HF 4

CCR-HF0004A - 90th Legislature (2017 - 2018)

Posted on 05/09/2017 05:26 p.m.

KEY: ~~stricken~~ = removed, old language.

underscored = added, new language.

Version List HF4 Authors and Status

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Engrossments
Introduction PDF	Posted on 01/05/2017
1st Engrossment PDF	Posted on 03/27/2017
2nd Engrossment PDF	Posted on 03/28/2017
3rd Engrossment PDF	Posted on 03/30/2017
4th Engrossment PDF	Posted on 05/16/2017

Unofficial Engrossments
1st Unofficial Engrossment PDF	Posted on 04/04/2017

Conference Committee Reports
CCR-HF0004A PDF	Posted on 05/09/2017

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 4 1.2A bill for an act 1.3relating to financing and operation of state and local government; making changes 1.4to individual income, corporate franchise, estate, property, sales and use, excise, 1.5mineral, tobacco, gambling, special, local, and other miscellaneous taxes and 1.6tax-related provisions; modifying provisions related to taxpayer empowerment, 1.7local government aids, credits, refunds, in perpetuity payments on land purchases, 1.8tax increment financing, and public finance; providing for new income tax 1.9subtractions, additions, and credits; establishing a first-time home buyer savings 1.10account program; providing for conformity to federal tax extenders by 1.11administrative action; modifying the education credit; providing a credit for 1.12donations to fund K-12 scholarships; modifying residency definitions; providing 1.13estate tax conformity; modifying property tax exemptions, classifications, and 1.14refunds; allowing a reverse referendum for property tax levies under certain 1.15circumstances; establishing school building bond agricultural tax credit; modifying 1.16state general levy; modifying certain local government aids; modifying sales tax 1.17definitions and exemptions; providing sales tax exemptions; clarifying the 1.18appropriation for sales tax refunds; establishing sales tax collection duties for 1.19marketplace providers and certain retailers; dedicating certain sales tax revenues; 1.20providing exemptions from sales taxes and property taxes for a Major League 1.21Soccer stadium; authorizing certain tax increment financing authority; prohibiting 1.22municipalities from taxing paper or plastic bags; modifying county levy authority; 1.23authorizing certain local taxes; requiring voter approval for certain transportation 1.24sales taxes; restricting rail project expenditures; modifying provisions related to 1.25taconite; repealing political contribution refund; modifying taxes on tobacco 1.26products and cigarettes; providing for a private letter ruling program; modifying 1.27tax administration procedures; dedicating transportation-related taxes; modifying 1.28vehicle taxes and fees; making minor policy, technical, and conforming changes; 1.29requiring reports; appropriating money;amending Minnesota Statutes 2016, sections 1.3013.4967, by adding a subdivision; 13.51, subdivision 2; 40A.18, subdivision 2; 1.3169.021, subdivision 5; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, 1.32subdivision 12; 97A.056, subdivisions 1a, 3, by adding subdivisions; 116P.02, 1.33subdivision 1, by adding subdivisions; 116P.08, subdivisions 1, 4; 123B.63, 1.34subdivision 3; 126C.17, subdivision 9; 127A.45, subdivisions 10, 13; 128C.24; 1.35168.013, subdivision 1a, by adding a subdivision; 169.011, by adding a subdivision; 1.36205.10, subdivision 1; 205A.05, subdivision 1; 216B.36; 216B.46; 237.19; 270.071, 1.37subdivisions 2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding 1.38a subdivision; 270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding 1.39a subdivision; 270.82, subdivision 1; 270A.03, subdivisions 5, 7; 270B.14, 1.40subdivision 1, by adding subdivisions; 270C.13, subdivision 1; 270C.171, 1.41subdivision 1; 270C.30; 270C.31, by adding a subdivision; 270C.33, subdivisions 1.425, 8, by adding subdivisions; 270C.34, subdivisions 1, 2; 270C.35, subdivisions 2.13, 4, by adding a subdivision; 270C.38, subdivision 1; 270C.445, subdivisions 2, 2.23, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a subdivision; 270C.446, subdivisions 2, 3, 4, 2.35; 270C.447, subdivisions 1, 2, 3, by adding a subdivision; 270C.72, subdivision 2.44; 270C.89, subdivision 1; 271.06, subdivisions 2, 2a, 6, 7; 271.08, subdivision 1; 2.5271.18; 272.02, subdivisions 9, 10, 23, 86, by adding a subdivision; 272.0211, 2.6subdivision 1; 272.0213; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by 2.7adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115, 2.8subdivisions 1, 2, 3; 272.162; 273.061, subdivision 7; 273.0755; 273.08; 273.121, 2.9by adding a subdivision; 273.124, subdivisions 3a, 13, 13d, 14, 21; 273.125, 2.10subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 2.11273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 2, 2.124, by adding subdivisions; 274.01, subdivision 1; 274.014, subdivision 3; 274.13, 2.13subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, 4, by adding a 2.14subdivision; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08, 2.15subdivision 1b; 275.60; 275.62, subdivision 2; 276.017, subdivision 3; 276.04, 2.16subdivisions 1, 2; 278.01, subdivision 1; 279.01, subdivisions 1, 2, 3; 279.37, by 2.17adding a subdivision; 281.17; 281.173, subdivision 2; 281.174, subdivision 3; 2.18282.01, subdivisions 1a, 1d, 4, 6, by adding a subdivision; 282.016; 282.018, 2.19subdivision 1; 282.02; 282.241, subdivision 1; 282.322; 287.08; 287.2205; 289A.08, 2.20subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10, 2.21subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, 2.22subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, 2.23subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.40, 2.24subdivision 1; 289A.50, subdivisions 1, 2a, 7; 289A.60, subdivisions 1, 13, 28, by 2.25adding a subdivision; 289A.63, by adding a subdivision; 290.01, subdivisions 6, 2.267; 290.0131, by adding subdivisions; 290.0132, subdivisions 4, 14, 21, by adding 2.27subdivisions; 290.0133, by adding a subdivision; 290.06, subdivision 22, by adding 2.28subdivisions; 290.067, subdivisions 1, 2b; 290.0672, subdivision 1; 290.0674, 2.29subdivisions 1, 2, by adding a subdivision; 290.068, subdivisions 1, 2, 3, 6a; 2.30290.0685, subdivision 1; 290.091, subdivision 2; 290.0922, subdivision 2; 290.17, 2.31subdivision 2; 290.31, subdivision 1; 290A.03, subdivisions 3, 11, 13; 290A.10; 2.32290A.19; 290C.03; 291.005, subdivision 1, as amended; 291.016, subdivisions 2, 2.333; 291.03, subdivisions 1, 9, 11; 291.075; 295.54, subdivision 2; 295.55, subdivision 2.346; 296A.01, subdivisions 7, 12, 33, 42, by adding a subdivision; 296A.02, by 2.35adding a subdivision; 296A.07, subdivision 1; 296A.08, subdivision 2; 296A.16, 2.36subdivision 2; 296A.22, subdivision 9; 296A.26; 297A.66, subdivisions 1, 2, 4, 2.37by adding a subdivision; 297A.67, subdivision 13a, by adding a subdivision; 2.38297A.68, subdivisions 5, 9, 19, 35a; 297A.70, subdivisions 4, 12, 14, by adding 2.39subdivisions; 297A.71, subdivision 44, by adding subdivisions; 297A.75, 2.40subdivisions 1, 2, 3, 5; 297A.815, subdivision 3; 297A.82, subdivisions 4, 4a; 2.41297A.94; 297A.992, subdivision 6a; 297A.993, subdivisions 1, 2, by adding 2.42subdivisions; 297B.07; 297D.02; 297E.02, subdivisions 3, 6, 7; 297E.04, 2.43subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, subdivision 2.4413a; 297F.05, subdivisions 1, 3, 3a, 4a; 297F.09, subdivision 1; 297F.23; 297G.09, 2.45subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, 2.46subdivisions 1, 3; 297I.20, by adding a subdivision; 297I.30, subdivision 7, by 2.47adding a subdivision; 297I.60, subdivision 2; 298.01, subdivisions 3, 4, 4c; 298.225, 2.48subdivision 1; 298.24, subdivision 1; 298.28, subdivisions 2, 3, 5; 366.095, 2.49subdivision 1; 383B.117, subdivision 2; 398A.10, subdivisions 3, 4; 410.32; 2.50412.221, subdivision 2; 412.301; 414.09, subdivision 2; 426.19, subdivision 2; 2.51447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 2.521; 462.353, subdivision 4; 469.053, subdivision 5; 469.101, subdivision 1; 469.107, 2.53subdivision 2; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175, 2.54subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision; 2.55469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 2.565; 469.319, subdivision 5; 471.57, subdivision 3; 471.571, subdivision 3; 471.572, 2.57subdivisions 2, 4; 473.39, by adding subdivisions; 473H.09; 473H.17, subdivision 2.581a; 475.59; 475.60, subdivision 2; 477A.011, subdivisions 34, 45; 477A.0124, 3.1subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 477A.10; 3.2477A.11, by adding subdivisions; 477A.19, by adding subdivisions; 504B.285, 3.3subdivision 1; 504B.365, subdivision 3; 559.202, subdivision 2; 609.5316, 3.4subdivision 3; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, 3.5as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as 3.6amended, 4, as amended, 5; Laws 1996, chapter 471, article 2, section 29, 3.7subdivisions 1, as amended, 4, as amended; article 3, section 51; Laws 1999, 3.8chapter 243, article 4, sections 17, subdivisions 3, 5, by adding a subdivision; 18, 3.9subdivision 1, as amended; Laws 2005, First Special Session chapter 3, article 5, 3.10section 38, subdivisions 2, as amended, 4, as amended; Laws 2008, chapter 154, 3.11article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20; 3.12Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2014, chapter 308, 3.13article 6, sections 8, subdivision 1; 9; article 9, section 94; Laws 2016, chapter 3.14187, section 5; proposing coding for new law in Minnesota Statutes, chapters 11A; 3.1516A; 16B; 41B; 88; 103C; 116P; 117; 174; 222; 270C; 273; 274; 275; 281; 289A; 3.16290; 290B; 290C; 293; 297A; 416; 459; 462A; 471; 473; 477A; proposing coding 3.17for new law as Minnesota Statutes, chapter 462D; repealing Minnesota Statutes 3.182016, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 136A.129; 205.10, 3.19subdivision 3; 270.074, subdivision 2; 270C.445, subdivision 1; 270C.447, 3.20subdivision 4; 270C.9901; 281.22; 289A.10, subdivision 1a; 289A.12, subdivision 3.2118; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 290.06, subdivisions 23, 3.2236; 290.067, subdivision 2; 290.9743; 290.9744; 290C.02, subdivisions 5, 9; 3.23290C.06; 291.03, subdivisions 8, 9, 10, 11; 297A.992, subdivision 12; 297F.05, 3.24subdivision 1a; 477A.085; 477A.20; Minnesota Rules, parts 4503.1400, subpart 3.254; 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3. 3.26May 9, 2017 3.27The Honorable Kurt L. Daudt 3.28Speaker of the House of Representatives 3.29The Honorable Michelle L. Fischbach 3.30President of the Senate 3.31We, the undersigned conferees for H. F. No. 4 report that we have agreed upon the items 3.32in dispute and recommend as follows: 3.33That the Senate recede from its amendments and that H. F. No. 4 be further amended 3.34as follows: 3.35Delete everything after the enacting clause and insert: 3.36"ARTICLE 1 3.37INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES 3.38 Section 1. [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS. 3.39 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 3.40the meanings given. 3.41(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and 3.42machinery used for farming in Minnesota. 3.43(c) "Beginning farmer" means an individual who: 4.1(1) is a resident of Minnesota; 4.2(2) is seeking entry, or has entered within the last ten years, into farming; 4.3(3) intends to farm land located within the state borders of Minnesota; 4.4(4) is not and whose spouse is not a family member of the owner of the agricultural 4.5assets from whom the beginning farmer is seeking to purchase or rent agricultural assets; 4.6(5) is not and whose spouse is not a family member of a partner, member, shareholder, 4.7or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to 4.8purchase or rent agricultural assets; and 4.9(6) meets the following eligibility requirements as determined by the authority: 4.10(i) has a net worth that does not exceed the limit provided under section 41B.03, 4.11subdivision 3, paragraph (a), clause (2); 4.12(ii) provides the majority of the day-to-day physical labor and management of the farm; 4.13(iii) has, by the judgment of the authority, adequate farming experience or demonstrates 4.14knowledge in the type of farming for which the beginning farmer seeks assistance from the 4.15authority; 4.16(iv) demonstrates to the authority a profit potential by submitting projected earnings 4.17statements; 4.18(v) asserts to the satisfaction of the authority that farming will be a significant source 4.19of income for the beginning farmer; 4.20(vi) participates in a financial management program approved by the authority or the 4.21commissioner of agriculture; 4.22(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility 4.23requirements within the three-year certification period, in which case the beginning farmer 4.24is no longer eligible for credits under this section; and 4.25(viii) has other qualifications as specified by the authority. 4.26(d) "Family member" means a family member within the meaning of the Internal Revenue 4.27Code, section 267(c)(4). 4.28(e) "Farm product" means plants and animals useful to humans and includes, but is not 4.29limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products, 4.30poultry and poultry products, livestock, fruits, and vegetables. 5.1(f) "Farming" means the active use, management, and operation of real and personal 5.2property for the production of a farm product. 5.3(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that 5.4is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner 5.5of agricultural assets does not mean an equipment dealer, livestock dealer defined in section 5.617A.03, subdivision 7, or comparable entity that is engaged in the business of selling 5.7agricultural assets for profit and that is not engaged in farming as its primary business 5.8activity. An owner of agricultural assets approved and certified by the authority under 5.9subdivision 4 must notify the authority if the owner no longer meets the definition in this 5.10paragraph within the three year certification period and is then no longer eligible for credits 5.11under this section. 5.12(h) "Share rent agreement" means a rental agreement in which the principal consideration 5.13given to the owner of agricultural assets is a predetermined portion of the production of 5.14farm products produced from the rented agricultural assets and which provides for sharing 5.15production costs or risk of loss, or both. 5.16 Subd. 2. Tax credit for owners of agricultural assets. (a) An owner of agricultural 5.17assets may take a credit against the tax due under chapter 290 for the sale or rental of 5.18agricultural assets to a beginning farmer. An owner of agricultural assets may take a credit 5.19equal to: 5.20(1) five percent of the lesser of the sale price or the fair market value of the agricultural 5.21asset; 5.22(2) ten percent of the gross rental income in each of the first, second, and third years of 5.23a rental agreement; or 5.24(3) 15 percent of the cash equivalent of the gross rental income in each of the first, 5.25second, and third years of a share rent agreement. 5.26(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent 5.27agreement. The agricultural asset must be rented at prevailing community rates as determined 5.28by the authority. The credit may be claimed only after approval and certification by the 5.29authority. 5.30(c) An owner of agricultural assets or beginning farmer may terminate a rental agreement, 5.31including a share rent agreement, for reasonable cause upon approval of the authority. If a 5.32rental agreement is terminated without the fault of the owner of agricultural assets, the tax 5.33credits shall not be retroactively disallowed. In determining reasonable cause, the authority 6.1must look at which party was at fault in the termination of the agreement. If the authority 6.2determines the owner of agricultural assets did not have reasonable cause, the owner of 6.3agricultural assets must repay all credits received as a result of the rental agreement to the 6.4commissioner of revenue. The repayment is additional income tax for the taxable year in 6.5which the authority makes its decision or when a final adjudication under subdivision 5, 6.6paragraph (a), is made, whichever is later. 6.7(d) The credit is limited to the liability for tax as computed under chapter 290 for the 6.8taxable year. If the amount of the credit determined under this section for any taxable year 6.9exceeds this limitation, the excess is a beginning farmer incentive credit carryover according 6.10to section 290.06, subdivision 37. 6.11 Subd. 3. Beginning farmer management tax credit. (a) A beginning farmer may take 6.12a credit against the tax due under chapter 290 for participating in a financial management 6.13program approved by the authority. The credit is equal to 100 percent of the amount paid 6.14for participating in the program, not to exceed $1,500. The credit is available for up to three 6.15years while the farmer is in the program. The authority shall maintain a list of approved 6.16financial management programs and establish a procedure for approving equivalent programs 6.17that are not on the list. 6.18(b) The credit is limited to the liability for tax as computed under chapter 290 for the 6.19taxable year. If the amount of the credit determined under this section for any taxable year 6.20exceeds this limitation, the excess is a beginning farmer management credit carryover 6.21according to section 290.06, subdivision 38. 6.22 Subd. 4. Authority duties. (a) The authority shall: 6.23(1) approve and certify or recertify beginning farmers as eligible for the program under 6.24this section; 6.25(2) approve and certify or recertify owners of agricultural assets as eligible for the tax 6.26credit under subdivision 2; 6.27(3) provide necessary and reasonable assistance and support to beginning farmers for 6.28qualification and participation in financial management programs approved by the authority; 6.29(4) refer beginning farmers to agencies and organizations that may provide additional 6.30pertinent information and assistance; and 6.31(5) notwithstanding section 41B.211, the Rural Finance Authority must share information 6.32with the commissioner of revenue to the extent necessary to administer provisions under 6.33this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority 7.1must annually notify the commissioner of revenue of approval and certification or 7.2recertification of beginning farmers and owners of agricultural assets under this section. 7.3(b) The certification of a beginning farmer or an owner of agricultural assets under this 7.4section is valid for the year of the certification and the two following years, after which 7.5time the beginning farmer or owner of agricultural assets must apply to the authority for 7.6recertification. 7.7 Subd. 5. Appeals of authority determinations. (a) Any decision of the authority under 7.8this section may be challenged as a contested case under chapter 14. The contested case 7.9proceeding must be initiated within 60 days of the date of written notification by the office. 7.10(b) If a taxpayer challenges a decision of the authority under this subdivision, upon 7.11perfection of the appeal the authority must notify the commissioner of revenue of the 7.12challenge within 5 days. 7.13(c) Nothing in this subdivision affects the commissioner of revenue's authority to audit, 7.14review, correct, or adjust returns claiming the credit. 7.15EFFECTIVE DATE.This section is effective for taxable years beginning after December 7.1631, 2016. 7.17 Sec. 2. Minnesota Statutes 2016, section 116J.8737, subdivision 5, is amended to read: 7.18 Subd. 5. Credit allowed. (a)(1) A qualified investor or qualified fund is eligible for a 7.19credit equal to 25 percent of the qualified investment in a qualified small business. 7.20Investments made by a pass-through entity qualify for a credit only if the entity is a qualified 7.21fund. The commissioner must not allocate more than $15,000,000 in credits to qualified 7.22investors or qualified funds for taxable years beginning after December 31, 2013, and before 7.23January 1, 2017, and must not allocate more than $10,000,000 in credits to qualified investors 7.24or qualified funds for taxable years beginning after December 31, 2016, and before January 7.251, 2018, and must not allocate more than $10,000,000 in credits to qualified investors or 7.26qualified funds for taxable years beginning after December 31, 2017, and before January 7.271, 2020; and 7.28(2) for taxable years beginning after December 31, 2014, and before January 1, 2018 7.292020, 50 percent must be allocated to credits for qualifying investments in qualified greater 7.30Minnesota businesses and minority- or women-owned qualified small businesses in 7.31Minnesota. Any portion of a taxable year's credits that is reserved for qualifying investments 7.32in greater Minnesota businesses and minority- or women-owned qualified small businesses 7.33in Minnesota that is not allocated by September 30 of the taxable year is available for 8.1allocation to other credit applications beginning on October 1. Any portion of a taxable 8.2year's credits that is not allocated by the commissioner does not cancel and may be carried 8.3forward to subsequent taxable years until all credits have been allocated. 8.4(b) The commissioner may not allocate more than a total maximum amount in credits 8.5for a taxable year to a qualified investor for the investor's cumulative qualified investments 8.6as an individual qualified investor and as an investor in a qualified fund; for married couples 8.7filing joint returns the maximum is $250,000, and for all other filers the maximum is 8.8$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 8.9over all taxable years for qualified investments in any one qualified small business. 8.10(c) The commissioner may not allocate a credit to a qualified investor either as an 8.11individual qualified investor or as an investor in a qualified fund if, at the time the investment 8.12is proposed: 8.13(1) the investor is an officer or principal of the qualified small business; or 8.14(2) the investor, either individually or in combination with one or more members of the 8.15investor's family, owns, controls, or holds the power to vote 20 percent or more of the 8.16outstanding securities of the qualified small business. 8.17A member of the family of an individual disqualified by this paragraph is not eligible for a 8.18credit under this section. For a married couple filing a joint return, the limitations in this 8.19paragraph apply collectively to the investor and spouse. For purposes of determining the 8.20ownership interest of an investor under this paragraph, the rules under section 267(c) and 8.21267(e) of the Internal Revenue Code apply. 8.22(d) Applications for tax credits for 2010 must be made available on the department's 8.23Web site by September 1, 2010, and the department must begin accepting applications by 8.24September 1, 2010. Applications for subsequent years must be made available by November 8.251 of the preceding year. 8.26(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 8.27Tax credits must be allocated to qualified investors or qualified funds in the order that the 8.28tax credit request applications are filed with the department. The commissioner must approve 8.29or reject tax credit request applications within 15 days of receiving the application. The 8.30investment specified in the application must be made within 60 days of the allocation of 8.31the credits. If the investment is not made within 60 days, the credit allocation is canceled 8.32and available for reallocation. A qualified investor or qualified fund that fails to invest as 8.33specified in the application, within 60 days of allocation of the credits, must notify the 9.1commissioner of the failure to invest within five business days of the expiration of the 9.260-day investment period. 9.3(f) All tax credit request applications filed with the department on the same day must 9.4be treated as having been filed contemporaneously. If two or more qualified investors or 9.5qualified funds file tax credit request applications on the same day, and the aggregate amount 9.6of credit allocation claims exceeds the aggregate limit of credits under this section or the 9.7lesser amount of credits that remain unallocated on that day, then the credits must be allocated 9.8among the qualified investors or qualified funds who filed on that day on a pro rata basis 9.9with respect to the amounts claimed. The pro rata allocation for any one qualified investor 9.10or qualified fund is the product obtained by multiplying a fraction, the numerator of which 9.11is the amount of the credit allocation claim filed on behalf of a qualified investor and the 9.12denominator of which is the total of all credit allocation claims filed on behalf of all 9.13applicants on that day, by the amount of credits that remain unallocated on that day for the 9.14taxable year. 9.15(g) A qualified investor or qualified fund, or a qualified small business acting on their 9.16behalf, must notify the commissioner when an investment for which credits were allocated 9.17has been made, and the taxable year in which the investment was made. A qualified fund 9.18must also provide the commissioner with a statement indicating the amount invested by 9.19each investor in the qualified fund based on each investor's share of the assets of the qualified 9.20fund at the time of the qualified investment. After receiving notification that the investment 9.21was made, the commissioner must issue credit certificates for the taxable year in which the 9.22investment was made to the qualified investor or, for an investment made by a qualified 9.23fund, to each qualified investor who is an investor in the fund. The certificate must state 9.24that the credit is subject to revocation if the qualified investor or qualified fund does not 9.25hold the investment in the qualified small business for at least three years, consisting of the 9.26calendar year in which the investment was made and the two following years. The three-year 9.27holding period does not apply if: 9.28(1) the investment by the qualified investor or qualified fund becomes worthless before 9.29the end of the three-year period; 9.30(2) 80 percent or more of the assets of the qualified small business is sold before the end 9.31of the three-year period; 9.32(3) the qualified small business is sold before the end of the three-year period; 9.33(4) the qualified small business's common stock begins trading on a public exchange 9.34before the end of the three-year period; or 10.1 (5) the qualified investor dies before the end of the three-year period. 10.2(h) The commissioner must notify the commissioner of revenue of credit certificates 10.3issued under this section. 10.4EFFECTIVE DATE.This section is effective for taxable years beginning after December 10.531, 2017. 10.6 Sec. 3. Minnesota Statutes 2016, section 116J.8737, subdivision 12, is amended to read: 10.7 Subd. 12. Sunset. This section expires for taxable years beginning after December 31, 10.82017 2019, except that reporting requirements under subdivision 6 and revocation of credits 10.9under subdivision 7 remain in effect through 2019 2021 for qualified investors and qualified 10.10funds, and through 2021 2023 for qualified small businesses, reporting requirements under 10.11subdivision 9 remain in effect through 2022 2024, and the appropriation in subdivision 11 10.12remains in effect through 2021 2023. 10.13EFFECTIVE DATE.This section is effective the day following final enactment. 10.14 Sec. 4. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read: 10.15 Subdivision 1. Return required. In the case of a decedent who has an interest in property 10.16with a situs in Minnesota, the personal representative must submit a Minnesota estate tax 10.17return to the commissioner, on a form prescribed by the commissioner, if: 10.18(1) a federal estate tax return is required to be filed; or under the Internal Revenue Code. 10.19(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 10.20section 2001(b) of the Internal Revenue Code, made within three years of the date of the 10.21decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for 10.22estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; 10.23$1,800,000 for estates of decedents dying in 2017; and $2,000,000 for estates of decedents 10.24dying in 2018 and thereafter. 10.25The return must contain a computation of the Minnesota estate tax due. The return must 10.26be signed by the personal representative. 10.27EFFECTIVE DATE.This section is effective retroactively for estates of decedents 10.28dying after December 31, 2016. 11.1 Sec. 5. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read: 11.2 Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, 11.3except that an individual is not a "resident" for the period of time that the individual is a 11.4"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the 11.5qualified individual notifies the county within three months of moving out of the country 11.6that homestead status be revoked for the Minnesota residence of the qualified individual, 11.7and the property is not classified as a homestead while the individual remains a qualified 11.8individual. 11.9(b) "Resident" also means any individual domiciled outside the state who maintains a 11.10place of abode in the state and spends in the aggregate more than one-half of the tax year 11.11in Minnesota, unless: 11.12(1) the individual or the spouse of the individual is in the armed forces of the United 11.13States; or 11.14(2) the individual is covered under the reciprocity provisions in section 290.081. 11.15For purposes of this subdivision, presence within the state for any part of a calendar day 11.16constitutes a day spent in the state. Individuals shall keep adequate records to substantiate 11.17the days spent outside the state. 11.18The term "abode" means a dwelling maintained by an individual, whether or not owned 11.19by the individual and whether or not occupied by the individual, and includes a dwelling 11.20place owned or leased by the individual's spouse. 11.21(c) In determining where an individual is domiciled, neither the commissioner nor any 11.22court shall consider: 11.23(1) charitable contributions made by an the individual within or without the state in 11.24determining if the individual is domiciled in Minnesota; 11.25(2) the location of the individual's attorney, certified public accountant, or financial 11.26adviser; or 11.27(3) the place of business of a financial institution at which the individual applies for any 11.28new type of credit or at which the individual opens or maintains any type of account. 11.29(d) For purposes of this subdivision, the following terms have the meanings given them: 11.30(1) "financial adviser" means: 12.1(i) an individual or business entity engaged in business as a certified financial planner, 12.2registered investment adviser, licensed insurance producer or agent, or registered securities 12.3broker-dealer representative; or 12.4(ii) a financial institution providing services related to trust or estate administration, 12.5investment management, or financial planning; and 12.6(2) "financial institution" means a financial institution as defined in section 47.015, 12.7subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer 12.8under the Securities and Exchange Act of 1934. 12.9EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.1031, 2016. 12.11 Sec. 6. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws 12.122017, chapter 1, section 4, is amended to read: 12.13 Subd. 10. Section 179 expensing. For taxable years beginning before January 1, 2018, 12.1480 percent of the amount by which the deduction allowed under the dollar limits of section 12.15179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 12.16Internal Revenue Code, as amended through December 31, 2003, is an addition. 12.17EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.1831, 2017. 12.19 Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 12.20to read: 12.21 Subd. 14. First-time home buyer savings account. The amount for a first-time home 12.22buyer savings account required by section 462D.06, subdivision 2, is an addition. 12.23EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.2431, 2016. 12.25 Sec. 8. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 12.26to read: 12.27 Subd. 15. Equity and opportunity donations to qualified foundations. The amount 12.28of the deduction under section 170 of the Internal Revenue Code that represents contributions 12.29to a qualified foundation under section 290.0693 is an addition. 12.30EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.3131, 2017. 13.1 Sec. 9. Minnesota Statutes 2016, section 290.0132, subdivision 4, is amended to read: 13.2 Subd. 4. Education expenses. (a) Subject to the limits in paragraph (b), the following 13.3amounts paid to others for each qualifying child are a subtraction: education-related expenses, 13.4as defined in section 290.0674, subdivision 1, less any amount used to claim the credit under 13.5section 290.0674, are a subtraction. 13.6(1) education-related expenses; plus 13.7(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 13.81 , clause (4), that are not included in education-related expenses; less 13.9(3) any amount used to claim the credit under section . 13.10(b) The maximum subtraction allowed under this subdivision is: 13.11(1) $1,625 for each qualifying child in a prekindergarten educational program or in 13.12kindergarten through grade 6; and 13.13(2) $2,500 for each qualifying child in grades 7 through 12. 13.14(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision. 13.15EFFECTIVE DATE.This section is effective for taxable years beginning after December 13.1631, 2016. 13.17 Sec. 10. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 13.18to read: 13.19 Subd. 23. Contributions to 529 plan. (a) The amount equal to the contributions made 13.20during the taxable year to one or more accounts in plans qualifying under section 529 of 13.21the Internal Revenue Code, reduced by any withdrawals from accounts during the taxable 13.22year, is a subtraction. 13.23(b) The subtraction under this subdivision does not include amounts rolled over from 13.24other college savings plan accounts. 13.25(c) The subtraction under this subdivision must not exceed $3,000 for married couples 13.26filing joint returns and $1,500 for all other filers, and is limited to individuals who do not 13.27claim the credit under section 290.0683. 13.28EFFECTIVE DATE.This section is effective for taxable years beginning after December 13.2931, 2016. 14.1 Sec. 11. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 14.2to read: 14.3 Subd. 24. Discharge of indebtedness; education loans. (a) The amount equal to the 14.4discharge of indebtedness of the taxpayer is a subtraction if: 14.5(1) the indebtedness discharged is a qualified education loan; and 14.6(2) the indebtedness was discharged under section 136A.1791, or following the taxpayer's 14.7completion of an income-driven repayment plan. 14.8(b) For the purposes of this subdivision, "qualified education loan" has the meaning 14.9given in section 221 of the Internal Revenue Code. 14.10(c) For purposes of this subdivision, "income-driven repayment plan" means a payment 14.11plan established by the United States Department of Education that sets monthly student 14.12loan payments based on income and family size under United States Code, title 20, section 14.131087e, or similar authority and specifically includes, but is not limited to: 14.14(1) the income-based repayment plan under United States Code, title 20, section 1098e; 14.15(2) the income contingent repayment plan established under United States Code, title 14.1620, section 1087e, subsection (e); and 14.17(3) the PAYE program or REPAYE program established by the Department of Education 14.18under administrative regulations. 14.19EFFECTIVE DATE.This section is effective for taxable years beginning after December 14.2031, 2016. 14.21 Sec. 12. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 14.22to read: 14.23 Subd. 25. First-time home buyer savings account. (a) For purposes of this subdivision, 14.24the terms defined in section 462D.02 have the meanings given in that section. 14.25(b) The amount an account holder contributes to and earnings on a first-time home buyer 14.26savings account allowed by section 462D.06, subdivision 1, is a subtraction. 14.27(c) The subtraction allowed under this subdivision for a taxable year is limited to $7,500, 14.28or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined 14.29in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or 14.30$250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of 14.31adjusted gross income in excess of that threshold. 15.1(d) The adjusted gross income thresholds under paragraph (c) must be adjusted for 15.2inflation. The commissioner shall adjust the dollar amount of the income thresholds at which 15.3the maximum subtraction begins to be reduced under paragraph (b) by the percentage 15.4determined under section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) 15.5the word "2016" is substituted for the word "1992." For 2018, the commissioner shall then 15.6determine the percent change from the 12 months ending on August 31, 2016, to the 12 15.7months ending on August 31, 2017, and in each subsequent year, from the 12 months ending 15.8on August 31, 2016, to the 12 months ending on August 31 of the year preceding the taxable 15.9year. The determination of the commissioner under this subdivision is not a "rule" and is 15.10not subject to the Administrative Procedure Act in chapter 14, including section 14.386. 15.11The threshold amount as adjusted must be rounded to the nearest $100 amount. If the amount 15.12ends in $50, the amount is rounded up to the nearest $100 amount. 15.13EFFECTIVE DATE.This section is effective for taxable years beginning after December 15.1431, 2016. 15.15 Sec. 13. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 15.16to read: 15.17 Subd. 26. Social Security benefits. (a) A portion of Social Security benefits is allowed 15.18as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum 15.19subtraction subject to the limits under paragraphs (b), (c), and (d). 15.20(b) For married taxpayers filing a joint return and surviving spouses, the maximum 15.21subtraction equals $8,250. The maximum subtraction is reduced by 20 percent of provisional 15.22income over $77,000. In no case is the subtraction less than zero. 15.23(c) For single or head-of-household taxpayers, the maximum subtraction equals $6,500. 15.24The maximum subtraction is reduced by 20 percent of provisional income over $60,200. 15.25In no case is the subtraction less than zero. 15.26(d) For married taxpayers filing separate returns, the maximum subtraction equals $4,125. 15.27The maximum subtraction is reduced by 20 percent of provisional income over $38,500. 15.28In no case is the subtraction less than zero. 15.29(e) For purposes of this subdivision, "provisional income" means modified adjusted 15.30gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 15.31the Social Security benefits received during the taxable year, and "Social Security benefits" 15.32has the meaning given in section 86(d)(1) of the Internal Revenue Code. 16.1(f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the 16.2percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 16.3Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016" shall 16.4be substituted for the word "1992." For 2018, the commissioner shall then determine the 16.5percentage change from the 12 months ending on August 31, 2016, to the 12 months ending 16.6on August 31, 2017, and in each subsequent year, from the 12 months ending on August 16.731, 2016, to the 12 months ending on August 31 of the year preceding the taxable year. The 16.8determination of the commissioner pursuant to this subdivision must not be considered a 16.9rule and is not subject to the Administrative Procedure Act contained in chapter 14, including 16.10section 14.386. The threshold amount as adjusted must be rounded to the nearest $10 amount. 16.11If the amount ends in $5, the amount is rounded up to the nearest $10 amount. 16.12EFFECTIVE DATE.This section is effective for taxable years beginning after December 16.1331, 2016. 16.14 Sec. 14. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws 16.152017, chapter 1, section 5, is amended to read: 16.16 Subd. 12. Section 179 expensing. For taxable years beginning before January 1, 2018, 16.1780 percent of the amount by which the deduction allowed under the dollar limits of section 16.18179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 16.19Internal Revenue Code, as amended through December 31, 2003, is an addition. 16.20EFFECTIVE DATE.This section is effective for taxable years beginning after December 16.2131, 2017. 16.22 Sec. 15. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision 16.23to read: 16.24 Subd. 15. Equity and opportunity donations to qualified foundations. The amount 16.25of the deduction under section 170 of the Internal Revenue Code that represents contributions 16.26to a qualified foundation under section 290.0693 is an addition. 16.27EFFECTIVE DATE.This section is effective for taxable years beginning after December 16.2831, 2017. 16.29 Sec. 16. [290.016] CONFORMITY TO FEDERAL TAX EXTENDERS BY 16.30ADMINISTRATIVE ACTION. 16.31 Subdivision 1. Legislative purpose. (a) The legislature intends this section to provide 16.32an ongoing mechanism for conforming the Minnesota individual income and corporate 17.1franchise taxes and the property tax refund and homestead credit refund programs to federal 17.2tax legislation enacted after the legislature has adjourned that extends existing provisions 17.3of federal law, if the provisions affect tax liability in a calendar year that ends before the 17.4legislature is scheduled to reconvene in regular session. Congress has regularly enacted 17.5changes of that type that affect computation of Minnesota tax through its links to federal 17.6law. The federal changes consist mainly of extending provisions that reduce revenues and 17.7are scheduled to expire. Because Minnesota law is linked to federal law as of a specific 17.8date, taxpayers and the Department of Revenue must assume that Minnesota law does not 17.9include the effect of these federal changes even though the legislature regularly adopts most 17.10of the federal provisions retroactively in the next legislative session. This situation 17.11undermines compliance and administration of Minnesota taxes, causing delay, uncertainty, 17.12and added costs. This section provides an administrative mechanism to conform to most of 17.13these federal changes. The legislature's intent is to conform to the federal tax extenders, 17.14including minor modifications of them, and to set aside the necessary state budget resources 17.15to do so. 17.16(b) By expressing its intent regarding specific federal provisions and indicating how to 17.17treat each federal extender provision, the legislature is exercising its legislative power and 17.18is not delegating to Congress or the commissioner the authority to determine Minnesota tax 17.19law. The legislature believes that this section is consistent with the Minnesota Supreme 17.20Court's ruling in the case of Wallace v. Commissioner of Taxation, 289 Minn. 220 (1971). 17.21 Subd. 2. Federal tax conformity account established; transfer. (a) A federal tax 17.22conformity account is established in the general fund. Money in the account is available for 17.23transfer to the general fund to offset the reduction in general fund revenues resulting from 17.24conforming Minnesota tax law to federal law under this section. 17.25(b) $20,000,000 is transferred from the general fund to the federal tax conformity account, 17.26effective July 1, 2017. 17.27(c) Each year, within ten days after receiving notice of the amount from the commissioner, 17.28the commissioner of management and budget shall transfer from the account to the general 17.29fund the amount the commissioner determines is required under subdivision 4. 17.30 Subd. 3. Eligible federal tax preferences. For purposes of this section and section 17.31290.01, the term "eligible federal tax preferences" means any of the following items that 17.32are not in effect under the Internal Revenue Code for future taxable years beginning after 17.33December 31, 2016: 18.1(1) discharge of qualified principal residence indebtedness under section 108(a)(1)(E) 18.2of the Internal Revenue Code; 18.3(2) mortgage insurance premiums treated as qualified residence interest under section 18.4163(h)(3)(E) of the Internal Revenue Code; 18.5(3) qualified tuition and related expenses under section 222 of the Internal Revenue 18.6Code; 18.7(4) classification of certain race horses as three-year property under section 18.8168(e)(3)(A)(i) and (ii) of the Internal Revenue Code; 18.9(5) the seven-year recovery period for motorsports entertainment complexes under 18.10section 168(i)(15) of the Internal Revenue Code; 18.11(6) the accelerated depreciation for business property on an Indian reservation under 18.12section 168(j) of the Internal Revenue Code; 18.13(7) the election to expense mine safety equipment under section 179E of the Internal 18.14Revenue Code; 18.15(8) the special expensing rules for certain film and television productions under section 18.16181 of the Internal Revenue Code; 18.17(9) the special allowance for second-generation biofuel plant property under section 18.18168(l) of the Internal Revenue Code; 18.19(10) the energy efficient commercial buildings deduction under section 179D of the 18.20Internal Revenue Code; 18.21(11) the five-year recovery period for property described in section 168(e)(3)(B)(vi)(I) 18.22of the Internal Revenue Code and qualifying for an energy credit under section 48(a)(3)(A) 18.23of the Internal Revenue Code; and 18.24(12) the amount of the additional section 179 allowance in an empowerment zone under 18.25section 1397A of the Internal Revenue Code. 18.26 Subd. 4. Designation of qualifying federal conformity items. (a) If, after final 18.27adjournment of a regular session of the legislature, Congress enacts a law that extends one 18.28or more of the eligible federal tax preferences to taxable years beginning during the calendar 18.29year in which the legislature adjourned, the commissioner shall prepare a list of qualifying 18.30federal conformity items and publish it on the Department of Revenue's Web site within 30 18.31days following enactment of the law. In preparing the list, the commissioner shall estimate 18.32the change in revenue resulting from allowing the eligible federal tax preferences, including 19.1the effect of subdivision 6, for the current and succeeding biennia only. The commissioner 19.2shall not include an item on the list of qualifying federal conformity items if the commissioner 19.3estimates that its inclusion would reduce general fund revenues for the current and succeeding 19.4biennia by more than the balance in the federal tax conformity account. 19.5(b) The commissioner shall consider the provisions of subdivision 6 as the first item to 19.6include on the list of qualifying conformity items. The commissioner shall apply the following 19.7priorities in determining which additional items to include: 19.8(1) the effect of all eligible federal tax preferences on computation of federal adjusted 19.9gross income under this chapter and household income under chapter 290A, is the first 19.10priority; 19.11(2) the effect of the federal law on computation of Minnesota tax credits is the second 19.12priority; 19.13(3) the items in subdivision 3, clauses (4) to (12), in that order, are the third priority; 19.14and 19.15(4) the items in subdivision 3, clauses (1) to (3), in that order, are the last priority. 19.16(c) In determining whether to include an eligible federal tax preference on the list of 19.17qualifying federal conformity items, the commissioner may include items in which 19.18nonmaterial changes were made in the federal law extending allowance of the eligible federal 19.19tax preferences, compared to the provision that was in effect for the prior federal taxable 19.20year. For purposes of this determination, nonmaterial changes are limited to changes that 19.21are estimated to increase or decrease Minnesota tax revenues by no more than $1,000,000 19.22for the affected eligible federal tax preference item for the taxable year. 19.23(d) Within ten days after the commissioner's final determination of qualifying federal 19.24conformity items under this subdivision, the commissioner shall notify the commissioner 19.25of management and budget, in writing, of the amount of the federal tax conformity account 19.26transfer under subdivision 2. 19.27 Subd. 5. Provisions in effect. (a) For purposes of determining tax and credits under this 19.28chapter, including the taxes under sections 290.091 and 290.0921, and household income 19.29under chapter 290A, qualifying federal conformity items and bonus depreciation rules under 19.30subdivision 6 apply for the designated taxable year and the provisions of this chapter apply 19.31as if the definition of the Internal Revenue Code under section 290.01, subdivision 31, 19.32included the amendments to the qualifying federal conformity items. 20.1(b) For qualifying federal conformity items listed in subdivision 3, clauses (4) to (12), 20.2and bonus depreciation rules for which conformity in the designated taxable year that result 20.3in a revenue increase or decrease in subsequent taxable years, the commissioner shall 20.4administer the subsequent taxable year for the qualifying federal conformity items consistent 20.5with conformity to the items in the designated taxable year and the estimate used to calculate 20.6the transfer amount under subdivision 2. 20.7(c) The commissioner shall administer the taxes under this chapter and refunds under 20.8chapter 290A as if Minnesota had conformed to the federal definitions of net income, 20.9adjusted gross income, and tax credits that affect computation of Minnesota tax or refunds 20.10resulting from extension of the qualifying federal conformity items. 20.11(d) For purposes of this subdivision and subdivision 6, "designated taxable year" means 20.12a taxable year that begins during a calendar year in which an eligible federal tax preference 20.13is enacted after the legislature adjourned its regular session and is effective for any taxable 20.14year beginning during that calendar year. 20.15 Subd. 6. Bonus depreciation; 80 percent rule applies. If, following final adjournment 20.16of a regular session of the legislature, Congress enacts a law that extends application of the 20.17depreciation special allowances under section 168(k) of the Internal Revenue Code to taxable 20.18years beginning during the same calendar year, the allowance must be determined using 20.19the rules under sections 290.0131, subdivision 9, and 290.0133, subdivision 11, for the 20.20designated taxable year; and the rules under sections 290.0132, subdivision 9, and 290.0134, 20.21subdivision 13, for the five tax years immediately following the designated taxable year. 20.22 Subd. 7. Forms preparation. If the provisions of subdivisions 3 and 4 apply to a taxable 20.23year, the commissioner shall prepare forms and instructions that reflect the qualifying federal 20.24conformity items and bonus depreciation rules under subdivision 6, if applicable, for the 20.25taxable year consistent with the provisions of this section. 20.26 Subd. 8. Draft legislation. For a taxable year for which the commissioner publishes a 20.27list of qualifying federal conformity items under this section, the commissioner shall provide 20.28the chairs and ranking minority members of the legislative committees with jurisdiction 20.29over taxes with draft legislation that would conform Minnesota Statutes to the qualifying 20.30federal conformity items and any other conformity items that the commissioner recommends 20.31be adopted, including application to taxable years beyond those to which this section applies. 20.32The draft legislation is intended to make the statutes consistent with application of the 20.33designated qualifying federal conformity items under this section for the convenience of 21.1members of the public. Failure to pass the draft legislation does not affect computation of 21.2Minnesota tax liability for the affected taxable years under this section. 21.3 Subd. 9. Administrative Procedure Act. Designation of qualifying federal conformity 21.4items or any other action of the commissioner under this section is not a rule and is not 21.5subject to the Administrative Procedure Act under chapter 14, including section 14.386. 21.6EFFECTIVE DATE.This section is effective the day following final enactment. 21.7 Sec. 17. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 21.8read: 21.9 Subd. 2g. First-time home buyer savings account. (a) For purposes of this subdivision, 21.10the terms defined in section 462D.02 have the meanings given in that section. 21.11(b) In addition to the tax computed under subdivision 2c, an additional amount of tax 21.12applies equal to the additional tax computed for the taxable year for the account holder of 21.13a first-time home buyer account under section 462D.06, subdivision 3. 21.14EFFECTIVE DATE.This section is effective for taxable years beginning after December 21.1531, 2016. 21.16 Sec. 18. Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read: 21.17 Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 21.18based on net income to another state, as provided in paragraphs (b) through (f), upon income 21.19allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 21.20if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 21.21is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 21.22is subject to income tax as a resident in the state of the individual's domicile is not allowed 21.23this credit unless the state of domicile does not allow a similar credit. 21.24(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 21.25payable under this chapter by the ratio derived by dividing the income subject to tax in the 21.26other state that is also subject to tax in Minnesota while a resident of Minnesota by the 21.27taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 21.28Code, modified by the addition required by section 290.0131, subdivision 2, and the 21.29subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 21.30or assigned to Minnesota under sections 290.081 and 290.17. 21.31(c) If the taxpayer is an athletic team that apportions all of its income under section 21.32290.17, subdivision 5 , the credit is determined by multiplying the tax payable under this 22.1chapter by the ratio derived from dividing the total net income subject to tax in the other 22.2state by the taxpayer's Minnesota taxable income. 22.3(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 22.4tax so paid to the other state on the gross income earned within the other state subject to 22.5tax under this chapter, nor shall; and 22.6(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 22.7amount less than what would be assessed if such income amount was the gross income 22.8earned within the other state were excluded from taxable net income. 22.9(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 22.10credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 22.11distribution that is also subject to tax under section 290.032, and shall not exceed the tax 22.12assessed under section 290.032. To the extent the total lump-sum distribution defined in 22.13section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 22.14is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 22.15allowed under section 290.032, subdivision 2, includes tax paid to another state that is 22.16properly apportioned to that distribution. 22.17(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 22.18in such other state on that same income after the Minnesota statute of limitations has expired, 22.19the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 22.20statute of limitations to the contrary. The claim for the credit must be submitted within one 22.21year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 22.22proof to show entitlement to a credit. 22.23(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 22.24as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 22.25on the shareholder in an amount equal to the shareholder's pro rata share of any net income 22.26tax paid by the S corporation to another state. For the purposes of the preceding sentence, 22.27the term "net income tax" means any tax imposed on or measured by a corporation's net 22.28income. 22.29(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 22.30partnership under the Internal Revenue Code must be considered to have paid a tax imposed 22.31on the partner in an amount equal to the partner's pro rata share of any net income tax paid 22.32by the partnership to another state. For purposes of the preceding sentence, the term "net 22.33income" tax means any tax imposed on or measured by a partnership's net income. 