var>liability. Returns must be filed regardless of whether a tax is due.<br/>
<a id="pl.80.14"></a><var>80.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.45.0"></a><a id="pl.80.15"></a><var>80.15</var>    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:<br/>
<a id="pl.80.16"></a><var>80.16</var><b>297G.22 JUDICIAL REVIEW.</b><br/>
<a id="pl.80.17"></a><var>80.17</var>In lieu of an administrative appeal under this chapter, a person aggrieved by an order
         of <br/>
<a id="pl.80.18"></a><var>80.18</var>the commissioner fixing a tax, penalty, or interest under this chapter may, within
         60 days <br/>
<a id="pl.80.19"></a><var>80.19</var>from the date of the notice date of the order, appeal to the Tax Court in the manner provided <br/>
<a id="pl.80.20"></a><var>80.20</var>under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice date <br/>
<a id="pl.80.21"></a><var>80.21</var>designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.80.22"></a><var>80.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.80.23"></a><var>80.23</var>2017.<br/>
<br/>
<a id="bill.6.46.0"></a><a id="pl.80.24"></a><var>80.24</var>    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision <br/>
<a id="pl.80.25"></a><var>80.25</var>to read:<br/>
<a id="pl.80.26"></a><var>80.26</var>    Subd. 11. <b>Format.</b>  The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.80.27"></a><var>80.27</var>of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.80.28"></a><var>80.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.47.0"></a><a id="pl.80.29"></a><var>80.29</var>    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:<br/>
<a id="pl.80.30"></a><var>80.30</var>    Subd. 2. <b>Remedies.</b> (a) If the taxpayer is notified that the refund claim is denied in whole <br/>
<a id="pl.80.31"></a><var>80.31</var>or in part, the taxpayer may contest the denial by:<br/>
<a id="pl.81.1"></a><var>81.1</var>(1) filing an administrative appeal with the commissioner under section 
         <statute_ref>270C.35</statute_ref>;<br/>
<a id="pl.81.2"></a><var>81.2</var>(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; <br/>
<a id="pl.81.3"></a><var>81.3</var>or<br/>
<a id="pl.81.4"></a><var>81.4</var>(3) filing an action in the district court to recover the refund.<br/>
<a id="pl.81.5"></a><var>81.5</var>(b) An action in the district court must be brought within 18 months following of the <br/>
<a id="pl.81.6"></a><var>81.6</var>notice date of the notice of denial. For purposes of this section, "notice date" has the meaning <br/>
<a id="pl.81.7"></a><var>81.7</var>given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be <br/>
<a id="pl.81.8"></a><var>81.8</var>brought in the district court of the district in which lies the taxpayer's principal
         place of <br/>
<a id="pl.81.9"></a><var>81.9</var>business or in the District Court for Ramsey County. If a taxpayer files a claim for
         refund <br/>
<a id="pl.81.10"></a><var>81.10</var>and the commissioner has not issued a denial of the claim, the taxpayer may bring
         an action <br/>
<a id="pl.81.11"></a><var>81.11</var>in the district court or the Tax Court at any time after the expiration of six months
         from the <br/>
<a id="pl.81.12"></a><var>81.12</var>time the claim was filed.<br/>
<a id="pl.81.13"></a><var>81.13</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.81.14"></a><var>81.14</var>December 31, 2017.<br/>
<br/>
<a id="bill.6.48.0"></a><a id="pl.81.15"></a><var>81.15</var>    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:<br/>
<a id="pl.81.16"></a><var>81.16</var>    Subd. 5. <b>Waiver authority.</b> (a) The commissioner may waive all or part of a repayment <br/>
<a id="pl.81.17"></a><var>81.17</var>required under subdivision 1, if the commissioner, in consultation with the commissioner
         <br/>
<a id="pl.81.18"></a><var>81.18</var>of employment and economic development and appropriate officials from the local <br/>
<a id="pl.81.19"></a><var>81.19</var>government units in which the qualified business is located, determines that requiring
         <br/>
<a id="pl.81.20"></a><var>81.20</var>repayment of the tax is not in the best interest of the state or the local government
         units and <br/>