22.34(i) For the purposes of this subdivision, "another state": 23.1(1) includes: 23.2(i) the District of Columbia; and 23.3(ii) a province or territory of Canada; but 23.4(2) excludes Puerto Rico and the several territories organized by Congress. 23.5(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 23.6by state basis. 23.7(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 23.8subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 23.9section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 23.10allowed, the net income taxes imposed by Canada on the income are deducted first. Any 23.11remaining amount of the allowable foreign tax credit reduces the provincial or territorial 23.12tax that qualifies for the credit under this subdivision. 23.13(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 23.14qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 23.15calculated by multiplying: 23.16(i) the difference between the preliminary credit and the credit calculated under paragraphs 23.17(b) and (d), by 23.18(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 23.19consists of compensation for performance of personal or professional services by the total 23.20amount of income subject to tax in the qualifying state. 23.21(2) If the amount of the credit that a qualifying individual is eligible to receive under 23.22clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 23.23the application of the credit calculated under clause (1), the commissioner shall refund the 23.24excess to the qualifying individual. An amount sufficient to pay the refunds required by this 23.25subdivision is appropriated to the commissioner from the general fund. 23.26 (3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 23.27individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 23.28state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 23.29means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 23.30compensation during the taxable year for the performance of personal or professional services 23.31within a qualifying state; and "qualifying state" means a state with which an agreement 23.32under section 290.081 is not in effect for the taxable year but was in effect for a taxable 23.33year beginning before January 1, 2010. 24.1EFFECTIVE DATE.This section is effective for taxable years beginning after December 24.231, 2016. 24.3 Sec. 19. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 24.4read: 24.5 Subd. 37. Beginning farmer incentive credit. (a) A beginning farmer incentive credit 24.6is allowed against the tax due under this chapter for the sale or rental of agricultural assets 24.7to a beginning farmer according to section 41B.0391, subdivision 2. 24.8(b) The credit may be claimed only after approval and certification by the Rural Finance 24.9Authority according to section 41B.0391. 24.10(c) The credit is limited to the liability for tax, as computed under this chapter, for the 24.11taxable year. If the amount of the credit determined under this subdivision for any taxable 24.12year exceeds this limitation, the excess is a beginning farmer incentive credit carryover to 24.13each of the 15 succeeding taxable years. The entire amount of the excess unused credit for 24.14the taxable year is carried first to the earliest of the taxable years to which the credit may 24.15be carried and then to each successive year to which the credit may be carried. The amount 24.16of the unused credit which may be added under this paragraph must not exceed the taxpayer's 24.17liability for tax, less the beginning farmer incentive credit for the taxable year. 24.18(d) Credits allowed to a partnership, a limited liability company taxed as a partnership, 24.19an S corporation, or multiple owners of property are passed through to the partners, members, 24.20shareholders, or owners, respectively, pro rata to each based on the partner's, member's, 24.21shareholder's, or owner's share of the entity's assets or as specially allocated in the 24.22organizational documents or any other executed agreement, as of the last day of the taxable 24.23year. 24.24(e) For a nonresident or part-year resident, the credit under this section must be allocated 24.25using the percentage calculated in section 290.06, subdivision 2c, paragraph (e). 24.26(f) Notwithstanding the approval and certification by the Rural Finance Authority under 24.27section 41B.0391, the commissioner may utilize any audit and examination powers under 24.28chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the 24.29credit and to assess for the amount of any improperly claimed credit. 24.30EFFECTIVE DATE.This section is effective for taxable years beginning after December 24.3131, 2016. 25.1 Sec. 20. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 25.2read: 25.3 Subd. 38. Beginning farmer management credit. (a) A taxpayer who is a beginning 25.4farmer may take a credit against the tax due under this chapter for participation in a financial 25.5management program according to section 41B.0391, subdivision 3. 25.6(b) The credit may be claimed only after approval and certification by the Rural Finance 25.7Authority according to section 41B.0391. 25.8(c) The credit is limited to the liability for tax, as computed under this chapter, for the 25.9taxable year. If the amount of the credit determined under this subdivision for any taxable 25.10year exceeds this limitation, the excess is a beginning farmer management credit carryover 25.11to each of the three succeeding taxable years. The entire amount of the excess unused credit 25.12for the taxable year is carried first to the earliest of the taxable years to which the credit 25.13may be carried and then to each successive year to which the credit may be carried. The 25.14amount of the unused credit which may be added under this paragraph must not exceed the 25.15taxpayer's liability for tax, less the beginning farmer management credit for the taxable 25.16year. 25.17(d) For a part-year resident, the credit under this section must be allocated using the 25.18percentage calculated in section 290.06, subdivision 2c, paragraph (e). 25.19(e) Notwithstanding the approval and certification by the Rural Finance Authority under 25.20section 41B.0391, the commissioner may utilize any audit and examination powers under 25.21chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the 25.22credit and to assess for the amount of any improperly claimed credit. 25.23EFFECTIVE DATE.This section is effective for taxable years beginning after December 25.2431, 2016. 25.25 Sec. 21. Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read: 25.26 Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the tax 25.27due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 25.28dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 25.2921 of the Internal Revenue Code subject to the limitations provided in subdivision 2 except 25.30that in determining whether the child qualified as a dependent, income received as a 25.31Minnesota family investment program grant or allowance to or on behalf of the child must 25.32not be taken into account in determining whether the child received more than half of the 26.1child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal 26.2Revenue Code do not apply. 26.3(b) If a child who has not attained the age of six years at the close of the taxable year is 26.4cared for at a licensed family day care home operated by the child's parent, the taxpayer is 26.5deemed to have paid employment-related expenses. If the child is 16 months old or younger 26.6at the close of the taxable year, the amount of expenses deemed to have been paid equals 26.7the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 26.8Revenue Code. If the child is older than 16 months of age but has not attained the age of 26.9six years at the close of the taxable year, the amount of expenses deemed to have been paid 26.10equals the amount the licensee would charge for the care of a child of the same age for the 26.11same number of hours of care. 26.12(c) If a married couple: 26.13(1) has a child who has not attained the age of one year at the close of the taxable year; 26.14(2) files a joint tax return for the taxable year; and 26.15(3) does not participate in a dependent care assistance program as defined in section 129 26.16of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 26.17that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 26.18the combined earned income of the couple or (ii) the amount of the maximum limit for one 26.19qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 26.20to be the employment related expense paid for that child. The earned income limitation of 26.21section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 26.22deemed amounts apply regardless of whether any employment-related expenses have been 26.23paid. 26.24(d) If the taxpayer is not required and does not file a federal individual income tax return 26.25for the tax year, no credit is allowed for any amount paid to any person unless: 26.26(1) the name, address, and taxpayer identification number of the person are included on 26.27the return claiming the credit; or 26.28(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 26.29Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 26.30and address of the person are included on the return claiming the credit. 26.31In the case of a failure to provide the information required under the preceding sentence, 26.32the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 26.33in attempting to provide the information required. 27.1(e) In the case of a nonresident, part-year resident, or a person who has earned income 27.2not subject to tax under this chapter including earned income excluded pursuant to section 27.3290.0132, subdivision 10 , the credit determined under section 21 of the Internal Revenue 27.4Code must be allocated based on the ratio by which the earned income of the claimant and 27.5the claimant's spouse from Minnesota sources bears to the total earned income of the claimant 27.6and the claimant's spouse. 27.7(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 27.8subdivisions 11 and 12, are not considered "earned income not subject to tax under this 27.9chapter." 27.10(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 27.11Internal Revenue Code is not considered "earned income not subject to tax under this 27.12chapter." 27.13(h) For taxpayers with federal adjusted gross income in excess of $50,000, the credit is 27.14equal to the lesser of the credit otherwise calculated under this subdivision, or the amount 27.15equal to $600 minus five percent of federal adjusted gross income in excess of $50,000 for 27.16taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted 27.17gross income in excess of $50,000 for taxpayers with two or more qualified individuals, 27.18but in no case is the credit less than zero. 27.19EFFECTIVE DATE.This section is effective for taxable years beginning after December 27.2031, 2016. 27.21 Sec. 22. Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read: 27.22 Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount of 27.23the income threshold at which the maximum credit begins to be reduced under subdivision 27.242 1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal 27.25Revenue Code, except that in section 1(f)(3)(B) the word "1999" "2016" shall be substituted 27.26for the word "1992." For 2001 2018, the commissioner shall then determine the percent 27.27change from the 12 months ending on August 31, 1999 2016, to the 12 months ending on 27.28August 31, 2000 2017, and in each subsequent year, from the 12 months ending on August 27.2931, 1999 2016, to the 12 months ending on August 31 of the year preceding the taxable 27.30year. The determination of the commissioner pursuant to this subdivision must not be 27.31considered a "rule" and is not subject to the Administrative Procedure Act contained in 27.32chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. 27.33If the amount ends in $5, the amount is rounded up to the nearest $10 amount. 28.1EFFECTIVE DATE.This section is effective for taxable years beginning after December 28.231, 2016. 28.3 Sec. 23. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws 28.42017, chapter 1, section 6, is amended to read: 28.5 Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 28.6allowed a credit against the tax imposed by this chapter equal to a percentage of earned 28.7income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 28.8Internal Revenue Code. 28.9(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first 28.10$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or adjusted 28.11gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than 28.12zero. 28.13(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 28.14$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or adjusted 28.15gross income, whichever is greater, in excess of $21,190, but in no case is the credit less 28.16than zero. 28.17(d) For individuals with two or more qualifying children, the credit equals 11 percent 28.18of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 28.19income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case 28.20is the credit less than zero. 28.21(e) For a part-year resident, the credit must be allocated based on the percentage calculated 28.22under section 290.06, subdivision 2c, paragraph (e). 28.23(f) For a person who was a resident for the entire tax year and has earned income not 28.24subject to tax under this chapter, including income excluded under section 290.0132, 28.25subdivision 10 , the credit must be allocated based on the ratio of federal adjusted gross 28.26income reduced by the earned income not subject to tax under this chapter over federal 28.27adjusted gross income. For purposes of this paragraph, the following clauses are not 28.28considered "earned income not subject to tax under this chapter": 28.29(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12, 28.30are not considered "earned income not subject to tax under this chapter."For the purposes 28.31of this paragraph,; 28.32(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not 28.33considered "earned income not subject to tax under this chapter."; and 29.1(3) income derived from an Indian reservation by an enrolled member of the reservation 29.2while living on the reservation. 29.3(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b), the 29.4$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation 29.5under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 29.6For tax years beginning after December 31, 2013, the commissioner shall annually adjust 29.7the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the 29.8Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted 29.9for the word "1992." For 2014, the commissioner shall then determine the percent change 29.10from the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 29.112013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the 29.1212 months ending on August 31 of the year preceding the taxable year. The earned income 29.13thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends 29.14in $5, the amount is rounded up to the nearest $10. The determination of the commissioner 29.15under this subdivision is not a rule under the Administrative Procedure Act. 29.16(h) The commissioner shall construct tables showing the amount of the credit at various 29.17income levels and make them available to taxpayers. The tables shall follow the schedule 29.18contained in this subdivision, except that the commissioner may graduate the transition 29.19between income brackets. 29.20EFFECTIVE DATE.This section is effective for taxable years beginning after December 29.2131, 2016. 29.22 Sec. 24. Minnesota Statutes 2016, section 290.0674, subdivision 1, is amended to read: 29.23 Subdivision 1. Credit allowed. An individual is allowed a credit against the tax imposed 29.24by this chapter in an amount equal to 75 percent of the amount paid for education-related 29.25expenses for a qualifying child in a prekindergarten educational program or in kindergarten 29.26through grade 12. For purposes of this section, "education-related expenses" means: 29.27(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision 29.2810 , clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association, 29.29and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular 29.30school day or school year, including tutoring, driver's education offered as part of school 29.31curriculum, regardless of whether it is taken from a public or private entity or summer 29.32camps, in grade or age appropriate curricula that supplement curricula and instruction 29.33available during the regular school year, that assists a dependent to improve knowledge of 29.34core curriculum areas or to expand knowledge and skills under the required academic 30.1standards under section 120B.021, subdivision 1, and the elective standard under section 30.2120B.022, subdivision 1 , clause (2), and that do not include the teaching of religious tenets, 30.3doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship; 30.4(2) expenses for textbooks, including books and other instructional materials and 30.5equipment purchased or leased for use in elementary and secondary schools in teaching 30.6only those subjects legally and commonly taught in public elementary and secondary schools 30.7in this state. "Textbooks" does not include instructional books and materials used in the 30.8teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 30.9tenets, doctrines, or worship, nor does it include books or materials for extracurricular 30.10activities including sporting events, musical or dramatic events, speech activities, driver's 30.11education, or similar programs; 30.12(3) a maximum expense of $200 per family for personal computer hardware, excluding 30.13single purpose processors, and educational software that assists a dependent to improve 30.14knowledge of core curriculum areas or to expand knowledge and skills under the required 30.15academic standards under section 120B.021, subdivision 1, and the elective standard under 30.16section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and 30.17not used in a trade or business regardless of whether the computer is required by the 30.18dependent's school; and 30.19(4) the amount paid to others for tuition and transportation of a qualifying child attending 30.20an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, 30.21Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory 30.22attendance laws, which is not operated for profit, and which adheres to the provisions of 30.23the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any 30.24expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.; and 30.25(5) fees charged for enrollment in a prekindergarten educational program, to the extent 30.26not used to claim the credit under section 290.067. 30.27For purposes of this section, "qualifying child" has the meaning given in section 32(c)(3) 30.28of the Internal Revenue Code, but is limited to children who have attained at least the age 30.29of three during the taxable year. 30.30For purposes of this section, "prekindergarten educational program" means: 30.31 (1) prekindergarten programs established by a school district under chapter 124D; 31.1 (2) preschools, nursery schools, and early childhood development programs licensed by 31.2the Department of Human Services and accredited by the National Association for the 31.3Education of Young Children or National Early Childhood Program Accreditation; 31.4 (3) Montessori programs affiliated with or accredited by the American Montessori 31.5Society or American Montessori International; and 31.6 (4) child care programs provided by family day care providers holding a current early 31.7childhood development credential approved by the commissioner of human services. 31.8EFFECTIVE DATE.This section is effective for taxable years beginning after December 31.931, 2016. 31.10 Sec. 25. Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read: 31.11 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500 $42,000, 31.12the maximum credit allowed for a family is $1,000 $1,500 multiplied by the number of 31.13qualifying children in a prekindergarten educational program or in kindergarten through 31.14grade 12 in the family. The maximum credit for families with one qualifying child in 31.15kindergarten through grade 12 is reduced by $1 for each $4 $10 of household income over 31.16$33,500, and the maximum credit for families with two or more qualifying children in 31.17kindergarten through grade 12 is reduced by $2 for each $4 of household income over 31.18$33,500 $42,000, but in no case is the credit less than zero. 31.19For purposes of this section "income" has the meaning given in section 290.067, 31.20subdivision 2a . In the case of a married claimant, a credit is not allowed unless a joint income 31.21tax return is filed. 31.22(b) For a nonresident or part-year resident, the credit determined under subdivision 1 31.23and the maximum credit amount in paragraph (a) must be allocated using the percentage 31.24calculated in section 290.06, subdivision 2c, paragraph (e). 31.25EFFECTIVE DATE.This section is effective for taxable years beginning after December 31.2631, 2016. 31.27 Sec. 26. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 31.28to read: 31.29 Subd. 6. Inflation adjustment. The credit amount and the income threshold at which 31.30the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation. 31.31The commissioner shall adjust the credit amount and income threshold by the percentage 31.32determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 32.1that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992." For 32.22019, the commissioner shall then determine the percent change from the 12 months ending 32.3on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent 32.4year, from the 12 months ending August 31, 2017, to the 12 months ending on August 31 32.5of the year preceding the taxable year. The credit amount and income threshold as adjusted 32.6for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 32.7is rounded up to the nearest $10 amount. The determination of the commissioner under this 32.8subdivision is not a rule subject to the Administrative Procedure Act in chapter 14, including 32.9section 14.386. 32.10EFFECTIVE DATE.This section is effective for taxable years beginning after December 32.1131, 2018. 32.12 Sec. 27. Minnesota Statutes 2016, section 290.068, subdivision 1, is amended to read: 32.13 Subdivision 1. Credit allowed. A corporation, partners in a partnership, or shareholders 32.14in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit 32.15against the tax computed under this chapter for the taxable year equal to: 32.16 (a) ten 15 percent of the first $2,000,000 of the excess (if any) of 32.17 (1) the qualified research expenses for the taxable year, over 32.18 (2) the base amount; and 32.19 (b) 2.5 five percent on all of such excess expenses over $2,000,000. 32.20EFFECTIVE DATE.This section is effective for taxable years beginning after December 32.2131, 2016. 32.22 Sec. 28. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read: 32.23 Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 32.24given. 32.25 (a) "Qualified research expenses" means (i) qualified research expenses and basic research 32.26payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 32.27not include expenses incurred for qualified research or basic research conducted outside 32.28the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 32.29(ii) contributions to a nonprofit corporation established and operated pursuant to the 32.30provisions of chapter 317A for the purpose of promoting the establishment and expansion 32.31of business in this state, provided the contributions are invested by the nonprofit corporation 33.1for the purpose of providing funds for small, technologically innovative enterprises in 33.2Minnesota during the early stages of their development. 33.3 (b) "Qualified research" means qualified research as defined in section 41(d) of the 33.4Internal Revenue Code, except that the term does not include qualified research conducted 33.5outside the state of Minnesota. 33.6 (c) "Base amount" means: 33.7 (1) for taxpayers not subject to clause (2), the base amount as defined in section 41(c) 33.8of the Internal Revenue Code, except that the average annual gross receipts must be calculated 33.9using Minnesota sales or receipts under section 290.191 and the definitions contained in 33.10clauses paragraphs (a) and (b) shall apply.; or 33.11 (2) for a taxpayer with an alternative simplified credit election in place under subdivision 33.122a for the taxable year, 50 percent of the average qualified research expenses for the three 33.13taxable years preceding the taxable year for which the credit is being determined. In no case 33.14shall the base amount be less than 50 percent of the qualified research expenses for the 33.15taxable year. 33.16EFFECTIVE DATE.This section is effective for taxable years beginning after December 33.1731, 2017. 33.18 Sec. 29. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision 33.19to read: 33.20 Subd. 2a. Alternative simplified credit election. (a) A taxpayer qualifying for a credit 33.21under this section may elect on an original return, including all extensions, to calculate its 33.22base amount under subdivision 2, paragraph (c), clause (2), for the taxable year. The taxpayer 33.23must make the election on or before the date the return is due under section 289A.18, with 33.24any extensions allowed under section 289A.19. An election to use the alternative simplified 33.25credit remains in effect for all subsequent years, unless revoked. The taxpayer may revoke 33.26the election by filing a notice on a form prescribed by the commissioner on or before the 33.27due date for the return affected by the revocation, with any extension allowed under section 33.28289A.19. A taxpayer may revoke the election without approval of the commissioner. 33.29(b) For a partnership, the election must be made by the partnership on the partnership 33.30return or other form, as required by the commissioner, and applies to all of its partners. 33.31EFFECTIVE DATE.This section is effective for taxable years beginning after December 33.3231, 2017. 34.1 Sec. 30. [290.0682] STUDENT LOAN CREDIT. 34.2 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 34.3the meanings given. 34.4 (b) "Adjusted gross income" means federal adjusted gross income as defined in section 34.562 of the Internal Revenue Code. 34.6 (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue 34.7Code. 34.8 (d) "Eligible individual" means a resident individual with one or more qualified education 34.9loans related to an undergraduate or graduate degree program at a postsecondary educational 34.10institution. 34.11 (e) "Eligible loan payments" means the amount the eligible individual paid during the 34.12taxable year in principal and interest on qualified education loans. 34.13 (f) "Postsecondary educational institution" means a public or nonprofit postsecondary 34.14institution eligible for state student aid under section 136A.103 or, if the institution is not 34.15located in this state, a public or nonprofit postsecondary institution participating in the 34.16federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law 34.1789-329, as amended. 34.18 (g) "Qualified education loan" has the meaning given in section 221 of the Internal 34.19Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual. 34.20 Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the tax 34.21due under this chapter. 34.22 (b) The credit for an eligible individual equals the least of: 34.23 (1) eligible loan payments minus ten percent of an amount equal to adjusted gross income 34.24in excess of $10,000, but in no case less than zero; 34.25 (2) the earned income for the taxable year of the eligible individual, if any; 34.26 (3) the sum of: 34.27 (i) the interest portion of eligible loan payments made during the taxable year; and 34.28 (ii) ten percent of the original loan amount of all qualified education loans of the eligible 34.29individual; or 34.30 (4) $500. 35.1(c) For a part-year resident, the credit must be allocated based on the percentage calculated 35.2under section 290.06, subdivision 2c, paragraph (e). 35.3(d) In the case of a married couple, each spouse is eligible for the credit in this section. 35.4EFFECTIVE DATE.This section is effective for taxable years beginning after December 35.531, 2016. 35.6 Sec. 31. [290.0683] SECTION 529 COLLEGE SAVINGS PLAN CREDIT. 35.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 35.8the meanings given to them. 35.9(b) "Federal adjusted gross income" has the meaning given under section 62(a) of the 35.10Internal Revenue Code. 35.11(c) "Qualified higher education expenses" has the meaning given in section 529 of the 35.12Internal Revenue Code. 35.13 Subd. 2. Credit allowed. (a) A credit is allowed to a resident individual against the tax 35.14imposed by this chapter. The credit is not allowed to an individual who is eligible to be 35.15claimed as a dependent, as defined in sections 151 and 152 of the Internal Revenue Code. 35.16(b) The amount of the credit allowed equals 50 percent of the amount contributed in a 35.17taxable year to one or more accounts in plans qualifying under section 529 of the Internal 35.18Revenue Code, reduced by any withdrawals from accounts made during the taxable year. 35.19The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case 35.20is the credit less than zero. 35.21(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross 35.22income in excess of $75,000. 35.23(d) For married couples filing a joint return, the maximum credit is phased out as follows: 35.24(1) for married couples with adjusted gross income in excess of $75,000, but not more 35.25than $100,000, the maximum credit is reduced by one percent of adjusted gross income in 35.26excess of $75,000; 35.27(2) for married couples with adjusted gross income in excess of $100,000, but not more 35.28than $135,000, the maximum credit is $250; and 35.29(3) for married couples with adjusted gross income in excess of $135,000, the maximum 35.30credit is $250, reduced by one percent of adjusted gross income in excess of $135,000. 36.1(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum 36.2credit must be adjusted for inflation. The commissioner shall adjust the income thresholds 36.3by the percentage determined under the provisions of section 1(f) of the Internal Revenue 36.4Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." 36.5For 2018, the commissioner shall then determine the percent change from the 12 months 36.6ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each 36.7subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending 36.8on August 31 of the year preceding the taxable year. The income thresholds as adjusted for 36.9inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 36.10is rounded up to the nearest $10 amount. The determination of the commissioner under this 36.11subdivision is not subject to chapter 14, including section 14.386. 36.12 Subd. 3. Allocation. For a part-year resident, the credit must be allocated based on the 36.13percentage calculated under section 290.06, subdivision 2c, paragraph (e). 36.14 Subd. 4. Revocation. If an individual makes a withdrawal of contributions for a purpose 36.15other than to pay for qualified higher education expenses, then: 36.16(1) contributions used to claim the credit are considered to be the first contributions 36.17withdrawn; and 36.18(2) the amount of any credit allowed to any individual under this section in a prior tax 36.19year for such contributions must be paid by the individual who makes the withdrawal as 36.20additional income tax for the taxable year in which the individual makes the withdrawal. 36.21EFFECTIVE DATE.This section is effective for taxable years beginning after December 36.2231, 2016. 36.23 Sec. 32. [290.0684] CREDIT FOR ATTAINING MASTER'S DEGREE IN 36.24TEACHER'S LICENSURE FIELD. 36.25 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 36.26the meanings given them. 36.27(b) "Master's degree program" means a graduate-level program at an accredited university 36.28leading to a master of arts or science degree in a core content area directly related to a 36.29qualified teacher's licensure field. The master's degree program may not include pedagogy 36.30or a pedagogy component. To be eligible under this credit, a licensed elementary school 36.31teacher must pursue and complete a master's degree program in a core content area in which 36.32the teacher provides direct classroom instruction. 36.33(c) "Qualified teacher" means a person who: 37.1(1) holds a teaching license issued by the licensing division in the Department of 37.2Education on behalf of the Minnesota Board of Teaching both when the teacher begins the 37.3master's degree program and when the teacher completes the master's degree program; 37.4(2) began a master's degree program after June 30, 2017; and 37.5(3) completes the master's degree program during the taxable year. 37.6(d) "Core content area" means the academic subject of reading, English or language arts, 37.7mathematics, science, foreign languages, civics and government, economics, arts, history, 37.8or geography. 37.9 Subd. 2. Credit allowed. (a) An individual who is a qualified teacher is allowed a credit 37.10against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the 37.11amount the individual paid for tuition, fees, books, and instructional materials necessary to 37.12completing the master's degree program and for which the individual did not receive 37.13reimbursement from an employer or scholarship. 37.14(b) For a nonresident or a part-year resident, the credit under this subdivision must be 37.15allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph 37.16(e). 37.17(c) A qualified teacher may claim the credit in this section only one time for each master's 37.18degree program completed in a core content area. 37.19EFFECTIVE DATE.This section is effective for taxable years beginning after December 37.2031, 2016. 37.21 Sec. 33. Minnesota Statutes 2016, section 290.0692, is amended by adding a subdivision 37.22to read: 37.23 Subd. 6. Sunset. This section expires at the same time and on the same terms as section 37.24116J.8737, except that the expiration of this section does not affect the commissioner of 37.25revenue's authority to audit or power of examination and assessment for credits claimed 37.26under this section. 37.27EFFECTIVE DATE.This section is effective the day following final enactment. 37.28 Sec. 34. [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT. 37.29 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 37.30the meanings given. 37.31(b) "Eligible student" means a student who: 38.1(1) resides in Minnesota; 38.2(2) is a member of a household that has total annual income during the year prior to 38.3initial receipt of a qualified scholarship or a qualified transportation scholarship, without 38.4consideration of the benefits under this program that does not exceed an amount equal to 38.5two times the income standard used to qualify for a reduced-price meal under the National 38.6School Lunch Program; and 38.7(3) meets one of the following criteria: 38.8(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester 38.9preceding initial receipt of a qualified scholarship or a qualified transportation scholarship; 38.10(ii) is younger than age seven and not enrolled in kindergarten or first grade in the 38.11semester preceding initial receipt of a qualified scholarship or a qualified transportation 38.12scholarship; 38.13(iii) previously received a qualified scholarship or a qualified transportation scholarship 38.14under this section; or 38.15(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified scholarship 38.16or a qualified transportation scholarship. 38.17(c) "Equity and opportunity in education donation" means a donation to a qualified 38.18foundation that awards qualified scholarships, awards qualified transportation scholarships, 38.19makes qualified grants, or is a qualified public school foundation. 38.20(d) "Household" means household as used to determine eligibility under the National 38.21School Lunch Program. 38.22(e) "National School Lunch Program" means the program in United States Code, title 38.2342, section 1758. 38.24(f) "Qualified charter school" means a charter elementary or secondary school in 38.25Minnesota at which at least 30 percent of students qualify for a free or reduced-price meal 38.26under the National School Lunch Program. 38.27(g) "Qualified foundation" means a nonprofit organization granted an exemption from 38.28the federal income tax under section 501(c)(3) of the Internal Revenue Code that has been 38.29approved as a qualified foundation by the commissioner of revenue under subdivision 5. 38.30(h) "Qualified grant" means a grant from a qualified foundation to a qualified charter 38.31school for use in support of the school's mission of educating students in academics, arts, 38.32or athletics, including transportation. 39.1(i) "Qualified public school foundation" means a qualified foundation formed for the 39.2primary purpose of supporting one or more public schools or school districts in Minnesota 39.3at which at least 30 percent of students qualify for a free or reduced-price meal under the 39.4National School Lunch Program. 39.5(j) "Qualified scholarship" means a payment from a qualified foundation to or on behalf 39.6of the parent or guardian of an eligible student for payment of tuition for enrollment in 39.7grades kindergarten through 12 at a qualified school. A qualified scholarship must not 39.8exceed an amount greater than 70 percent of the state average general education revenue 39.9under section 126C.10, subdivision 1, per pupil unit. 39.10(k) "Qualified school" means a school operated in Minnesota that is a nonpublic 39.11elementary or secondary school in Minnesota wherein a resident may legally fulfill the 39.12state's compulsory attendance laws that is not operated for profit, and that adheres to the 39.13provisions of United States Code, title 42, section 1981, and chapter 363A. 39.14(l) "Qualified transportation scholarship" means a payment from a qualified foundation 39.15to or on behalf of a parent or guardian of an eligible student for payment of transportation 39.16to a school, as defined in section 120A.22, subdivision 4. A qualified transportation 39.17scholarship must not exceed an amount greater than 70 percent of the state average general 39.18education revenue under section 126C.10, subdivision 1, per pupil unit. 39.19(m) "Total annual income" means the income measure used to determine eligibility 39.20under the National School Lunch Program. 39.21 Subd. 2. Credit allowed. (a) An individual or corporate taxpayer who has been issued 39.22a credit certificate under subdivision 3 is allowed a credit against the tax due under this 39.23chapter equal to 70 percent of the amount of the equity and opportunity donation made 39.24during the taxable year to the qualified foundation, including a qualified public school 39.25foundation, designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer 39.26designates a specific child as the beneficiary of the contribution. No credit is allowed to a 39.27taxpayer for an equity and opportunity in education donation made before the taxpayer was 39.28issued a credit certificate as provided in subdivision 3. 39.29(b) The maximum annual credit allowed is: 39.30(1) $21,000 for married joint filers for a one-year donation of $30,000; 39.31(2) $10,500 for other individual filers for a one-year donation of $15,000; and 39.32(3) $105,000 for corporate filers for a one-year donation of $150,000. 40.1(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation 40.2when claiming the credit for the donation if requested by the commissioner. 40.3(d) The credit is limited to the liability for tax under this chapter, including the tax 40.4imposed by sections 290.0921 and 290.0922. 40.5(e) If the amount of the credit under this subdivision for any taxable year exceeds the 40.6limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding 40.7taxable years. The entire amount of the excess unused credit for the taxable year must be 40.8carried first to the earliest of the taxable years to which the credit may be carried. The 40.9amount of the unused credit that may be added under this paragraph may not exceed the 40.10taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to 40.11a taxable year more than five years after the taxable year in which the credit was earned. 40.12 Subd. 3. Application for credit certificate. (a) The commissioner must make applications 40.13for tax credits for 2018 available on the department's Web site by January 1, 2018. 40.14Applications for subsequent years must be made available by January 1 of the taxable year. 40.15(b) A taxpayer must apply to the commissioner for an equity and opportunity in education 40.16tax credit certificate. The application must be in the form and manner specified by the 40.17commissioner. The application must designate the qualified foundation to which the taxpayer 40.18intends to make a donation, and if the donation is for the purpose of awarding qualified 40.19scholarships, awarding qualified transportation scholarships, awarding qualified grants, or 40.20making expenditures in support of one or more public schools or school districts. The 40.21commissioner must begin accepting applications for a taxable year on January 1. The 40.22commissioner must issue tax credit certificates under this section on a first-come, first-served 40.23basis until the maximum statewide credit amounts have been reached. The certificates must 40.24list the qualified foundation, or the qualified public school foundation, the taxpayer designated 40.25on the application, and if the donation is to be used for awarding qualified scholarships, 40.26awarding qualified transportation scholarships, awarding qualified grants, or making 40.27expenditures in support of one or more public schools or school districts. 40.28(c) The maximum statewide credit amount for tax credits for donations to qualified 40.29foundations for the purpose of awarding qualified scholarships and qualified transportation 40.30scholarships is $33,000,000 per taxable year for taxable years beginning after December 40.3131, 2017. 40.32(d) The maximum statewide credit amount for donations to qualified foundations for 40.33the purpose of awarding qualified grants and for donations to qualified public school 41.1foundations is $2,000,000 per taxable year for taxable years beginning after December 31, 41.22017. 41.3(e) Any portion of a taxable year's credits for which a tax credit certificate is not issued 41.4does not cancel and may be carried forward to subsequent taxable years. 41.5(f) The commissioner must not issue a tax credit certificate for an amount greater than 41.6the limits in subdivision 2. 41.7(g) The commissioner must not issue a credit certificate for an application that designates 41.8a qualified foundation that the commissioner has barred from participation as provided in 41.9subdivision 5. 41.10 Subd. 4. Responsibilities of qualified foundations. (a) An entity that is eligible to be 41.11a qualified foundation must apply to the commissioner by September 15 of the year preceding 41.12the year in which it will first receive donations that qualify for a credit under this section. 41.13The application must be in the form and manner prescribed by the commissioner. The 41.14application must: 41.15(1) demonstrate to the commissioner that the entity is exempt from the federal income 41.16tax as an organization described in section 501(c)(3) of the Internal Revenue Code; 41.17(2) demonstrate the entity's financial accountability by submitting its most recent audited 41.18financial statement prepared by a certified public accountant firm licensed under chapter 41.19326A using the Statements on Auditing Standards issued by the Audit Standards Board of 41.20the American Institute of Certified Public Accountants; and 41.21(3) specify if the entity intends to award qualified scholarships, award qualified 41.22transportation scholarships, award qualified grants, or if the entity is a qualified public 41.23school foundation. An entity may award any combination of qualified scholarships, qualified 41.24transportation scholarships, and qualified grants. 41.25(b) A qualified foundation must provide to taxpayers who make donations or 41.26commitments to donate a receipt or verification on a form approved by the commissioner. 41.27(c) A qualified foundation that awards qualified scholarships or qualified transportation 41.28scholarships must: 41.29(1) award qualified scholarships or qualified transportation scholarships to eligible 41.30students; 41.31(2) not restrict the availability of scholarships to students of one qualified school; 41.32(3) not charge a fee of any kind for a child to be considered for a scholarship; and 42.1(4) require a qualified school receiving payment of tuition through a scholarship funded 42.2by contributions qualifying for the tax credit under this section to sign an agreement that it 42.3will not use different admissions standards for a student with a qualified scholarship. 42.4(d) A qualified foundation that awards qualified scholarships must, in each year it awards 42.5qualified scholarships to eligible students to enroll in a qualified school, obtain from the 42.6qualified school documentation that the school: 42.7(i) complies with all health and safety laws or codes that apply to nonpublic schools; 42.8(ii) holds a valid occupancy permit if required by its municipality; 42.9(iii) certifies that it adheres to the provisions of chapter 363A and United States Code, 42.10title 42, section 1981; and 42.11(iv) provides academic accountability to parents of students in the program by regularly 42.12reporting to the parents on the student's progress. 42.13A qualified foundation must make the documentation available to the commissioner on 42.14request. 42.15(e) A qualified foundation must, by June 1 of each year following a year in which it 42.16receives donations, provide the following information to the commissioner: 42.17(1) financial information that demonstrates the financial viability of the qualified 42.18foundation, if it is to receive donations of $150,000 or more during the year; 42.19(2) documentation that it has conducted criminal background checks on all of its 42.20employees and board members and has excluded from employment or governance any 42.21individuals who might reasonably pose a risk to the appropriate use of contributed funds; 42.22(3) consistent with paragraph (f), document that it has used amounts received as donations 42.23to provide qualified scholarships, to provide qualified transportation scholarships, to make 42.24qualified grants, or to make expenditures in support of one or more public schools or school 42.25districts, as specified on the tax credit certificates issued for the donations, within one 42.26calendar year of the calendar year in which it received the donation; 42.27(4) if the qualified foundation awards qualified scholarships or qualified transportation 42.28scholarships, a list of qualified schools that enrolled eligible students to whom the qualified 42.29foundation awarded qualified scholarships or qualified transportation scholarships; 42.30(5) if the qualified foundation makes qualified grants, a list of qualified charter schools 42.31to which the qualified foundation made qualified grants; 43.1(6) if the qualified foundation is a qualified public school foundation, a list of expenditures 43.2made in support of the mission of one or more public schools or school districts of educating 43.3students in academics, arts, or athletics, including transportation; and 43.4(7) the following information prepared by a certified public accountant regarding 43.5donations received in the previous calendar year: 43.6(i) the total number and total dollar amount of donations received from taxpayers; 43.7(ii) the dollar amount of donations used for administrative expenses, as allowed by 43.8paragraph (f); 43.9(iii) if the qualified foundation awarded qualified scholarships, the total number and 43.10dollar amount of qualified scholarships awarded; 43.11(iv) if the qualified foundation awarded qualified transportation scholarships, the total 43.12number and dollar amount of qualified transportation scholarships awarded; 43.13(v) if the qualified foundation made qualified grants, the total number and dollar amount 43.14of qualified grants made; and 43.15(vi) if the qualified foundation is a qualified public school foundation, the total number 43.16and dollar amount of expenditures made in support of the mission of one or more public 43.17schools or school districts of educating students in academics, arts, or athletics, including 43.18transportation. 43.19(f) The foundation may use up to five percent of the amounts received as donations for 43.20reasonable administrative expenses, including but not limited to fund-raising, scholarship 43.21tracking, and reporting requirements. 43.22 Subd. 5. Responsibilities of commissioner. (a) The commissioner must make 43.23applications for an entity to be approved as a qualified foundation for a taxable year available 43.24on the department's Web site by August 1 of the year preceding the taxable year. The 43.25commissioner must approve an application that provides the documentation required in 43.26subdivision 4, paragraph (a), within 60 days of receiving the application. The commissioner 43.27must notify a foundation that provides incomplete documentation and the foundation may 43.28resubmit its application within 30 days. 43.29(b) By November 15 of each year, the commissioner must post on the department's Web 43.30site the names and addresses of qualified foundations for the next taxable year. For each 43.31qualified foundation, the list must indicate if the foundation intends to award qualified 43.32scholarships, award qualified transportation scholarships, award qualified grants, or is a 43.33qualified public school foundation. The commissioner must regularly update the names and 44.1addresses of any qualified foundations that have been barred from participating in the 44.2program. 44.3(c) The commissioner must prescribe a standardized format for a receipt to be issued by 44.4a qualified foundation to a taxpayer to indicate the amount of a donation received and of a 44.5commitment to make a donation. 44.6(d) The commissioner must prescribe a standardized format for qualified foundations 44.7to report the information required under subdivision 4, paragraph (e). 44.8(e) The commissioner may conduct either a financial review or audit of a qualified 44.9foundation upon finding evidence of fraud or intentional misreporting. If the commissioner 44.10determines that the qualified foundation committed fraud or intentionally misreported 44.11information, the qualified foundation is barred from further program participation. 44.12(f) If a qualified foundation fails to submit the documentation required under subdivision 44.134, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July 44.141. A qualified foundation that fails to submit the required information by August 1 is barred 44.15from participation for the next taxable year. 44.16(g) If a qualified foundation fails to comply with the requirements of subdivision 4, 44.17paragraph (e), the commissioner must by September 1 notify the qualified foundation that 44.18it has until November 1 to document that it has remedied its noncompliance. A qualified 44.19foundation that fails to document that it has remedied its noncompliance by November 1 is 44.20barred from participation for the next taxable year. 44.21(h) A qualified foundation barred under paragraph (f) or (g) may become eligible to 44.22participate by submitting the required information in future years. 44.23(i) Determinations of the commissioner under this subdivision are not considered rules 44.24and are not subject to the Administrative Procedures Act in chapter 14, including section 44.2514.386. 44.26 Subd. 6. Special education services. A student's receipt of a qualified scholarship under 44.27this section does not affect the student's eligibility for instruction and service under section 44.28125A.18 or otherwise affect the student's status under federal special education laws. 44.29EFFECTIVE DATE.This section is effective the day following final enactment for 44.30donations made and credits allowed in taxable years beginning after December 31, 2017. 44.31 Sec. 35. Minnesota Statutes 2016, section 290.081, is amended to read: 44.32290.081 INCOME OF NONRESIDENTS, RECIPROCITY. 45.1(a) The compensation received for the performance of personal or professional services 45.2within this state by an individual whose residence, place of abode, and place customarily 45.3returned to at least once a month is in another state, shall be excluded from gross income 45.4to the extent such compensation is subject to an income tax imposed by the state of residence; 45.5provided that such state allows a similar exclusion of compensation received by residents 45.6of Minnesota for services performed therein. 45.7(b) When it is deemed to be in the best interests of the people of this state, the 45.8commissioner may determine that the provisions of paragraph (a) shall not apply. As long 45.9as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions 45.10of paragraph (a) shall apply to any individual who is domiciled in Wisconsin. 45.11(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents 45.12which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax 45.13on Wisconsin residents which would have been paid Minnesota without paragraph (a), or 45.14vice versa, then the state with the net revenue loss resulting from calculated under paragraph 45.15(a) (e) shall receive from the other state the amount of such loss. This provision shall be 45.16effective for all years beginning after December 31, 1972. The data used for computing the 45.17loss to either state shall be determined on or before September 30 of the year following the 45.18close of the previous calendar year. 45.19(d)(1) Interest is payable on all amounts calculated under paragraph (c) relating to taxable 45.20years beginning after December 31, 2000. Interest accrues from July 1 of the taxable year. 45.21Payments for amounts calculated under paragraph (c) must equal one-quarter of the estimated 45.22annual amount and must be paid at the midpoint of each quarter, on February 15, May 15, 45.23August 15, and November 15. 45.24(2) (e)(1) The commissioner of revenue is authorized to enter into agreements with the 45.25state of Wisconsin specifying the reciprocity payment due dates, conditions constituting 45.26delinquency, interest rates, and a method for computing interest due. 45.27(3) (2) For agreements entered into before October 1, 2014 August 1, 2018, the annual 45.28compensation required under paragraph (c) must equal at least the net revenue loss minus 45.29$1,000,000 up to $3,000,000 per fiscal year. 45.30(4) For agreements entered into after September 30, 2014, the annual compensation 45.31required under paragraph (c) must equal the net revenue loss per fiscal year. 45.32(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the 45.33difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing 45.34Wisconsin residents on income subject to reciprocity and the credit Minnesota would have 46.1been required to give under section 290.06, subdivision 22, to Minnesota residents working 46.2in Wisconsin had there not been reciprocity. 46.3(4) All agreements must include provisions: 46.4(i) providing for a suspension of the agreement if one party to the agreement does not 46.5pay in full by a time prescribed in the agreement; 46.6(ii) setting the interest rate that will be applied, and that interest shall run from the date 46.7the payment is due until the day the payment is made, except that interest from the 46.8reconciliation payments runs from July 1 of the tax year until paid; 46.9(iii) stating a time for annual reconciliation must be completed by October 31 of the 46.10year following the tax year, and the time for payment of any amounts to be completed by 46.11no later than December 1 of the year following the tax year; 46.12(iv) requiring the parties to jointly conduct updated benchmark studies every five years 46.13beginning tax year 2018; 46.14(v) requiring each party to the agreement to require taxpayers who request exemption 46.15from withholding in the state where they work to make an annual application and that a list 46.16of participants will be exchanged annually; and 46.17(vi) the sum of the amount of the quarterly payments must be a reasonable estimate of 46.18the revenue loss as defined in item (iii). 