<a id="pl.81.21"></a><var>81.21</var>the business ceased operating as a result of circumstances beyond its control including,
         but <br/>
<a id="pl.81.22"></a><var>81.22</var>not limited to:<br/>
<a id="pl.81.23"></a><var>81.23</var>    (1) a natural disaster;<br/>
<a id="pl.81.24"></a><var>81.24</var>    (2) unforeseen industry trends; or<br/>
<a id="pl.81.25"></a><var>81.25</var>    (3) loss of a major supplier or customer.<br/>
<a id="pl.81.26"></a><var>81.26</var>    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the
         <br/>
<a id="pl.81.27"></a><var>81.27</var>commissioner has waived repayment by the operating business under subdivision 1, unless
         <br/>
<a id="pl.81.28"></a><var>81.28</var>the person that received benefits without having to operate a business in the zone
         was a <br/>
<a id="pl.81.29"></a><var>81.29</var>contributing factor in the qualified business becoming subject to repayment under
         subdivision <br/>
<a id="pl.81.30"></a><var>81.30</var>1;<br/>
<a id="pl.81.31"></a><var>81.31</var>    (2) the commissioner shall waive the repayment required under subdivision 1a, even
         if <br/>
<a id="pl.81.32"></a><var>81.32</var>the repayment has not been waived for the operating business if:<br/>
<a id="pl.82.1"></a><var>82.1</var>    (i) the person that received benefits without having to operate a business in the
         zone and <br/>
<a id="pl.82.2"></a><var>82.2</var>the business that operated in the zone are not related parties as defined in section
         267(b) of <br/>
<a id="pl.82.3"></a><var>82.3</var>the Internal Revenue Code of 1986, as amended through December 31, 2007; and<br/>
<a id="pl.82.4"></a><var>82.4</var>    (ii) actions of the person were not a contributing factor in the qualified business
         becoming <br/>
<a id="pl.82.5"></a><var>82.5</var>subject to repayment under subdivision 1.<br/>
<a id="pl.82.6"></a><var>82.6</var>(c) Requests for waiver must be made no later than 60 days after the earlier of the
         notice <br/>
<a id="pl.82.7"></a><var>82.7</var>date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
         <br/>
<a id="pl.82.8"></a><var>82.8</var>issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means <br/>
<a id="pl.82.9"></a><var>82.9</var>the notice date designated by the commissioner on the order.<br/>
<a id="pl.82.10"></a><var>82.10</var><b>EFFECTIVE DATE.</b>This section is effective for orders of the commissioner of revenue <br/>
<a id="pl.82.11"></a><var>82.11</var>dated after December 31, 2017.<br/>
<br/>
<a id="bill.6.49.0"></a><a id="pl.82.12"></a><var>82.12</var>    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:<br/>
<a id="pl.82.13"></a><var>82.13</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.82.14"></a><var>82.14</var>September 30, 2015 December 31, 2017.<br/>
<a id="pl.82.15"></a><var>82.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from September 30, 2015.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.82.18"></a><var>82.18</var>    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:<br/>
<a id="pl.82.19"></a><var>82.19</var><b>290C.03 ELIGIBILITY REQUIREMENTS.</b><br/>
<a id="pl.82.20"></a><var>82.20</var>(a) Land may be enrolled in the sustainable forest incentive program under this chapter
         <br/>
<a id="pl.82.21"></a><var>82.21</var>if all of the following conditions are met:<br/>
<a id="pl.82.22"></a><var>82.22</var>(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
         land <br/>
<a id="pl.82.23"></a><var>82.23</var>must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>, during the enrollment;<br/>
<a id="pl.82.24"></a><var>82.24</var>(2) a forest management plan for the land must be (i) prepared by an approved plan <br/>
<a id="pl.82.25"></a><var>82.25</var>writer and implemented during the period in which the land is enrolled, and (ii) registered <br/>
<a id="pl.82.26"></a><var>82.26</var>with the Department of Natural Resources;<br/>
<a id="pl.82.27"></a><var>82.27</var>(3) timber harvesting and forest management guidelines must be used in conjunction
         <br/>
<a id="pl.82.28"></a><var>82.28</var>with any timber harvesting or forest management activities conducted on the land during
         <br/>
<a id="pl.82.29"></a><var>82.29</var>the period in which the land is enrolled;<br/>
<a id="pl.82.30"></a><var>82.30</var>(4) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.83.1"></a><var>83.1</var>(5) there are no delinquent property taxes on the land; and<br/>
<a id="pl.83.2"></a><var>83.2</var>(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
         program <br/>
<a id="pl.83.3"></a><var>83.3</var>must allow year-round, nonmotorized access to fish and wildlife resources and motorized
         <br/>
<a id="pl.83.4"></a><var>83.4</var>access on established and maintained roads and trails, unless the road or trail is
         temporarily <br/>
<a id="pl.83.5"></a><var>83.5</var>closed for safety, natural resource, or road damage reasons on enrolled land except
         within <br/>
<a id="pl.83.6"></a><var>83.6</var>one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
         <br/>
<a id="pl.83.7"></a><var>83.7</var>by the commissioner of natural resources.; and<br/>
<a id="pl.83.8"></a><var>83.8</var>(7) the land is not classified as 2c managed forest land.<br/>
<a id="pl.83.9"></a><var>83.9</var>(b) Claimants required to allow access under paragraph (a), clause (6), do not by
         that <br/>
<a id="pl.83.10"></a><var>83.10</var>action:<br/>
<a id="pl.83.11"></a><var>83.11</var>(1) extend any assurance that the land is safe for any purpose;<br/>
<a id="pl.83.12"></a><var>83.12</var>(2) confer upon the person the legal status of an invitee or licensee to whom a duty
         of <br/>
<a id="pl.83.13"></a><var>83.13</var>care is owed; or<br/>
<a id="pl.83.14"></a><var>83.14</var>(3) assume responsibility for or incur liability for any injury to the person or property
         <br/>
<a id="pl.83.15"></a><var>83.15</var>caused by an act or omission of the person.<br/>
<a id="pl.83.16"></a><var>83.16</var>(c) A minimum of three acres must be excluded from enrolled land when the land is
         <br/>
<a id="pl.83.17"></a><var>83.17</var>improved with a structure that is not a minor, ancillary, or nonresidential structure.
         If land <br/>
<a id="pl.83.18"></a><var>83.18</var>does not meet the definition of forest land in section 290C.02, subdivision 6, because
         the <br/>
<a id="pl.83.19"></a><var>83.19</var>land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state
         or federal <br/>
<a id="pl.83.20"></a><var>83.20</var>conservation reserve or easement program under sections 103F.501 to 103F.531, (3)
         subject <br/>
<a id="pl.83.21"></a><var>83.21</var>to the Minnesota agricultural property tax under section 273.111, or (4) subject to
         agricultural <br/>
<a id="pl.83.22"></a><var>83.22</var>land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
         <br/>
<a id="pl.83.23"></a><var>83.23</var>Agricultural Preserves Act under chapter 473H, the entire parcel that contains the
         land is <br/>
<a id="pl.83.24"></a><var>83.24</var>not eligible to be enrolled in the program.<br/>
<a id="pl.83.25"></a><var>83.25</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a), clause (2), is effective for <br/>
<a id="pl.83.26"></a><var>83.26</var>certifications filed after July 1, 2018. The amendment adding paragraph (a), clause
         (7), is <br/>
<a id="pl.83.27"></a><var>83.27</var>effective for certifications and applications due in 2017 and thereafter. The amendment
         <br/>
<a id="pl.83.28"></a><var>83.28</var>adding paragraph (c) is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.83.29"></a><var>83.29</var>    Sec. 2. <b>[290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.</b><br/>
<a id="pl.83.30"></a><var>83.30</var>On request of the commissioner, the commissioner of natural resources must annually
         <br/>
<a id="pl.83.31"></a><var>83.31</var>provide verification that the claimant has a current forest management plan on file
         with the <br/>
<a id="pl.83.32"></a><var>83.32</var>Department of Natural Resources.<br/>
<a id="pl.84.1"></a><var>84.1</var><b>EFFECTIVE DATE.</b>This section is effective for certifications filed after July 1, 2018.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.84.2"></a><var>84.2</var>    Sec. 3. <b> REPEALER.</b><br/>
<a id="pl.84.3"></a><var>84.3</var>Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are <br/>
<a id="pl.84.4"></a><var>84.4</var>repealed.<br/>
<a id="pl.84.5"></a><var>84.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>