46.19(e) (f) If an agreement cannot be reached as to the amount of the loss, the commissioner 46.20of revenue and the taxing official of the state of Wisconsin shall each appoint a member of 46.21a board of arbitration and these members shall appoint the third member of the board. The 46.22board shall select one of its members as chair. Such board may administer oaths, take 46.23testimony, subpoena witnesses, and require their attendance, require the production of books, 46.24papers and documents, and hold hearings at such places as are deemed necessary. The board 46.25shall then make a determination as to the amount to be paid the other state which 46.26determination shall be final and conclusive. 46.27(f) (g) The commissioner may furnish copies of returns, reports, or other information to 46.28the taxing official of the state of Wisconsin, a member of the board of arbitration, or a 46.29consultant under joint contract with the states of Minnesota and Wisconsin for the purpose 46.30of making a determination as to the amount to be paid the other state under the provisions 46.31of this section. Prior to the release of any information under the provisions of this section, 46.32the person to whom the information is to be released shall sign an agreement which provides 47.1that the person will protect the confidentiality of the returns and information revealed thereby 47.2to the extent that it is protected under the laws of the state of Minnesota. 47.3EFFECTIVE DATE.This section is effective for taxable years beginning after December 47.431, 2017. 47.5 Sec. 36. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read: 47.6 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 47.7terms have the meanings given: 47.8 (a) "Alternative minimum taxable income" means the sum of the following for the taxable 47.9year: 47.10 (1) the taxpayer's federal alternative minimum taxable income as defined in section 47.1155(b)(2) of the Internal Revenue Code; 47.12 (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 47.13taxable income, but excluding: 47.14 (i) the charitable contribution deduction under section 170 of the Internal Revenue Code; 47.15 (ii) the medical expense deduction; 47.16 (iii) the casualty, theft, and disaster loss deduction; and 47.17 (iv) the impairment-related work expenses of a disabled person; 47.18 (3) for depletion allowances computed under section 613A(c) of the Internal Revenue 47.19Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 47.20to the extent not included in federal alternative minimum taxable income, the excess of the 47.21deduction for depletion allowable under section 611 of the Internal Revenue Code for the 47.22taxable year over the adjusted basis of the property at the end of the taxable year (determined 47.23without regard to the depletion deduction for the taxable year); 47.24 (4) to the extent not included in federal alternative minimum taxable income, the amount 47.25of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 47.26Code determined without regard to subparagraph (E); 47.27 (5) to the extent not included in federal alternative minimum taxable income, the amount 47.28of interest income as provided by section 290.0131, subdivision 2; and 47.29 (6) the amount of addition required by section 290.0131, subdivisions 9 to 11; 47.30 less the sum of the amounts determined under the following: 48.1 (1) interest income as defined in section 290.0132, subdivision 2; 48.2 (2) an overpayment of state income tax as provided by section 290.0132, subdivision 3, 48.3to the extent included in federal alternative minimum taxable income; 48.4 (3) the amount of investment interest paid or accrued within the taxable year on 48.5indebtedness to the extent that the amount does not exceed net investment income, as defined 48.6in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 48.7in computing federal adjusted gross income; 48.8 (4) amounts subtracted from federal taxable income as provided by section 290.0132, 48.9subdivisions 7 , 9 to 15, 17, and 21, 24 to 26; and 48.10(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, 48.11paragraph (c). 48.12 In the case of an estate or trust, alternative minimum taxable income must be computed 48.13as provided in section 59(c) of the Internal Revenue Code. 48.14 (b) "Investment interest" means investment interest as defined in section 163(d)(3) of 48.15the Internal Revenue Code. 48.16 (c) "Net minimum tax" means the minimum tax imposed by this section. 48.17 (d) "Regular tax" means the tax that would be imposed under this chapter (without regard 48.18to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 48.19under this chapter. 48.20 (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 48.21after subtracting the exemption amount determined under subdivision 3. 48.22EFFECTIVE DATE.This section is effective for taxable years beginning after December 48.2331, 2016. 48.24 Sec. 37. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws 48.252017, chapter 1, section 8, is amended to read: 48.26 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms 48.27used in this chapter shall have the following meanings: 48.28 (1) "Commissioner" means the commissioner of revenue or any person to whom the 48.29commissioner has delegated functions under this chapter. 48.30 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 48.31and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 49.1increased by the value of any property in which the decedent had a qualifying income interest 49.2for life and for which an election was made under section 291.03, subdivision 1d, for 49.3Minnesota estate tax purposes, but was not made for federal estate tax purposes. 49.4 (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 49.5as amended through December 16, 2016. 49.6 (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 49.7excluding therefrom any property included in the estate which has its situs outside Minnesota, 49.8and (b) including any property omitted from the federal gross estate which is includable in 49.9the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities. 49.10 (5) "Nonresident decedent" means an individual whose domicile at the time of death 49.11was not in Minnesota. 49.12 (6) "Personal representative" means the executor, administrator or other person appointed 49.13by the court to administer and dispose of the property of the decedent. If there is no executor, 49.14administrator or other person appointed, qualified, and acting within this state, then any 49.15person in actual or constructive possession of any property having a situs in this state which 49.16is included in the federal gross estate of the decedent shall be deemed to be a personal 49.17representative to the extent of the property and the Minnesota estate tax due with respect 49.18to the property. 49.19 (7) "Resident decedent" means an individual whose domicile at the time of death was 49.20in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 49.21to determinations of domicile under this chapter. 49.22 (8) "Situs of property" means, with respect to: 49.23 (i) real property, the state or country in which it is located; 49.24 (ii) tangible personal property, the state or country in which it was normally kept or 49.25located at the time of the decedent's death or for a gift of tangible personal property within 49.26three years of death, the state or country in which it was normally kept or located when the 49.27gift was executed; 49.28 (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 49.29Code, owned by a nonresident decedent and that is normally kept or located in this state 49.30because it is on loan to an organization, qualifying as exempt from taxation under section 49.31501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 49.32deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and 50.1 (iv) intangible personal property, the state or country in which the decedent was domiciled 50.2at death or for a gift of intangible personal property within three years of death, the state or 50.3country in which the decedent was domiciled when the gift was executed. 50.4 For a nonresident decedent with an ownership interest in a pass-through entity with 50.5assets that include real or tangible personal property, situs of the real or tangible personal 50.6property, including qualified works of art, is determined as if the pass-through entity does 50.7not exist and the real or tangible personal property is personally owned by the decedent. If 50.8the pass-through entity is owned by a person or persons in addition to the decedent, ownership 50.9of the property is attributed to the decedent in proportion to the decedent's capital ownership 50.10share of the pass-through entity. 50.11(9) "Pass-through entity" includes the following: 50.12(i) an entity electing S corporation status under section 1362 of the Internal Revenue 50.13Code; 50.14(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; 50.15(iii) a single-member limited liability company or similar entity, regardless of whether 50.16it is taxed as an association or is disregarded for federal income tax purposes under Code 50.17of Federal Regulations, title 26, section 301.7701-3; or 50.18(iv) a trust to the extent the property is includible in the decedent's federal gross estate; 50.19but excludes 50.20 (v) an entity whose ownership interest securities are traded on an exchange regulated 50.21by the Securities and Exchange Commission as a national securities exchange under section 50.226 of the Securities Exchange Act, United States Code, title 15, section 78f. 50.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents 50.24dying after December 31, 2016. 50.25 Sec. 38. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read: 50.26 Subd. 3. Subtraction. The value of qualified small business property under section 50.27291.03, subdivision 9 , and the value of qualified farm property under section 291.03, 50.28subdivision 10 , or the result of $5,000,000 minus the amount for the year of death listed in 50.29clauses (1) to (5), whichever is less, decedent's applicable federal exclusion amount under 50.30section 2010(c)(2) of the Internal Revenue Code may be subtracted in computing the 50.31Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than zero:. 50.32(1) $1,200,000 for estates of decedents dying in 2014; 51.1(2) $1,400,000 for estates of decedents dying in 2015; 51.2(3) $1,600,000 for estates of decedents dying in 2016; 51.3(4) $1,800,000 for estates of decedents dying in 2017; and 51.4(5) $2,000,000 for estates of decedents dying in 2018 and thereafter. 51.5EFFECTIVE DATE.This section is effective retroactively for estates of decedents 51.6dying after December 31, 2016. 51.7 Sec. 39. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read: 51.8 Subdivision 1. Tax amount. The tax imposed must be computed by applying to the 51.9Minnesota taxable estate the following schedule of rates and then the resulting amount 51.10multiplied by a fraction, not greater than one, the numerator of which is the value of the 51.11Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause 51.12(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus 51.13the value of gifts under section 291.016, subdivision 2, clause (3): 51.14 (a) For estates of decedents dying in 2014: 51.15 Amount of Minnesota Taxable Estate Rate of Tax 51.16 Not over $1,200,000 None 51.17 Over $1,200,000 but not over $1,400,000 nine percent of the excess over $1,200,000 51.18 51.19 Over $1,400,000 but not over $3,600,000 $18,000 plus ten percent of the excess over $1,400,000 51.20 51.21 Over $3,600,000 but not over $4,100,000 $238,000 plus 10.4 percent of the excess over $3,600,000 51.22 51.23 Over $4,100,000 but not over $5,100,000 $290,000 plus 11.2 percent of the excess over $4,100,000 51.24 51.25 Over $5,100,000 but not over $6,100,000 $402,000 plus 12 percent of the excess over $5,100,000 51.26 51.27 Over $6,100,000 but not over $7,100,000 $522,000 plus 12.8 percent of the excess over $6,100,000 51.28 51.29 Over $7,100,000 but not over $8,100,000 $650,000 plus 13.6 percent of the excess over $7,100,000 51.30 51.31 Over $8,100,000 but not over $9,100,000 $786,000 plus 14.4 percent of the excess over $8,100,000 51.32 51.33 Over $9,100,000 but not over $10,100,000 $930,000 plus 15.2 percent of the excess over $9,100,000 51.34 51.35 Over $10,100,000 $1,082,000 plus 16 percent of the excess over $10,100,000

51.36(b) For estates of decedents dying in 2015: 51.37 Amount of Minnesota Taxable Estate Rate of Tax 51.38 Not over $1,400,000 None 51.39 Over $1,400,000 but not over $3,600,000 ten percent of the excess over $1,400,000 52.1 52.2 Over $3,600,000 but not over $6,100,000 $220,000 plus 12 percent of the excess over $3,600,000 52.3 52.4 Over $6,100,000 but not over $7,100,000 $520,000 plus 12.8 percent of the excess over $6,100,000 52.5 52.6 Over $7,100,000 but not over $8,100,000 $648,000 plus 13.6 percent of the excess over $7,100,000 52.7 52.8 Over $8,100,000 but not over $9,100,000 $784,000 plus 14.4 percent of the excess over $8,100,000 52.9 52.10 Over $9,100,000 but not over $10,100,000 $928,000 plus 15.2 percent of the excess over $9,100,000 52.11 52.12 Over $10,100,000 $1,080,000 plus 16 percent of the excess over $10,100,000

52.13(c) For estates of decedents dying in 2016: 52.14 Amount of Minnesota Taxable Estate Rate of Tax 52.15 Not over $1,600,000 None 52.16 Over $1,600,000 but not over $2,600,000 ten percent of the excess over $1,600,000 52.17 52.18 Over $2,600,000 but not over $6,100,000 $100,000 plus 12 percent of the excess over $2,600,000 52.19 52.20 Over $6,100,000 but not over $7,100,000 $520,000 plus 12.8 percent of the excess over $6,100,000 52.21 52.22 Over $7,100,000 but not over $8,100,000 $648,000 plus 13.6 percent of the excess over $7,100,000 52.23 52.24 Over $8,100,000 but not over $9,100,000 $784,000 plus 14.4 percent of the excess over $8,100,000 52.25 52.26 Over $9,100,000 but not over $10,100,000 $928,000 plus 15.2 percent of the excess over $9,100,000 52.27 52.28 Over $10,100,000 $1,080,000 plus 16 percent of the excess over $10,100,000

52.29(d) For estates of decedents dying in 2017 and thereafter: 52.30 Amount of Minnesota Taxable Estate Rate of Tax 52.31 Not over $1,800,000 None 52.32 Over $1,800,000 but not over $2,100,000 ten percent of the excess over $1,800,000 52.33 52.34 Over $2,100,000 but not over $5,100,000 $30,000 plus 12 percent of the excess over $2,100,000 52.35 52.36 Over $5,100,000 but not over $7,100,000 $390,000 plus 12.8 percent of the excess over $5,100,000 52.37 52.38 Over $7,100,000 but not over $8,100,000 $646,000 plus 13.6 percent of the excess over $7,100,000 52.39 52.40 Over $8,100,000 but not over $9,100,000 $782,000 plus 14.4 percent of the excess over $8,100,000 52.41 52.42 Over $9,100,000 but not over $10,100,000 $926,000 plus 15.2 percent of the excess over $9,100,000 52.43 52.44 Over $10,100,000 $1,078,000 plus 16 percent of the excess over $10,100,000

52.45(e) For estates of decedents dying in 2018 and thereafter: 52.46 Amount of Minnesota Taxable Estate Rate of Tax 52.47 Not over $2,000,000 $7,100,000 None 13 percent 53.1 Over $2,000,000 but not over $2,600,000 ten percent of the excess over $2,000,000 53.2 53.3 Over $2,600,000 but not over $7,100,000 $60,000 plus 13 percent of the excess over $2,600,000 53.4 53.5 Over $7,100,000 but not over $8,100,000 $645,000 $923,000 plus 13.6 percent of the excess over $7,100,000 53.6 53.7 Over $8,100,000 but not over $9,100,000 $781,000 $1,059,000 plus 14.4 percent of the excess over $8,100,000 53.8 53.9 Over $9,100,000 but not over $10,100,000 $925,000 $1,203,000 plus 15.2 percent of the excess over $9,100,000 53.10 53.11 Over $10,100,000 $1,077,000 $1,355,000 plus 16 percent of the excess over $10,100,000

53.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents 53.13dying after December 31, 2016. 53.14 Sec. 40. [462D.01] CITATION. 53.15This chapter may be cited as the "First-Time Home Buyer Savings Account Act." 53.16EFFECTIVE DATE.This section is effective the day following final enactment. 53.17 Sec. 41. [462D.02] DEFINITIONS. 53.18 Subdivision 1. Definitions. For purposes of this chapter, the following terms have the 53.19meanings given. 53.20 Subd. 2. Account holder. "Account holder" means an individual who establishes, 53.21individually or jointly with one or more other individuals, a first-time home buyer savings 53.22account. 53.23 Subd. 3. Allowable closing costs. "Allowable closing costs" means a disbursement listed 53.24on a settlement statement for the purchase of a single-family residence in Minnesota by a 53.25qualified beneficiary. 53.26 Subd. 4. Commissioner. "Commissioner" means the commissioner of revenue. 53.27 Subd. 5. Eligible costs. "Eligible costs" means the down payment and allowable closing 53.28costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary. 53.29Eligible costs include paying for the cost of construction of or financing the construction 53.30of a single-family residence. 53.31 Subd. 6. Financial institution. "Financial institution" means a bank, bank and trust, 53.32trust company with banking powers, savings bank, savings association, or credit union, 53.33organized under the laws of this state, any other state, or the United States; an industrial 53.34loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits; 54.1or a money market mutual fund registered under the federal Investment Company Act of 54.21940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission 54.3under that act. 54.4 Subd. 7. First-time home buyer. "First-time home buyer" means an individual, and if 54.5married, the individual's spouse, who has no present ownership interest in a principal 54.6residence during the three-year period ending on the earlier of: 54.7(1) the date of the purchase of the single-family residence funded, in part, with proceeds 54.8from the first-time home buyer savings account; or 54.9(2) the close of the taxable year for which a subtraction is claimed under sections 54.10290.0132 and 462D.06. 54.11 Subd. 8. First-time home buyer savings account. "First-time home buyer savings 54.12account" or "account" means an account with a financial institution that an account holder 54.13designates as a first-time home buyer savings account, as provided in section 462D.03, to 54.14pay or reimburse eligible costs for the purchase of a single-family residence by a qualified 54.15beneficiary. 54.16 Subd. 9. Internal Revenue Code. "Internal Revenue Code" has the meaning given in 54.17section 290.01. 54.18 Subd. 10. Principal residence. "Principal residence" has the meaning given in section 54.19121 of the Internal Revenue Code. 54.20 Subd. 11. Qualified beneficiary. "Qualified beneficiary" means a first-time home buyer 54.21who is a Minnesota resident and is designated as the qualified beneficiary of a first-time 54.22home buyer savings account by the account holder. 54.23 Subd. 12. Single-family residence. "Single-family residence" means a single-family 54.24residence located in this state and owned and occupied by or to be occupied by a qualified 54.25beneficiary as the qualified beneficiary's principal residence, which may include a 54.26manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative. 54.27EFFECTIVE DATE.This section is effective the day following final enactment. 54.28 Sec. 42. [462D.03] ESTABLISHMENT OF ACCOUNTS. 54.29 Subdivision 1. Accounts established. An individual may open an account with a financial 54.30institution and designate the account as a first-time home buyer savings account to be used 54.31to pay or reimburse the designated qualified beneficiary's eligible costs. 55.1 Subd. 2. Designation of qualified beneficiary. (a) The account holder must designate 55.2a first-time home buyer as the qualified beneficiary of the account by April 15 of the year 55.3following the taxable year in which the account was established. The account holder may 55.4be the qualified beneficiary. The account holder may change the designated qualified 55.5beneficiary at any time, but no more than one qualified beneficiary may be designated for 55.6an account at any one time. For purposes of the one beneficiary restriction, a married couple 55.7qualifies as one beneficiary. Changing the designated qualified beneficiary of an account 55.8does not affect computation of the ten-year period under section 462D.06, subdivision 2. 55.9(b) The commissioner shall establish a process for account holders to notify the state 55.10that permits recording of the account, the account holder or holders, any transfers under 55.11section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 55.12This may be done upon filing the account holder's income tax return or in any other way 55.13the commissioner determines to be appropriate. 55.14 Subd. 3. Joint account holders. An individual may jointly own a first-time home buyer 55.15account with another person if the joint account holders file a married joint income tax 55.16return. 55.17 Subd. 4. Multiple accounts. (a) An individual may be the account holder of more than 55.18one first-time home buyer savings account, but must not hold or own multiple accounts that 55.19designate the same qualified beneficiary. 55.20(b) An individual may be designated as the qualified beneficiary on more than one 55.21first-time home buyer savings account. 55.22 Subd. 5. Contributions. Only cash may be contributed to a first-time home buyer savings 55.23account. Individuals other than the account holder may contribute to an account. No limitation 55.24applies to the amount of contributions that may be made to or retained in a first-time home 55.25buyer savings account. 55.26EFFECTIVE DATE.This section is effective the day following final enactment. 55.27 Sec. 43. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES. 55.28 Subdivision 1. Expenses; reporting. The account holder must: 55.29(1) not use funds in a first-time home buyer savings account to pay expenses of 55.30administering the account, except that a service fee may be deducted from the account by 55.31the financial institution in which the account is held; and 55.32(2) submit to the commissioner, in the form and manner required by the commissioner: 56.1(i) detailed information regarding the first-time home buyer savings account, including 56.2a list of transactions for the account during the taxable year and the Form 1099 issued by 56.3the financial institution for the account for the taxable year; and 56.4(ii) upon withdrawal of funds from the account, a detailed account of the eligible costs 56.5for which the account funds were expended and a statement of the amount of funds remaining 56.6in the account, if any. 56.7 Subd. 2. Transfers. An account holder may withdraw funds, in whole or part, from a 56.8first-time home buyer savings account and deposit the funds in another first-time home 56.9buyer savings account held by a different financial institution or the same financial institution. 56.10EFFECTIVE DATE.This section is effective the day following final enactment. 56.11 Sec. 44. [462D.05] FINANCIAL INSTITUTIONS. 56.12(a) A financial institution is not required to take any action to ensure compliance with 56.13this chapter, including to: 56.14(1) designate an account, designate qualified beneficiaries, or modify the financial 56.15institution's account contracts or systems in any way; 56.16(2) track the use of money withdrawn from a first-time home buyer savings account; 56.17(3) allocate funds in a first-time home buyer savings account among joint account holders 56.18or multiple qualified beneficiaries; or 56.19(4) report any information to the commissioner or any other government that is not 56.20otherwise required by law. 56.21(b) A financial institution is not responsible or liable for: 56.22(1) determining or ensuring that an account satisfies the requirements of this chapter or 56.23that its funds are used for eligible costs; or 56.24(2) reporting or remitting taxes or penalties related to the use of a first-time home buyer 56.25savings account. 56.26EFFECTIVE DATE.This section is effective the day following final enactment. 56.27 Sec. 45. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX. 56.28 Subdivision 1. Subtraction. (a) As provided in section 290.0132, subdivision 24, an 56.29account holder is allowed a subtraction from federal taxable income equal to the sum of: 57.1(1) the amount the individual contributed to a first-time home buyer savings account 57.2during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint 57.3return; and 57.4(2) interest or dividends earned on the first-time home buyer savings account during the 57.5taxable year. 57.6(b) The subtraction under paragraph (a) is allowed each year in which a contribution is 57.7made for the ten taxable years including and following the taxable year in which the account 57.8was established. The total subtraction for all taxable years and for all first-time home buyer 57.9accounts established by the individual for a qualified beneficiary is limited to $50,000. No 57.10person other than the account holder who deposits funds in a first-time home buyer savings 57.11account is allowed a subtraction under this section. 57.12(c) The subtraction under paragraph (a) is not allowed if the account holder withdraws 57.13amounts from the account within six months of designating the account as a first-time home 57.14buyer savings account. 57.15 Subd. 2. Addition. (a) As provided in section 290.0131, subdivision 14, an account 57.16holder must add to federal taxable income the sum of the following amounts: 57.17(1) any amount withdrawn from a first-time home buyer savings account during the 57.18taxable year that is withdrawn more than six months after the account is designated as a 57.19first-time home buyer savings account and is used neither to pay eligible costs nor for a 57.20transfer permitted under section 462D.04, subdivision 2; and 57.21(2) any amount remaining in the first-time home buyer savings account at the close of 57.22the tenth taxable year after the taxable year in which the account was established. 57.23(b) For an account that received a transfer under section 462D.04, subdivision 2, the 57.24ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year 57.25that applies to either account under that clause. 57.26 Subd. 3. Additional tax. The account holder is liable for an additional tax equal to ten 57.27percent of the addition under subdivision 2 for the taxable year. This amount must be added 57.28to the amount due under section 290.06. The tax under this subdivision does not apply to: 57.29(1) a withdrawal because of the account holder's or designated qualified beneficiary's 57.30death or disability; 57.31(2) a disbursement of assets of the account under federal bankruptcy law; and 57.32(3) a disbursement of assets of the account under chapter 550 or 551. 58.1EFFECTIVE DATE.This section is effective for taxable years beginning after December 58.231, 2016. 58.3 Sec. 46. Laws 2010, chapter 216, section 12, the effective date, as amended by Laws 2016, 58.4chapter 158, article 1, section 212, is amended to read: 58.5EFFECTIVE DATE.This section is effective for investments made after July 1, 2010, 58.6for taxable years beginning after December 31, 2009, and before January 1, 2017, and only 58.7applies to investments made after the qualified small business receiving the investment has 58.8been certified by the commissioner of employment and economic development. 58.9EFFECTIVE DATE; REVIVAL AND REENACTMENT.This section is effective 58.10retroactively from January 1, 2015, and Laws 2010, chapter 216, section 12, as amended 58.11by Laws 2016, chapter 158, article 1, section 212, is revived and reenacted as of that date. 58.12 Sec. 47. INCOME TAX RECIPROCITY BENCHMARK STUDY; 58.13APPROPRIATION. 58.14 Subdivision 1. Study. (a) The Department of Revenue, in conjunction with the Wisconsin 58.15Department of Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct 58.16a study to determine at least the following: 58.17(1) the number of residents of each state who earn income from personal services in the 58.18other state; 58.19(2) the total amount of income earned by residents of each state who earn income from 58.20personal services in the other state; and 58.21(3) the change in tax revenue in each state if an income tax reciprocity arrangement were 58.22resumed between the two states under which the taxpayers were required to pay income 58.23taxes on the income only in their state of residence. 58.24(b) The study must use information obtained from each state's income tax returns for 58.25tax year 2017 and from any other source of information the departments determine is 58.26necessary to complete the study. 58.27(c) No later than March 1, 2019, the Department of Revenue must submit a report 58.28containing the results of the study to the governor and to the chairs and ranking minority 58.29members of the legislative committees having jurisdiction over taxes, in compliance with 58.30Minnesota Statutes, sections 3.195 and 3.197. 59.1(d) The department shall conduct the study only if the commissioner of revenue receives 59.2notice from the secretary of revenue that the Wisconsin Department of Revenue will fully 59.3participate in the study. 59.4 Subd. 2. Appropriation. $300,000 in fiscal year 2018 is appropriated from the general 59.5fund to the commissioner of revenue for the income tax reciprocity benchmark study in 59.6subdivision 1. This is a onetime appropriation and is not added to the agency's base budget. 59.7EFFECTIVE DATE.This section is effective the day following final enactment. The 59.8appropriation in subdivision 2 is only effective if the commissioner of revenue receives 59.9notice as provided in subdivision 1, paragraph (d). 59.10 Sec. 48. RECAPTURE TAX EXEMPTIONS. 59.11The tax under Minnesota Statutes, section 291.03, subdivision 11, does not apply as a 59.12result of any of the following: 59.13(1) acquisition of title or possession of the qualified property by a federal, state, or local 59.14government unit, or any other entity with the power of eminent domain for a public purpose, 59.15as defined in Minnesota Statutes, section 117.025, subdivision 11; 59.16(2) a portion of qualified farm property consisting of less than one-fifth of the acreage 59.17of the property is reclassified as class 2b property under Minnesota Statutes, section 273.13, 59.18subdivision 23, and the qualified heir has not substantially altered the reclassified property 59.19within the three-year holding period; or 59.20(3) a portion of qualified farm property classified as 2a property at the death of the 59.21decedent under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), consisting 59.22of a residence, garage, and immediately surrounding one acre of land is reclassified as 4bb 59.23property and the qualified heir has not substantially altered the property within the three-year 59.24holding period. 59.25EFFECTIVE DATE.This section is effective retroactively for estates of decedents 59.26dying after June 30, 2011, and before January 1, 2017. 59.27 Sec. 49. ESTATE TAX; 2017 DEATHS; CONSTRUCTION OF CERTAIN TERMS. 59.28(a) The provisions of this section apply to a decedent who dies after December 31, 2016, 59.29and before enactment of the increase in the amount of the exclusion from Minnesota estate 59.30taxation in section 38 with respect to a governing instrument or disclaimer instrument that: 59.31(1) became irrevocable in 2017; and 60.1(2) contains a formula or provision that allocates assets of the estate or trust between 60.2two or more different beneficiaries or classes of beneficiaries (or trusts for the primary 60.3benefit of two or more different beneficiaries or classes of beneficiaries) by reference to 60.4state estate taxes, including without limitation provisions referring to the state "estate tax 60.5exemption," "applicable exemption amount," "applicable credit amount," "applicable 60.6exclusion amount," "marital deduction," "maximum marital deduction," or "unlimited marital 60.7deduction." 60.8References to state estate tax in an instrument to which this paragraph applies are deemed 60.9to refer to the estate tax laws in effect on December 31, 2016, as those laws would have 60.10applied to estates of decedents dying in 2017, including any inflation adjustments and 60.11statutory increases that were scheduled to take effect on January 1, 2017, but not including 60.12any subsequent statutory changes that apply retroactively to estates of decedents dying after 60.13December 31, 2016. 60.14(b) Paragraph (a) does not apply to: 60.15(1) an instrument that manifests an intent that formulas or provisions of the type described 60.16in paragraph (a), clause (2), must be construed to reference the estate tax laws as they existed 60.17after December 31, 2016; 60.18(2) an instrument that allocates assets of the estate or trust by formula between two or 60.19more trusts for the primary benefit of the same beneficiary or class of beneficiaries, even 60.20if there are other permissible beneficiaries of one trust and not the other. For example, 60.21paragraph (a) is not intended to apply to a gift in the decedent's will that allocates an amount 60.22equal to the state estate tax exemption to a trust for the primary benefit of the decedent's 60.23surviving spouse, even if that trust also includes the decedent's children as eligible 60.24beneficiaries, and the balance to the decedent's surviving spouse, or to a separate trust for 60.25the sole benefit of the decedent's surviving spouse, because the assets of the estate or trust 60.26are not allocated between two or more different beneficiaries or classes of beneficiaries or 60.27between trusts for the primary benefit of two or more different beneficiaries or classes of 60.28beneficiaries; 60.29(3) an instrument that divides the assets of the estate or trust by reference to federal 60.30exemption amounts, and not state estate tax exemption amounts, including the federal estate 60.31tax exemption as well as the federal generation-skipping transfer tax exemption; 60.32(4) any provision in an irrevocable trust that grants to a deceased beneficiary a general 60.33power of appointment over a portion of the trust assets that is to be determined by reference 60.34to the largest amount that can be included in the beneficiary's estate for estate tax purposes 61.1without increasing the amount of federal or state estate taxes payable in the deceased 61.2beneficiary's estate; or 61.3(5) any discretionary decision by a trustee or other person to grant or expand the scope 61.4of a power of appointment for the purpose of causing a portion of the trust to be included 61.5in the beneficiary's estate for estate tax purposes without increasing the amount of federal 61.6or state estate taxes payable in the deceased beneficiary's estate. 61.7(c) The personal representative, trustee, or any interested person under an instrument, 61.8other than a disclaimer instrument, to which paragraph (a) applies may bring a proceeding 61.9to determine whether, based on a preponderance of the evidence, the decedent intended that 61.10a formula or provision described in paragraph (a) be construed with respect to the law as it 61.11existed after December 31, 2016. This proceeding must be commenced by December 31, 61.122018, and the court may consider extrinsic evidence that contradicts the plain meaning of 61.13the instrument. The court may modify a provision of an instrument that refers to the estate 61.14tax laws as described in paragraph (a) to conform the terms to the decedent's intention or 61.15achieve the decedent's tax objectives in a manner that is not contrary to the decedent's 61.16probable intention. The court may provide that its decision, including any decision to modify 61.17a provision of an instrument, is effective as of the date of the decedent's death. 61.18(d) The personal representative, trustee, or disclaimant under a disclaimer instrument to 61.19which paragraph (a) applies may bring a proceeding to construe the disclaimant's intent, 61.20based on a preponderance of the evidence, including extrinsic evidence. The court may 61.21provide that its construction, including any decision to modify a provision of an instrument, 61.22is effective as of the date of the decedent's death. 61.23EFFECTIVE DATE.This section is effective the day following final enactment. 61.24 Sec. 50. REPEALER. 61.25(a) Minnesota Statutes 2016, sections 136A.129; and 290.06, subdivision 36, are repealed. 61.26(b) Minnesota Statutes 2016, section 290.067, subdivision 2, is repealed. 61.27(c) Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 61.2818; 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10, 61.29and 11, are repealed. 61.30EFFECTIVE DATE.Paragraph (a) is effective for agreements entered into after June 61.3130, 2017, and for taxable years beginning after December 31, 2017. Paragraph (b) is effective 61.32for taxable years beginning after December 31, 2016. Paragraph (c) is effective retroactively 61.33for estates of decedents dying after December 31, 2016. 62.1ARTICLE 2 62.2PROPERTY TAX 62.3 Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read: 62.4 Subd. 2. Allowed commercial and industrial operations. (a) Commercial and industrial 62.5operations are not allowed on land within an agricultural preserve except: 62.6(1) small on-farm commercial or industrial operations normally associated with and 62.7important to farming in the agricultural preserve area; 62.8(2) storage use of existing farm buildings that does not disrupt the integrity of the 62.9agricultural preserve; and 62.10(3) small commercial use of existing farm buildings for trades not disruptive to the 62.11integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 62.12and similar activities that a farm operator might conduct.; and 62.13(4) wireless communication installments and related equipment and structure capable 62.14of providing technology potentially beneficial to farming activities. A property owner who 62.15installs wireless communication equipment does not violate a covenant made prior to January 62.161, 2018, under section 40A.10, subdivision 1. 62.17 (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3) 62.18means existing on August 1, 1989. 62.19EFFECTIVE DATE.This section is effective the day following final enactment. 62.20 Sec. 2. Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read: 62.21 Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10, 62.22subdivision 1 , may be increased in the amount approved by the voters of the district at a 62.23referendum called for the purpose. The referendum may be called by the board. The 62.24referendum must be conducted one or two calendar years before the increased levy authority, 62.25if approved, first becomes payable. Only one election to approve an increase may be held 62.26in a calendar year. Unless the referendum is conducted by mail under subdivision 11, 62.27paragraph (a), the referendum must be held on the first Tuesday after the first Monday in 62.28November. The ballot must state the maximum amount of the increased revenue per adjusted 62.29pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 62.30per adjusted pupil unit that differs from year to year over the number of years for which the 62.31increased revenue is authorized or may state that the amount shall increase annually by the 62.32rate of inflation. The ballot must state the cumulative amount per pupil of any local optional 63.1revenue, board-approved referendum authority, and previous voter-approved referendum 63.2authority, if any, that the board expects to certify for the next school year. For this purpose, 63.3the rate of inflation shall be the annual inflationary increase calculated under subdivision 63.42, paragraph (b). The ballot may state that existing referendum levy authority is expiring. 63.5In this case, the ballot may also compare the proposed levy authority to the existing expiring 63.6levy authority, and express the proposed increase as the amount, if any, over the expiring 63.7referendum levy authority. The ballot must designate the specific number of years, not to 63.8exceed ten, for which the referendum authorization applies. The ballot, including a ballot 63.9on the question to revoke or reduce the increased revenue amount under paragraph (c), must 63.10abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section 63.11275.60 may be modified to read, in cases of renewing existing levies at the same amount 63.12per pupil as in the previous year: 63.13"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO 63.14EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED 63.15TO EXPIRE." 63.16 The ballot may contain a textual portion with the information required in this subdivision 63.17and a question stating substantially the following: 63.18 "Shall the increase in the revenue proposed by (petition to) the board of ........., School 63.19District No. .., be approved?" 63.20 If approved, an amount equal to the approved revenue per adjusted pupil unit times the 63.21adjusted pupil units for the school year beginning in the year after the levy is certified shall 63.22be authorized for certification for the number of years approved, if applicable, or until 63.23revoked or reduced by the voters of the district at a subsequent referendum. 63.24 (b) The board must prepare and deliver by first class mail at least 15 days but no more 63.25than 30 days before the day of the referendum to each taxpayer a notice of the referendum 63.26and the proposed revenue increase. The board need not mail more than one notice to any 63.27taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 63.28those shown to be owners on the records of the county auditor or, in any county where tax 63.29statements are mailed by the county treasurer, on the records of the county treasurer. Every 63.30property owner whose name does not appear on the records of the county auditor or the 63.31county treasurer is deemed to have waived this mailed notice unless the owner has requested 63.32in writing that the county auditor or county treasurer, as the case may be, include the name 63.33on the records for this purpose. The notice must project the anticipated amount of tax increase 64.1in annual dollars for typical residential homesteads, agricultural homesteads, apartments, 64.2and commercial-industrial property within the school district. 64.3The notice must state the cumulative and individual amounts per pupil of any local 64.4optional revenue, board-approved referendum authority, and voter-approved referendum 64.5authority, if any, that the board expects to certify for the next school year. 64.6 The notice for a referendum may state that an existing referendum levy is expiring and 64.7project the anticipated amount of increase over the existing referendum levy in the first 64.8year, if any, in annual dollars for typical residential homesteads, agricultural homesteads, 64.9apartments, and commercial-industrial property within the district. 64.10 The notice must include the following statement: "Passage of this referendum will result 64.11in an increase in your property taxes." However, in cases of renewing existing levies, the 64.12notice may include the following statement: "Passage of this referendum extends an existing 64.13operating referendum at the same amount per pupil as in the previous year." 64.14 (c) A referendum on the question of revoking or reducing the increased revenue amount 64.15authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke 64.16or reduce the revenue amount must state the amount per adjusted pupil unit by which the 64.17authority is to be reduced. Revenue authority approved by the voters of the district pursuant 64.18to paragraph (a) must be available to the school district at least once before it is subject to 64.19a referendum on its revocation or reduction for subsequent years. Only one revocation or 64.20reduction referendum may be held to revoke or reduce referendum revenue for any specific 64.21year and for years thereafter. 64.22 (d) The approval of 50 percent plus one of those voting on the question is required to 64.23pass a referendum authorized by this subdivision. 64.24 (e) At least 15 days before the day of the referendum, the district must submit a copy of 64.25the notice required under paragraph (b) to the commissioner and to the county auditor of 64.26each county in which the district is located. Within 15 days after the results of the referendum 64.27have been certified by the board, or in the case of a recount, the certification of the results 64.28of the recount by the canvassing board, the district must notify the commissioner of the 64.29results of the referendum. 64.30EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 64.31referendum authorized on or after that date. 64.32 Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read: 64.33270C.9901 ASSESSOR ACCREDITATION; WAIVER. 65.1 Subdivision 1. Accreditation. Every individual who appraises or physically inspects 65.2real property for the purpose of determining its valuation or classification for property tax 65.3purposes must obtain licensure as an accredited Minnesota assessor from the State Board 65.4of Assessors by July 1, 2019 2022, or within four five years of that person having become 65.5licensed as a certified Minnesota assessor, whichever is later. 65.6 Subd. 2. Waiver. (a) An individual may apply to the State Board of Assessors for a 65.7waiver from licensure as an accredited Minnesota assessor as required by subdivision 1 if 65.8the individual: 65.9(1) was first licensed as a certified Minnesota assessor before July 1, 2004; 65.10(2) has had an assessor license since July 1, 2004; 65.11(3) has successfully passed a comprehensive examination substantially equivalent to the 65.12requirements by the State Board of Assessors for the accredited Minnesota assessor license 65.13designation before May 1, 2020; and 65.14 (4) submits an application to the State Board of Assessors no later than July 1, 2022. 65.15The examination can only be taken once to fulfill the requirements of the waiver. 65.16(b) The commissioner of revenue, in consultation with the State Board of Assessors and 65.17the Minnesota Association of Assessing Officers, must determine the contents of the waiver 65.18application and the comprehensive examination. 65.19(c) A county assessor in any jurisdiction assessed by an applicant may submit additional 65.20information to the State Board of Assessors to be considered as part of the waiver review 65.21proceedings. 65.22(d) The State Board of Assessors must not grant a waiver unless the applicant has met 65.23the requirements in paragraph (a) and has the ability to perform the duties of assessment 65.24required in each jurisdiction in which the applicant appraises or physically inspects real 65.25property for the purposes of determining its valuation or classification for property tax 65.26purposes. 65.27(e) An individual granted a waiver under this subdivision is allowed to continue 65.28assessment duties at the individual's licensure level, provided the individual complies with 65.29the continuing education requirements for the accredited Minnesota assessor designation 65.30as prescribed by the State Board of Assessors. 65.31(f) An individual granted a waiver under this section: 66.1(1) is not considered to have achieved the designation as an accredited Minnesota assessor 66.2and may not represent himself or herself as an accredited Minnesota assessor; and 66.3(2) is not authorized to value income-producing property as defined in section 273.11, 66.4subdivision 13, unless the individual meets the requirements of that section. 66.5(g) A waiver granted by the State Board of Assessors under this section remains in effect 66.6unless the individual's licensure is revoked. If the individual's licensure is revoked, the 66.7waiver is void and the individual is subject to the requirements of subdivision 1. 66.8(h) A decision of the State Board of Assessors to grant or deny a waiver under this 66.9subdivision is final and is not subject to appeal. 66.10(i) Waivers granted under this subdivision expire on June 30, 2032. 66.11(j) This subdivision expires July 1, 2032. 66.12EFFECTIVE DATE.This section is effective the day following final enactment. 66.13 Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read: 66.14 Subd. 23. Secondary liquid agricultural chemical containment facilities. Secondary 66.15containment tanks, cache basins, and that portion of the structure needed for the containment 66.16facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3, 66.17as required by the commissioner of agriculture under chapter 18B or 18C, berms used by 66.18a reseller to contain liquid agricultural chemical spills from primary storage containers and 66.19prevent runoff or leaching of liquid agricultural chemicals as defined in section 18D.01, 66.20subdivision 3, are exempt. For purposes of this subdivision, "reseller" means a person 66.21licensed by the commissioner of agriculture under section 18B.316 or 18C.415. 66.22EFFECTIVE DATE.This section is effective beginning with taxes payable in 2016, 66.23provided that nothing in this section shall cause property that the assessor classified as 66.24exempt for property taxes payable in 2016 or 2017 to lose its exempt status for taxes payable 66.25in those years. 66.26 Sec. 5. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read: 66.27 Subd. 86. Apprenticeship training facilities. All or a portion of a building used 66.28exclusively for a state-approved apprenticeship program through the Department of Labor 66.29and Industry is exempt if: 66.30(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit 66.31organization or a nonprofit trust; 67.1(2) the program participants receive no compensation; and 67.2(3) it is located: 67.3(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined 67.4by the 2000 federal census; 67.5(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area 67.6that has a population of 7,400 or greater according to the most recent federal census; or 67.7(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000 67.8determined by the 2000 federal census and the building was previously used by a school 67.9and was exempt for taxes payable in 2010. 67.10Use of the property for advanced skills training of incumbent workers does not disqualify 67.11the property for the exemption under this subdivision. This exemption includes up to five 67.12acres of the land on which the building is located and associated parking areas on that land, 67.13except that if the building meets the requirements of clause (3), item (iii), then the exemption 67.14includes up to ten acres of land on which the building is located and associated parking 67.15areas on that land. If a parking area associated with the facility is used for the purposes of 67.16the facility and for other purposes, a portion of the parking area shall be exempt in proportion 67.17to the square footage of the facility used for purposes of apprenticeship training. 67.18EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 67.19 Sec. 6. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 67.20read: 67.21 Subd. 100. Electric generation facility; personal property. (a) Notwithstanding 67.22subdivision 9, clause (a), attached machinery and other personal property that is part of an 67.23electric generation facility with more than 35 megawatts and less than 40 megawatts of 67.24installed capacity and that meets the requirements of this subdivision is exempt from taxation 67.25and payments in lieu of taxation. The facility must: 67.26(1) be designed to utilize natural gas as a primary fuel; 67.27(2) be owned and operated by a municipal power agency as defined in section 453.52, 67.28subdivision 8; 67.29(3) be located within 800 feet of an existing natural gas pipeline; 67.30(4) satisfy a resource deficiency identified in an approved integrated resource plan filed 67.31under section 216B.2422; 68.1(5) be located outside the metropolitan area as defined under section 473.121, subdivision 68.22; and 68.3(6) have received, by resolution, the approval of the governing bodies of the city and 68.4county in which it is located for the exemption of personal property provided by this 68.5subdivision. 68.6(b) Construction of the facility must have been commenced after January 1, 2015, and 68.7before January 1, 2017. Property eligible for this exemption does not include electric 68.8transmission lines and interconnections or gas pipelines and interconnections appurtenant 68.9to the property or the facility. 68.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 68.11 Sec. 7. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 68.12read: 68.13 Subd. 101. Certain property owned by an Indian tribe. (a) Property is exempt that: 68.14(1) is located in a city of the first class with a population less than 100,000 as of the 68.152010 federal census; 68.16(2) was on January 1, 2016, and is for the current assessment, owned by a federally 68.17recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 68.18and 68.19(3) is used exclusively as a medical clinic. 68.20(b) Property that qualifies for the exemption under this subdivision is limited to no more 68.21than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000 68.22square feet. Property acquired for single-family housing, market-rate apartments, agriculture, 68.23or forestry does not qualify for this exemption. The exemption created by this subdivision 68.24expires with taxes payable in 2028. 68.25EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 68.26 Sec. 8. Minnesota Statutes 2016, section 272.0213, is amended to read: 68.27272.0213 LEASED SEASONAL-RECREATIONAL LAND. 68.28 (a) A county board may elect, by resolution, to Qualified lands, as defined in this section, 68.29are exempt from taxation, including the tax under section 273.19, qualified lands. "Qualified 68.30lands" for purposes of this section means property land that: 69.1 (1) is owned by a county, city, town, or the state; and 69.2 (2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial 69.3seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational 69.4residential use. 69.5 (3) was rented for the purposes specified in clause (2) and was exempt from taxation 69.6for property taxes payable in 2008. 69.7(b) Lands owned by the federal government and rented for noncommercial 69.8seasonal-recreational or, noncommercial seasonal-recreational residential, or class 1c 69.9commercial seasonal-recreational residential use are exempt from taxation, including the 69.10tax under section 273.19. 69.11EFFECTIVE DATE.This section is effective beginning with taxes assessed in 2018 69.12and payable in 2019. 69.13 Sec. 9. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 69.14 Subd. 2. Definitions. (a) For the purposes of this section, the term: 69.15(1) "wind energy conversion system" has the meaning given in section 216C.06, 69.16subdivision 19 , and also includes a substation that is used and owned by one or more wind 69.17energy conversion facilities; 69.18(2) "large scale wind energy conversion system" means a wind energy conversion system 69.19of more than 12 megawatts, as measured by the nameplate capacity of the system or as 69.20combined with other systems as provided in paragraph (b); 69.21(3) "medium scale wind energy conversion system" means a wind energy conversion 69.22system of over two and not more than 12 megawatts, as measured by the nameplate capacity 69.23of the system or as combined with other systems as provided in paragraph (b); and 69.24(4) "small scale wind energy conversion system" means a wind energy conversion system 69.25of two megawatts and under, as measured by the nameplate capacity of the system or as 69.26combined with other systems as provided in paragraph (b). 69.27(b) For systems installed and contracted for after January 1, 2002, the total size of a 69.28wind energy conversion system under this subdivision shall be determined according to this 69.29paragraph. Unless the systems are interconnected with different distribution systems, the 69.30nameplate capacity of one wind energy conversion system shall be combined with the 69.31nameplate capacity of any other wind energy conversion system that is: 69.32(1) located within five miles of the wind energy conversion system; 70.1(2) constructed within the same calendar year as the wind energy conversion system; 70.2and 70.3(3) under common ownership. 70.4In the case of a dispute, the commissioner of commerce shall determine the total size of 70.5the system, and shall draw all reasonable inferences in favor of combining the systems. 70.6(c) In making a determination under paragraph (b), the commissioner of commerce may 70.7determine that two wind energy conversion systems are under common ownership when 70.8the underlying ownership structure contains similar the same persons or entities, even if the 70.9ownership shares differ between the two systems. Wind energy conversion systems are not 70.10under common ownership solely because the same person or entity provided equity financing 70.11for the systems. Wind energy conversion systems that were determined by the commissioner 70.12of commerce to be eligible for a renewable energy production incentive under section 70.13216C.41 are not under common ownership unless a change in the qualifying owner was 70.14made to an owner of another wind energy conversion system subsequent to the determination 70.15by the commissioner of commerce. 70.16EFFECTIVE DATE.This section is effective the day following final enactment. 70.17 Sec. 10. Minnesota Statutes 2016, section 272.162, is amended to read: 70.18272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS. 70.19 Subdivision 1. Conditions restricting transfer. When a deed or other instrument 70.20conveying a parcel of land is presented to the county auditor for transfer or division under 70.21sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 70.22net tax capacity in the official records and shall not certify the instrument as provided in 70.23section 272.12, if: 70.24(a) The land conveyed is less than a whole parcel of land as charged in the tax lists; 70.25(b) The part conveyed appears within the area of application of municipal or county 70.26subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision 70.271 ; and 70.28(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, 70.29subdivision 12 . 70.30 Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision 70.311, the county auditor may transfer or divide the land and its net tax capacity and may certify 71.1the instrument if the instrument contains a certification by the clerk of the municipality or 71.2designated county planning official: 71.3(a) (1) that the municipality's or county's subdivision regulations do not apply; 71.4(b) (2) that the subdivision has been approved by the governing body of the municipality 71.5or county; or 71.6(c) (3) that the restrictions on the division of taxes and filing and recording have been 71.7waived by resolution of the governing body of the municipality or county in the particular 71.8case because compliance would create an unnecessary hardship and failure to comply would 71.9not interfere with the purpose of the regulations. 71.10(b) If any of the conditions for certification by the municipality or county as provided 71.11in this subdivision exist and the municipality or county does not certify that they exist within 71.1224 hours after the instrument of conveyance has been presented to the clerk of the 71.13municipality or designated county planning official, the provisions of subdivision 1 do not 71.14apply. 71.15(c) If an unexecuted instrument is presented to the municipality or county and any of 71.16the conditions for certification by the municipality or county as provided in this subdivision 71.17exist, the unexecuted instrument must be certified by the clerk of the municipality or the 71.18designated county planning official. 71.19 Subd. 3. Applicability of restrictions. (a) This section does not apply to the exceptions 71.20set forth in section 272.12. 71.21(b) This section applies only to land within municipalities or counties which choose to 71.22be governed by its provisions. A municipality or county may choose to have this section 71.23apply to the property within its boundaries by filing a certified copy of a resolution of its 71.24governing body making that choice with the auditor and recorder of the county in which it 71.25is located. 71.26EFFECTIVE DATE.This section is effective the day following final enactment. 71.27 Sec. 11. Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read: 71.28 Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten 71.29acres that is the homestead of its owner must be classified as class 2a under section 273.13, 71.30subdivision 23 , paragraph (a), if: 71.31 (1) the parcel on which the house is located is contiguous on at least two sides to (i) 71.32agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 72.1Service, or (iii) land administered by the Department of Natural Resources on which in lieu 72.2taxes are paid under sections 477A.11 to 477A.14; 72.3 (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 72.4acres; 72.5 (3) the noncontiguous land is located not farther than four townships or cities, or a 72.6combination of townships or cities from the homestead; and 72.7 (4) the agricultural use value of the noncontiguous land and farm buildings is equal to 72.8at least 50 percent of the market value of the house, garage, and one acre of land. 72.9 Homesteads initially classified as class 2a under the provisions of this paragraph shall 72.10remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 72.11properties, as long as the homestead remains under the same ownership, the owner owns a 72.12noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 72.13value qualifies under clause (4). Homestead classification under this paragraph is limited 72.14to property that qualified under this paragraph for the 1998 assessment. 72.15 (b)(i) Agricultural property shall be classified as the owner's homestead, to the same 72.16extent as other agricultural homestead property, if all of the following criteria are met: 72.17 (1) the agricultural property consists of at least 40 acres including undivided government 72.18lots and correctional 40's; 72.19 (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 72.20or of the owner's spouse, is actively farming the agricultural property, either on the person's 72.21own behalf as an individual or on behalf of a partnership operating a family farm, family 72.22farm corporation, joint family farm venture, or limited liability company of which the person 72.23is a partner, shareholder, or member; 72.24 (3) both the owner of the agricultural property and the person who is actively farming 72.25the agricultural property under clause (2), are Minnesota residents; 72.26 (4) neither the owner nor the spouse of the owner claims another agricultural homestead 72.27in Minnesota; and 72.28 (5) neither the owner nor the person actively farming the agricultural property lives 72.29farther than four townships or cities, or a combination of four townships or cities, from the 72.30agricultural property, except that if the owner or the owner's spouse is required to live in 72.31employer-provided housing, the owner or owner's spouse, whichever is actively farming 72.32the agricultural property, may live more than four townships or cities, or combination of 72.33four townships or cities from the agricultural property. 73.1 The relationship under this paragraph may be either by blood or marriage. 73.2 (ii) Agricultural property held by a trustee under a trust is eligible for agricultural 73.3homestead classification under this paragraph if the qualifications in clause (i) are met, 73.4except that "owner" means the grantor of the trust. 73.5 (iii) Property containing the residence of an owner who owns qualified property under 73.6clause (i) shall be classified as part of the owner's agricultural homestead, if that property 73.7is also used for noncommercial storage or drying of agricultural crops. 73.8(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and 73.9any class 2b property that is contiguous to and under the same ownership as the class 2a 73.10property. 73.11 (c) Noncontiguous land shall be included as part of a homestead under section 273.13, 73.12subdivision 23 , paragraph (a), only if the homestead is classified as class 2a and the detached 73.13land is located in the same township or city, or not farther than four townships or cities or 73.14combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 73.15notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 73.16and, if the homestead is located in another county, the taxpayer must also notify the assessor 73.17of the other county. 73.18 (d) Agricultural land used for purposes of a homestead and actively farmed by a person 73.19holding a vested remainder interest in it must be classified as a homestead under section 73.20273.13, subdivision 23 , paragraph (a). If agricultural land is classified class 2a, any other 73.21dwellings on the land used for purposes of a homestead by persons holding vested remainder 73.22interests who are actively engaged in farming the property, and up to one acre of the land 73.23surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 73.24must also be assessed class 2a. 73.25 (e) Agricultural land and buildings that were class 2a homestead property under section 73.26273.13, subdivision 23 , paragraph (a), for the 1997 assessment shall remain classified as 73.27agricultural homesteads for subsequent assessments if: 73.28 (1) the property owner abandoned the homestead dwelling located on the agricultural 73.29homestead as a result of the April 1997 floods; 73.30 (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 73.31Wilkin; 74.1 (3) the agricultural land and buildings remain under the same ownership for the current 74.2assessment year as existed for the 1997 assessment year and continue to be used for 74.3agricultural purposes; 74.4 (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 74.5of one of the parcels of agricultural land that is owned by the taxpayer; and 74.6 (5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 74.7and the owner furnishes the assessor any information deemed necessary by the assessor in 74.8verifying the change in dwelling. Further notifications to the assessor are not required if the 74.9property continues to meet all the requirements in this paragraph and any dwellings on the 74.10agricultural land remain uninhabited. 74.11 (f) Agricultural land and buildings that were class 2a homestead property under section 74.12273.13, subdivision 23 , paragraph (a), for the 1998 assessment shall remain classified 74.13agricultural homesteads for subsequent assessments if: 74.14 (1) the property owner abandoned the homestead dwelling located on the agricultural 74.15homestead as a result of damage caused by a March 29, 1998, tornado; 74.16 (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 74.17Nicollet, Nobles, or Rice; 74.18 (3) the agricultural land and buildings remain under the same ownership for the current 74.19assessment year as existed for the 1998 assessment year; 74.20 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of 74.21one of the parcels of agricultural land that is owned by the taxpayer; and 74.22 (5) the owner notifies the county assessor that the relocation was due to a March 29, 74.231998, tornado, and the owner furnishes the assessor any information deemed necessary by 74.24the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 74.25owner must notify the assessor by December 1, 1998. Further notifications to the assessor 74.26are not required if the property continues to meet all the requirements in this paragraph and 74.27any dwellings on the agricultural land remain uninhabited. 74.28 (g) Agricultural property of a family farm corporation, joint family farm venture, family 74.29farm limited liability company, or partnership operating a family farm as described under 74.30subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 74.31property, if all of the following criteria are met: 74.32 (1) the property consists of at least 40 acres including undivided government lots and 74.33correctional 40's; 75.1 (2) a shareholder, member, or partner of that entity is actively farming the agricultural 75.2property; 75.3 (3) that shareholder, member, or partner who is actively farming the agricultural property 75.4is a Minnesota resident; 75.5 (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 75.6member, or partner claims another agricultural homestead in Minnesota; and 75.7 (5) that shareholder, member, or partner does not live farther than four townships or 75.8cities, or a combination of four townships or cities, from the agricultural property. 75.9 Homestead treatment applies under this paragraph for property leased to a family farm 75.10corporation, joint farm venture, limited liability company, or partnership operating a family 75.11farm if legal title to the property is in the name of an individual who is a member, shareholder, 75.12or partner in the entity. 75.13 (h) To be eligible for the special agricultural homestead under this subdivision, an initial 75.14full application must be submitted to the county assessor where the property is located. 75.15Owners and the persons who are actively farming the property shall be required to complete 75.16only a one-page abbreviated version of the application in each subsequent year provided 75.17that none of the following items have changed since the initial application: 75.18 (1) the day-to-day operation, administration, and financial risks remain the same; 75.19 (2) the owners and the persons actively farming the property continue to live within the 75.20four townships or city criteria and are Minnesota residents; 75.21 (3) the same operator of the agricultural property is listed with the Farm Service Agency; 75.22 (4) a Schedule F or equivalent income tax form was filed for the most recent year; 75.23 (5) the property's acreage is unchanged; and 75.24 (6) none of the property's acres have been enrolled in a federal or state farm program 75.25since the initial application. 75.26 The owners and any persons who are actively farming the property must include the 75.27appropriate Social Security numbers, and sign and date the application. If any of the specified 75.28information has changed since the full application was filed, the owner must notify the 75.29assessor, and must complete a new application to determine if the property continues to 75.30qualify for the special agricultural homestead. The commissioner of revenue shall prepare 75.31a standard reapplication form for use by the assessors. 76.1 (i) Agricultural land and buildings that were class 2a homestead property under section 76.2273.13, subdivision 23 , paragraph (a), for the 2007 assessment shall remain classified 76.3agricultural homesteads for subsequent assessments if: 76.4 (1) the property owner abandoned the homestead dwelling located on the agricultural 76.5homestead as a result of damage caused by the August 2007 floods; 76.6 (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 76.7Wabasha, or Winona; 76.8 (3) the agricultural land and buildings remain under the same ownership for the current 76.9assessment year as existed for the 2007 assessment year; 76.10 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of 76.11one of the parcels of agricultural land that is owned by the taxpayer; and 76.12 (5) the owner notifies the county assessor that the relocation was due to the August 2007 76.13floods, and the owner furnishes the assessor any information deemed necessary by the 76.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 76.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor 76.16are not required if the property continues to meet all the requirements in this paragraph and 76.17any dwellings on the agricultural land remain uninhabited. 76.18 (j) Agricultural land and buildings that were class 2a homestead property under section 76.19273.13, subdivision 23 , paragraph (a), for the 2008 assessment shall remain classified as 76.20agricultural homesteads for subsequent assessments if: 76.21 (1) the property owner abandoned the homestead dwelling located on the agricultural 76.22homestead as a result of the March 2009 floods; 76.23 (2) the property is located in the county of Marshall; 76.24 (3) the agricultural land and buildings remain under the same ownership for the current 76.25assessment year as existed for the 2008 assessment year and continue to be used for 76.26agricultural purposes; 76.27 (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 76.28of one of the parcels of agricultural land that is owned by the taxpayer; and 76.29 (5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 76.30and the owner furnishes the assessor any information deemed necessary by the assessor in 76.31verifying the change in dwelling. Further notifications to the assessor are not required if the 77.1property continues to meet all the requirements in this paragraph and any dwellings on the 77.2agricultural land remain uninhabited. 77.3EFFECTIVE DATE.This section is effective beginning for property taxes payable in 77.42018. 77.5 Sec. 12. Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read: 77.6 Subd. 21. Trust property; homestead. Real or personal property, including agricultural 77.7property, held by a trustee under a trust is eligible for classification as homestead property 77.8if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e). 77.9 (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the 77.10property as a homestead. 77.11 (b) A relative or surviving relative of the grantor who meets the requirements of 77.12subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph 77.13(d), in the case of agricultural property, occupies and uses the property as a homestead. 77.14 (c) A family farm corporation, joint farm venture, limited liability company, or partnership 77.15operating a family farm in which the grantor or the grantor's surviving spouse is a 77.16shareholder, member, or partner rents the property; and, either (1) a shareholder, member, 77.17or partner of the corporation, joint farm venture, limited liability company, or partnership 77.18occupies and uses the property as a homestead; or (2) the property is at least 40 acres, 77.19including undivided government lots and correctional 40's, and a shareholder, member, or 77.20partner of the tenant-entity is actively farming the property on behalf of the corporation, 77.21joint farm venture, limited liability company, or partnership. 77.22 (d) A person who has received homestead classification for property taxes payable in 77.232000 on the basis of an unqualified legal right under the terms of the trust agreement to 77.24occupy the property as that person's homestead and who continues to use the property as a 77.25homestead; or, a person who received the homestead classification for taxes payable in 2005 77.26under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or 77.27thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable 77.28in 2005. 77.29(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For 77.30purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse 77.31of the grantor. 77.32(f) For purposes of this subdivision, the following terms have the meanings given them: 78.1(1) "agricultural property" means the house, garage, other farm buildings and structures, 78.2and agricultural land; 78.3(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except 78.4that the phrases "owned by same person" or "under the same ownership" as used in that 78.5subdivision mean and include contiguous tax parcels owned by: 78.6(i) an individual and a trust of which the individual, the individual's spouse, or the 78.7individual's deceased spouse is the grantor; or 78.8(ii) different trusts of which the grantors of each trust are any combination of an 78.9individual, the individual's spouse, or the individual's deceased spouse; and 78.10 For purposes of this subdivision, (3) "grantor" is defined as means the person creating 78.11or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 78.12instrument or through the exercise of a power of appointment. 78.13(g) Noncontiguous land is included as part of a homestead under this subdivision, only 78.14if the homestead is classified as class 2a, as defined in section 273.13, subdivision 23, and 78.15the detached land is located in the same township or city, or not farther than four townships 78.16or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous 78.17lands must notify the county assessor by December 15 for taxes payable in the following 78.18year that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead 78.19is located in another county, the taxpayer must also notify the assessor of the other county. 78.20EFFECTIVE DATE.This section is effective beginning for property taxes payable in 78.212018. 78.22 Sec. 13. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read: 78.23 Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured 78.24home" means a structure transportable in one or more sections, which is built on a permanent 78.25chassis, and designed to be used as a dwelling with or without a permanent foundation when 78.26connected to the required utilities, and contains the plumbing, heating, air conditioning, and 78.27electrical systems in it. Manufactured home includes any accessory structure that is an 78.28addition or supplement to the manufactured home and, when installed, becomes a part of 78.29the manufactured home. 78.30 (b) Except as provided in paragraph (c), a manufactured home that meets each of the 78.31following criteria must be valued and assessed as an improvement to real property, the 78.32appropriate real property classification applies, and the valuation is subject to review and 78.33the taxes payable in the manner provided for real property: 79.1 (1) the owner of the unit holds title to the land on which it is situated; 79.2 (2) the unit is affixed to the land by a permanent foundation or is installed at its location 79.3in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, 79.4and rules adopted under those sections, or is affixed to the land like other real property in 79.5the taxing district; and 79.6 (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 79.7by water and sewer facilities comparable to other real property in the taxing district. 79.8 (c) A manufactured home that meets each of the following criteria must be assessed at 79.9the rate provided by the appropriate real property classification but must be treated as 79.10personal property, and the valuation is subject to review and the taxes payable in the manner 79.11provided in this section: 79.12 (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is 79.13located in a manufactured home park but is not the homestead of the park owner; 79.14 (2) the unit is affixed to the land by a permanent foundation or is installed at its location 79.15in accordance with the Manufactured Home Building Code contained in sections 327.31 to 79.16327.34 , and the rules adopted under those sections, or is affixed to the land like other real 79.17property in the taxing district; and 79.18 (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 79.19by water and sewer facilities comparable to other real property in the taxing district. 79.20 (d) Sectional structures must be valued and assessed as an improvement to real property 79.21if the owner of the structure holds title to the land on which it is located or is a qualifying 79.22lessee of the land under section 273.19. In this paragraph "sectional structure" means a 79.23building or structural unit that has been in whole or substantial part manufactured or 79.24constructed at an off-site location to be wholly or partially assembled on site alone or with 79.25other units and attached to a permanent foundation. 79.26 (e) The commissioner of revenue may adopt rules under the Administrative Procedure 79.27Act to establish additional criteria for the classification of manufactured homes and sectional 79.28structures under this subdivision. 79.29 (f) A storage shed, deck, or similar improvement constructed on property that is leased 79.30or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer 79.31is taxable as provided in this section. In the case of property that is leased or rented as a site 79.32for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered 79.33personal property under this paragraph is taxable only if its total estimated market value is 80.1over $1,000 $10,000. The property is taxable as personal property to the lessee of the site 80.2if it is not owned by the owner of the site. The property is taxable as real estate if it is owned 80.3by the owner of the site. As a condition of permitting the owner of the manufactured home, 80.4sectional structure, park trailer, or travel trailer to construct improvements on the leased or 80.5rented site, the owner of the site must obtain the permanent home address of the lessee or 80.6user of the site. The site owner must provide the name and address to the assessor upon 80.7request. 80.8EFFECTIVE DATE.This section is effective beginning for property taxes assessed 80.9in 2018 and payable in 2019. 80.10 Sec. 14. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read: 80.11 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 80.12(c), real estate which is residential and used for homestead purposes is class 1a. In the case 80.13of a duplex or triplex in which one of the units is used for homestead purposes, the entire 80.14property is deemed to be used for homestead purposes. The market value of class 1a property 80.15must be determined based upon the value of the house, garage, and land. 80.16 The first $500,000 of market value of class 1a property has a net classification rate of 80.17one percent of its market value; and the market value of class 1a property that exceeds 80.18$500,000 has a classification rate of 1.25 percent of its market value. 80.19 (b) Class 1b property includes homestead real estate or homestead manufactured homes 80.20used for the purposes of a homestead by: 80.21 (1) any person who is blind as defined in section 256D.35, or the blind person and the 80.22blind person's spouse; 80.23 (2) any person who is permanently and totally disabled or by the disabled person and 80.24the disabled person's spouse; or 80.25 (3) the surviving spouse of a permanently and totally disabled veteran homesteading a 80.26property classified under this paragraph for taxes payable in 2008. 80.27 Property is classified and assessed under clause (2) only if the government agency or 80.28income-providing source certifies, upon the request of the homestead occupant, that the 80.29homestead occupant satisfies the disability requirements of this paragraph, and that the 80.30property is not eligible for the valuation exclusion under subdivision 34. 81.1 Property is classified and assessed under paragraph (b) only if the commissioner of 81.2revenue or the county assessor certifies that the homestead occupant satisfies the requirements 81.3of this paragraph. 81.4 Permanently and totally disabled for the purpose of this subdivision means a condition 81.5which is permanent in nature and totally incapacitates the person from working at an 81.6occupation which brings the person an income. The first $50,000 market value of class 1b 81.7property has a net classification rate of .45 percent of its market value. The remaining market 81.8value of class 1b property has a classification rate using the rates for class 1a or class 2a 81.9property, whichever is appropriate, of similar market value. 81.10 (c) Class 1c property is commercial use real and personal property that abuts public 81.11water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 81.12the Department of Natural Resources, and is devoted to temporary and seasonal residential 81.13occupancy for recreational purposes but not devoted to commercial purposes for more than 81.14250 days in the year preceding the year of assessment, and that includes a portion used as 81.15a homestead by the owner, which includes a dwelling occupied as a homestead by a 81.16shareholder of a corporation that owns the resort, a partner in a partnership that owns the 81.17resort, or a member of a limited liability company that owns the resort even if the title to 81.18the homestead is held by the corporation, partnership, or limited liability company. For 81.19purposes of this paragraph, property is devoted to a commercial purpose on a specific day 81.20if any portion of the property, excluding the portion used exclusively as a homestead, is 81.21used for residential occupancy and a fee is charged for residential occupancy. Class 1c 81.22property must contain three or more rental units. A "rental unit" is defined as a cabin, 81.23condominium, townhouse, sleeping room, or individual camping site equipped with water 81.24and electrical hookups for recreational vehicles. Class 1c property must provide recreational 81.25activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 81.26or cross-country ski equipment; provide marina services, launch services, or guide services; 81.27or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 81.28to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 81.29for class 1c even though it may remain available for rent. A camping pad offered for rent 81.30by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 81.31the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 81.32the same owner owns two separate parcels that are located in the same township, and one 81.33of those properties is classified as a class 1c property and the other would be eligible to be 81.34classified as a class 1c property if it was used as the homestead of the owner, both properties 81.35will be assessed as a single class 1c property; for purposes of this sentence, properties are 82.1deemed to be owned by the same owner if each of them is owned by a limited liability 82.2company, and both limited liability companies have the same membership. The portion of 82.3the property used as a homestead is class 1a property under paragraph (a). The remainder 82.4of the property is classified as follows: the first $600,000 of market value is tier I, the next 82.5$1,700,000 of market value is tier II, and any remaining market value is tier III. The 82.6classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 82.7percent. Owners of real and personal property devoted to temporary and seasonal residential 82.8occupancy for recreation purposes in which all or a portion of the property was devoted to 82.9commercial purposes for not more than 250 days in the year preceding the year of assessment 82.10desiring classification as class 1c, must submit a declaration to the assessor designating the 82.11cabins or units occupied for 250 days or less in the year preceding the year of assessment 82.12by January 15 of the assessment year. Those cabins or units and a proportionate share of 82.13the land on which they are located must be designated as class 1c as otherwise provided. 82.14The remainder of the cabins or units and a proportionate share of the land on which they 82.15are located must be designated as class 3a commercial. The owner of property desiring 82.16designation as class 1c property must provide guest registers or other records demonstrating 82.17that the units for which class 1c designation is sought were not occupied for more than 250 82.18days in the year preceding the assessment if so requested. The portion of a property operated 82.19as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 82.20other nonresidential facility operated on a commercial basis not directly related to temporary 82.21and seasonal residential occupancy for recreation purposes does not qualify for class 1c. 82.22 (d) Class 1d property includes structures that meet all of the following criteria: 82.23 (1) the structure is located on property that is classified as agricultural property under 82.24section 273.13, subdivision 23; 82.25 (2) the structure is occupied exclusively by seasonal farm workers during the time when 82.26they work on that farm, and the occupants are not charged rent for the privilege of occupying 82.27the property, provided that use of the structure for storage of farm equipment and produce 82.28does not disqualify the property from classification under this paragraph; 82.29 (3) the structure meets all applicable health and safety requirements for the appropriate 82.30season; and 82.31 (4) the structure is not salable as residential property because it does not comply with 82.32local ordinances relating to location in relation to streets or roads. 82.33 The market value of class 1d property has the same classification rates as class 1a property 82.34under paragraph (a). 83.1(e) For the purposes of paragraph (c), the portion of a resort used as a homestead by the 83.2owner includes a dwelling occupied as a homestead by: 83.3(1) a shareholder of a corporation that owns the resort, whether the title to the dwelling 83.4is held by the shareholder occupying the dwelling or the corporation; 83.5(2) a partner in a partnership that owns the resort, whether the title to the dwelling is 83.6held by the partner occupying the dwelling or the partnership; or 83.7(3) a member of a limited liability company that owns the resort, whether the title to the 83.8dwelling is held by the member occupying the dwelling or the limited liability company. 83.9To qualify the portion of a resort used as a homestead by an owner when the title is held 83.10by the shareholder, partner, or member occupying the dwelling, a property owner must 83.11apply to the assessor by January 15 of the assessment year and provide any documentation 83.12for verification required by the assessor. An owner is not required to reapply unless there 83.13is a change in the individual using the dwelling as a homestead or a change in the person 83.14who holds the title to the dwelling. 83.15EFFECTIVE DATE.This section is effective beginning with assessment year 2018 83.16for taxes payable in 2019. 83.17 Sec. 15. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read: 83.18 Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land 83.19that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 83.202a land under the same ownership. The market value of the house and garage and immediately 83.21surrounding one acre of land has the same classification rates as class 1a or 1b property 83.22under subdivision 22. The value of the remaining land including improvements up to the 83.23first tier valuation limit of agricultural homestead property has a classification rate of 0.5 83.24percent of market value. The remaining property over the first tier has a classification rate 83.25of one percent of market value. For purposes of this subdivision, the "first tier valuation 83.26limit of agricultural homestead property" and "first tier" means the limit certified under 83.27section 273.11, subdivision 23. 83.28 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 83.29are agricultural land and buildings. Class 2a property has a classification rate of one percent 83.30of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 83.31property must also include any property that would otherwise be classified as 2b, but is 83.32interspersed with class 2a property, including but not limited to sloughs, wooded wind 83.33shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 84.1and other similar land that is impractical for the assessor to value separately from the rest 84.2of the property or that is unlikely to be able to be sold separately from the rest of the property. 84.3 An assessor may classify the part of a parcel described in this subdivision that is used 84.4for agricultural purposes as class 2a and the remainder in the class appropriate to its use. 84.5 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 84.6are unplatted real estate, rural in character and not used for agricultural purposes, including 84.7land used for growing trees for timber, lumber, and wood and wood products, that is not 84.8improved with a structure. The presence of a minor, ancillary nonresidential structure as 84.9defined by the commissioner of revenue does not disqualify the property from classification 84.10under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 84.11a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 84.12assigned to the split parcel containing the structure. Class 2b property has a classification 84.13rate of one percent of market value unless it is part of an agricultural homestead under 84.14paragraph (a), or qualifies as class 2c under paragraph (d). 84.15 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 84.16acres statewide per taxpayer that is being managed under a forest management plan that 84.17meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 84.18management incentive program. It has a classification rate of .65 percent, provided that the 84.19owner of the property must apply to the assessor in order for the property to initially qualify 84.20for the reduced rate and provide the information required by the assessor to verify that the 84.21property qualifies for the reduced rate. If the assessor receives the application and information 84.22before May 1 in an assessment year, the property qualifies beginning with that assessment 84.23year. If the assessor receives the application and information after April 30 in an assessment 84.24year, the property may not qualify until the next assessment year. The commissioner of 84.25natural resources must concur that the land is qualified. The commissioner of natural 84.26resources shall annually provide county assessors verification information on a timely basis. 84.27The presence of a minor, ancillary nonresidential structure as defined by the commissioner 84.28of revenue does not disqualify the property from classification under this paragraph. 84.29 (e) Agricultural land as used in this section means: 84.30 (1) contiguous acreage of ten acres or more, used during the preceding year for 84.31agricultural purposes; or 84.32 (2) contiguous acreage used during the preceding year for an intensive livestock or 84.33poultry confinement operation, provided that land used only for pasturing or grazing does 84.34not qualify under this clause. 85.1 "Agricultural purposes" as used in this section means the raising, cultivation, drying, or 85.2storage of agricultural products for sale, or the storage of machinery or equipment used in 85.3support of agricultural production by the same farm entity. For a property to be classified 85.4as agricultural based only on the drying or storage of agricultural products, the products 85.5being dried or stored must have been produced by the same farm entity as the entity operating 85.6the drying or storage facility. "Agricultural purposes" also includes enrollment in a local 85.7conservation program or the Reinvest in Minnesota program under sections 103F.501 to 85.8103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 85.9or a similar state or federal conservation program if the property was classified as agricultural 85.10(i) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying 85.11program and the land remains enrolled or (ii) in the year prior to its enrollment. For purposes 85.12of this section, a local conservation program means a program administered by a town, 85.13statutory or home rule charter city, or county, including a watershed district, water 85.14management organization, or soil and water conservation district, in which landowners 85.15voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 85.16exchange for use or other restrictions placed on the land. In order for property to qualify 85.17under the local conservation program provision, a taxpayer must apply to the assessor by 85.18February 1 of the assessment year and must submit the information required by the assessor, 85.19including but not limited to a copy of the program requirements, the specific agreement 85.20between the land owner and the local agency, if applicable, and a map of the conservation 85.21area. Agricultural classification shall not be based upon the market value of any residential 85.22structures on the parcel or contiguous parcels under the same ownership. 85.23 "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 85.24portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 85.25of, a set of contiguous tax parcels under that section that are owned by the same person. 85.26 (f) Agricultural land under this section also includes: 85.27 (1) contiguous acreage that is less than ten acres in size and exclusively used in the 85.28preceding year for raising or cultivating agricultural products; or 85.29 (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 85.30contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 85.31used in the preceding year for one or more of the following three uses: 85.32 (i) for an intensive grain drying or storage operation, or for intensive machinery or 85.33equipment storage activities used to support agricultural activities on other parcels of property 85.34operated by the same farming entity; 86.1 (ii) as a nursery, provided that only those acres used intensively to produce nursery stock 86.2are considered agricultural land; or 86.3 (iii) for intensive market farming; for purposes of this paragraph, "market farming" 86.4means the cultivation of one or more fruits or vegetables or production of animal or other 86.5agricultural products for sale to local markets by the farmer or an organization with which 86.6the farmer is affiliated. 86.7 "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 86.8described in section 272.193, or all of a set of contiguous tax parcels under that section that 86.9are owned by the same person. 86.10 (g) Land shall be classified as agricultural even if all or a portion of the agricultural use 86.11of that property is the leasing to, or use by another person for agricultural purposes. 86.12 Classification under this subdivision is not determinative for qualifying under section 86.13273.111 . 86.14 (h) The property classification under this section supersedes, for property tax purposes 86.15only, any locally administered agricultural policies or land use restrictions that define 86.16minimum or maximum farm acreage. 86.17 (i) The term "agricultural products" as used in this subdivision includes production for 86.18sale of: 86.19 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 86.20animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 86.21and apiary products by the owner; 86.22 (2) fish bred aquacultural products for sale and consumption, as defined under section 86.2317.47, if the fish breeding aquaculture occurs on land zoned for agricultural use; 86.24 (3) the commercial boarding of horses, which may include related horse training and 86.25riding instruction, if the boarding is done on property that is also used for raising pasture 86.26to graze horses or raising or cultivating other agricultural products as defined in clause (1); 86.27 (4) property which is owned and operated by nonprofit organizations used for equestrian 86.28activities, excluding racing; 86.29 (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 86.3097A.105 , provided that the annual licensing report to the Department of Natural Resources, 86.31which must be submitted annually by March 30 to the assessor, indicates that at least 500 86.32birds were raised or used for breeding stock on the property during the preceding year and 87.1that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 87.2shooting preserve licensed under section 97A.115; 87.3 (6) insects primarily bred to be used as food for animals; 87.4 (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 87.5for timber, lumber, wood, or wood products; and 87.6 (8) maple syrup taken from trees grown by a person licensed by the Minnesota 87.7Department of Agriculture under chapter 28A as a food processor. 87.8 (j) If a parcel used for agricultural purposes is also used for commercial or industrial 87.9purposes, including but not limited to: 87.10 (1) wholesale and retail sales; 87.11 (2) processing of raw agricultural products or other goods; 87.12 (3) warehousing or storage of processed goods; and 87.13 (4) office facilities for the support of the activities enumerated in clauses (1), (2), and 87.14(3), 87.15the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 87.162a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 87.17The grading, sorting, and packaging of raw agricultural products for first sale is considered 87.18an agricultural purpose. A greenhouse or other building where horticultural or nursery 87.19products are grown that is also used for the conduct of retail sales must be classified as 87.20agricultural if it is primarily used for the growing of horticultural or nursery products from 87.21seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 87.22Use of a greenhouse or building only for the display of already grown horticultural or nursery 87.23products does not qualify as an agricultural purpose. 87.24 (k) The assessor shall determine and list separately on the records the market value of 87.25the homestead dwelling and the one acre of land on which that dwelling is located. If any 87.26farm buildings or structures are located on this homesteaded acre of land, their market value 87.27shall not be included in this separate determination. 87.28 (l) Class 2d airport landing area consists of a landing area or public access area of a 87.29privately owned public use airport. It has a classification rate of one percent of market value. 87.30To qualify for classification under this paragraph, a privately owned public use airport must 87.31be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 87.32area" means that part of a privately owned public use airport properly cleared, regularly 88.1maintained, and made available to the public for use by aircraft and includes runways, 88.2taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 88.3area also includes land underlying both the primary surface and the approach surfaces that 88.4comply with all of the following: 88.5 (i) the land is properly cleared and regularly maintained for the primary purposes of the 88.6landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 88.7for servicing, repair, or maintenance of aircraft is not included as a landing area; 88.8 (ii) the land is part of the airport property; and 88.9 (iii) the land is not used for commercial or residential purposes. 88.10The land contained in a landing area under this paragraph must be described and certified 88.11by the commissioner of transportation. The certification is effective until it is modified, or 88.12until the airport or landing area no longer meets the requirements of this paragraph. For 88.13purposes of this paragraph, "public access area" means property used as an aircraft parking 88.14ramp, apron, or storage hangar, or an arrival and departure building in connection with the 88.15airport. 88.16 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 88.17being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 88.18located in a county that has elected to opt-out of the aggregate preservation program as 88.19provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 88.20market value. To qualify for classification under this paragraph, the property must be at 88.21least ten contiguous acres in size and the owner of the property must record with the county 88.22recorder of the county in which the property is located an affidavit containing: 88.23 (1) a legal description of the property; 88.24 (2) a disclosure that the property contains a commercial aggregate deposit that is not 88.25actively being mined but is present on the entire parcel enrolled; 88.26 (3) documentation that the conditional use under the county or local zoning ordinance 88.27of this property is for mining; and 88.28 (4) documentation that a permit has been issued by the local unit of government or the 88.29mining activity is allowed under local ordinance. The disclosure must include a statement 88.30from a registered professional geologist, engineer, or soil scientist delineating the deposit 88.31and certifying that it is a commercial aggregate deposit. 88.32 For purposes of this section and section 273.1115, "commercial aggregate deposit" 88.33means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 89.1a construction aggregate; and "actively mined" means the removal of top soil and overburden 89.2in preparation for excavation or excavation of a commercial deposit. 89.3 (n) When any portion of the property under this subdivision or subdivision 22 begins to 89.4be actively mined, the owner must file a supplemental affidavit within 60 days from the 89.5day any aggregate is removed stating the number of acres of the property that is actively 89.6being mined. The acres actively being mined must be (1) valued and classified under 89.7subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 89.8resource preservation property tax program under section 273.1115, if the land was enrolled 89.9in that program. Copies of the original affidavit and all supplemental affidavits must be 89.10filed with the county assessor, the local zoning administrator, and the Department of Natural 89.11Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 89.12time a subsequent portion of the property is actively mined, provided that the minimum 89.13acreage change is five acres, even if the actual mining activity constitutes less than five 89.14acres. 89.15 (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 89.16rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 89.17section 14.386 concerning exempt rules do not apply. 89.18EFFECTIVE DATE.This section is effective beginning with assessment year 2018. 89.19 Sec. 16. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read: 89.20 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units 89.21and used or held for use by the owner or by the tenants or lessees of the owner as a residence 89.22for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 89.23also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 89.24under section 272.02, and contiguous property used for hospital purposes, without regard 89.25to whether the property has been platted or subdivided. The market value of class 4a property 89.26has a classification rate of 1.25 percent. 89.27 (b) Class 4b includes: 89.28 (1) residential real estate containing less than four units that does not qualify as class 89.294bb, other than seasonal residential recreational property; 89.30 (2) manufactured homes not classified under any other provision; 89.31 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 89.32classified under subdivision 23, paragraph (b) containing two or three units; and 90.1 (4) unimproved property that is classified residential as determined under subdivision 90.233. 90.3 The market value of class 4b property has a classification rate of 1.25 percent. 90.4 (c) Class 4bb includes: 90.5 (1) nonhomestead residential real estate containing one unit, other than seasonal 90.6residential recreational property, and; 90.7 (2) a single family dwelling, garage, and surrounding one acre of property on a 90.8nonhomestead farm classified under subdivision 23, paragraph (b).; and 90.9 (3) a condominium-type storage unit having an individual property identification number 90.10that is not used for a commercial purpose. 90.11 Class 4bb property has the same classification rates as class 1a property under subdivision 90.1222. 90.13 Property that has been classified as seasonal residential recreational property at any time 90.14during which it has been owned by the current owner or spouse of the current owner does 90.15not qualify for class 4bb. 90.16 (d) Class 4c property includes: 90.17 (1) except as provided in subdivision 22, paragraph (c), real and personal property 90.18devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 90.19for not more than 250 days in the year preceding the year of assessment. For purposes of 90.20this clause, property is devoted to a commercial purpose on a specific day if any portion of 90.21the property is used for residential occupancy, and a fee is charged for residential occupancy. 90.22Class 4c property under this clause must contain three or more rental units. A "rental unit" 90.23is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 90.24equipped with water and electrical hookups for recreational vehicles. A camping pad offered 90.25for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 90.26under this clause regardless of the term of the rental agreement, as long as the use of the 90.27camping pad does not exceed 250 days. In order for a property to be classified under this 90.28clause, either (i) the business located on the property must provide recreational activities, 90.29at least 40 percent of the annual gross lodging receipts related to the property must be from 90.30business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 90.31bookings by lodging guests during the year must be for periods of at least two consecutive 90.32nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 90.33providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 91.1and must be located in a township or a city with a population of 2,500 or less located outside 91.2the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 91.3of a state trail administered by the Department of Natural Resources. For purposes of item 91.4(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 91.5property also includes commercial use real property used exclusively for recreational 91.6purposes in conjunction with other class 4c property classified under this clause and devoted 91.7to temporary and seasonal residential occupancy for recreational purposes, up to a total of 91.8two acres, provided the property is not devoted to commercial recreational use for more 91.9than 250 days in the year preceding the year of assessment and is located within two miles 91.10of the class 4c property with which it is used. In order for a property to qualify for 91.11classification under this clause, the owner must submit a declaration to the assessor 91.12designating the cabins or units occupied for 250 days or less in the year preceding the year 91.13of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 91.14share of the land on which they are located must be designated class 4c under this clause 91.15as otherwise provided. The remainder of the cabins or units and a proportionate share of 91.16the land on which they are located will be designated as class 3a. The owner of property 91.17desiring designation as class 4c property under this clause must provide guest registers or 91.18other records demonstrating that the units for which class 4c designation is sought were not 91.19occupied for more than 250 days in the year preceding the assessment if so requested. The 91.20portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 91.21or meeting room, and (5) other nonresidential facility operated on a commercial basis not 91.22directly related to temporary and seasonal residential occupancy for recreation purposes 91.23does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 91.24means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 91.25ski equipment; providing marina services, launch services, or guide services; or selling bait 91.26and fishing tackle; 91.27 (2) qualified property used as a golf course if: 91.28 (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 91.29but a membership fee may not be required in order to use the property for golfing, and its 91.30green fees for golfing must be comparable to green fees typically charged by municipal 91.31courses; and 91.32 (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 91.33 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 91.34the golf course is classified as class 3a property; 92.1 (3) real property up to a maximum of three acres of land owned and used by a nonprofit 92.2community service oriented organization and not used for residential purposes on either a 92.3temporary or permanent basis, provided that: 92.4 (i) the property is not used for a revenue-producing activity for more than six days in 92.5the calendar year preceding the year of assessment; or 92.6 (ii) the organization makes annual charitable contributions and donations at least equal 92.7to the property's previous year's property taxes and the property is allowed to be used for 92.8public and community meetings or events for no charge, as appropriate to the size of the 92.9facility. 92.10 For purposes of this clause: 92.11 (A) "charitable contributions and donations" has the same meaning as lawful gambling 92.12purposes under section 349.12, subdivision 25, excluding those purposes relating to the 92.13payment of taxes, assessments, fees, auditing costs, and utility payments; 92.14 (B) "property taxes" excludes the state general tax; 92.15 (C) a "nonprofit community service oriented organization" means any corporation, 92.16society, association, foundation, or institution organized and operated exclusively for 92.17charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 92.18federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 92.19Revenue Code; and 92.20 (D) "revenue-producing activities" shall include but not be limited to property or that 92.21portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 92.22liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 92.23alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 92.24insurance business, or office or other space leased or rented to a lessee who conducts a 92.25for-profit enterprise on the premises. 92.26 Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 92.27use of the property for social events open exclusively to members and their guests for periods 92.28of less than 24 hours, when an admission is not charged nor any revenues are received by 92.29the organization shall not be considered a revenue-producing activity. 92.30 The organization shall maintain records of its charitable contributions and donations 92.31and of public meetings and events held on the property and make them available upon 92.32request any time to the assessor to ensure eligibility. An organization meeting the requirement 92.33under item (ii) must file an application by May 1 with the assessor for eligibility for the 93.1current year's assessment. The commissioner shall prescribe a uniform application form 93.2and instructions; 93.3 (4) postsecondary student housing of not more than one acre of land that is owned by a 93.4nonprofit corporation organized under chapter 317A and is used exclusively by a student 93.5cooperative, sorority, or fraternity for on-campus housing or housing located within two 93.6miles of the border of a college campus; 93.7 (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 93.8manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii), 93.9and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are 93.10described in section 273.124, subdivision 3a, and (iii) class I manufactured home parks as 93.11defined in section 327C.01, subdivision 13; 93.12 (6) real property that is actively and exclusively devoted to indoor fitness, health, social, 93.13recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 93.14located within the metropolitan area as defined in section 473.121, subdivision 2; 93.15 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 93.16section 272.01, subdivision 2, and the land on which it is located, provided that: 93.17 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 93.18Airports Commission, or group thereof; and 93.19 (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 93.20premise, prohibits commercial activity performed at the hangar. 93.21 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 93.22filed by the new owner with the assessor of the county where the property is located within 93.2360 days of the sale; 93.24 (8) a privately owned noncommercial aircraft storage hangar not exempt under section 93.25272.01, subdivision 2 , and the land on which it is located, provided that: 93.26 (i) the land abuts a public airport; and 93.27 (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 93.28restricting the use of the premises, prohibiting commercial use or activity performed at the 93.29hangar; and 93.30 (9) residential real estate, a portion of which is used by the owner for homestead purposes, 93.31and that is also a place of lodging, if all of the following criteria are met: 94.1 (i) rooms are provided for rent to transient guests that generally stay for periods of 14 94.2or fewer days; 94.3 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 94.4the basic room rate; 94.5 (iii) meals are not provided to the general public except for special events on fewer than 94.6seven days in the calendar year preceding the year of the assessment; and 94.7 (iv) the owner is the operator of the property. 94.8 The market value subject to the 4c classification under this clause is limited to five rental 94.9units. Any rental units on the property in excess of five, must be valued and assessed as 94.10class 3a. The portion of the property used for purposes of a homestead by the owner must 94.11be classified as class 1a property under subdivision 22; 94.12 (10) real property up to a maximum of three acres and operated as a restaurant as defined 94.13under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 94.14section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 94.15commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 94.16of its annual gross receipts from business conducted during four consecutive months. Gross 94.17receipts from the sale of alcoholic beverages must be included in determining the property's 94.18qualification under item (ii). The property's primary business must be as a restaurant and 94.19not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 94.20Owners of real property desiring 4c classification under this clause must submit an annual 94.21declaration to the assessor by February 1 of the current assessment year, based on the 94.22property's relevant information for the preceding assessment year; 94.23(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 94.24a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 94.25and devoted to recreational use for marina services. The marina owner must annually provide 94.26evidence to the assessor that it provides services, including lake or river access to the public 94.27by means of an access ramp or other facility that is either located on the property of the 94.28marina or at a publicly owned site that abuts the property of the marina. No more than 800 94.29feet of lakeshore may be included in this classification. Buildings used in conjunction with 94.30a marina for marina services, including but not limited to buildings used to provide food 94.31and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 94.32as class 3a property; and 94.33(12) real and personal property devoted to noncommercial temporary and seasonal 94.34residential occupancy for recreation purposes. 95.1 Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 95.2each parcel of noncommercial seasonal residential recreational property under clause (12) 95.3has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 95.4under clause (5), item (i), have the same classification rate as class 4b property, and the 95.5market value of manufactured home parks assessed under clause (5), item (ii), has have a 95.6classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied 95.7by shareholders in the cooperative corporation or association and a classification rate of 95.8one percent if 50 percent or less of the lots are so occupied, and class I manufactured home 95.9parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, 95.10(iii) commercial-use seasonal residential recreational property and marina recreational land 95.11as described in clause (11), has a classification rate of one percent for the first $500,000 of 95.12market value, and 1.25 percent for the remaining market value, (iv) the market value of 95.13property described in clause (4) has a classification rate of one percent, (v) the market value 95.14of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 95.15and (vi) that portion of the market value of property in clause (9) qualifying for class 4c 95.16property has a classification rate of 1.25 percent, and (vii) property qualifying for 95.17classification under clause (3) that is owned or operated by a congressionally chartered 95.18veterans organization has a classification rate of one percent. The commissioner of veterans 95.19affairs must provide a list of congressionally chartered veterans organizations to the 95.20commissioner of revenue by June 30, 2017, and by January 1, 2018, and each year thereafter. 95.21 (e) Class 4d property is qualifying low-income rental housing certified to the assessor 95.22by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 95.23the units in the building qualify as low-income rental housing units as certified under section 95.24273.128, subdivision 3 , only the proportion of qualifying units to the total number of units 95.25in the building qualify for class 4d. The remaining portion of the building shall be classified 95.26by the assessor based upon its use. Class 4d also includes the same proportion of land as 95.27the qualifying low-income rental housing units are to the total units in the building. For all 95.28properties qualifying as class 4d, the market value determined by the assessor must be based 95.29on the normal approach to value using normal unrestricted rents. 95.30 (f) The first tier of market value of class 4d property has a classification rate of 0.75 95.31percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 95.32For the purposes of this paragraph, the "first tier of market value of class 4d property" means 95.33the market value of each housing unit up to the first tier limit. For the purposes of this 95.34paragraph, all class 4d property value must be assigned to individual housing units. The 95.35first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 96.1adjusted each year by the average statewide change in estimated market value of property 96.2classified as class 4a and 4d under this section for the previous assessment year, excluding 96.3valuation change due to new construction, rounded to the nearest $1,000, provided, however, 96.4that the limit may never be less than $100,000. Beginning with assessment year 2015, the 96.5commissioner of revenue must certify the limit for each assessment year by November 1 96.6of the previous year. 96.7EFFECTIVE DATE.(a) Except as provided in paragraphs (b) and (c), this section is 96.8effective beginning with taxes assessed in 2017 and payable in 2018. 96.9(b) The amendment to paragraph (d), clause (5), and the amendment to item (ii) of the 96.10unlettered paragraph after paragraph (d), clause (12), are effective for taxes payable in 2019 96.11and thereafter, but only become effective if the class I manufactured home park program 96.12in chapter 327C is enacted during the 2017 legislative session. 96.13(c) The amendment to paragraph (c), clause (3), is effective beginning with taxes payable 96.14in 2019. 96.15 Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read: 96.16 Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of 96.17the market value of property owned by a veteran and serving as the veteran's homestead 96.18under this section is excluded in determining the property's taxable market value if the 96.19veteran has a service-connected disability of 70 percent or more as certified by the United 96.20States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 96.21veteran must have been honorably discharged from the United States armed forces, as 96.22indicated by United States Government Form DD214 or other official military discharge 96.23papers. 96.24 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 96.25except as provided in clause (2); and 96.26 (2) for a total (100 percent) and permanent disability, $300,000 of market value is 96.27excluded. 96.28 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 96.29(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 96.30the legal or beneficial title to the homestead and permanently resides there, the exclusion 96.31shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 96.32for eight additional taxes payable years or until such time as the spouse remarries, or sells, 96.33transfers, or otherwise disposes of the property, whichever comes first. Qualification under 97.1this paragraph requires an annual application under paragraph (h), and a spouse must notify 97.2the assessor if there is a change in the spouse's marital status, ownership of the property, or 97.3use of the property as a permanent residence. 97.4(d) If the spouse of a member of any branch or unit of the United States armed forces 97.5who dies due to a service-connected cause while serving honorably in active service, as 97.6indicated on United States Government Form DD1300 or DD2064, holds the legal or 97.7beneficial title to a homestead and permanently resides there, the spouse is entitled to the 97.8benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 97.9time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 97.10whichever comes first. 97.11(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 97.12classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 97.13family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 97.14for under paragraph (b). 97.15 (f) In the case of an agricultural homestead, only the portion of the property consisting 97.16of the house and garage and immediately surrounding one acre of land qualifies for the 97.17valuation exclusion under this subdivision. 97.18 (g) A property qualifying for a valuation exclusion under this subdivision is not eligible 97.19for the market value exclusion under subdivision 35, or classification under subdivision 22, 97.20paragraph (b). 97.21 (h) To qualify for a valuation exclusion under this subdivision a property owner must 97.22apply to the assessor by July 1 of each assessment year, except that an annual reapplication 97.23is not required once a property has been accepted for a valuation exclusion under paragraph 97.24(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 97.25continues to qualify until there is a change in ownership of the first assessment year for 97.26which the exclusion is sought. For an application received after July 1 of any calendar year, 97.27the exclusion shall become effective for the following assessment year. Except as provided 97.28in paragraph (c), the owner of a property that has been accepted for a valuation exclusion 97.29must notify the assessor if there is a change in ownership of the property or in the use of 97.30the property as a homestead. 97.31(i) A first-time application by a qualifying spouse for the market value exclusion under 97.32paragraph (d) must be made any time within two years of the death of the service member. 97.33(j) For purposes of this subdivision: 98.1(1) "active service" has the meaning given in section 190.05; 98.2(2) "own" means that the person's name is present as an owner on the property deed; 98.3(3) "primary family caregiver" means a person who is approved by the secretary of the 98.4United States Department of Veterans Affairs for assistance as the primary provider of 98.5personal care services for an eligible veteran under the Program of Comprehensive Assistance 98.6for Family Caregivers, codified as United States Code, title 38, section 1720G; and 98.7(4) "veteran" has the meaning given the term in section 197.447. 98.8(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 98.9under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 98.10under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 98.11or sells, transfers, or otherwise disposes of the property if: 98.12(1) the spouse files a first-time application within two years of the death of the service 98.13member or by June 1, 2019, whichever is later; 98.14(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 98.15homestead and permanently resides there; 98.16(3) the veteran met the honorable discharge requirements of paragraph (a); and 98.17(4) the United States Department of Veterans Affairs certifies that: 98.18(i) the veteran met the total (100 percent) and permanent disability requirement under 98.19paragraph (b), clause (2); or 98.20(ii) the spouse has been awarded dependency and indemnity compensation. 98.21(l) The purpose of this provision of law providing a level of homestead property tax 98.22relief for gravely disabled veterans, their primary family caregivers, and their surviving 98.23spouses is to help ease the burdens of war for those among our state's citizens who bear 98.24those burdens most heavily. 98.25(m) By July 1, the county veterans service officer must certify the disability rating and 98.26permanent address of each veteran receiving the benefit under paragraph (b) to the assessor. 98.27EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018, 98.28provided that, for taxes payable in 2018, the first-time application required under paragraph 98.29(k) is due by August 1, 2017. 99.1 Sec. 18. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read: 99.2 Subdivision 1. Levy amount. The state general levy is levied against 99.3commercial-industrial property and seasonal residential recreational property, as defined 99.4in this section. The state general levy base amount is $592,000,000 for commercial-industrial 99.5property is $764,910,000 for taxes payable in 2002 2018 and thereafter. For taxes payable 99.6in subsequent years, the levy base amount is increased each year by multiplying the levy 99.7base amount for the prior year by the sum of one plus the rate of increase, if any, in the 99.8implicit price deflator for government consumption expenditures and gross investment for 99.9state and local governments prepared by the Bureau of Economic Analysts of the United 99.10States Department of Commerce for the 12-month period ending March 31 of the year prior 99.11to the year the taxes are payable. The state general levy for seasonal-recreational property 99.12is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section is not 99.13treated as a local tax rate under section 469.177 and is not the levy of a governmental unit 99.14under chapters 276A and 473F. 99.15The commissioner shall increase or decrease the preliminary or final rate for a year as 99.16necessary to account for errors and tax base changes that affected a preliminary or final rate 99.17for either of the two preceding years. Adjustments are allowed to the extent that the necessary 99.18information is available to the commissioner at the time the rates for a year must be certified, 99.19and for the following reasons: 99.20(1) an erroneous report of taxable value by a local official; 99.21(2) an erroneous calculation by the commissioner; and 99.22(3) an increase or decrease in taxable value for commercial-industrial or seasonal 99.23residential recreational property reported on the abstracts of tax lists submitted under section 99.24275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 99.25for the same year. 99.26The commissioner may, but need not, make adjustments if the total difference in the tax 99.27levied for the year would be less than $100,000. 99.28EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter. 99.29 Sec. 19. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read: 99.30 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, 99.31"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 99.32as class 3 or class 5(1) under section 273.13, except for excluding: (i) the first tier of 99.33commercial-industrial net tax capacity as defined under section 273.13, subdivision 24, (ii) 100.1electric generation attached machinery under class 3, and (iii) property described in section 100.2473.625 . County commercial-industrial tax capacity amounts are not adjusted for the captured 100.3net tax capacity of a tax increment financing district under section 469.177, subdivision 2, 100.4the net tax capacity of transmission lines deducted from a local government's total net tax 100.5capacity under section 273.425, or fiscal disparities contribution and distribution net tax 100.6capacities under chapter 276A or 473F. 100.7EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 100.8 Sec. 20. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read: 100.9 Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The 100.10state general tax must be levied by applying a uniform rate to all commercial-industrial tax 100.11capacity and five percent of the state general tax must be levied by applying a uniform rate 100.12to all seasonal residential recreational tax capacity. On or before October 1 each year, the 100.13commissioner of revenue shall certify the preliminary state general levy rates to each county 100.14auditor that must be used to prepare the notices of proposed property taxes for taxes payable 100.15in the following year. By January 1 of each year, the commissioner shall certify the final 100.16state general levy rate rates to each county auditor that shall be used in spreading taxes. 100.17EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter. 100.18 Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision 100.19to read: 100.20 Subd. 5. Underserved municipalities distribution. (a) Any municipality that: 100.21(1) lies wholly or partially within the metropolitan area as defined under section 473.121, 100.22subdivision 2, but outside the transit taxing district as defined under section 473.446, 100.23subdivision 2; and 100.24(2) has a net fiscal disparities contribution equal to or greater than eight percent of its 100.25total taxable net tax capacity, 100.26is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers 100.27within the municipality. 100.28(b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2) 100.29the municipality's net fiscal disparities contribution in excess of eight percent of its total 100.30taxable net tax capacity; provided, however, that the distribution may not exceed the tax 100.31under this section imposed on taxpayers within the municipality. The amount of the 100.32distribution to each municipality must be determined by the commissioner of revenue and 101.1certified to each affected municipality and county by September 1 of the year in which taxes 101.2are payable. 101.3(c) The distribution under this subdivision must be paid to the qualifying municipality 101.4by the treasurer of the home county of the municipality by December 1 of the year the taxes 101.5are payable. The amounts distributed under this subdivision must be deducted from the 101.6settlement of the state general levy for the taxes payable year under section 276.112. 101.7(d) For purposes of this subdivision, the following terms have the meanings given. 101.8(1) "Municipality" means a home rule or statutory city, or a town, except that in the case 101.9of a city that lies only partially within the metropolitan area, municipality means the portion 101.10of the city lying within the metropolitan area. 101.11(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities 101.12contribution tax capacity minus its distribution net tax capacity. 101.13(3) "Total taxable net tax capacity" means the total net tax capacity of all properties in 101.14the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and 101.15(ii) the municipality's tax increment captured net tax capacity. 101.16EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter. 101.17 Sec. 22. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read: 101.18 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 101.19on or before September 30, each county and each, home rule charter or statutory city, town, 101.20and special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito 101.21Control Commission, shall certify to the county auditor the proposed property tax levy for 101.22taxes payable in the following year. For towns, the final certified levy shall also be considered 101.23the proposed levy. 101.24 (b) Notwithstanding any law or charter to the contrary, on or before September 15, each 101.25town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito 101.26Control Commission shall adopt and certify to the county auditor a proposed property tax 101.27levy for taxes payable in the following year. For towns, the final certified levy shall also be 101.28considered the proposed levy. 101.29 (c) On or before September 30, each school district that has not mutually agreed with 101.30its home county to extend this date shall certify to the county auditor the proposed property 101.31tax levy for taxes payable in the following year. Each school district that has agreed with 101.32its home county to delay the certification of its proposed property tax levy must certify its 102.1proposed property tax levy for the following year no later than October 7. The school district 102.2shall certify the proposed levy as: 102.3 (1) a specific dollar amount by school district fund, broken down between voter-approved 102.4and non-voter-approved levies and between referendum market value and tax capacity 102.5levies; or 102.6 (2) the maximum levy limitation certified by the commissioner of education according 102.7to section 126C.48, subdivision 1. 102.8 (d) If the board of estimate and taxation or any similar board that establishes maximum 102.9tax levies for taxing jurisdictions within a first class city certifies the maximum property 102.10tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 102.11in paragraph (a), the city shall be deemed to have certified its levies for those taxing 102.12jurisdictions. 102.13 (e) For purposes of this section, "special taxing district" means a special taxing district 102.14as defined in section 275.066. Intermediate school districts that levy a tax under chapter 102.15124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 102.16Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 102.17taxing districts for purposes of this section. 102.18(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 102.19tax levy under this subdivision, the taxing authority shall announce the time and place of 102.20its subsequent regularly scheduled meetings at which the budget and levy will be discussed 102.21and at which the public will be allowed to speak. The time and place of those meetings must 102.22be included in the proceedings or summary of proceedings published in the official newspaper 102.23of the taxing authority under section 123B.09, 375.12, or 412.191. 102.24EFFECTIVE DATE.This section is effective beginning with proposed levy 102.25certifications for taxes payable in 2018. 102.26 Sec. 23. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read: 102.27 Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the 102.28taxes voted by cities, counties, school districts, and special districts shall be certified by the 102.29proper authorities to the county auditor on or before five working days after December 20 102.30in each year. A town must certify the levy adopted by the town board to the county auditor 102.31by September 15 30 each year. If the town board modifies the levy at a special town meeting 102.32after September 15 30, the town board must recertify its levy to the county auditor on or 102.33before five working days after December 20. If a city, town, county, school district, or 103.1special district fails to certify its levy by that date, its levy shall be the amount levied by it 103.2for the preceding year. 103.3(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251 103.4shall be separately certified by the county to the county auditor on or before five working 103.5days after December 20 in each year. The taxes certified shall not be reduced by the county 103.6auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify 103.7its levy by that date, its levy shall be the amount levied by it for the preceding year. 103.8(ii) For purposes of the proposed property tax notice under section 275.065 and the 103.9property tax statement under section 276.04, for the first year in which the county implements 103.10the provisions of this paragraph, the county auditor shall reduce the county's levy for the 103.11preceding year to reflect any amount levied for water management purposes under clause 103.12(i) included in the county's levy. 103.13EFFECTIVE DATE.This section is effective beginning with proposed levy 103.14certifications for taxes payable in 2018. 103.15 Sec. 24. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read: 103.16 Subd. 3. United States Postal Service postmark Proof of timely payment. The 103.17postmark or registration mark of the United States Postal Service qualifies as proof of timely 103.18mailing for this section. If the payment is sent by United States registered mail, the date of 103.19registration is the postmark date. If the payment is sent by United States certified mail, the 103.20date of the United States Postal Service postmark on the receipt given to the person presenting 103.21the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also 103.22be established by a delivery service's records or other available evidence except that. The 103.23postmark of a private postage meter or an electronic stamp purchased online may not be 103.24used as proof of a timely mailing made under this section. 103.25EFFECTIVE DATE.This section is effective the day following final enactment. 103.26 Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read: 103.27 Subdivision 1. Due dates; penalties. Except as provided in subdivisions 3 to 5, on May 103.2816 or 21 days after the postmark date on the envelope containing the property tax statement, 103.29whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real 103.30estate on the current lists in the hands of the county treasurer. The (a) When the taxes against 103.31any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May 103.3216, and the remaining one-half must be paid prior to the following October 16. If either tax 104.1amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead 104.2property until May 31 and four percent on nonhomestead property. If complete payment 104.3has not been made by the first day of the month following either due date, an additional 104.4penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four 104.5percent until May 31 homestead property and eight four percent on June 1. This penalty 104.6does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope 104.7containing the property tax statements, whichever is later, on commercial use real property 104.8used for seasonal residential recreational purposes and classified as class 1c or 4c, and on 104.9other commercial use real property classified as class 3a, provided that over 60 percent of 104.10the gross income earned by the enterprise on the class 3a property is earned during the 104.11months of May, June, July, and August. In order for the first half of the tax due on class 3a 104.12property to be paid after May 15 and before June 1, or 21 days after the postmark date on 104.13the envelope containing the property tax statement, whichever is later, without penalty, the 104.14owner of the property must attach an affidavit to the payment attesting to compliance with 104.15the income provision of this subdivision nonhomestead property is imposed. Thereafter, 104.16for both homestead and nonhomestead property, on the first day of each subsequent month 104.17beginning July 1, up to and including October 1 following through December, an additional 104.18penalty of one percent for each month accrues and is charged on all such unpaid taxes 104.19provided that if the due date was extended beyond May 15 as the result of any delay in 104.20mailing property tax statements no additional penalty shall accrue if the tax is paid by the 104.21extended due date. If the tax is not paid by the extended due date, then all penalties that 104.22would have accrued if the due date had been May 15 shall be charged. When the taxes 104.23against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21 104.24days after the postmark date on the envelope containing the property tax statement, whichever 104.25is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time 104.26prior to October 16 following, without penalty; but, if not so paid, then a penalty of two 104.27percent accrues thereon for homestead property and a penalty of four percent on 104.28nonhomestead property. Thereafter, for homestead property, on the first day of November 104.29an additional penalty of four percent accrues and on the first day of December following, 104.30an additional penalty of two percent accrues and is charged on all such unpaid taxes. 104.31Thereafter, for nonhomestead property, on the first day of November and December 104.32following, an additional penalty of four percent for each month accrues and is charged on 104.33all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after 104.34the postmark date on the envelope containing the property tax statement, whichever is later, 104.35the same may be paid at any time prior to October 16, with accrued penalties to the date of 104.36payment added, and thereupon no penalty attaches to the remaining one-half until October 105.116 following the penalty must not exceed eight percent in the case of homestead property, 105.2or 12 percent in the case of nonhomestead property. 105.3(b) If the property tax statement was not postmarked prior to April 25, the first half 105.4payment due date in paragraph (a) shall be 21 days from the postmark date of the property 105.5tax statement, and all penalties referenced in paragraph (a) shall be determined with regard 105.6to the later due date. 105.7(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as 105.8specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount 105.9of the tax due. 105.10(d) For commercial use real property used for seasonal residential recreational purposes 105.11and classified as class 1c or 4c, and on other commercial use real property classified as class 105.123a, provided that over 60 percent of the gross income earned by the enterprise on the class 105.133a property is earned during the months of May, June, July, and August, the first half 105.14payment is due prior to June 1. For a class 3a property to qualify for the later due date, the 105.15owner of the property must attach an affidavit to the payment attesting to compliance with 105.16the income requirements of this paragraph. 105.17 (e) This section applies to payment of personal property taxes assessed against 105.18improvements to leased property, except as provided by section 277.01, subdivision 3. 105.19 (f) A county may provide by resolution that in the case of a property owner that has 105.20multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 105.21installments as provided in this subdivision. 105.22 (g) The county treasurer may accept payments of more or less than the exact amount of 105.23a tax installment due. Payments must be applied first to the oldest installment that is due 105.24but which has not been fully paid. If the accepted payment is less than the amount due, 105.25payments must be applied first to the penalty accrued for the year or the installment being 105.26paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 105.27payment required as a condition for filing an appeal under section 278.03 or any other law, 105.28nor does it affect the order of payment of delinquent taxes under section 280.39. 105.29EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 105.30 Sec. 26. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read: 105.31 Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the 105.32county treasurer, delegate to the county treasurer the power to abate the penalty provided 105.33for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 106.1board so elects, the county treasurer may abate the penalty on finding that the imposition 106.2of the penalty would be unjust and unreasonable. 106.3(b) The county treasurer shall abate the penalty provided for late payment of taxes in 106.4the current year if the property tax payment is delivered by mail to the county treasurer and 106.5the envelope containing the payment is postmarked by the United States Postal Service 106.6within one business day of the due date prescribed under this section, but only if the property 106.7owner requesting the abatement has not previously received an abatement of penalty for 106.8late payment of tax under this paragraph. 106.9EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and 106.10thereafter. 106.11 Sec. 27. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read: 106.12 Subd. 3. Agricultural property. (a) In the case of class 1b agricultural homestead, class 106.132a agricultural homestead property, and class 2a agricultural nonhomestead property, and 106.14class 2b rural vacant land that is part of an agricultural homestead, no penalties shall attach 106.15to the second one-half property tax payment as provided in this section if paid by November 106.1615. Thereafter for class 1b agricultural homestead and class 2a homestead property, on 106.17November 16 following, a penalty of six percent shall accrue and be charged on all such 106.18unpaid taxes and on December 1 following, an additional two percent shall be charged on 106.19all such unpaid taxes. Thereafter for class 2a agricultural nonhomestead property, on 106.20November 16 following, a penalty of eight percent shall accrue and be charged on all such 106.21unpaid taxes and on December 1 following, an additional four percent shall be charged on 106.22all such unpaid taxes, penalties shall attach as provided in subdivision 1. 106.23If the owner of class 1b agricultural homestead or class 2a agricultural property receives 106.24a consolidated property tax statement that shows only an aggregate of the taxes and special 106.25assessments due on that property and on other property not classified as class 1b agricultural 106.26homestead or class 2a agricultural property, the aggregate tax and special assessments shown 106.27due on the property by the consolidated statement will be due on November 15. 106.28(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b 106.29property that was subject to a second-half due date of November 15 for taxes payable in 106.302009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of 106.31those that would apply as if the second-half due date were November 15. 106.32EFFECTIVE DATE.(a) Except as provided in paragraph (b), this section is effective 106.33beginning with taxes payable in 2018. 107.1(b) The provisions in this section applicable to class 2b rural vacant land are effective 107.2beginning with taxes payable in 2019. 107.3 Sec. 28. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to 107.4read: 107.5 Subd. 1b. Conditions. The county auditor may offer on a voluntary basis financial 107.6literacy counseling as part of entering into a confession of judgment. The county auditor 107.7may fund the financial literacy counseling using the fee in subdivision 8. The counseling 107.8shall not be at taxpayer expense. 107.9EFFECTIVE DATE.This section is effective the day following final enactment. 107.10 Sec. 29. Minnesota Statutes 2016, section 281.17, is amended to read: 107.11281.17 PERIOD FOR OF REDEMPTION. 107.12(a) Except for properties described in paragraphs (b) and (c), or properties for which the 107.13period of redemption has been limited under sections 281.173 and 281.174, the following 107.14periods for period of redemption apply. 107.15The period of redemption for all lands sold to the state at a tax judgment sale shall be 107.16three years from the date of sale to the state of Minnesota. 107.17The period of redemption for homesteaded lands as defined in section 273.13, subdivision 107.1822 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, 107.19section 4, and sold to the state at a tax judgment sale is three years from the date of sale. 107.20(b) The period of redemption for all lands located in a targeted neighborhood community 107.21as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10, 107.22except homesteaded lands as defined in section 273.13, subdivision 22, is one year from 107.23the date of sale. 107.24(c) The period of redemption for all real property constituting a mixed municipal solid 107.25waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 107.26one year from the date of the sale to the state of Minnesota. 107.27(d) In determining the period of redemption, the county must use the property's 107.28classification and homestead classification for the assessment year on which the tax judgment 107.29is based. Any change in the property's classification or homestead classification after the 107.30assessment year on which the tax judgment is based does not affect the period of redemption. 108.1EFFECTIVE DATE.This section is effective for tax judgment sales occurring after 108.2January 1, 2018. 108.3 Sec. 30. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read: 108.4 Subd. 2. Summons and complaint. Any city, county, housing and redevelopment 108.5authority, port authority, or economic development authority, in which the premises are 108.6located may commence an action in district court to reduce the period otherwise allowed 108.7for redemption under this chapter. The action must be commenced by the filing of a 108.8complaint, naming as defendants the record fee owners or the owner's personal representative, 108.9or the owner's heirs as determined by a court of competent jurisdiction, contract for deed 108.10purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records 108.11of the county auditor, the Internal Revenue Service of the United States and the Revenue 108.12Department of the state of Minnesota if tax liens against the owners or contract for deed 108.13purchasers have been recorded or filed; and any other person the plaintiff determines should 108.14be made a party. The action shall be filed in district court for the county in which the premises 108.15are located. The complaint must identify the premises by legal description. The complaint 108.16must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to 108.17section 280.01 has been made, and (3) notice of expiration of the time for redemption has 108.18not been given. 108.19The complaint must request an order reducing the redemption period to five weeks. 108.20When the complaint has been filed, the court shall issue a summons commanding the person 108.21or persons named in the complaint to appear before the court on a day and at a place stated 108.22in the summons. The appearance date shall be not less than 15 nor more than 25 days from 108.23the date of the issuing of the summons. A copy of the filed complaint must be attached to 108.24the summons. 108.25EFFECTIVE DATE.This section is effective the day following final enactment. 108.26 Sec. 31. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read: 108.27 Subd. 3. Summons and complaint. Any city, county, housing and redevelopment 108.28authority, port authority, or economic development authority in which the property is located 108.29may commence an action in district court to reduce the period otherwise allowed for 108.30redemption under this chapter from the date of the requested order. The action must be 108.31commenced by the filing of a complaint, naming as defendants the record fee owners or the 108.32owner's personal representative, or the owner's heirs as determined by a court of competent 108.33jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the 109.1taxpayers as shown on the records of the county auditor, the Internal Revenue Service of 109.2the United States and the revenue department of the state of Minnesota if tax liens against 109.3the owners or contract for deed purchasers have been recorded or filed, and any other person 109.4the plaintiff determines should be made a party. The action shall be filed in district court 109.5for the county in which the property is located. The complaint must identify the property 109.6by legal description. The complaint must allege (1) that the property is vacant, (2) that the 109.7tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the 109.8time for redemption has not been given. 109.9The complaint must request an order reducing the redemption period to five weeks. 109.10When the complaint has been filed, the court shall issue a summons commanding the person 109.11or persons named in the complaint to appear before the court on a day and at a place stated 109.12in the summons. The appearance date shall be not less than 15 nor more than 25 days from 109.13the date of the issuing of the summons, except that, when the United States of America is 109.14a party, the date shall be set in accordance with applicable federal law. A copy of the filed 109.15complaint must be attached to the summons. 109.16EFFECTIVE DATE.This section is effective the day following final enactment. 109.17 Sec. 32. [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS. 109.18If the county auditor provides notice as required by section 281.23, the state, agency, 109.19political subdivision, or other entity that becomes the fee owner or manager of a property 109.20as a result of forfeiture due to nonpayment of real property taxes is not required to expend 109.21public funds to maintain any servitude, agreement, easement, or other encumbrance affecting 109.22the property. The fee owner or manager of a property may, at its discretion, spend public 109.23funds necessary for the maintenance, security, or management of the property. 109.24EFFECTIVE DATE.This section is effective the day following final enactment. 109.25 Sec. 33. [281.70] LIMITED RIGHT OF ENTRY. 109.26 Subdivision 1. Limited right of entry. If premises described in a real estate tax judgment 109.27sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county 109.28auditor may, but is not obligated to, enter the premises to protect the premises from waste 109.29or trespass until the county auditor is notified that the premises are occupied. An affidavit 109.30of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing 109.31the premises and stating that the premises are vacant and unoccupied is prima facie evidence 109.32of the facts stated in the affidavit. If the affidavit contains a legal description of the premises, 110.1the affidavit may be recorded in the office of the county recorder or the registrar of titles in 110.2the county where the premises are located. 110.3 Subd. 2. Authorized actions. (a) The county auditor may take one or more of the 110.4following actions to protect the premises from waste or trespass: 110.5(1) install or change locks on doors and windows; 110.6(2) board windows; and 110.7(3) other actions to prevent or minimize damage to the premises from the elements, 110.8vandalism, trespass, or other illegal activities. 110.9(b) If the county auditor installs or changes locks on premises under paragraph (a), the 110.10county auditor must promptly deliver a key to the premises to the taxpayer or any person 110.11lawfully claiming a right of occupancy upon request. 110.12 Subd. 3. Costs. Costs incurred by the county auditor in protecting the premises from 110.13waste or trespass under this section may be added to the delinquent taxes due. The costs 110.14may bear interest to the extent provided, and interest may be added to the delinquent taxes 110.15due. 110.16 Subd. 4. Scope. The actions authorized under this section are in addition to, and do not 110.17limit or replace, any other rights or remedies available to the county auditor under Minnesota 110.18law. 110.19EFFECTIVE DATE.This section is effective the day following final enactment. 110.20 Sec. 34. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read: 110.21 Subd. 4. Sale:; method,; requirements,; effects. (a) The sale authorized under 110.22subdivision 3 must be conducted by the county auditor at the county seat of the county in 110.23which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be 110.24conducted in any county facility within the county. The sale must not be for less than the 110.25appraised value except as provided in subdivision 7a. The parcels must be sold for cash 110.26only, unless the county board of the county has adopted a resolution providing for their sale 110.27on terms, in which event the resolution controls with respect to the sale. When the sale is 110.28made on terms other than for cash only (1) a payment of at least ten percent of the purchase 110.29price must be made at the time of purchase, and the balance must be paid in no more than 110.30ten equal annual installments, or (2) the payments must be made in accordance with county 110.31board policy, but in no event may the board require more than 12 installments annually, 110.32and the contract term must not be for more than ten years. Standing timber or timber products 111.1must not be removed from these lands until an amount equal to the appraised value of all 111.2standing timber or timber products on the lands at the time of purchase has been paid by 111.3the purchaser. If a parcel of land bearing standing timber or timber products is sold at public 111.4auction for more than the appraised value, the amount bid in excess of the appraised value 111.5must be allocated between the land and the timber in proportion to their respective appraised 111.6values. In that case, standing timber or timber products must not be removed from the land 111.7until the amount of the excess bid allocated to timber or timber products has been paid in 111.8addition to the appraised value of the land. The purchaser is entitled to immediate possession, 111.9subject to the provisions of any existing valid lease made in behalf of the state. 111.10(b) For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 111.11is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 111.12of the purchase price for sales occurring after December 31, 1990, is subject to interest at 111.13the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change 111.14each year on the unpaid balance in the manner provided for rate changes in section 549.09 111.15or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance 111.16on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the 111.17time that the sale occurred. 111.18(c) Notwithstanding subdivision 7, a county board may by resolution provide for the 111.19listing and sale of individual parcels by other means, including through a real estate broker. 111.20However, if the buyer under this paragraph could have repurchased a parcel of property 111.21under section 282.012 or 282.241, that buyer may not purchase that same parcel of property 111.22at the sale under this subdivision for a purchase price less than the sum of all taxes, 111.23assessments, penalties, interest, and costs due at the time of forfeiture computed under 111.24section 282.251, and any special assessments for improvements certified as of the date of 111.25sale. This subdivision shall be liberally construed to encourage the sale and utilization of 111.26tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase 111.27compliance with land use ordinances. 111.28EFFECTIVE DATE.This section is effective the day following final enactment. 111.29 Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to 111.30read: 111.31 Subd. 13. Online auction. A county board, or a county auditor if the auditor has been 111.32delegated such authority under section 282.135, may sell tax-forfeited lands through an 111.33online auction. When an online auction is used to sell tax-forfeited lands, the county auditor 111.34shall post a physical notice of the online auction and shall publish a notice of the online 112.1auction on its Web site not less than ten days before the online auction begins, in addition 112.2to any other notice required. 112.3EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that 112.4occur on or after August 1, 2017. 112.5 Sec. 36. Minnesota Statutes 2016, section 282.016, is amended to read: 112.6282.016 PROHIBITED PURCHASERS. 112.7(a) A county auditor, county treasurer, county attorney, court administrator of the district 112.8court, county assessor, supervisor of assessments, deputy or clerk or an employee of such 112.9officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must 112.10not become a purchaser, either personally or as an agent or attorney for another person, of 112.11the properties offered for sale under the provisions of this chapter in the county for which 112.12the person performs duties. A person prohibited from purchasing property under this section 112.13must not directly or indirectly have another person purchase it on behalf of the prohibited 112.14purchaser for the prohibited purchaser's benefit or gain. 112.15(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or 112.16commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase 112.17lands owned by that official at the time the state became the absolute owner thereof or (2) 112.18bid upon and purchase forfeited property offered for sale under the alternate sale procedure 112.19described in section 282.01, subdivision 7a. 112.20(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit 112.21other persons and entities from becoming a purchaser, either personally or as an agent or 112.22attorney for another person or entity, of the properties offered for sale under this chapter in 112.23the following circumstances: (1) the person or entity owns another property within the 112.24county for which there are delinquent taxes owing; (2) the person or entity has held a rental 112.25license in the county and the license has been revoked within the last five years; or (3) the 112.26person or entity has been the vendee of a contract for purchase of a property offered for sale 112.27under this chapter, which contract has been canceled within the last five years. 112.28(d) A person prohibited from purchasing property under this section must not directly 112.29or indirectly have another person purchase it on behalf of the prohibited purchaser for the 112.30prohibited purchaser's benefit or gain. 112.31EFFECTIVE DATE.This section is effective the day following final enactment. 113.1 Sec. 37. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read: 113.2 Subdivision 1. Land on or adjacent to public waters. (a) All land which is the property 113.3of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether 113.4the land is held in trust for taxing districts, and which borders on or is adjacent to meandered 113.5lakes and other public waters and watercourses, and the live timber growing or being thereon, 113.6is hereby withdrawn from sale except as hereinafter provided. The authority having 113.7jurisdiction over the timber on any such lands may sell the timber as otherwise provided by 113.8law for cutting and removal under such conditions as the authority may prescribe in 113.9accordance with approved, sustained yield forestry practices. The authority having jurisdiction 113.10over the timber shall reserve such timber and impose such conditions as the authority deems 113.11necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features. 113.12Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress 113.13approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject 113.14to like restrictions as are now imposed by that act on federal lands. 113.15(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public 113.16waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary 113.17high-water mark being the waterside boundary thereof, and the land side boundary thereof 113.18being a line drawn parallel to the ordinary high-water mark and two rods distant landward 113.19therefrom, hereby is reserved for public travel thereon, and whatever the conformation of 113.20the shore line or conditions require, the authority having jurisdiction over such lands shall 113.21reserve a wider strip for such purposes. 113.22(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by 113.23the authority having jurisdiction over the land, in the manner otherwise provided by law 113.24for the sale of such lands, if the authority determines that it is in the public interest to do 113.25so. If the authority having jurisdiction over the land is not the commissioner of natural 113.26resources, the land may not be offered for sale without the prior approval of the commissioner 113.27of natural resources. 113.28(d) Where the authority having jurisdiction over lands withdrawn from sale under this 113.29section is not the commissioner of natural resources, the authority may submit proposals 113.30for disposition of the lands to the commissioner. The commissioner of natural resources 113.31shall evaluate the lands and their public benefits and make recommendations on the proposed 113.32dispositions to the committees of the legislature with jurisdiction over natural resources. 113.33The commissioner shall include any recommendations of the commissioner for disposition 113.34of lands withdrawn from sale under this section over which the commissioner has jurisdiction. 113.35The commissioner's recommendations may include a public sale, sale to a private party, 114.1acquisition by the Department of Natural Resources for public purposes, or a cooperative 114.2management agreement with, or transfer to, another unit of government. 114.3(e) Notwithstanding this subdivision, a county may sell property governed by this section 114.4upon written authorization from the commissioner of natural resources. Prior to the sale or 114.5conveyance of lands under this subdivision, the county board must give notice of its intent 114.6to meet for that purpose as provided in section 282.01, subdivision 1. 114.7EFFECTIVE DATE.This section is effective the day following final enactment. 114.8 Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read: 114.9282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS 114.10PERMITTED. 114.11(a) Immediately after classification and appraisal of the land, and after approval by the 114.12commissioner of natural resources when required pursuant to section 282.01, subdivision 114.133 , the county board shall provide and file with the county auditor a list of parcels of land to 114.14be offered for sale. This list shall contain a description of the parcels of land and the appraised 114.15value thereof. The auditor shall publish a notice of the intended public sale of such parcels 114.16of land and a copy of the resolution of the county board fixing the terms of the sale, if other 114.17than for cash only, by publication once a week for two weeks in the official newspaper of 114.18the county, the last publication to be not less than ten days previous to the commencement 114.19of the sale. 114.20(b) The notice shall include the parcel's description and appraised value. The notice shall 114.21also indicate the amount of any special assessments which may be the subject of a 114.22reassessment or new assessment or which may result in the imposition of a fee or charge 114.23pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall 114.24also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this 114.25section, "owner" means the taxpayer as listed in the records of the county auditor. 114.26(c) If the county board of St. Louis or Koochiching Counties determines that the sale 114.27shall take place in a county facility other than the courthouse, the notice shall specify the 114.28facility and its location. If the county board determines that the sale shall take place as an 114.29online auction under section 282.01, subdivision 13, the notice shall specify the auction 114.30Web site and the date of the auction. 114.31EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that 114.32occur on or after August 1, 2017. 115.1 Sec. 39. Minnesota Statutes 2016, section 282.04, subdivision 2, is amended to read: 115.2 Subd. 2. Rights before sale; improvements, insurance, demolition. (a) Before the 115.3sale of a parcel of forfeited land the county auditor may, with the approval of the county 115.4board of commissioners, provide for the repair and improvement of any building or structure 115.5located upon the parcel, and may provide for maintenance of tax-forfeited lands, if it is 115.6determined by the county board that such repairs, improvements, or maintenance are 115.7necessary for the operation, use, preservation, and safety of the building or structure. 115.8(b) If so authorized by the county board, the county auditor may insure the building or 115.9structure against loss or damage resulting from fire or windstorm, may purchase workers' 115.10compensation insurance to insure the county against claims for injury to the persons employed 115.11in the building or structure by the county, and may insure the county, its officers and 115.12employees against claims for injuries to persons or property because of the management, 115.13use, or operation of the building or structure. 115.14(c) The county auditor may, with the approval of the county board, provide: 115.15(1) for the demolition of the building or structure, which has been determined by the 115.16county board to be especially liable to fire or so situated as to endanger life or limb or other 115.17buildings or property in the vicinity because of age, dilapidated condition, defective chimney, 115.18defective electric wiring, any gas connection, heating apparatus, or other defect; and 115.19(2) for the sale of salvaged materials from the building or structure. 115.20(d) Notwithstanding any law to the contrary, the county auditor, with the approval of 115.21the county board, may provide for the sale of abandoned personal property. The or disposal 115.22of personal property remaining after the certificate under section 281.23, subdivision 9, has 115.23been recorded. The county auditor must make reasonable efforts to provide at least 28 days' 115.24notice of the sale or disposal to the former owner, taxpayer, and any occupants at the time 115.25of forfeiture. A sale may be made by the sheriff using the procedures for the sale of 115.26abandoned property in section 345.15 or by the county auditor using the procedures for the 115.27sale of abandoned property in section a sale procedure approved by the county 115.28board. A county may contract with a third party to assist with removal, disposal, or sale of 115.29personal property. The net proceeds from any sale of the personal property, salvaged 115.30materials, timber or other products, or leases made under this law must be deposited in the 115.31forfeited tax sale fund and must be distributed in the same manner as if the parcel had been 115.32sold. 115.33(e) The county auditor, with the approval of the county board, may provide for the 115.34demolition of any structure on tax-forfeited lands, if in the opinion of the county board, the 116.1county auditor, and the land commissioner, if there is one, the sale of the land with the 116.2structure on it, or the continued existence of the structure by reason of age, dilapidated 116.3condition or excessive size as compared with nearby structures, will result in a material 116.4lessening of net tax capacities of real estate in the vicinity of the tax-forfeited lands, or if 116.5the demolition of the structure or structures will aid in disposing of the tax-forfeited property. 116.6(f) Before the sale of a parcel of forfeited land located in an urban area, the county auditor 116.7may with the approval of the county board provide for the grading of the land by filling or 116.8the removal of any surplus material from it. If the physical condition of forfeited lands is 116.9such that a reasonable grading of the lands is necessary for the protection and preservation 116.10of the property of any adjoining owner, the adjoining property owner or owners may apply 116.11to the county board to have the grading done. If, after considering the application, the county 116.12board believes that the grading will enhance the value of the forfeited lands commensurate 116.13with the cost involved, it may approve it, and the work must be performed under the 116.14supervision of the county or city engineer, as the case may be, and the expense paid from 116.15the forfeited tax sale fund. 116.16EFFECTIVE DATE.This section is effective the day following final enactment. 116.17 Sec. 40. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read: 116.18 Subdivision 1. Repurchase requirements. The owner at the time of forfeiture, or the 116.19owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes 116.20was given by statute, mortgage, or other agreement, may repurchase any parcel of land 116.21claimed by the state to be forfeited to the state for taxes unless before the time repurchase 116.22is made the parcel is sold under installment payments, or otherwise, by the state as provided 116.23by law, or is under mineral prospecting permit or lease, or proceedings have been commenced 116.24by the state or any of its political subdivisions or by the United States to condemn the parcel 116.25of land. The parcel of land may be repurchased for the sum of all delinquent taxes and 116.26assessments computed under section 282.251, together with penalties, interest, and costs, 116.27that accrued or would have accrued if the parcel of land had not forfeited to the state. Except 116.28for property which was homesteaded on the date of forfeiture, repurchase is permitted during 116.29one year six months only from the date of forfeiture, and in any case only after the adoption 116.30of a resolution by the board of county commissioners determining that by repurchase undue 116.31hardship or injustice resulting from the forfeiture will be corrected, or that permitting the 116.32repurchase will promote the use of the lands that will best serve the public interest. If the 116.33county board has good cause to believe that a repurchase installment payment plan for a 116.34particular parcel is unnecessary and not in the public interest, the county board may require 117.1as a condition of repurchase that the entire repurchase price be paid at the time of repurchase. 117.2A repurchase is subject to any easement, lease, or other encumbrance granted by the state 117.3before the repurchase, and if the land is located within a restricted area established by any 117.4county under Laws 1939, chapter 340, the repurchase must not be permitted unless the 117.5resolution approving the repurchase is adopted by the unanimous vote of the board of county 117.6commissioners. 117.7The person seeking to repurchase under this section shall pay all maintenance costs 117.8incurred by the county auditor during the time the property was tax-forfeited. 117.9EFFECTIVE DATE.This section is effective January 1, 2018. 117.10 Sec. 41. Minnesota Statutes 2016, section 282.322, is amended to read: 117.11282.322 FORFEITED LANDS LIST. 117.12The county board of any county may file a list of forfeited lands with the county auditor, 117.13if the board is of the opinion that such lands may be acquired by the state or any municipal 117.14subdivision thereof of the state for public purposes. Upon the filing of such the list of 117.15forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding 117.16shall be is started to acquire such lands by the state or some municipal subdivision thereof 117.17of the state within one year after the filing of such the list of forfeited lands, the county 117.18board shall withdraw said the list and thereafter, if the property was classified as 117.19nonhomestead at the time of forfeiture, the owner shall have one year not more than six 117.20months in which to repurchase. 117.21EFFECTIVE DATE.This section is effective January 1, 2018. 117.22 Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read: 117.23473H.09 EARLY TERMINATION. 117.24 Subdivision 1. Public emergency. Termination of an agricultural preserve earlier than 117.25a date derived through application of section 473H.08 may be permitted only in the event 117.26of a public emergency upon petition from the owner or authority to the governor. The 117.27determination of a public emergency shall be by the governor through executive order 117.28pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 117.29the reasons requiring the action and the date of termination. 117.30 Subd. 2. Death of owner. (a) Within 365 days of the death of an owner, an owner's 117.31spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural 117.32preserve and the covenant allowing the land to be enrolled as an agricultural preserve by 118.1notifying the authority on a form provided by the commissioner of agriculture. Termination 118.2of a covenant under this subdivision must be executed and acknowledged in the manner 118.3required by law to execute and acknowledge a deed. 118.4(b) For purposes of this subdivision, the following definitions apply: 118.5(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent 118.6was the settlor or a beneficiary of, or member of an entity permitted to own agricultural 118.7land and engage in farming under section 500.24 that owned the agricultural preserve; and 118.8(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a 118.9trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm 118.10land under section 500.24 of which the decedent was a partner, shareholder, or member. 118.11(c) When an agricultural preserve is terminated under this subdivision, the property is 118.12subject to additional taxes in an amount equal to 50 percent of the taxes actually levied 118.13against the property for the current taxes payable year. The additional taxes are extended 118.14against the property on the tax list for taxes payable in the current year. The additional taxes 118.15must be distributed among the jurisdictions levying taxes on the property in proportion to 118.16the current year's taxes. 118.17EFFECTIVE DATE.This section is effective July 1, 2017. 118.18 Sec. 43. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read: 118.19 Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial 118.20operations are not allowed on land within an agricultural preserve except: 118.21(1) small on-farm commercial or industrial operations normally associated with and 118.22important to farming in the agricultural preserve area; 118.23(2) storage use of existing farm buildings that does not disrupt the integrity of the 118.24agricultural preserve; and 118.25(3) small commercial use of existing farm buildings for trades not disruptive to the 118.26integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 118.27and similar activities that a farm operator might conduct.; and 118.28(4) wireless communication installments and related equipment and structure capable 118.29of providing technology potentially beneficial to farming activities. A property owner who 118.30installs wireless communication equipment does not violate a covenant made prior to January 118.311, 2018, under section 473H.05, subdivision 1. 119.1(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses 119.2(2) and (3), means existing on August 1, 1987. 119.3EFFECTIVE DATE.This section is effective the day following enactment. 119.4 Sec. 44. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read: 119.5 Subdivision 1. Grounds. (a) The person entitled to the premises may recover possession 119.6by eviction when: 119.7(1) any person holds over real property: 119.8(i) after a sale of the property on an execution or judgment; or 119.9(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after 119.10termination of contract to convey the property; or 119.11(iii) after the expiration of the time for redemption on a real estate tax judgment sale; 119.12(2) any person holds over real property after termination of the time for which it is 119.13demised or leased to that person or to the persons under whom that person holds possession, 119.14contrary to the conditions or covenants of the lease or agreement under which that person 119.15holds, or after any rent becomes due according to the terms of such lease or agreement; or 119.16(3) any tenant at will holds over after the termination of the tenancy by notice to quit. 119.17(b) A landlord may not commence an eviction action against a tenant or authorized 119.18occupant solely on the basis that the tenant or authorized occupant has been the victim of 119.19any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this 119.20paragraph should be construed to prohibit an eviction action based on a breach of the lease. 119.21EFFECTIVE DATE.This section is effective the day following final enactment. 119.22 Sec. 45. Laws 1996, chapter 471, article 3, section 51, is amended to read: 119.23 Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY. 119.24 Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton 119.25county board of commissioners may levy in and for the unorganized township of Sawyer 119.26an amount up to $1,500 annually for recreational purposes, beginning with taxes payable 119.27in 1997 and ending with taxes payable in 2006. 119.28 Subd. 2. Effective date. This section is effective June 1, 1996, without local approval. 120.1EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and 120.2is effective the day after the Carlton County Board of Commissioners and its chief clerical 120.3officer timely complete their compliance with section 645.021, subdivisions 2 and 3. 120.4 Sec. 46. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL 120.5ASSESSMENT. 120.6Any real or personal property acquired, owned, leased, controlled, used, or occupied by 120.7the city of St. Paul for the primary purpose of providing a stadium for a Major League 120.8Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for 120.9public, governmental, and municipal purposes, and is exempt from ad valorem taxation by 120.10the state or any political subdivision of the state, provided that the properties are subject to 120.11special assessments levied by a political subdivision for a local improvement in amounts 120.12proportionate to and not exceeding the special benefit received by the properties from the 120.13improvement. In determining the special benefit received by the properties, no possible use 120.14of any of the properties in any manner different from their intended use for providing a 120.15Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota 120.16Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a 120.17lease or use agreement between the city and another person for uses related to the purposes 120.18of the operation of the stadium and related parking facilities is exempt from taxation 120.19regardless of the length of the lease or use agreement. This section, insofar as it provides 120.20an exemption or special treatment, does not apply to any real property that is leased for 120.21residential, business, or commercial development or other purposes different from those 120.22necessary to the provision and operation of the stadium. 120.23EFFECTIVE DATE.This section is effective upon approval by the St. Paul City 120.24Council and compliance with Minnesota Statutes, section 645.021. 120.25 Sec. 47. COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF 120.26CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED 120.27PIPELINES. 120.28The commissioner of revenue must review all current rules and practices relating to the 120.29valuation of pipeline companies that are assessed by the state. The commissioner must 120.30determine whether current rules and practices provide accurate estimates of market value. 120.31By February 1, 2018, the commissioner must prepare testimony for the house of 120.32representatives and senate committees having jurisdiction over property taxes recommending 120.33changes to the rules and practices to provide more accurate assessments and reduce the 121.1number and amount of judgments against the state and counties for state-assessed pipeline 121.2property. Costs associated with conducting the review required by this section must be paid 121.3from existing funds appropriated to the commissioner by law. 121.4EFFECTIVE DATE.This section is effective the day following final enactment. 121.5 Sec. 48. REPEALER. 121.6Minnesota Statutes 2016, section 281.22, is repealed. 121.7EFFECTIVE DATE.This section is effective the day following final enactment. 121.8ARTICLE 3 121.9SALES AND USE TAXES 121.10 Section 1. [88.068] VOLUNTEER FIRE ASSISTANCE GRANT ACCOUNT. 121.11A volunteer fire assistance grant account is established in the special revenue fund. Sales 121.12taxes allocated under section 297A.94, for making grants under section 88.067, must be 121.13deposited in the special revenue fund and credited to the volunteer fire assistance grant 121.14account. Money in the account, including interest, is appropriated to the commissioner for 121.15making grants under that section. 121.16EFFECTIVE DATE.This section is effective beginning with deposits made in fiscal 121.17year 2018. 121.18 Sec. 2. Minnesota Statutes 2016, section 116J.8738, subdivision 3, is amended to read: 121.19 Subd. 3. Certification of qualified business. (a) A business may apply to the 121.20commissioner for certification as a qualified business under this section. The commissioner 121.21shall specify the form of the application, the manner and times for applying, and the 121.22information required to be included in the application. The commissioner may impose an 121.23application fee in an amount sufficient to defray the commissioner's cost of processing 121.24certifications. Application fees are deposited in the greater Minnesota business expansion 121.25administration account in the special revenue fund. A business must file a copy of its 121.26application with the chief clerical officer of the city at the same time it applies to the 121.27commissioner. For an agricultural processing facility located outside the boundaries of a 121.28city, the business must file a copy of the application with the county auditor. 121.29(b) The commissioner shall certify each business as a qualified business that: 121.30(1) satisfies the requirements of subdivision 2; 122.1(2) the commissioner determines would not expand its operations in greater Minnesota 122.2without the tax incentives available under subdivision 4; and 122.3(3) enters a business subsidy agreement with the commissioner that pledges to satisfy 122.4the minimum expansion requirements of paragraph (c) within three years or less following 122.5execution of the agreement. 122.6The commissioner must act on an application within 90 days after its filing. Failure by 122.7the commissioner to take action within the 90-day period is deemed approval of the 122.8application. 122.9(c) The business must increase the number of full-time equivalent employees in greater 122.10Minnesota from the time the business subsidy agreement is executed by two employees or 122.11ten percent, whichever is greater. 122.12(d) The city, or a county for an agricultural processing facility located outside the 122.13boundaries of a city, in which the business proposes to expand its operations may file 122.14comments supporting or opposing the application with the commissioner. The comments 122.15must be filed within 30 days after receipt by the city of the application and may include a 122.16notice of any contribution the city or county intends to make to encourage or support the 122.17business expansion, such as the use of tax increment financing, property tax abatement, 122.18additional city or county services, or other financial assistance. 122.19(e) Certification of a qualified business is effective for the seven-year period beginning 122.20on the first day of the calendar month immediately following the date that the commissioner 122.21informs the business of the award of the benefit unless the qualified business is investing 122.22at least $200,000,000 over a ten-year period. Certification for a qualified business investing 122.23at least $200,000,000 over a ten-year period is effective for the ten-year period beginning 122.24on the first day of the calendar month immediately following the date that the commissioner 122.25informs the business of the award of the benefit. 122.26EFFECTIVE DATE.This section is effective July 1, 2017. 122.27 Sec. 3. Minnesota Statutes 2016, section 116J.8738, subdivision 4, is amended to read: 122.28 Subd. 4. Available tax incentives. A qualified business is entitled to a sales tax 122.29exemption, up to $2,000,000 $5,000,000 annually and $10,000,000 $40,000,000 during the 122.30total period of the agreement, as provided in section 297A.68, subdivision 44, for purchases 122.31made during the period the business was certified as a qualified business under this section. 122.32The commissioner has discretion to set the maximum amounts of the annual and total sales 122.33tax exemption allowed for each qualifying business as part of the business subsidy agreement. 123.1EFFECTIVE DATE.This section is effective July 1, 2017. 123.2 Sec. 4. Minnesota Statutes 2016, section 128C.24, is amended to read: 123.3128C.24 LEAGUE FUNDS TRANSFER. 123.4Beginning July 1, 2007, the Minnesota State High School League shall annually determine 123.5the sales tax savings attributable to section 297A.70, subdivision 11 11a, and annually 123.6transfer that amount to a nonprofit charitable foundation created for the purpose of promoting 123.7high school extracurricular activities. The funds must be used by the foundation to make 123.8grants to fund, assist, recognize, or promote high school students' participation in 123.9extracurricular activities. The first priority for funding will be grants for scholarships to 123.10individuals to offset athletic fees. The foundation must equitably award grants based on 123.11considerations of gender balance, school size, and geographic location, to the extent feasible. 123.12EFFECTIVE DATE.This section is effective for sales and purchases made after June 123.1330, 2017, and before July 1, 2027. 123.14 Sec. 5. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read: 123.15 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 123.16each of the transactions listed in this subdivision. In applying the provisions of this chapter, 123.17the terms "tangible personal property" and "retail sale" include the taxable services listed 123.18in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 123.19services, unless specifically provided otherwise. Services performed by an employee for 123.20an employer are not taxable. Services performed by a partnership or association for another 123.21partnership or association are not taxable if one of the entities owns or controls more than 123.2280 percent of the voting power of the equity interest in the other entity. Services performed 123.23between members of an affiliated group of corporations are not taxable. For purposes of 123.24the preceding sentence, "affiliated group of corporations" means those entities that would 123.25be classified as members of an affiliated group as defined under United States Code, title 123.2626, section 1504, disregarding the exclusions in section 1504(b). 123.27 (b) Sale and purchase include: 123.28 (1) any transfer of title or possession, or both, of tangible personal property, whether 123.29absolutely or conditionally, for a consideration in money or by exchange or barter; and 123.30 (2) the leasing of or the granting of a license to use or consume, for a consideration in 123.31money or by exchange or barter, tangible personal property, other than a manufactured 123.32home used for residential purposes for a continuous period of 30 days or more. 124.1 (c) Sale and purchase include the production, fabrication, printing, or processing of 124.2tangible personal property for a consideration for consumers who furnish either directly or 124.3indirectly the materials used in the production, fabrication, printing, or processing. 124.4 (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 124.5section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following: 124.6 (1) prepared food sold by the retailer; 124.7 (2) soft drinks; 124.8 (3) candy; and 124.9 (4) dietary supplements; and. 124.10 (5) all food sold through vending machines. 124.11 (e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 124.12water, or steam for use or consumption within this state. 124.13 (f) A sale and a purchase includes the transfer for a consideration of prewritten computer 124.14software whether delivered electronically, by load and leave, or otherwise. 124.15 (g) A sale and a purchase includes the furnishing for a consideration of the following 124.16services: 124.17 (1) the privilege of admission to places of amusement, recreational areas, or athletic 124.18events, and the making available of amusement devices, tanning facilities, reducing salons, 124.19steam baths, health clubs, and spas or athletic facilities; 124.20 (2) lodging and related services by a hotel, rooming house, resort, campground, motel, 124.21or trailer camp, including furnishing the guest of the facility with access to telecommunication 124.22services, and the granting of any similar license to use real property in a specific facility, 124.23other than the renting or leasing of it for a continuous period of 30 days or more under an 124.24enforceable written agreement that may not be terminated without prior notice and including 124.25accommodations intermediary services provided in connection with other services provided 124.26under this clause; 124.27 (3) nonresidential parking services, whether on a contractual, hourly, or other periodic 124.28basis, except for parking at a meter; 124.29 (4) the granting of membership in a club, association, or other organization if: 125.1 (i) the club, association, or other organization makes available for the use of its members 125.2sports and athletic facilities, without regard to whether a separate charge is assessed for use 125.3of the facilities; and 125.4 (ii) use of the sports and athletic facility is not made available to the general public on 125.5the same basis as it is made available to members. 125.6Granting of membership means both onetime initiation fees and periodic membership dues. 125.7Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 125.8courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 125.9pools; and other similar athletic or sports facilities; 125.10 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate 125.11material used in road construction; and delivery of concrete block by a third party if the 125.12delivery would be subject to the sales tax if provided by the seller of the concrete block. 125.13For purposes of this clause, "road construction" means construction of: 125.14 (i) public roads; 125.15 (ii) cartways; and 125.16 (iii) private roads in townships located outside of the seven-county metropolitan area 125.17up to the point of the emergency response location sign; and 125.18 (6) services as provided in this clause: 125.19 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 125.20and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 125.21drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 125.22include services provided by coin operated facilities operated by the customer; 125.23 (ii) motor vehicle washing, waxing, and cleaning services, including services provided 125.24by coin operated facilities operated by the customer, and rustproofing, undercoating, and 125.25towing of motor vehicles; 125.26 (iii) building and residential cleaning, maintenance, and disinfecting services and pest 125.27control and exterminating services; 125.28 (iv) detective, security, burglar, fire alarm, and armored car services; but not including 125.29services performed within the jurisdiction they serve by off-duty licensed peace officers as 125.30defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 125.31or any organization at the direction of a county for monitoring and electronic surveillance 126.1of persons placed on in-home detention pursuant to court order or under the direction of the 126.2Minnesota Department of Corrections; 126.3 (v) pet grooming services; 126.4 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 126.5and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 126.6care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 126.7contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 126.8lines. Services performed under a construction contract for the installation of shrubbery, 126.9plants, sod, trees, bushes, and similar items are not taxable; 126.10 (vii) massages, except when provided by a licensed health care facility or professional 126.11or upon written referral from a licensed health care facility or professional for treatment of 126.12illness, injury, or disease; and 126.13 (viii) the furnishing of lodging, board, and care services for animals in kennels and other 126.14similar arrangements, but excluding veterinary and horse boarding services. 126.15 (h) A sale and a purchase includes the furnishing for a consideration of tangible personal 126.16property or taxable services by the United States or any of its agencies or instrumentalities, 126.17or the state of Minnesota, its agencies, instrumentalities, or political subdivisions. 126.18 (i) A sale and a purchase includes the furnishing for a consideration of 126.19telecommunications services, ancillary services associated with telecommunication services, 126.20and pay television services. Telecommunication services include, but are not limited to, the 126.21following services, as defined in section 297A.669: air-to-ground radiotelephone service, 126.22mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 126.23wireless calling service, and private communication services. The services in this paragraph 126.24are taxed to the extent allowed under federal law. 126.25 (j) A sale and a purchase includes the furnishing for a consideration of installation if the 126.26installation charges would be subject to the sales tax if the installation were provided by 126.27the seller of the item being installed. 126.28 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 126.29customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 126.30vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 126.31subdivision 11. 126.32 (l) A sale and a purchase includes furnishing for a consideration of specified digital 126.33products or other digital products or granting the right for a consideration to use specified 127.1digital products or other digital products on a temporary or permanent basis and regardless 127.2of whether the purchaser is required to make continued payments for such right. Wherever 127.3the term "tangible personal property" is used in this chapter, other than in subdivisions 10 127.4and 38, the provisions also apply to specified digital products, or other digital products, 127.5unless specifically provided otherwise or the context indicates otherwise. 127.6(m) The sale of the privilege of admission under section 297A.61, subdivision 3, 127.7paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event 127.8includes all charges included in the privilege of admission's sales price, without deduction 127.9for amenities that may be provided, unless the amenities are separately stated and the 127.10purchaser of the privilege of admission is entitled to add or decline the amenities, and the 127.11amenities are not otherwise taxable. 127.12EFFECTIVE DATE.This section is effective for sales and purchases made after June 127.1330, 2017. 127.14 Sec. 6. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read: 127.15 Subd. 34. Taxable food sold through vending machines. "Taxable food sold through 127.16vending machines" means taxable food under section 297A.61, subdivision 3, paragraph 127.17(d), dispensed from a machine or other device that accepts payment including honor 127.18payments. 127.19EFFECTIVE DATE.This section is effective for sales and purchases made after June 127.2030, 2017. 127.21 Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read: 127.22 Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution 127.23and the laws of the United States, "retailer maintaining a place of business in this state," or 127.24a similar term, means a retailer: 127.25(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 127.26office, place of distribution, sales, storage, or sample room or place, warehouse, or other 127.27place of business, including the employment of a resident of this state who works from a 127.28home office in this state; or 127.29(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 127.30canvasser, or marketplace provider, solicitor, or other third party operating in this state 127.31under the authority of the retailer or its subsidiary, for any purpose, including the repairing, 127.32selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for 128.1the retailer's goods or services, or the leasing of tangible personal property located in this 128.2state, whether the place of business or agent, representative, affiliate, salesperson, canvasser, 128.3or solicitor is located in the state permanently or temporarily, or whether or not the retailer, 128.4subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by 128.5a marketplace provider in this state if the retailer makes sales in this state facilitated by a 128.6marketplace provider that maintains a place of business in this state. 128.7(b) "Destination of a sale" means the location to which the retailer makes delivery of 128.8the property sold, or causes the property to be delivered, to the purchaser of the property, 128.9or to the agent or designee of the purchaser. The delivery may be made by any means, 128.10including the United States Postal Service or a for-hire carrier. 128.11(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer 128.12by: 128.13(1) listing or advertising for sale by the retailer in any forum, tangible personal property, 128.14services, or digital goods that are subject to tax under this chapter; and 128.15(2) either directly or indirectly through agreements or arrangements with third parties 128.16collecting payment from the customer and transmitting that payment to the retailer regardless 128.17of whether the marketplace provider receives compensation or other consideration in 128.18exchange for its services. 128.19(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible 128.20goods, services, and digital goods subject to sales and use tax under this chapter. 128.21 Sec. 8. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read: 128.22 Subd. 2. Retailer maintaining place of business in this state. (a) Except as provided 128.23in paragraph (b), a retailer maintaining a place of business in this state who makes retail 128.24sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and 128.25remit them to the commissioner under section 297A.77. 128.26(b) A retailer with total taxable retail sales to customers in this state of less than $10,000 128.27in the 12-month period ending on the last day of the most recently completed calendar 128.28quarter is not required to collect and remit sales tax if it is determined to be a retailer 128.29maintaining a place of business in the state solely because it made sales through one or more 128.30marketplace providers. The provisions of this paragraph do not apply to a retailer that is or 128.31was registered to collect sales and use tax in this state. 129.1 Sec. 9. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read: 129.2 Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 129.3subdivision 1, paragraph (a), if the entity: 129.4(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate 129.5the establishment or maintenance of a market for sales of items by the retailer to purchasers 129.6in this state or for the provision of services to the retailer's purchasers in this state, such as 129.7accepting returns of purchases for the retailer, providing assistance in resolving customer 129.8complaints of the retailer, or providing other services; and 129.9(2) the retailer and the entity are related parties. has the same or a similar business name 129.10to the retailer and sells, from a location or locations in this state, tangible personal property, 129.11digital goods, or services, taxable under this chapter, that are similar to that sold by the 129.12retailer; 129.13(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or 129.14other similar place of business in this state to facilitate the delivery of tangible personal 129.15property, digital goods, or services sold by the retailer to its customers in this state; 129.16(4) maintains a place of business in this state and uses trademarks, service marks, or 129.17trade names in this state that are the same or substantially similar to those used by the retailer, 129.18and that use is done with the express or implied consent of the holder of the marks or names; 129.19(5) delivers, installs, or assembles tangible personal property in this state, or performs 129.20maintenance or repair services on tangible personal property in this state, for tangible 129.21personal property sold by the retailer; 129.22(6) facilitates the delivery of tangible personal property to customers of the retailer by 129.23allowing the customers to pick up tangible personal property sold by the retailer at a place 129.24of business the entity maintains in this state; or 129.25(7) shares management, business systems, business practices, or employees with the 129.26retailer, or engages in intercompany transactions with the retailer related to the activities 129.27that establish or maintain the market in this state of the retailer. 129.28(b) Two entities are related parties under this section if one of the entities meets at least 129.29one of the following tests with respect to the other entity: 129.30(1) one or both entities is a corporation, and one entity and any party related to that entity 129.31in a manner that would require an attribution of stock from the corporation to the party or 129.32from the party to the corporation under the attribution rules of section 318 of the Internal 130.1Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent 130.2of the value of the corporation's outstanding stock; 130.3(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 130.4and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 130.5beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 130.6stock, or value of the other entity or both entities; or 130.7(3) an individual stockholder and the members of the stockholder's family (as defined 130.8in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or 130.9constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding 130.10stock.; 130.11(4) the entities are related within the meaning of subsections (b) and (c) of section 267 130.12or 707(b)(1) of the Internal Revenue Code; or 130.13(5) the entities have one or more ownership relationships and the relationships were 130.14designed with a principal purpose of avoiding the application of this section. 130.15(c) An entity is an affiliate under the provisions of this subdivision if the requirements 130.16of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first 130.17day of the month before the month in which the sale was made. 130.18 Sec. 10. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision 130.19to read: 130.20 Subd. 4b. Collection and remittance requirements for marketplace providers and 130.21marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and 130.22remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, 130.23and is subject to audit on the retail sales it facilitates unless either: 130.24(1) the retailer provides a copy of the retailer's registration to collect sales and use tax 130.25in this state to the marketplace provider before the marketplace provider facilitates a sale; 130.26or 130.27(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses 130.28that the retailer is registered to collect sales and use taxes in this state. 130.29(b) Nothing in this subdivision shall be construed to interfere with the ability of a 130.30marketplace provider and a retailer to enter into an agreement regarding fulfillment of the 130.31requirements of this chapter. 131.1(c) A marketplace provider is not liable under this subdivision for failure to file and 131.2collect and remit sales and use taxes if the marketplace provider demonstrates that the error 131.3was due to incorrect or insufficient information given to the marketplace provider by the 131.4retailer. This paragraph does not apply if the marketplace provider and the marketplace 131.5retailer are related as defined in subdivision 4, paragraph (b). 131.6 Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read: 131.7 Subd. 2. Food and food ingredients. Except as otherwise provided in this subdivision, 131.8food and food ingredients are exempt. For purposes of this subdivision, "food" and "food 131.9ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or 131.10dehydrated form, that are sold for ingestion or chewing by humans and are consumed for 131.11their taste or nutritional value. Food and food ingredients exempt under this subdivision do 131.12not include candy, soft drinks, food sold through vending machines, dietary supplements, 131.13and prepared foods. Food and food ingredients do not include alcoholic beverages and 131.14tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that are 131.15suitable for human consumption and contain one-half of one percent or more of alcohol by 131.16volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing or 131.17pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision, 131.18"dietary supplements" means any product, other than tobacco, intended to supplement the 131.19diet that: 131.20(1) contains one or more of the following dietary ingredients: 131.21(i) a vitamin; 131.22(ii) a mineral; 131.23(iii) an herb or other botanical; 131.24(iv) an amino acid; 131.25(v) a dietary substance for use by humans to supplement the diet by increasing the total 131.26dietary intake; and 131.27(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient 131.28described in items (i) to (v); 131.29(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, 131.30or if not intended for ingestion in such form, is not represented as conventional food and is 131.31not represented for use as a sole item of a meal or of the diet; and 132.1(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts 132.2box found on the label and as required pursuant to Code of Federal Regulations, title 21, 132.3section 101.36. 132.4 Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read: 132.5 Subd. 4. Exempt meals at residential facilities. Prepared food, candy, and soft drinks 132.6served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, 132.7senior citizen homes, and correctional, detention, and detoxification facilities are exempt. 132.8Taxable food sold through vending machines is not exempt. 132.9EFFECTIVE DATE.This section is effective for sales and purchases made after June 132.1030, 2017. 132.11 Sec. 13. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read: 132.12 Subd. 5. Exempt meals at schools. Prepared food, candy, and soft drinks served at 132.13public and private elementary, middle, or secondary schools as defined in section 120A.05 132.14are exempt. Prepared food, candy, and soft drinks served to students at a college, university, 132.15or private career school under a board contract are exempt. Taxable food sold through 132.16vending machines is not exempt. 132.17EFFECTIVE DATE.This section is effective for sales and purchases made after June 132.1830, 2017. 132.19 Sec. 14. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read: 132.20 Subd. 6. Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 132.21and served exclusively to individuals who are 60 years of age or over and their spouses or 132.22to disabled persons and their spouses by governmental agencies, nonprofit organizations, 132.23or churches, or pursuant to any program funded in whole or in part through United States 132.24Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are 132.25exempt. Taxable food sold through vending machines is not exempt. 132.26(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 132.27who are less than 14 years of age or disabled children who are less than 16 years of age and 132.28who are attending a child care or early childhood education program, are exempt if they 132.29are: 133.1(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 133.2subdivision 4 , and that primarily serves families with income of 250 percent or less of 133.3federal poverty guidelines; and 133.4(2) prepared at the site of the child care facility. 133.5EFFECTIVE DATE.This section is effective for sales and purchases made after June 133.630, 2017. 133.7 Sec. 15. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 133.8to read: 133.9 Subd. 34. Precious metal bullion. (a) Precious metal bullion is exempt. For purposes 133.10of this subdivision, "precious metal bullion" means bars or rounds that consist of 99.9 percent 133.11or more by weight of either gold, silver, platinum, or palladium and are marked with weight, 133.12purity, and content. 133.13(b) The exemption under this subdivision does not apply to sales and purchases of 133.14jewelry, works of art, or scrap metal. 133.15(c) The intent of this subdivision is to eliminate the difference in tax treatment between 133.16the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other 133.17investment instruments. 133.18EFFECTIVE DATE.This section is effective for sales and purchases made after June 133.1930, 2017. 133.20 Sec. 16. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 133.21to read: 133.22 Subd. 35. Suite licenses. Suite licenses are exempt provided that: (1) the lessee may 133.23use the private suite, private skybox, or private box seat by mutual arrangement with the 133.24lessor on days when there is no amusement or athletic event; and (2) the sales price for the 133.25privilege of admission is separately stated and is equal to or greater than the highest priced 133.26general admission ticket for the closest seat not in the private suite, private skybox, or private 133.27box seat. The sale of the privilege of admission under section 297A.61, subdivision 3, 133.28paragraph (g), clause (1), to a place of amusement or athletic event does not include 133.29consideration paid for a license to use a private suite, private skybox, or private box seat. 133.30EFFECTIVE DATE.This section is effective for sales and purchases made after June 133.3130, 2017. 134.1 Sec. 17. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 134.2to read: 134.3 Subd. 36. Stadium builder's licenses. Stadium builder's licenses authorized under 134.4section 473J.15, subdivision 14, are exempt. The sale of the privilege of admission under 134.5section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration 134.6paid for a stadium builder's license authorized under section 473J.15, subdivision 14. 134.7EFFECTIVE DATE.This section is effective the day following final enactment. 134.8 Sec. 18. Minnesota Statutes 2016, section 297A.68, subdivision 5, is amended to read: 134.9 Subd. 5. Capital equipment. (a) Capital equipment is exempt. 134.10"Capital equipment" means machinery and equipment purchased or leased, and used in 134.11this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or 134.12refining tangible personal property to be sold ultimately at retail if the machinery and 134.13equipment are essential to the integrated production process of manufacturing, fabricating, 134.14mining, or refining. Capital equipment also includes machinery and equipment used primarily 134.15to electronically transmit results retrieved by a customer of an online computerized data 134.16retrieval system. 134.17(b) Capital equipment includes, but is not limited to: 134.18(1) machinery and equipment used to operate, control, or regulate the production 134.19equipment; 134.20(2) machinery and equipment used for research and development, design, quality control, 134.21and testing activities; 134.22(3) environmental control devices that are used to maintain conditions such as 134.23temperature, humidity, light, or air pressure when those conditions are essential to and are 134.24part of the production process; 134.25(4) materials and supplies used to construct and install machinery or equipment; 134.26(5) repair and replacement parts, including accessories, whether purchased as spare parts, 134.27repair parts, or as upgrades or modifications to machinery or equipment; 134.28(6) materials used for foundations that support machinery or equipment; 134.29(7) materials used to construct and install special purpose buildings used in the production 134.30process; 135.1(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part 135.2of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed 135.3concrete trucks, and leases of ready-mixed concrete trucks; and 135.4(9) machinery or equipment used for research, development, design, or production of 135.5computer software. 135.6(c) Capital equipment does not include the following: 135.7(1) motor vehicles taxed under chapter 297B; 135.8(2) machinery or equipment used to receive or store raw materials; 135.9(3) building materials, except for materials included in paragraph (b), clauses (6) and 135.10(7); 135.11(4) machinery or equipment used for nonproduction purposes, including, but not limited 135.12to, the following: plant security, fire prevention, first aid, and hospital stations; support 135.13operations or administration; pollution control; and plant cleaning, disposal of scrap and 135.14waste, plant communications, space heating, cooling, lighting, or safety; 135.15(5) farm machinery and aquaculture production equipment as defined by section 297A.61, 135.16subdivisions 12 and 13; 135.17(6) machinery or equipment purchased and installed by a contractor as part of an 135.18improvement to real property; 135.19(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving 135.20of prepared foods as defined in section 297A.61, subdivision 31; 135.21(8) machinery and equipment used to furnish the services listed in section 297A.61, 135.22subdivision 3 , paragraph (g), clause (6), items (i) to (vi) and (viii); 135.23(9) machinery or equipment used in the transportation, transmission, or distribution of 135.24petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, 135.25mains, or other means of transporting those products. This clause does not apply to machinery 135.26or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or 135.27(10) any other item that is not essential to the integrated process of manufacturing, 135.28fabricating, mining, or refining. 135.29(d) For purposes of this subdivision: 135.30(1) "Equipment" means independent devices or tools separate from machinery but 135.31essential to an integrated production process, including computers and computer software, 136.1used in operating, controlling, or regulating machinery and equipment; and any subunit or 136.2assembly comprising a component of any machinery or accessory or attachment parts of 136.3machinery, such as tools, dies, jigs, patterns, and molds. 136.4(2) "Fabricating" means to make, build, create, produce, or assemble components or 136.5property to work in a new or different manner. 136.6(3) "Integrated production process" means a process or series of operations through 136.7which tangible personal property is manufactured, fabricated, mined, or refined. For purposes 136.8of this clause, (i) manufacturing begins with the removal of raw materials from inventory 136.9and ends when the last process prior to loading for shipment has been completed; (ii) 136.10fabricating begins with the removal from storage or inventory of the property to be assembled, 136.11processed, altered, or modified and ends with the creation or production of the new or 136.12changed product; (iii) mining begins with the removal of overburden from the site of the 136.13ores, minerals, stone, peat deposit, or surface materials and ends when the last process before 136.14stockpiling is completed; and (iv) refining begins with the removal from inventory or storage 136.15of a natural resource and ends with the conversion of the item to its completed form. 136.16(4) "Machinery" means mechanical, electronic, or electrical devices, including computers 136.17and computer software, that are purchased or constructed to be used for the activities set 136.18forth in paragraph (a), beginning with the removal of raw materials from inventory through 136.19completion of the product, including packaging of the product. 136.20(5) "Machinery and equipment used for pollution control" means machinery and 136.21equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 136.22described in paragraph (a). 136.23(6) "Manufacturing" means an operation or series of operations where raw materials are 136.24changed in form, composition, or condition by machinery and equipment and which results 136.25in the production of a new article of tangible personal property. For purposes of this 136.26subdivision, "manufacturing" includes the generation of electricity or steam to be sold at 136.27retail. 136.28(7) "Mining" means the extraction of minerals, ores, stone, or peat. 136.29(8) "Online data retrieval system" means a system whose cumulation of information is 136.30equally available and accessible to all its customers. 136.31(9) "Primarily" means machinery and equipment used 50 percent or more of the time in 136.32an activity described in paragraph (a). 137.1(10) "Refining" means the process of converting a natural resource to an intermediate 137.2or finished product, including the treatment of water to be sold at retail. 137.3(11) This subdivision does not apply to telecommunications equipment as provided in 137.4subdivision 35a, and does not apply to wire, cable, fiber, or poles, or conduit for 137.5telecommunications services. 137.6EFFECTIVE DATE.This section is effective for sales and purchases made after June 137.730, 2017. 137.8 Sec. 19. Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read: 137.9 Subd. 9. Super Bowl admissions and related events. (a) The granting of the privilege 137.10of admission to a world championship football game sponsored by the National Football 137.11League is and to related events sponsored by the National Football League or its affiliates, 137.12or the Minnesota Super Bowl Host Committee, are exempt. 137.13(b) The sale of nonresidential parking by the National Football League for attendance 137.14at a world championship football game sponsored by the National Football League and for 137.15related events sponsored by the National Football League or its affiliates, or the Minnesota 137.16Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by 137.17the Super Bowl Host Committee are purchases made exempt for resale. 137.18(c) For the purposes of this subdivision: 137.19(1) "related events sponsored by the National Football League or its affiliates" includes 137.20but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On 137.21Location, and NFL House; and 137.22(2) "affiliates" does not include National Football League teams. 137.23EFFECTIVE DATE.The amendments to this section are effective for sales and 137.24purchases made after June 30, 2016, and before March 1, 2018. 137.25 Sec. 20. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read: 137.26 Subd. 19. Petroleum products. The following petroleum products are exempt: 137.27(1) products upon which a tax has been imposed and paid under chapter 296A, and for 137.28which no refund has been or will be allowed because the buyer used the fuel for nonhighway 137.29use; 138.1(2) products that are used in the improvement of agricultural land by constructing, 138.2maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water 138.3impoundment, and other erosion control structures; 138.4(3) products purchased by a transit system receiving financial assistance under section 138.5174.24 , 256B.0625, subdivision 17, or 473.384; 138.6(4) products purchased by an ambulance service licensed under chapter 144E; 138.7(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision 138.839 , for off-highway business use as part of the operations of a resort as provided under 138.9section 296A.16, subdivision 2, clause (2); 138.10(6) products purchased by a state or a political subdivision of a state for use in motor 138.11vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b); 138.12(7) products purchased by providers of transportation to recipients of medical assistance 138.13home and community-based services waivers enrolled in day programs, including adult day 138.14care, family adult day care, day treatment and habilitation, prevocational services, and 138.15structured day services; or 138.16(8) products used in a motor vehicle used exclusively as a mobile medical unit for the 138.17provision of medical or dental services by a federally qualified health center, as defined 138.18under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus 138.19Budget Reconciliation Act of 1990.; or 138.20(9) special fuel used for one of the following purposes: 138.21 (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the 138.22unit has an engine separate from the one used to propel the vehicle and the fuel is used 138.23exclusively for the unit; 138.24 (ii) to power an unlicensed motor vehicle that is used solely or primarily to move 138.25semitrailers within a cargo yard, warehouse facility, or intermodal facility; or 138.26 (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle, 138.27whether or not the unit or engine is fueled from the same or a different fuel tank as that 138.28from which the motor vehicle is fueled. 138.29EFFECTIVE DATE.This section is effective for sales and purchases made after June 138.3030, 2017. 139.1 Sec. 21. Minnesota Statutes 2016, section 297A.68, subdivision 35a, is amended to read: 139.2 Subd. 35a. Telecommunications or pay television services machinery and equipment. 139.3(a) Telecommunications or pay television services machinery and equipment purchased or 139.4leased for use directly by a telecommunications or pay television services provider primarily 139.5in the provision of telecommunications or pay television services that are ultimately to be 139.6sold at retail are exempt, regardless of whether purchased by the owner, a contractor, or a 139.7subcontractor. 139.8(b) For purposes of this subdivision, "telecommunications or pay television machinery 139.9and equipment" includes, but is not limited to: 139.10(1) machinery, equipment, and fixtures utilized in receiving, initiating, amplifying, 139.11processing, transmitting, retransmitting, recording, switching, or monitoring 139.12telecommunications or pay television services, such as computers, transformers, amplifiers, 139.13routers, bridges, repeaters, multiplexers, and other items performing comparable functions; 139.14(2) machinery, equipment, and fixtures used in the transportation of telecommunications 139.15or pay television services, such as radio transmitters and receivers, satellite equipment, 139.16microwave equipment, fiber, conduit, and other transporting media, but not wire, cable, 139.17fiber, or poles, or conduit; 139.18(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or enable 139.19the machinery in clauses (1) and (2) to accomplish its intended function, such as auxiliary 139.20power supply, test equipment, towers, heating, ventilating, and air conditioning equipment 139.21necessary to the operation of the telecommunications or pay television equipment; and 139.22software necessary to the operation of the telecommunications or pay television equipment; 139.23and 139.24(4) repair and replacement parts, including accessories, whether purchased as spare parts, 139.25repair parts, or as upgrades or modifications to qualified machinery or equipment. 139.26EFFECTIVE DATE.This section is effective for sales and purchases made after June 139.2730, 2017. 139.28 Sec. 22. Minnesota Statutes 2016, section 297A.68, is amended by adding a subdivision 139.29to read: 139.30 Subd. 45. Jukebox music. The purchase of music, either as a digital audio work or in 139.31tangible form such as a record or compact disc, by operators that provide the service of 139.32making available jukeboxes as amusement devices, as provided in section 297A.61, 140.1subdivision 3, paragraph (g), clause (1), is exempt if the music is used exclusively for the 140.2jukebox. 140.3EFFECTIVE DATE.This section is effective for sales and purchases made after June 140.430, 2017. 140.5 Sec. 23. Minnesota Statutes 2016, section 297A.70, subdivision 4, is amended to read: 140.6 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), 140.7to the following "nonprofit organizations" are exempt: 140.8(1) a corporation, society, association, foundation, or institution organized and operated 140.9exclusively for charitable, religious, or educational purposes if the item purchased is used 140.10in the performance of charitable, religious, or educational functions; and 140.11(2) any senior citizen group or association of groups that: 140.12(i) in general limits membership to persons who are either age 55 or older, or physically 140.13disabled; 140.14(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit 140.15purposes, not including housing, no part of the net earnings of which inures to the benefit 140.16of any private shareholders; and 140.17(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.; and 140.18(3) an organization that qualifies for an exemption for memberships under subdivision 140.1912 if the item is purchased and used in the performance of the organization's mission. 140.20For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery 140.21owned by a religious organization. 140.22(b) This exemption does not apply to the following sales: 140.23(1) building, construction, or reconstruction materials purchased by a contractor or a 140.24subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 140.25maximum price covering both labor and materials for use in the construction, alteration, or 140.26repair of a building or facility; 140.27(2) construction materials purchased by tax-exempt entities or their contractors to be 140.28used in constructing buildings or facilities that will not be used principally by the tax-exempt 140.29entities; 140.30(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 140.31and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 141.1subdivision 2 , except wine purchased by an established religious organization for sacramental 141.2purposes or as allowed under subdivision 9a; and 141.3(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as 141.4provided in paragraph (c). 141.5(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, 141.6subdivision 11 , only if the vehicle is: 141.7(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 141.8passenger automobile, as defined in section 168.002, if the automobile is designed and used 141.9for carrying more than nine persons including the driver; and 141.10(2) intended to be used primarily to transport tangible personal property or individuals, 141.11other than employees, to whom the organization provides service in performing its charitable, 141.12religious, or educational purpose. 141.13(d) A limited liability company also qualifies for exemption under this subdivision if 141.14(1) it consists of a sole member that would qualify for the exemption, and (2) the items 141.15purchased qualify for the exemption. 141.16EFFECTIVE DATE. This section is effective for sales and purchases made after June 141.1730, 2017. 141.18 Sec. 24. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 141.19to read: 141.20 Subd. 11a. Minnesota State High School League tickets and admissions. Tickets and 141.21admissions to games, events, and activities sponsored by the Minnesota State High School 141.22League under chapter 128C are exempt. 141.23EFFECTIVE DATE.This section is effective for sales and purchases made after June 141.2430, 2017, and before July 1, 2027. 141.25 Sec. 25. Minnesota Statutes 2016, section 297A.70, subdivision 12, is amended to read: 141.26 Subd. 12. YMCA, YWCA, and JCC, and similar memberships. (a) The sale of 141.27memberships, meaning both onetime initiation fees and periodic membership dues, to an 141.28association incorporated under section 315.44 or an organization defined under section 141.29315.51 , or a nonprofit organization offering similar services are exempt. However, all 141.30separate charges made for the privilege of having access to and the use of the association's 141.31sports and athletic facilities are taxable. 142.1(b) For purposes of this subdivision, a "nonprofit organization offering similar services" 142.2means an exempt organization under section 501(c)(3) of the Internal Revenue Code, whose 142.3mission is to support youth and families through a variety of activities, including membership 142.4allowing access to athletic facilities, and who provide free or reduced-price memberships 142.5to seniors or low-income persons or families. 142.6EFFECTIVE DATE.This section is effective for sales and purchases made after June 142.730, 2017. 142.8 Sec. 26. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read: 142.9 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 142.10personal property or services at, and admission charges for fund-raising events sponsored 142.11by, a nonprofit organization are exempt if: 142.12(1) all gross receipts are recorded as such, in accordance with generally accepted 142.13accounting practices, on the books of the nonprofit organization; and 142.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely 142.15and exclusively for charitable, religious, or educational purposes. Exempt sales include the 142.16sale of prepared food, candy, and soft drinks at the fund-raising event. 142.17(b) This exemption is limited in the following manner: 142.18(1) it does not apply to admission charges for events involving bingo or other gambling 142.19activities or to charges for use of amusement devices involving bingo or other gambling 142.20activities; 142.21(2) all gross receipts are taxable if the profits are not used solely and exclusively for 142.22charitable, religious, or educational purposes; 142.23(3) it does not apply unless the organization keeps a separate accounting record, including 142.24receipts and disbursements from each fund-raising event that documents all deductions from 142.25gross receipts with receipts and other records; 142.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 142.27the active or passive agent of a person that is not a nonprofit corporation; 142.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; 142.29(6) it does not apply to fund-raising events conducted on premises leased for more than 142.30five ten days but less than 30 days; and 143.1(7) it does not apply if the risk of the event is not borne by the nonprofit organization 143.2and the benefit to the nonprofit organization is less than the total amount of the state and 143.3local tax revenues forgone by this exemption. 143.4(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 143.5government, corporation, society, association, foundation, or institution organized and 143.6operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' 143.7purposes, no part of the net earnings of which inures to the benefit of a private individual. 143.8(d) For purposes of this subdivision, "fund-raising events" means activities of limited 143.9duration, not regularly carried out in the normal course of business, that attract patrons for 143.10community, social, and entertainment purposes, such as auctions, bake sales, ice cream 143.11socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, 143.12bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, 143.13galas, special event workshops, sporting activities such as marathons and tournaments, and 143.14similar events. Fund-raising events do not include the operation of a regular place of business 143.15in which services are provided or sales are made during regular hours such as bookstores, 143.16thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or 143.17other activities carried out in the normal course of business. 143.18EFFECTIVE DATE.This section is effective for sales and purchases made after June 143.1930, 2017. 143.20 Sec. 27. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 143.21to read: 143.22 Subd. 21. Ice arenas and rinks. Sales to organizations that exist primarily for the purpose 143.23of operating ice arenas or rinks that are part of the Duluth Heritage Sports Center and are 143.24used for youth and high school programs are exempt if the organization is a private, nonprofit 143.25corporation exempt from federal income taxation under section 501(c)(3) of the Internal 143.26Revenue Code. 143.27EFFECTIVE DATE.This section is effective for sales and purchases made after June 143.2830, 2017. 143.29 Sec. 28. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read: 143.30 Subd. 44. Building materials, capital projects. (a) Materials and supplies used or 143.31consumed in and equipment incorporated into the construction or improvement of a capital 144.1project funded partially or wholly under section 297A.9905 are exempt, provided that the 144.2project has either: 144.3(1) a total construction cost of at least $40,000,000 within a 24-month period.; or 144.4(2) a total construction cost of at least $100,000,000 for a sports facility project that 144.5begins after July 1, 2016, and before December 31, 2017. 144.6(b) Materials and supplies used or consumed in and equipment incorporated into the 144.7construction, remodeling, expansion, or improvement of an ice arena or other buildings or 144.8facilities owned and operated by the city of Plymouth are exempt. For purposes of this 144.9paragraph, "facilities" include municipal streets and facilities associated with streets including 144.10but not limited to lighting, curbs and gutters, and sidewalks. The total amount of refund on 144.11all building materials, supplies, and equipment that the city may apply for under this 144.12paragraph is $2,500,000. 144.13(c) The tax on purchases exempt under this provision paragraph (a), clause (1), and 144.14paragraph (b), must be imposed and collected as if the rate under section 297A.62, 144.15subdivision 1 , applied and then refunded in the manner provided in section 297A.75. 144.16Notwithstanding section 289A.40, the city of Plymouth must file for refund by December 144.1731, 2017, for sales tax paid on all eligible purchases under paragraph (b) made prior to 144.18December 31, 2015. 144.19(d) The exemption under paragraph (a), clause (2), expires one year after the date that 144.20the first major sports game is played at the sports facility. 144.21EFFECTIVE DATE.(a) The amendment adding paragraph (b) and to paragraph (c) is 144.22effective retroactively for sales and purchases made after January 1, 2013. 144.23(b) The amendment adding paragraph (d) and to paragraph (a) is effective the day 144.24following final enactment. 144.25 Sec. 29. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 144.26to read: 144.27 Subd. 49. Construction materials purchased by contractors; exemption for certain 144.28entities. (a) Building, construction, or reconstruction materials and supplies used or consumed 144.29in, and equipment incorporated into, buildings or facilities used principally by the following 144.30entities are exempt: 144.31(1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); 144.32(2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d); 145.1(3) hospitals and nursing homes owned and operated by political subdivisions of the 145.2state, as defined under section 297A.70, subdivision 2, paragraph (a), clause (3); 145.3(4) public libraries; library systems; multicounty, multitype library systems, as defined 145.4in section 134.001; and county law libraries under chapter 134A; 145.5(5) nonprofit groups, as defined under section 297A.70, subdivision 4; 145.6(6) hospitals, outpatient surgical centers, and critical access dental providers, as defined 145.7under section 297A.70, subdivision 7; and 145.8(7) nursing homes and boarding care homes, as defined under section 297A.70, 145.9subdivision 18. 145.10(b) Materials and supplies used and consumed in, and equipment incorporated into, the 145.11construction, reconstruction, repair, maintenance, or improvement of public infrastructure 145.12of any kind including, but not limited to, roads, bridges, culverts, drinking water facilities, 145.13and wastewater facilities purchased by a contractor or subcontractor of the following entities 145.14are exempt: 145.15(1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); or 145.16(2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d). 145.17(c) The tax on purchases exempt under this subdivision must be imposed and collected 145.18as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner 145.19provided in section 297A.75. 145.20EFFECTIVE DATE.This section is effective for sales and purchases made after June 145.2130, 2017. 145.22 Sec. 30. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 145.23to read: 145.24 Subd. 50. Properties destroyed by fire. Building materials and supplies used in, and 145.25equipment incorporated into, the construction or replacement of real property that is located 145.26in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed 145.27and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 145.28in the manner provided in section 297A.75. 145.29EFFECTIVE DATE.This section is effective retroactively for sales and purchases 145.30made after December 31, 2015, and before July 1, 2018. 146.1 Sec. 31. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 146.2to read: 146.3 Subd. 51. Properties destroyed by fire. (a) Building materials and supplies used in, 146.4and equipment incorporated into, the construction or replacement of real property that is 146.5located in Melrose affected by the fire on September 8, 2016, are exempt. 146.6(b) For sales and purchases made after September 30, 2016, and before July 1, 2017, 146.7the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, 146.8applied and then refunded in the manner provided in section 297A.75. 146.9EFFECTIVE DATE.Paragraph (a) is effective retroactively for sales and purchases 146.10made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective for 146.11sales and purchases made after September 30, 2016, and before July 1, 2017. 146.12 Sec. 32. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read: 146.13 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following 146.14exempt items must be imposed and collected as if the sale were taxable and the rate under 146.15section 297A.62, subdivision 1, applied. The exempt items include: 146.16 (1) building materials for an agricultural processing facility exempt under section 146.17297A.71, subdivision 13 ; 146.18 (2) building materials for mineral production facilities exempt under section 297A.71, 146.19subdivision 14 ; 146.20 (3) building materials for correctional facilities under section 297A.71, subdivision 3; 146.21 (4) building materials used in a residence for disabled veterans exempt under section 146.22297A.71, subdivision 11 ; 146.23 (5) elevators and building materials exempt under section 297A.71, subdivision 12; 146.24 (6) materials and supplies for qualified low-income housing under section 297A.71, 146.25subdivision 23 ; 146.26 (7) materials, supplies, and equipment for municipal electric utility facilities under 146.27section 297A.71, subdivision 35; 146.28 (8) equipment and materials used for the generation, transmission, and distribution of 146.29electrical energy and an aerial camera package exempt under section 297A.68, subdivision 146.3037; 147.1 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 147.2(a), clause (10); 147.3 (10) materials, supplies, and equipment for construction or improvement of projects and 147.4facilities under section 297A.71, subdivision 40; 147.5(11) materials, supplies, and equipment for construction, improvement, or expansion 147.6of: 147.7(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 147.8section 297A.71, subdivision 42; 147.9(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 147.1045 ; 147.11(iii) a research and development facility exempt under Minnesota Statutes 2014, section 147.12297A.71, subdivision 46; and 147.13(iv) an industrial measurement manufacturing and controls facility exempt under 147.14Minnesota Statutes 2014, section 297A.71, subdivision 47; 147.15(12) enterprise information technology equipment and computer software for use in a 147.16qualified data center exempt under section 297A.68, subdivision 42; 147.17(13) materials, supplies, and equipment for qualifying capital projects under section 147.18297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b) ; 147.19(14) items purchased for use in providing critical access dental services exempt under 147.20section 297A.70, subdivision 7, paragraph (c); and 147.21(15) items and services purchased under a business subsidy agreement for use or 147.22consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 147.2344 .; 147.24(16) building construction or reconstruction materials, supplies, and equipment purchased 147.25by an entity eligible under section 297A.71, subdivision 49; 147.26(17) building materials, equipment, and supplies for constructing or replacing real 147.27property exempt under section 297A.71, subdivision 50; and 147.28(18) building materials, equipment, and supplies for constructing or replacing real 147.29property exempt under section 297A.71, subdivision 51, paragraph (b). 147.30EFFECTIVE DATE.(a) The amendment adding clause (16) is effective for sales and 147.31purchases made after June 30, 2017. 148.1(b) The amendment adding clause (17) is effective retroactively for sales and purchases 148.2made after December 31, 2015. 148.3(c) The amendment adding clause (18) is effective retroactively for sales and purchases 148.4made after September 30, 2016. 148.5 Sec. 33. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read: 148.6 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 148.7commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 148.8be paid to the applicant. Only the following persons may apply for the refund: 148.9 (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser; 148.10 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; 148.11 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 148.12provided in United States Code, title 38, chapter 21; 148.13 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 148.14property; 148.15 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project; 148.16 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 148.17joint venture of municipal electric utilities; 148.18 (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 148.19business; and 148.20 (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental 148.21entity that owns or contracts for the project or facility.; 148.22 (9) for subdivision 1, clause (16), the applicant must be the entity eligible under section 148.23297A.71, subdivision 49; 148.24 (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the 148.25building or project; and 148.26 (11) for subdivision 1, clause (18), the applicant must be the owner or developer of the 148.27building or project. 148.28EFFECTIVE DATE.(a) The amendment adding clause (9) is effective for sales and 148.29purchases made after June 30, 2017. 149.1(b) The amendment adding clause (10) is effective retroactively for sales and purchases 149.2made after December 31, 2015. 149.3(c) The amendment adding clause (11) is effective retroactively for sales and purchases 149.4made after September 30, 2016. 149.5 Sec. 34. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read: 149.6 Subd. 3. Application. (a) The application must include sufficient information to permit 149.7the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 149.8or builder, under subdivision 1, clauses (3) to (13), or (15), to (18), the contractor, 149.9subcontractor, or builder must furnish to the refund applicant a statement including the cost 149.10of the exempt items and the taxes paid on the items unless otherwise specifically provided 149.11by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 149.12this section. 149.13 (b) An applicant may not file more than two applications per calendar year for refunds 149.14for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 149.15EFFECTIVE DATE.This section is effective for sales and purchases made after June 149.1630, 2017. 149.17 Sec. 35. Minnesota Statutes 2016, section 297A.75, subdivision 5, is amended to read: 149.18 Subd. 5. Appropriation. (a) The amount required to make the refunds is annually 149.19appropriated to the commissioner. 149.20(b) For fiscal years 2018 and 2019 only, revenues dedicated under the Minnesota 149.21Constitution, article XI, section 15, shall not be reduced for any portion of the refunds paid 149.22for the following exemptions: 149.23(1) the exemption under section 297A.71, subdivision 44, paragraph (b); 149.24(2) the expansion of the exemption under section 297A.68, subdivision 44, due to sections 149.252 and 3; and 149.26(3) the exemptions in section 297A.71, subdivisions 49, 50, and 51. 149.27EFFECTIVE DATE.This section is effective the day following final enactment. 149.28 Sec. 36. Minnesota Statutes 2016, section 297A.94, is amended to read: 149.29297A.94 DEPOSIT OF REVENUES. 150.1(a) Except as provided in this section, the commissioner shall deposit the revenues, 150.2including interest and penalties, derived from the taxes imposed by this chapter in the state 150.3treasury and credit them to the general fund. 150.4(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 150.5account in the special revenue fund if: 150.6(1) the taxes are derived from sales and use of property and services purchased for the 150.7construction and operation of an agricultural resource project; and 150.8(2) the purchase was made on or after the date on which a conditional commitment was 150.9made for a loan guaranty for the project under section 41A.04, subdivision 3. 150.10The commissioner of management and budget shall certify to the commissioner the date on 150.11which the project received the conditional commitment. The amount deposited in the loan 150.12guaranty account must be reduced by any refunds and by the costs incurred by the Department 150.13of Revenue to administer and enforce the assessment and collection of the taxes. 150.14(c) The commissioner shall deposit the revenues, including interest and penalties, derived 150.15from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 150.16paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows: 150.17(1) first to the general obligation special tax bond debt service account in each fiscal 150.18year the amount required by section 16A.661, subdivision 3, paragraph (b); and 150.19(2) after the requirements of clause (1) have been met, the balance to the general fund. 150.20(d) The commissioner shall deposit the revenues, including interest and penalties, 150.21collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 150.22general fund. By July 15 of each year the commissioner shall transfer to the highway user 150.23tax distribution fund an amount equal to the excess fees collected under section 297A.64, 150.24subdivision 5 , for the previous calendar year. 150.25(e) 72.43 percent of the revenues, including interest and penalties, transmitted to the 150.26commissioner under section 297A.65, must be deposited by the commissioner in the state 150.27treasury as follows: 150.28(1) 50 percent of the receipts must be deposited in the heritage enhancement account in 150.29the game and fish fund, and may be spent only on activities that improve, enhance, or protect 150.30fish and wildlife resources, including conservation, restoration, and enhancement of land, 150.31water, and other natural resources of the state; 151.1(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 151.2be spent only for state parks and trails; 151.3(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 151.4be spent only on metropolitan park and trail grants; 151.5(4) three percent of the receipts must be deposited in the natural resources fund, and 151.6may be spent only on local trail grants; and 151.7(5) two percent of the receipts must be deposited in the natural resources fund, and may 151.8be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 151.9and the Duluth Zoo. 151.10(f) The revenue dedicated under paragraph (e) may not be used as a substitute for 151.11traditional sources of funding for the purposes specified, but the dedicated revenue shall 151.12supplement traditional sources of funding for those purposes. Land acquired with money 151.13deposited in the game and fish fund under paragraph (e) must be open to public hunting 151.14and fishing during the open season, except that in aquatic management areas or on lands 151.15where angling easements have been acquired, fishing may be prohibited during certain times 151.16of the year and hunting may be prohibited. At least 87 percent of the money deposited in 151.17the game and fish fund for improvement, enhancement, or protection of fish and wildlife 151.18resources under paragraph (e) must be allocated for field operations. 151.19(g) The commissioner must deposit the revenues, including interest and penalties minus 151.20any refunds, derived from the sale of items regulated under section 624.20, subdivision 1, 151.21that may be sold to persons 18 years old or older and that are not prohibited from use by 151.22the general public under section 624.21, in the state treasury and credit: 151.23(1) 25 percent to the volunteer fire assistance grant account established under section 151.2488.068; 151.25(2) 25 percent to the fire safety account established under section 297I.06, subdivision 151.263; and 151.27(3) the remainder to the general fund. 151.28For purposes of this paragraph, the percentage of total sales and use tax revenue derived 151.29from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be 151.30sold to persons 18 years old or older and are not prohibited from use by the general public 151.31under section 624.21, is a set percentage of the total sales and use tax revenues collected in 151.32the state, with the percentage determined under section 38. 152.1(g) (h) The revenues deposited under paragraphs (a) to (f) (g) do not include the revenues, 152.2including interest and penalties, generated by the sales tax imposed under section 297A.62, 152.3subdivision 1a , which must be deposited as provided under the Minnesota Constitution, 152.4article XI, section 15. 152.5EFFECTIVE DATE.This section is effective for sales and purchases made after 152.6December 31, 2017. 152.7 Sec. 37. Minnesota Statutes 2016, section 297A.9905, is amended to read: 152.8297A.9905 USE OF LOCAL TAX REVENUES BY CITIES OF THE FIRST CLASS. 152.9(a) Notwithstanding section 297A.99, or other general or special law or charter provision, 152.10if the revenues from any local tax imposed on retail sales under special law by a city of the 152.11first class exceeds the amount needed to fund the uses authorized in the special law, the city 152.12may expend the excess revenue from the tax to fund other capital projects of regional 152.13significance. 152.14(b) For purposes of this section: 152.15(1) "city of the first class" has the meaning given in section 410.01; and 152.16(2) "capital project of regional significance" means construction, expansion, or renovation 152.17of a sports facility or convention or civic center, that has a construction cost of at least 152.18$40,000,000 that meets the requirements of section 297A.71, subdivision 44, paragraph (a). 152.19EFFECTIVE DATE.This section is effective for sales and purchases made after the 152.20day of final enactment. 152.21 Sec. 38. CALCULATION OF THE PERCENT OF SALES TAX REVENUE 152.22ATTRIBUTABLE TO THE SALE OF CERTAIN FIREWORKS-RELATED ITEMS. 152.23By December 1, 2017, the commissioner of revenue must estimate the percentage of 152.24total sales tax revenues collected in calendar year 2016 that is attributable to the sales and 152.25purchases of items regulated under Minnesota Statutes, section 624.20, subdivision 1, that 152.26are allowed to be sold to persons 18 years old or older and that are not prohibited from use 152.27by the general public under section 624.21. When making the determination, the 152.28commissioner may consult with representatives from producers and retailers, industry trade 152.29groups, and the most recently available national and state information. The commissioner's 152.30decision is final. The commissioner's determination under this section is not a rule and is 152.31not subject to Minnesota Statutes, chapter 14, including section 14.386. 153.1EFFECTIVE DATE.This section is effective the day following final enactment. 153.2 Sec. 39. SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS USED 153.3BY A NONPROFIT ECONOMIC DEVELOPMENT CORPORATION. 153.4 Subdivision 1. Exemption; refund. Materials and supplies used or consumed in and 153.5equipment incorporated into the construction of a retail development consisting of retail 153.6space for a grocery store, fueling center, and other retail space by a nonprofit economic 153.7development corporation that is an exempt organization under section 501(c)(3) of the 153.8Internal Revenue Code are exempt from sales and use tax under Minnesota Statutes, chapter 153.9297A, provided that the development is located in a city with no grocery store and the city 153.10is at least 20 miles from another city with a grocery store. The exemption applies to materials, 153.11supplies, and equipment purchased after January 1, 2013, and before January 1, 2017. The 153.12tax must be imposed and collected as if the rate in Minnesota Statutes, section 297A.62, 153.13applied and the nonprofit economic development corporation must apply for the refund of 153.14the tax in the same manner as provided under Minnesota Statutes, section 297A.75, 153.15subdivision 1, clause (11). Notwithstanding Minnesota Statutes, section 289A.40, the 153.16economic development corporation must file for refund by December 31, 2017, for the sales 153.17and use tax paid on all eligible purchases under this section. 153.18 Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1, 153.19including refunds that would otherwise reduce the revenues transferred from the general 153.20fund as required under the Minnesota Constitution, article XI, section 15, is appropriated 153.21from the general fund to the commissioner of revenue. 153.22EFFECTIVE DATE.This section is effective the day following final enactment and 153.23applies retroactively to sales and purchases made after January 1, 2013, and before January 153.241, 2017. 153.25 Sec. 40. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED 153.26OPERATING OR CAPITAL EXPENSES. 153.27 Subdivision 1. Reimbursement authorized. (a) An amount equivalent to the taxes paid 153.28under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department 153.29of Revenue, on purchases of tangible personal property, nonresidential parking services, 153.30and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and 153.31consumed in connection with Super Bowl LII or related events sponsored by the National 153.32Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities 153.33Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only 154.1purchases made by the Minnesota Super Bowl Host Committee, the National Football 154.2League or its affiliates, or their employees or independent contractors, qualify to be 154.3reimbursed under this section. 154.4(b) For purposes of this subdivision: 154.5(1) "employee or independent contractor" means only those employees or independent 154.6contractors that make qualifying purchases that are reimbursed by the Minnesota Super 154.7Bowl Host Committee or the National Football League or its affiliates; and 154.8(2) "related events sponsored by the National Football League or its affiliates" includes 154.9but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors, 154.10and NFL House. 154.11 Subd. 2. Operating reserve and capital reserve fund. Notwithstanding the requirements 154.12of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance 154.13in the operating reserve or capital reserve fund may be used for the purposes of paying 154.14reimbursements authorized under subdivision 1. 154.15EFFECTIVE DATE.This section is effective for sales and purchases made after June 154.1630, 2016, and before March 1, 2018. 154.17 Sec. 41. REIMBURSEMENTS TO CERTAIN CONSTITUTIONALLY DEDICATED 154.18FUNDS FOR EXPANDED SALES TAX EXEMPTIONS. 154.19The commissioner of management and budget, by June 15 in fiscal years 2018 and 2019 154.20only, shall increase the revenues transferred from the general fund as required under the 154.21Minnesota Constitution, article XI, section 15, by an amount equal to the estimated amount 154.22of reduction to these revenues for that fiscal year due to the enactment of new sales tax 154.23exemptions or the expansion of existing sales tax exemptions provided in sections 5, 6, 11 154.24to 19, 21 to 27, and 31, the amendments to paragraph (a) and adding paragraph (d) to 154.25Minnesota Statutes, section 297A.71, subdivision 44, in section 28, and changes in tobacco 154.26taxes under Minnesota Statutes, chapter 297F, in article 9. The commissioner of revenue 154.27shall make the estimate of this revenue reduction by June 1 of each fiscal year and inform 154.28the commissioner of management and budget. The appropriations under this section are 154.29onetime and not added to the base budget. 154.30EFFECTIVE DATE.This section is effective the day following final enactment. 155.1 Sec. 42. SEVERABILITY. 155.2If any provision of sections 7 to 10 or the application thereof is held invalid, such 155.3invalidity shall not affect the provisions or applications of the sections that can be given 155.4effect without the invalid provisions or applications. 155.5EFFECTIVE DATE.This section is effective the day following final enactment. 155.6 Sec. 43. EFFECTIVE DATE. 155.7(a) The provisions of sections 7 to 10 are effective at the earlier of: 155.8(1) a decision by the United States Supreme Court modifying its decision in Quill Corp. 155.9v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical 155.10presence in the state to collect and remit sales tax; or 155.11(2) July 1, 2019. 155.12(b) Notwithstanding paragraph (a) or the provisions of sections 7 to 10, if a federal law 155.13is enacted authorizing a state to impose a requirement to collect and remit sales tax on 155.14retailers without a physical presence in the state, the commissioner must enforce the 155.15provisions of this section and sections 7 to 10 to the extent allowed under federal law. 155.16(c) The commissioner of revenue shall notify the revisor of statutes when either of the 155.17provisions in paragraph (a) or (b) apply. 155.18ARTICLE 4 155.19AIDS AND CREDITS 155.20 Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read: 155.21 Subd. 4. Debt service equalization revenue. (a) The debt service equalization revenue 155.22of a district equals the sum of the first tier debt service equalization revenue and the second 155.23tier debt service equalization revenue. 155.24 (b) The first tier debt service equalization revenue of a district equals the greater of zero 155.25or the eligible debt service revenue minus the amount raised by a levy of 15.74 percent the 155.26first tier initial effort rate times the adjusted net tax capacity of the district minus the second 155.27tier debt service equalization revenue of the district. 155.28 (c) The second tier debt service equalization revenue of a district equals the greater of 155.29zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24 percent 155.30times the adjusted net tax capacity of the district. 156.1(d) The first tier initial effort rate for fiscal year 2018 is 15.74 percent. The first tier 156.2initial effort rate for fiscal year 2019 and fiscal year 2020 is ten percent. The first tier initial 156.3effort rate for fiscal year 2021 and later is 15.74 percent. 156.4EFFECTIVE DATE.This section is effective July 1, 2017. 156.5 Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read: 156.6 Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a district 156.7equals the sum of the first tier equalized debt service levy and the second tier equalized debt 156.8service levy. 156.9(b) A district's first tier equalized debt service levy equals the district's first tier debt 156.10service equalization revenue times the lesser of one or the ratio of: 156.11(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 156.12year before the year the levy is certified by the adjusted pupil units in the district for the 156.13school year ending in the year prior to the year the levy is certified; to 156.14(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or 156.1555.33 percent of the initial equalizing factor in fiscal year 2018 and later, 75 percent of the 156.16initial equalizing factor in fiscal year 2019 and fiscal year 2020, and 55.33 percent of the 156.17initial equalizing factor in fiscal year 2021 and later. 156.18(c) A district's second tier equalized debt service levy equals the district's second tier 156.19debt service equalization revenue times the lesser of one or the ratio of: 156.20(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 156.21year before the year the levy is certified by the adjusted pupil units in the district for the 156.22school year ending in the year prior to the year the levy is certified; to 156.23(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of 156.24the initial equalizing factor in fiscal year 2018 and later. 156.25(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient 156.26derived by dividing the total adjusted net tax capacity of all school districts in the state for 156.27the year before the year the levy is certified by the total number of adjusted pupil units in 156.28all school districts in the state in the year before the year the levy is certified. 156.29EFFECTIVE DATE.This section is effective July 1, 2017. 157.1 Sec. 3. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read: 157.2 Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund 157.3payments for a district nonoperating fund must be made at the current year aid payment 157.4percentage of the estimated entitlement during the fiscal year of the entitlement. This amount 157.5shall be paid in 12 six equal monthly installments beginning in July. The amount of the 157.6actual entitlement, after adjustment for actual data, minus the payments made during the 157.7fiscal year of the entitlement must be paid prior to October 31 of the following school year. 157.8The commissioner may make advance payments of debt service equalization aid and 157.9state-paid tax credits for a district's debt service fund earlier than would occur under the 157.10preceding schedule if the district submits evidence showing a serious cash flow problem in 157.11the fund. The commissioner may make earlier payments during the year and, if necessary, 157.12increase the percent of the entitlement paid to reduce the cash flow problem. 157.13EFFECTIVE DATE.This section is effective beginning with fiscal year 2019. 157.14 Sec. 4. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT. 157.15 Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13, 157.16subdivision 23, other than property consisting of the house, garage, and immediately 157.17surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 157.18under this section. 157.19 Subd. 2. Credit amount. For each qualifying property, the school building bond 157.20agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied 157.21by the school debt tax rate determined under section 275.08, subdivision 1b. 157.22 Subd. 3. Credit reimbursements. The county auditor shall determine the tax reductions 157.23allowed under this section within the county for each taxes payable year and shall certify 157.24that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 157.25under section 275.29. Any prior year adjustments shall also be certified on the abstracts of 157.26tax lists. The commissioner shall review the certifications for accuracy, and may make such 157.27changes as are deemed necessary, or return the certification to the county auditor for 157.28correction. The credit under this section must be used to reduce the school district net tax 157.29capacity-based property tax as provided in section . 157.30 Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax 157.31reductions granted under this section for each taxes payable year within each school district 157.32to the commissioner of education, who shall pay the reimbursement amounts to each school 157.33district as provided in section . 158.1 Subd. 5. Appropriation. An amount sufficient to make the payments required by this 158.2section is annually appropriated from the general fund to the commissioner of education. 158.3EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 158.4 Sec. 5. Minnesota Statutes 2016, section 273.1392, is amended to read: 158.5273.1392 PAYMENT; SCHOOL DISTRICTS. 158.6The amounts of bovine tuberculosis credit reimbursements under section 273.113; 158.7conservation tax credits under section 273.119; disaster or emergency reimbursement under 158.8sections 273.1231 to 273.1235; homestead and agricultural credits under section sections 158.9273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property 158.10credit payments under section 469.171; and metropolitan agricultural preserve reduction 158.11under section 473H.10 for school districts, shall be certified to the Department of Education 158.12by the Department of Revenue. The amounts so certified shall be paid according to section 158.13127A.45 , subdivisions 9, 10, and 13. 158.14EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 158.15 Sec. 6. Minnesota Statutes 2016, section 273.1393, is amended to read: 158.16273.1393 COMPUTATION OF NET PROPERTY TAXES. 158.17 Notwithstanding any other provisions to the contrary, "net" property taxes are determined 158.18by subtracting the credits in the order listed from the gross tax: 158.19 (1) disaster credit as provided in sections 273.1231 to 273.1235; 158.20 (2) powerline credit as provided in section 273.42; 158.21 (3) agricultural preserves credit as provided in section 473H.10; 158.22 (4) enterprise zone credit as provided in section 469.171; 158.23 (5) disparity reduction credit; 158.24 (6) conservation tax credit as provided in section 273.119; 158.25 (7) the school bond credit as provided in section 273.1387; 158.26 (8) agricultural credit as provided in section 273.1384; 158.27 (8) (9) taconite homestead credit as provided in section 273.135; 158.28 (9) (10) supplemental homestead credit as provided in section 273.1391; and 158.29 (10) (11) the bovine tuberculosis zone credit, as provided in section 273.113. 159.1 The combination of all property tax credits must not exceed the gross tax amount. 159.2EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 159.3 Sec. 7. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read: 159.4 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and 159.5the county treasurer shall deliver after November 10 and on or before November 24 each 159.6year, by first class mail to each taxpayer at the address listed on the county's current year's 159.7assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 159.8the treasurer may send the notice in electronic form or by electronic mail instead of on paper 159.9or by ordinary mail. 159.10 (b) The commissioner of revenue shall prescribe the form of the notice. 159.11 (c) The notice must inform taxpayers that it contains the amount of property taxes each 159.12taxing authority proposes to collect for taxes payable the following year. In the case of a 159.13town, or in the case of the state general tax, the final tax amount will be its proposed tax. 159.14The notice must clearly state for each city that has a population over 500, county, school 159.15district, regional library authority established under section 134.201, and metropolitan taxing 159.16districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 159.17in which the budget and levy will be discussed and public input allowed, prior to the final 159.18budget and levy determination. The taxing authorities must provide the county auditor with 159.19the information to be included in the notice on or before the time it certifies its proposed 159.20levy under subdivision 1. The public must be allowed to speak at that meeting, which must 159.21occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 159.22number for the taxing authority that taxpayers may call if they have questions related to the 159.23notice and an address where comments will be received by mail, except that no notice 159.24required under this section shall be interpreted as requiring the printing of a personal 159.25telephone number or address as the contact information for a taxing authority. If a taxing 159.26authority does not maintain public offices where telephone calls can be received by the 159.27authority, the authority may inform the county of the lack of a public telephone number and 159.28the county shall not list a telephone number for that taxing authority. 159.29 (d) The notice must state for each parcel: 159.30 (1) the market value of the property as determined under section 273.11, and used for 159.31computing property taxes payable in the following year and for taxes payable in the current 159.32year as each appears in the records of the county assessor on November 1 of the current 159.33year; and, in the case of residential property, whether the property is classified as homestead 160.1or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 160.2values apply and that the values are final values; 160.3 (2) the items listed below, shown separately by county, city or town, and state general 160.4tax, agricultural homestead credit under section 273.1384, school building bond agricultural 160.5credit under section 273.1387, voter approved school levy, other local school levy, and the 160.6sum of the special taxing districts, and as a total of all taxing authorities: 160.7 (i) the actual tax for taxes payable in the current year; and 160.8 (ii) the proposed tax amount. 160.9 If the county levy under clause (2) includes an amount for a lake improvement district 160.10as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 160.11must be separately stated from the remaining county levy amount. 160.12 In the case of a town or the state general tax, the final tax shall also be its proposed tax 160.13unless the town changes its levy at a special town meeting under section 365.52. If a school 160.14district has certified under section 126C.17, subdivision 9, that a referendum will be held 160.15in the school district at the November general election, the county auditor must note next 160.16to the school district's proposed amount that a referendum is pending and that, if approved 160.17by the voters, the tax amount may be higher than shown on the notice. In the case of the 160.18city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 160.19from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 160.20the St. Paul Library Agency must be listed separately from the remaining amount of the 160.21city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 160.22listed separately from the remaining amount of the county's levy. In the case of a parcel 160.23where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 160.24applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 160.25capacity subject to the areawide tax must each be stated separately and not included in the 160.26sum of the special taxing districts; and 160.27 (3) the increase or decrease between the total taxes payable in the current year and the 160.28total proposed taxes, expressed as a percentage. 160.29 For purposes of this section, the amount of the tax on homesteads qualifying under the 160.30senior citizens' property tax deferral program under chapter 290B is the total amount of 160.31property tax before subtraction of the deferred property tax amount. 160.32 (e) The notice must clearly state that the proposed or final taxes do not include the 160.33following: 161.1 (1) special assessments; 161.2 (2) levies approved by the voters after the date the proposed taxes are certified, including 161.3bond referenda and school district levy referenda; 161.4 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 161.5in November of the levy year as provided under section 275.73; 161.6 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 161.7after the date the proposed taxes are certified; 161.8 (5) amounts necessary to pay tort judgments against the taxing authority that become 161.9final after the date the proposed taxes are certified; and 161.10 (6) the contamination tax imposed on properties which received market value reductions 161.11for contamination. 161.12 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 161.13county treasurer to deliver the notice as required in this section does not invalidate the 161.14proposed or final tax levy or the taxes payable pursuant to the tax levy. 161.15 (g) If the notice the taxpayer receives under this section lists the property as 161.16nonhomestead, and satisfactory documentation is provided to the county assessor by the 161.17applicable deadline, and the property qualifies for the homestead classification in that 161.18assessment year, the assessor shall reclassify the property to homestead for taxes payable 161.19in the following year. 161.20 (h) In the case of class 4 residential property used as a residence for lease or rental 161.21periods of 30 days or more, the taxpayer must either: 161.22 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 161.23or lessee; or 161.24 (2) post a copy of the notice in a conspicuous place on the premises of the property. 161.25 The notice must be mailed or posted by the taxpayer by November 27 or within three 161.26days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 161.27of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 161.28notice must be mailed in order to fulfill the requirements of this paragraph. 161.29 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 161.30districts" means the following taxing districts in the seven-county metropolitan area that 161.31levy a property tax for any of the specified purposes listed below: 162.1 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 162.2473.521 , 473.547, or 473.834; 162.3 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and 162.4 (3) Metropolitan Mosquito Control Commission under section 473.711. 162.5 For purposes of this section, any levies made by the regional rail authorities in the county 162.6of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 162.7shall be included with the appropriate county's levy. 162.8 (j) The governing body of a county, city, or school district may, with the consent of the 162.9county board, include supplemental information with the statement of proposed property 162.10taxes about the impact of state aid increases or decreases on property tax increases or 162.11decreases and on the level of services provided in the affected jurisdiction. This supplemental 162.12information may include information for the following year, the current year, and for as 162.13many consecutive preceding years as deemed appropriate by the governing body of the 162.14county, city, or school district. It may include only information regarding: 162.15 (1) the impact of inflation as measured by the implicit price deflator for state and local 162.16government purchases; 162.17 (2) population growth and decline; 162.18 (3) state or federal government action; and 162.19 (4) other financial factors that affect the level of property taxation and local services 162.20that the governing body of the county, city, or school district may deem appropriate to 162.21include. 162.22 The information may be presented using tables, written narrative, and graphic 162.23representations and may contain instruction toward further sources of information or 162.24opportunity for comment. 162.25EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 162.26 Sec. 8. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read: 162.27 Subd. 2. School district in more than one county levies; special requirements. (a) In 162.28school districts lying in more than one county, the clerk shall certify the tax levied to the 162.29auditor of the county in which the administrative offices of the school district are located. 162.30(b) The district must identify the portion of the school district levy that is levied for debt 162.31service at the time the levy is certified under this section. For the purposes of this paragraph, 163.1"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and 163.2123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions 163.3under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment 163.4of other postemployment benefits under section 475.52, subdivision 6. 163.5EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 163.6 Sec. 9. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read: 163.7 Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net 163.8tax capacity under section 275.07 by an individual local government unit shall be divided 163.9by the total net tax capacity of all taxable properties within the local government unit's 163.10taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 163.11each property's net tax capacity shall be each property's net tax capacity tax for that local 163.12government unit before reduction by any credits. 163.13(b) The auditor must also determine the school debt tax rate for each school district equal 163.14to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by 163.15(2) the total net tax capacity of all taxable property within the district. 163.16(c) Any amount certified to the county auditor to be levied against market value shall 163.17be divided by the total referendum market value of all taxable properties within the taxing 163.18district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 163.19property's referendum market value shall be each property's new referendum tax before 163.20reduction by any credits. For the purposes of this subdivision, "referendum market value" 163.21means the market value as defined in section 126C.01, subdivision 3. 163.22EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 163.23 Sec. 10. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read: 163.24 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of 163.25the tax statements. The commissioner of revenue shall prescribe the form of the property 163.26tax statement and its contents. The tax statement must not state or imply that property tax 163.27credits are paid by the state of Minnesota. The statement must contain a tabulated statement 163.28of the dollar amount due to each taxing authority and the amount of the state tax from the 163.29parcel of real property for which a particular tax statement is prepared. The dollar amounts 163.30attributable to the county, the state tax, the voter approved school tax, the other local school 163.31tax, the township or municipality, and the total of the metropolitan special taxing districts 163.32as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 164.1amounts due all other special taxing districts, if any, may be aggregated except that any 164.2levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 164.3Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 164.4under the appropriate county's levy. If the county levy under this paragraph includes an 164.5amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 164.6the amount attributable for that purpose must be separately stated from the remaining county 164.7levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 164.8an amount for public library service under section 134.07, the amount attributable for that 164.9purpose may be separated from the remaining county levy amount. The amount of the tax 164.10on homesteads qualifying under the senior citizens' property tax deferral program under 164.11chapter 290B is the total amount of property tax before subtraction of the deferred property 164.12tax amount. The amount of the tax on contamination value imposed under sections 270.91 164.13to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 164.14amount of any special assessments, may be rounded to the nearest even whole dollar. For 164.15purposes of this section whole odd-numbered dollars may be adjusted to the next higher 164.16even-numbered dollar. The amount of market value excluded under section 273.11, 164.17subdivision 16 , if any, must also be listed on the tax statement. 164.18 (b) The property tax statements for manufactured homes and sectional structures taxed 164.19as personal property shall contain the same information that is required on the tax statements 164.20for real property. 164.21 (c) Real and personal property tax statements must contain the following information 164.22in the order given in this paragraph. The information must contain the current year tax 164.23information in the right column with the corresponding information for the previous year 164.24in a column on the left: 164.25 (1) the property's estimated market value under section 273.11, subdivision 1; 164.26 (2) the property's homestead market value exclusion under section 273.13, subdivision 164.2735; 164.28 (3) the property's taxable market value under section 272.03, subdivision 15; 164.29 (4) the property's gross tax, before credits; 164.30 (5) for homestead agricultural properties, the credit credits under section sections 164.31273.1384 and 273.1387 ; 164.32 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 164.33273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 165.1received under section 273.135 must be separately stated and identified as "taconite tax 165.2relief"; and 165.3 (7) the net tax payable in the manner required in paragraph (a). 165.4 (d) If the county uses envelopes for mailing property tax statements and if the county 165.5agrees, a taxing district may include a notice with the property tax statement notifying 165.6taxpayers when the taxing district will begin its budget deliberations for the current year, 165.7and encouraging taxpayers to attend the hearings. If the county allows notices to be included 165.8in the envelope containing the property tax statement, and if more than one taxing district 165.9relative to a given property decides to include a notice with the tax statement, the county 165.10treasurer or auditor must coordinate the process and may combine the information on a 165.11single announcement. 165.12EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018. 165.13 Sec. 11. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision 165.14to read: 165.15 Subd. 20. Additional border city allocations. (a) In addition to the tax reductions 165.16authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax 165.17reductions to border city enterprise zones in cities located on the western border of the state. 165.18The commissioner shall allocate this amount among cities on a per capita basis. Allocations 165.19under this subdivision may be used for tax reductions under sections 469.171, 469.1732, 165.20and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in 165.21the enterprise zone, but only if the municipality determines that the granting of the tax 165.22reduction or offset is necessary to retain a business within or attract a business to the zone. 165.23(b) The allocations under this subdivision do not cancel or expire, but remain available 165.24until used by the city. 165.25EFFECTIVE DATE.This section is effective July 1, 2017. 165.26 Sec. 12. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read: 165.27 Subd. 34. City revenue need. (a) For a city with a population equal to or greater than 165.2810,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing 165.29percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus 165.30(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664. 165.31 (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 165.32revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing 166.1percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population 166.2decline; plus (5) the sparsity adjustment. 166.3 (c) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 166.4410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment. 166.5The city revenue need for a city under this paragraph shall not exceed 630 plus the city's 166.6sparsity adjustment. 166.7 (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 166.8need" equals (1) the transition factor times the city's revenue need calculated in paragraph 166.9(b); plus (2) 630 times the difference between one and the transition factor. For a city with 166.10a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals 166.11(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2) 166.12the city's revenue need calculated under the formula in paragraph (b) times the difference 166.13between one and the transition factor. For purposes of the first sentence of this paragraph 166.14"transition factor" is 0.2 percent times the amount that the city's population exceeds the 166.15minimum threshold in either of the first two sentences. For purposes of the second sentence 166.16of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population 166.17exceeds the minimum threshold. 166.18 (e) The city revenue need cannot be less than zero. 166.19 (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as 166.20determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 166.21deflator for government consumption expenditures and gross investment for state and local 166.22governments as prepared by the United States Department of Commerce, for the most 166.23recently available year to the 2013 implicit price deflator for state and local government 166.24purchases. 166.25EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 166.26and thereafter. 166.27 Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read: 166.28 Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the 166.29sparsity adjustment is 100 for any city with an average population density less than 150 per 166.30square mile, according to the most recent federal census, and. For a city with a population 166.31less than 10,000, the sparsity adjustment is 200 for any city with an average population 166.32density less than 30 per square mile, according to the most recent federal census. The sparsity 166.33adjustment is zero for all other cities. 167.1EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 167.2and thereafter. 167.3 Sec. 14. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 167.4CERTAIN OUT-OF-HOME PLACEMENT. 167.5 Subdivision 1. Definition. For purposes of this section, "out-of-home placement" means 167.624-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21, 167.7placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's 167.8parent or guardian and for whom the county social services agency or county correctional 167.9agency has been assigned responsibility for the child's placement and care, which includes 167.10placement in foster care under section 260C.007, subdivision 18, and a correctional facility 167.11pursuant to a court order. 167.12 Subd. 2. Determination of nonfederal share of costs. (a) By July 1, 2017, each county 167.13shall report the following information to the commissioners of human services and 167.14corrections: (1) the separate amounts paid out of the county's social service agency and its 167.15corrections budget for out-of-home placement of children under the ICWA in calendar years 167.162013, 2014, and 2015; and (2) the number of case days associated with the expenditures 167.17from each budget. The commissioner of human services shall prescribe the format of the 167.18report. By July 15, 2017, the commissioner of human services, in consultation with the 167.19commissioner of corrections, shall certify to the commissioner of revenue and to the 167.20legislative committees with jurisdiction over local government aids and out-of-home 167.21placement funding whether the data reported under this subdivision accurately reflect total 167.22expenditures by counties for out-of-home placement costs of children under the ICWA. 167.23(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the 167.24commissioners of human services and corrections the separate amounts paid out of the 167.25county's social service agency and its corrections budget for out-of-home placement of 167.26children under the ICWA in the calendar years two years before the current calendar year 167.27along with the number of case days associated with the expenditures from each budget. The 167.28commissioner of human services shall prescribe the format of the report. 167.29(c) Until the commissioner of human services develops another mechanism for collecting 167.30and verifying data on out-of-home placements of children under the ICWA, and the 167.31legislature authorizes the use of that data, the data collected under this subdivision must be 167.32used to calculate payments under subdivision 3. The commissioner of human services shall 167.33certify the nonfederal out-of-home placement costs for the three prior calendar years for 167.34each county and the amount of any federal reimbursement received by a tribe under the 168.1ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the 168.2year before the aid payment. 168.3 Subd. 3. Aid for counties. For aids payable in calendar year 2018 and thereafter, the 168.4amount of reimbursement to each county is a county's proportionate share of the appropriation 168.5in subdivision 6 that remains after the aid for tribes has been paid. Each county's 168.6proportionate share is based on the county's average nonfederal share of the cost for 168.7out-of-home placement of children under the ICWA for the three calendar years that were 168.8certified by the commissioner of human services by June 1 of the prior year, provided that 168.9the commissioner of human services, in consultation with the commissioner of corrections, 168.10certifies to the commissioner of revenue that accurate data are available to make the aid 168.11determination under this section. For aids payable in calendar year 2018, each county's 168.12proportionate share is based on the county's nonfederal share of the cost for out-of-home 168.13placement of children under the ICWA that was certified by the commissioner of human 168.14services by July 15, 2017. 168.15 Subd. 4. Aid for tribes. For aids payable in 2018 and thereafter, the amount of 168.16reimbursement to each tribe shall be the greater of (1) five percent of the average 168.17reimbursement amount received from the federal government for out-of-home placement 168.18costs for the three calendar years that were certified by June 1 of the prior year, or (2) 168.19$200,000. 168.20 Subd. 5. Payments. The commissioner of revenue must compute the amount of the 168.21reimbursement aid payable to each county and tribe under this section. On or before August 168.221 of each year, the commissioner shall certify the amount to be paid to each county and 168.23tribe in the following year. The commissioner shall pay reimbursement aid annually at the 168.24times provided in section 477A.015. 168.25 Subd. 6. Appropriation. $2,000,000 is annually appropriated to the commissioner of 168.26revenue from the general fund to pay aid under this section. 168.27EFFECTIVE DATE.This section is effective beginning with aids payable in 2018. 168.28 Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read: 168.29 Subd. 8. City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula 168.30aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 168.31of (i) (1) the difference between its unmet need and its formula certified aid in the previous 168.32year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage. 169.1 (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 169.2year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 169.3its formula aid is adjusted to equal its unmet need. 169.4 (c) No city may have a formula aid amount less than zero. The aid gap percentage must 169.5be the same for all cities subject to paragraph (a). 169.6 (d) (b) The applicable aid gap percentage must be calculated by the Department of 169.7Revenue so that the total of the aid under subdivision 9 equals the total amount available 169.8for aid under section 477A.03. The aid gap percentage must be the same for all cities subject 169.9to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 169.10shall be the most recently available data as of January 1 in the year in which the aid is 169.11calculated. 169.12EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 169.13and thereafter. 169.14 Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read: 169.15 Subd. 9. City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city 169.16if a city's certified aid before any aid adjustment under subdivision 13 for the previous year 169.17is less than its current unmet need, the city shall receive an aid distribution equal to the sum 169.18of (1) its certified aid in the previous year before any aid adjustment under subdivision 13, 169.19(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision 169.2013. 169.21 (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid 169.22adjustment under subdivision 13 for the previous year is equal to or greater than its current 169.23unmet need, the total aid for a city must not be less than is equal to the greater of (1) its 169.24unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified 169.25to receive in the previous year minus the lesser of $10 multiplied by its population, or five 169.26percent of its net levy in the year prior to the aid distribution. No city may have a total aid 169.27amount less than $0. 169.28EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 169.29and thereafter. 169.30 Sec. 17. Minnesota Statutes 2016, section 477A.013, subdivision 13, is amended to read: 169.31 Subd. 13. Certified aid adjustments. (a) A city that received an aid base increase under 169.32Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its 170.1total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 170.22014 through 2018. 170.3(b) A city that received an aid base increase under Minnesota Statutes 2012, section 170.4477A.011, subdivision 36 , paragraph (r), shall have its total aid under subdivision 9 increased 170.5by an amount equal to $160,000 for aids payable in 2014 and thereafter. 170.6(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 170.7477A.011, subdivision 36 , paragraph (o), shall have its total aid under subdivision 9 increased 170.8by an amount equal to $1,000,000 for aids payable in 2014 only. 170.9(d) For aids payable in 2018 only, a city whose certified aid in the previous year, before 170.10any adjustment under this section, is less than its unmet need in the current year shall receive 170.11a temporary increase equal to a percentage of the difference between (1) its unmet need, 170.12and (2) its certified aid in the previous year before any adjustments under this section. The 170.13commissioner will calculate this percentage, which shall be the same for all cities eligible 170.14for this adjustment, so the total aid paid to all cities under this paragraph equals $6,000,000. 170.15EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 170.16and thereafter. 170.17 Sec. 18. [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED 170.18DIVERSION PROGRAM. 170.19 Subdivision 1. Penalty for operating an unauthorized diversion program. 170.20Notwithstanding any other law to the contrary, a county or city that operated a pretrial 170.21diversion program that a court determines was not authorized under section 169.999 or 170.22another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by 170.23the amount of fees paid by participants into the program for the years in which the program 170.24operated. A court shall report any order that enjoins a county or city from operating a pretrial 170.25diversion program to the commissioner as required under subdivision 2. The commissioner 170.26shall, with the assistance of the state auditor, determine the amount of fees collected under 170.27the diversion program and reduce the county program aid paid to a county or the local 170.28government aid paid to a city by this amount beginning with the first aid payment made 170.29after the reduction amount is determined. No aid payment may be less than zero but the 170.30amount of the reduction that cannot be made out of that payment shall be applied to future 170.31payments until the total amount has been deducted. 170.32 Subd. 2. Court challenge to authority to operate a pretrial diversion program. Any 170.33taxpayer may challenge a city or county operation of a pretrial diversion program by filing 171.1a declaratory judgment action or seeking other appropriate relief in the district court for the 171.2county where the city is located or in any other court of competent jurisdiction. If the court 171.3finds that the county or city has exceeded its authority under law in operating the pretrial 171.4diversion program, the court must transmit a copy of the court order to the commissioner 171.5of revenue. 171.6EFFECTIVE DATE.This section is effective the day following final enactment and 171.7applies beginning with the second aid payments under Minnesota Statutes, section 477A.015 171.8in calendar year 2017. 171.9 Sec. 19. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read: 171.10 Subd. 2a. Cities. The total aid paid under section 477A.013, subdivision 9, is 171.11$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the 171.12total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 171.132018, the total aid paid under section 477A.013, subdivision 9, is $525,398,012. For aids 171.14payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision 9, is 171.15$519,398,012. 171.16EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 171.17and thereafter. 171.18 Sec. 20. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read: 171.19 Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter through 2017, the total 171.20aid payable under section 477A.0124, subdivision 3, is $100,795,000. For aids payable in 171.212018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000, of 171.22which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, 171.23section 6. For aids payable in 2019 through 2024, the total aid payable under section 171.24477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as required 171.25under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, 171.26the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar 171.27year, $500,000 of this appropriation shall be retained by the commissioner of revenue to 171.28make reimbursements to the commissioner of management and budget for payments made 171.29under section 611.27. The reimbursements shall be to defray the additional costs associated 171.30with court-ordered counsel under section 611.27. Any retained amounts not used for 171.31reimbursement in a year shall be included in the next distribution of county need aid that 171.32is certified to the county auditors for the purpose of property tax reduction for the next taxes 171.33payable year. 172.1 (b) For aids payable in 2014 and thereafter 2017, the total aid under section 477A.0124, 172.2subdivision 4 , is $104,909,575. For aids payable in 2018, the total aid payable under section 172.3477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter, the 172.4total aid payable under section 477A.0124, subdivision 4, is $104,909,575. The commissioner 172.5of revenue shall transfer to the commissioner of management and budget $207,000 annually 172.6for the cost of preparation of local impact notes as required by section 3.987, and other local 172.7government activities. The commissioner of revenue shall transfer to the commissioner of 172.8education $7,000 annually for the cost of preparation of local impact notes for school districts 172.9as required by section 3.987. The commissioner of revenue shall deduct the amounts 172.10transferred under this paragraph from the appropriation under this paragraph. The amounts 172.11transferred are appropriated to the commissioner of management and budget and the 172.12commissioner of education respectively. 172.13EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter. 172.14 Sec. 21. [477A.09] MAXIMUM EFFORT LOAN AID. 172.15(a) For fiscal years 2018 to 2022, each school district with a maximum effort loan under 172.16sections 126C.61 to 126C.72, outstanding as of June 30, 2016, is eligible for an aid payment 172.17equal to one-fifth of the amount of interest that was paid on the loan between December 1, 172.181990, and June 30, 2016. A school district with a maximum effort capital loan outstanding 172.19as of June 30, 2017, is eligible for an annual aid payment equal to one-fifth of the estimated 172.20amount of interest that will be paid by the district on the loan between June 30, 2017, and 172.21June 30, 2021. Aid payments under this section must be used to reduce current year property 172.22taxes levied on net tax capacity within the district or to reduce future years' tax levies by: 172.23(1) retaining payments made under this section in the district's debt redemption fund for 172.24up to 20 years, notwithstanding the two-year limit under section 475.61, subdivision 3; or 172.25(2) financing a defeasance of any future payments on outstanding bonded debt. 172.26(b) Aid under this section must be paid in fiscal years 2018 to 2022. An amount sufficient 172.27to make aid payments under this section is annually appropriated from the general fund to 172.28the commissioner of education. 172.29EFFECTIVE DATE.This section is effective for fiscal years 2018 to 2022. 172.30 Sec. 22. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read: 172.31 Subdivision 1. Types of land; payments. The following amounts are annually 172.32appropriated to the commissioner of natural resources from the general fund for transfer to 173.1the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 173.2to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 173.3as of July 1 of each year prior to the payment year, are: 173.4(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 173.5at the county's option three-fourths of one percent of the appraised value of all acquired 173.6natural resources land in the county, whichever is greater; 173.7(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 173.8county's option, three-fourths of one percent of the appraised value of all transportation 173.9wetland in the county, whichever is greater; 173.10(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 173.11the county's option, three-fourths of one percent of the appraised value of all wildlife 173.12management land in the county, whichever is greater; 173.13(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the 173.14number of acres of military refuge land in the county; 173.15(5) $1.50 $2, multiplied by the number of acres of county-administered other natural 173.16resources land in the county; 173.17(6) $5.133, multiplied by the total number of acres of land utilization project land in the 173.18county; 173.19(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other 173.20natural resources land in the county; and 173.21 (8) without regard to acreage, and notwithstanding the rules adopted under section 173.2284A.55 , $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 173.23divided and distributed to the counties containing state-owned lands within a conservation 173.24area in proportion to each county's percentage of the total annual ditch assessments. 173.25EFFECTIVE DATE.This section is effective for payments made in calendar year 2018 173.26and thereafter. 173.27 Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read: 173.28477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 173.29ANNUAL PAYMENTS. 173.30 (a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause 173.31(1), the county shall receive an annual payment for state-owned land within the boundary 174.1of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012, 174.2subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land. 174.3 (b) For the purposes of this section, the appraised value of the land acquired for Lake 174.4Vermilion-Soudan Underground Mine State Park for the first five years after acquisition 174.5shall be the purchase price of the land, plus the value of any portion of the land that is 174.6acquired by donation. Thereafter, the appraised value of the state-owned land shall be as 174.7determined under section 477A.12, subdivision 3, except that the appraised value of the 174.8state-owned land within the park shall not be reduced below the 2010 appraised value of 174.9the land. 174.10 (c) The annual payments under this section shall be distributed to the taxing jurisdictions 174.11containing the property as follows: one-third to the school districts; one-third to the town; 174.12and one-third to the county. The payment to school districts is not a county apportionment 174.13under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 174.14may use the payments for their general purposes. 174.15 (d) Except as provided in this section, the payments shall be made as provided in sections 174.16477A.11 to 477A.13. 174.17EFFECTIVE DATE.This section is effective beginning with aids payable in 2017. 174.18For aids payable in 2017, the commissioner of natural resources must recertify the amounts 174.19under this section to the commissioner of revenue by June 15, 2017. 174.20 Sec. 24. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY. 174.21For a city that incorporated on October 13, 2015, and first qualifies for aid under 174.22Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid 174.23for 2017, used in calculating aid payable in 2018, shall be deemed to equal $95 multiplied 174.24by its 2014 population. 174.25EFFECTIVE DATE.This section is effective for aids payable in 2018. 174.26 Sec. 25. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO. 174.27Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo 174.28shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, 174.29section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 174.303, provided that the state auditor certifies to the commissioner of revenue that it received 174.31audited financial statements from the city for calendar year 2012 by December 31, 2013. 174.32The commissioner of revenue shall make a payment of $37,473.50 with the first payment 175.1of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the 175.2general fund to the commissioner of revenue in fiscal year 2018 to make this payment. 175.3EFFECTIVE DATE.This section is effective the day following final enactment. 175.4 Sec. 26. 2014 AID PENALTY FORGIVENESS. 175.5(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of 175.6Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment 175.7that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that 175.8the state auditor certifies to the commissioner of revenue that the city complied with all 175.9reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for 175.10calendar years 2013 and 2014 by June 1, 2015. 175.11(b) The commissioner of revenue shall make payment to each city no later than July 20, 175.122017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the 175.13commissioner of revenue to make the payments under this section. 175.14EFFECTIVE DATE.This section is effective the day following final enactment. 175.15 Sec. 27. CITY OF TAYLORS FALLS; DEVELOPMENT ZONE. 175.16 Subdivision 1. Authorization. The governing body of the city of Taylors Falls may 175.17designate all or any part of the city as a development zone under Minnesota Statutes, section 175.18469.1731. 175.19 Subd. 2. Application of general law. (a) Minnesota Statutes, sections 469.1731 to 175.20469.1735, apply to the development zones designated under this section. The governing 175.21body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731 175.22to 469.1735, including powers that apply outside of the zones. 175.23(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section 175.24469.1735, subdivision 2, is appropriated to the commissioner of revenue. 175.25 Subd. 3. Allocation of state tax reductions. (a) The cumulative total amount of the 175.26state portion of the tax reductions for all years of the program under Minnesota Statutes, 175.27sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $50,000. To provide 175.28the authority under this section, the amount of the allocation for border cities under Minnesota 175.29Statutes, section 469.169, in this act is reduced by $50,000. 175.30(b) This allocation may be used for tax reductions provided in Minnesota Statutes, section 175.31469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735, 176.1subdivision 3, but only if the governing body of the city of Taylors Falls determines that 176.2the tax reduction or offset is necessary to enable a business to expand within the city or to 176.3attract a business to the city. 176.4(c) The commissioner of revenue may waive the limit under this subdivision using the 176.5same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12, 176.6paragraph (b). 176.7EFFECTIVE DATE.This section is effective July 1, 2017, and does not require local 176.8approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). 176.9 Sec. 28. REPORT ON RENT CONSTITUTING PROPERTY TAXES. 176.10 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 176.11the meaning given. 176.12(b) "Commissioner" means the commissioner of revenue. 176.13(c) "Renter property tax refund" means the refund for renters allowed under Minnesota 176.14Statutes, chapter 290A. 176.15 Subd. 2. Report required. (a) By March 1, 2018, the commissioner must report to the 176.16committees of the house of representatives and senate with jurisdiction over taxes on the 176.17percentage of rent constituting property taxes used in determining the renter property tax 176.18refund. The report must be in compliance with Minnesota Statutes, sections 3.195 and 3.197. 176.19(b) The report must include estimates of rent constituting property tax for the following 176.20geographic regions: 176.21(1) the city of Minneapolis; 176.22(2) the city of St. Paul; 176.23(3) the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis; and 176.24Ramsey, excluding the city of St. Paul; and 176.25(4) the remainder of the state. 176.26The commissioner must prepare the estimates by determining the property taxes attributable 176.27to rental units for which renters submitted claims for the renter property tax refund based 176.28on rent paid in 2016. The commissioner must match the property ID number or parcel 176.29number on form CRP filed with the claim to property tax data for taxes payable in 2016. 176.30The commissioner must then calculate the percentage of rent constituting property taxes 176.31using the rent amount reported on form CRP, adjusted by the total number of months the 177.1unit was rented and the number of rental units on the property. The estimates for each 177.2geographic region must be rounded to the nearest one-tenth of one percentage point. 177.3EFFECTIVE DATE.This section is effective the day following final enactment. 177.4 Sec. 29. APPROPRIATION; DEBT SERVICE EQUALIZATION. 177.5For fiscal year 2019 only, $14,773,000 is appropriated from the general fund to the 177.6Department of Education for debt service aid under Minnesota Statutes, section 123B.53. 177.7This amount is in addition to other appropriations for the same purpose. 177.8EFFECTIVE DATE.This section is effective July 1, 2017. 177.9 Sec. 30. APPROPRIATION; FIRE REMEDIATION GRANTS. 177.10$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner 177.11of public safety for grants to remediate the effects of fires in the city of Melrose on September 177.128, 2016. The commissioner must allocate the grants as follows: 177.13(1) $1,296,458 to the city of Melrose; and 177.14(2) $95,800 to Stearns County. 177.15A grant recipient must use the money appropriated under this section for remediation 177.16costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 177.17costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 177.18incurred by public or private entities as a result of the fires. This is a onetime appropriation 177.19and is available until June 30, 2018. 177.20EFFECTIVE DATE.This section is effective the day following final enactment. 177.21 Sec. 31. REPEALER. 177.22(a) Minnesota Statutes 2016, section 477A.085, is repealed. 177.23(b) Minnesota Statutes 2016, section 477A.20, is repealed. 177.24EFFECTIVE DATE.Paragraph (a) is effective beginning with aids payable in 2018. 177.25Paragraph (b) is effective the day following final enactment. 177.26ARTICLE 5 177.27LOCAL OPTION SALES AND USE TAXES 177.28 Section 1. [471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX. 178.1Notwithstanding any other provision of law, no political subdivision may impose or 178.2require the imposition of any fee or tax, other than a local sales tax subject to section 178.3297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item or good 178.4purchased from a merchant, itinerant vendor, or peddler. 178.5EFFECTIVE DATE.This section is effective May 31, 2017. Ordinances existing on 178.6the effective date of this section that would be prohibited under this section are invalid as 178.7of the effective date of this section. 178.8 Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 178.9chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 178.10First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 178.11section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read: 178.12 Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 178.13ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 178.14impose an additional sales tax of up to one and three-quarter percent on sales transactions 178.15which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 178.16The imposition of this tax shall not be subject to voter referendum under either state law or 178.17city charter provisions. When the city council determines that the taxes imposed under this 178.18paragraph at a rate of three-quarters of one percent and other sources of revenue produce 178.19revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 178.20issuance and discount costs, issued for capital improvements at the Duluth Entertainment 178.21and Convention Center, which include a new arena, the rate of tax under this subdivision 178.22must be reduced by three-quarters of one percent. 178.23(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 178.24477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 178.25Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 178.26on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 178.27subdivision 3, clause (c). This tax expires when the city council determines that the tax 178.28imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 178.29has produced revenues sufficient to pay the debt service on bonds in a principal amount of 178.30no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 178.31to public facilities to support tourism and recreational activities in that portion of the city 178.32west of 34th 14th Avenue West and the area south of and including Skyline Parkway. 178.33(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 178.34under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 179.1issuance and any premiums. The proceeds may be used to finance capital improvements to 179.2public facilities that support tourism and recreational activities in the portion of the city 179.3west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as 179.4described in paragraph (b). The issuance of the bonds is subject to the provisions of 179.5Minnesota Statutes, chapter 475, except no election shall be required unless required by the 179.6city charter. The bonds shall not be included in computing net debt. The revenues from the 179.7taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 179.8(b), may be pledged to pay principal of and interest on such bonds. 179.9EFFECTIVE DATE.This section is effective the day after the governing body of the 179.10city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 179.11subdivisions 2 and 3. 179.12 Sec. 3. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 179.138, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 179.142014, chapter 308, article 3, section 22, is amended to read: 179.15 Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS. 179.16 (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 179.17or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 179.18additional tax of one percent upon the gross receipts from the sale of lodging for periods of 179.19less than 30 days in hotels and motels located in the city. The tax shall be collected in the 179.20same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 179.21The imposition of this tax shall not be subject to voter referendum under either state law or 179.22city charter provisions. 179.23(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 179.24477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 179.25Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 179.26on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 179.27motels located in the city. This tax expires when the city council first determines that the 179.28tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 179.29(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 179.30of no more than $18,000,000, plus issuance and discount costs, to finance capital 179.31improvements to public facilities to support tourism and recreational activities in that portion 179.32of the city west of 34th 14th Avenue West and the area south of and including Skyline 179.33Parkway. 180.1EFFECTIVE DATE.This section is effective the day after the governing body of the 180.2city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 180.3subdivisions 2 and 3. 180.4 Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 180.51998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 180.6Laws 2009, chapter 88, article 4, section 14, is amended to read: 180.7 Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 180.81 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 180.9portion of the expenses of constructing and improving facilities as part of an urban 180.10revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 180.11include, but are not limited to, acquiring property and paying relocation expenses related 180.12to the development of Riverfront 2000 and related facilities, and securing or paying debt 180.13service on bonds or other obligations issued to finance the construction of Riverfront 2000 180.14and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 180.15means a civic-convention center, an arena, a riverfront park, a technology center and related 180.16educational facilities, and all publicly owned real or personal property that the governing 180.17body of the city determines will be necessary to facilitate the use of these facilities, including 180.18but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 180.19includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 180.20Center, for use by Minnesota State University, Mankato. 180.21 (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 180.22by voters at the November 8, 2016, general election, the city may by ordinance also use 180.23revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, 180.24plus associated bond costs, to pay all or a portion of the expenses of the following capital 180.25projects: 180.26 (1) construction and improvements to regional recreational facilities including existing 180.27hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal 180.28swimming pool including improvements to make the pool compliant with the Americans 180.29with Disabilities Act, and indoor regional athletic facilities; 180.30 (2) improvements to flood control and the levee system; 180.31(3) water quality improvement projects in Blue Earth and Nicollet Counties; 180.32(4) expansion of the regional transit building and related multimodal transit 180.33improvements; 181.1(5) regional public safety and emergency communications improvements and equipment; 181.2and 181.3(6) matching funds for improvements to publicly owned regional facilities including a 181.4historic museum, supportive housing, and a senior center. 181.5EFFECTIVE DATE.This section is effective the day after the governing body of the 181.6city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 181.7645.021, subdivisions 2 and 3. 181.8 Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 181.92005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 181.10article 7, section 10, is amended to read: 181.11 Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 181.12granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 181.13expire on at the earlier of when revenues are sufficient to pay off the bonds, including 181.14interest and all other associated bond costs authorized under subdivision 5, or December 181.1531, 2022 2038. 181.16EFFECTIVE DATE.This section is effective the day following final enactment without 181.17local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. 181.18 Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read: 181.19 Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city 181.20in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 181.21election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 181.22a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 181.23facilities shall not be included in computing any debt limitations applicable to the city of 181.24Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 181.25on the bonds shall not be subject to any levy limitation or be included in computing or 181.26applying any levy limitation applicable to the city. 181.27 (b) The city of Mankato may issue general obligation bonds of the city in an amount not 181.28to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without 181.29election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 181.30a tax to pay them. The debt represented by bonds under this paragraph shall not be included 181.31in computing any debt limitations applicable to the city of Mankato, and the levy of taxes 181.32required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 182.1and shall not be subject to any levy limitation or be included in computing or applying any 182.2levy limitation applicable to the city. The city may use tax revenue in excess of one year's 182.3principal interest reserve for intended annual bond payments to pay all or a portion of the 182.4cost of capital improvements authorized in subdivision 3. 182.5EFFECTIVE DATE.This section is effective the day following final enactment without 182.6local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. 182.7 Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 182.82006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 182.9article 4, section 4, is amended to read: 182.10 Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 182.11477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 182.12Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 182.13sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 182.14the city. The proceeds of the tax imposed under this section must be used to meet the costs 182.15of: 182.16 (1) extending a sewer interceptor line; 182.17 (2) construction of a booster pump station, reservoirs, and related improvements to the 182.18water system; and 182.19 (3) construction of a building containing a police and fire station and an administrative 182.20services facility. 182.21(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 182.22it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 182.23is approved by the voters at a general election held before December 31, 2012. 182.24(c) As approved by the voters at the November 8, 2016, general election, the proceeds 182.25under this section may also be used to meet the costs of debt service payments for 182.26construction of the Hermantown Wellness Center. 182.27EFFECTIVE DATE.This section is effective the day after the governing body of the 182.28city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 182.29645.021, subdivisions 2 and 3. 183.1 Sec. 8. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 183.22006, chapter 259, article 3, section 4, is amended to read: 183.3 Subd. 4. Termination. The tax authorized under this section terminates on March 31, 183.42026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council 183.5first determines that sufficient funds have been received from the tax to fund the costs, 183.6including bonds and associated bond costs for the uses specified in subdivision 1. Any funds 183.7remaining after completion of the improvements and retirement or redemption of the bonds 183.8may be placed in the general fund of the city. 183.9EFFECTIVE DATE.This section is effective the day following final enactment without 183.10local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. 183.11 Sec. 9. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read: 183.12 Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 183.131 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 183.14construction and improvement of a civic and community center and recreational facilities 183.15to serve all ages, including seniors and youth. Authorized expenses include, but are not 183.16limited to, acquiring property, paying construction and operating expenses related to the 183.17development of an authorized facility, funding facilities replacement reserves, and paying 183.18debt service on bonds or other obligations issued to finance the construction or expansion 183.19of an authorized facility. The capital expenses for all projects authorized under this 183.20subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount 183.21equal to the costs related to issuance of the bonds and funding facilities replacement reserves. 183.22 (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 183.23by the voters at the November 8, 2016, general election, the city of New Ulm may by 183.24ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a 183.25maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses 183.26of the following capital projects: 183.27 (1) constructing an indoor water park and making safety improvements to the existing 183.28recreational center pool; 183.29 (2) constructing an indoor playground, a wellness center, and a gymnastics facility; 183.30 (3) constructing a winter multipurpose dome; 183.31 (4) making improvements to Johnson Park Grandstand; and 183.32 (5) making improvements to the entrance road and parking at Hermann Heights Park. 184.1EFFECTIVE DATE.This section is effective the day after the governing body of the 184.2city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 184.3645.021, subdivisions 2 and 3. 184.4 Sec. 10. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision 184.5to read: 184.6 Subd. 4a. Bonding authority; additional use and extension of tax. As approved by 184.7the voters at the November 8, 2016, general election, and in addition to the bonds issued 184.8under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in 184.9an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b). 184.10The debt represented by bonds under this subdivision shall not be included in computing 184.11any debt limitations applicable to the city of New Ulm, and the levy of taxes required by 184.12Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall 184.13not be subject to any levy limitation or be included in computing or applying any levy 184.14limitation applicable to the city. 184.15EFFECTIVE DATE.This section is effective the day after the governing body of the 184.16city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 184.17645.021, subdivisions 2 and 3. 184.18 Sec. 11. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read: 184.19 Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 184.20when the city council determines that sufficient funds have been received from the taxes to 184.21finance the capital and administrative costs for the acquisition, construction, and improvement 184.22of facilities described in subdivision 3, including the additional use of revenues under 184.23subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general 184.24election, and to prepay or retire at maturity the principal, interest, and premium due on any 184.25bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining 184.26after completion of the project and retirement or redemption of the bonds may be placed in 184.27the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at 184.28an earlier time if the city so determines by ordinance. 184.29EFFECTIVE DATE.This section is effective the day after the governing body of the 184.30city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 184.31645.021, subdivisions 2 and 3. 185.1 Sec. 12. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 185.22008, chapter 366, article 7, section 12, is amended to read: 185.3 Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 185.4477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city 185.5voters at the first municipal general election held after the date of final enactment of this 185.6act or at a special election held November 2, 1999, the city of Proctor may impose by 185.7ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 185.8subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 185.9administration, collection, and enforcement of the tax authorized under this subdivision. 185.10(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 185.11law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional 185.12sales and use tax of up to one-half of one percent as approved by the voters at the November 185.134, 2014, election. The revenues received from the additional tax must be used for the purposes 185.14specified in subdivision 3, paragraph (b). 185.15EFFECTIVE DATE.This section is effective the day after the governing body of the 185.16city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, 185.17subdivisions 2 and 3. 185.18 Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2, 185.19as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read: 185.20 Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be 185.21used to pay for lake water quality improvement projects as detailed in the Shell Rock River 185.22watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding 185.23any provision of statute, other law, or city charter to the contrary, the city shall transfer all 185.24revenues from the tax imposed under subdivision 1, as soon as they are received, to the 185.25Shell Rock River Watershed District. The city is not required to review the intended uses 185.26of the revenues by the watershed district, nor is the watershed district required to submit to 185.27the city proposed budgets, statements, or invoices explaining the intended uses of the 185.28revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed 185.29District shall appear before the city of Albert Lea City Council on a biannual basis to present 185.30a report of its activities, expenditures, and intended uses of the city sales tax revenue. 185.31EFFECTIVE DATE.This section is effective the day after the governing body of the 185.32city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section 185.33645.021, subdivisions 2 and 3. 186.1 Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, 186.2as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read: 186.3 Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier 186.4of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first 186.5determines that the amount of revenues raised to pay for the projects under subdivision 2, 186.6shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after 186.7completion of the projects may be placed in the general fund of the city. 186.8EFFECTIVE DATE.This section is effective the day after the governing body of the 186.9city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section 186.10645.021, subdivisions 2 and 3. 186.11 Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3, 186.12as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read: 186.13 Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 186.141 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes 186.15and; (2) to pay for the costs of a community center complex and; (3) to make renovations 186.16to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that 186.17this use of the tax is subject to the same restrictions that apply to the issuance of debt provided 186.18in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring 186.19property and paying construction expenses related to these improvements, and paying debt 186.20service on bonds or other obligations issued to finance acquisition and construction of these 186.21improvements. 186.22 (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the 186.23city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 5, 186.24paragraph (b), the city must use any amounts in excess of the amounts necessary to meet 186.25the obligations under paragraph (a) to pay the city's share of debt service on bonds issued 186.26under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 186.27System Project. 186.28EFFECTIVE DATE.This section is effective the day after the governing body of the 186.29city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 186.30645.021, subdivisions 2 and 3. 187.1 Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4, 187.2is amended to read: 187.3 Subd. 4. Bonding authority. (a) If the tax authorized under subdivision 1 is approved 187.4by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to pay capital 187.5and administrative expenses for the improvements described in subdivision 3 in an amount 187.6that does not exceed $6,000,000 $7,300,000. An election to approve the bonds under 187.7Minnesota Statutes, section 475.58, is not required. 187.8 (b) The debt represented by the bonds is not included in computing any debt limitation 187.9applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 187.10pay principal of and interest on the bonds is not subject to any levy limitation. 187.11 (c) If the Worthington City Council intends to issue debt after June 30, 2017, for the 187.12purposes of this subdivision, it must pass a resolution stating the intent to issue debt and 187.13proposing a public hearing. The resolution must be published for two successive weeks in 187.14the official newspaper of the city together with a notice setting a date for the public hearing. 187.15The hearing must be held at least two weeks, but not more than four weeks, after the first 187.16publication after passage of the resolution. Following the public hearing, if the city adopts 187.17a resolution confirming its intention to issue additional debt, that resolution must also be 187.18published in the official newspaper of the city, but the resolution is not effective for 30 days. 187.19If within 30 days after publication of the resolution confirming the city's intention to issue 187.20additional debt a petition signed by voters equal in number to ten percent of the votes cast 187.21in the city in the last general election requesting a vote on the proposed resolution is filed 187.22with the county auditor, the resolution is not effective until it has been submitted to the 187.23voters in a general or special election and a majority of the votes cast on the question of 187.24approving the resolution are in the affirmative. The commissioner of revenue shall prepare 187.25a suggested form of question to be presented at the election. 187.26EFFECTIVE DATE.This section is effective the day after the governing body of the 187.27city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 187.28645.021, subdivisions 2 and 3. 187.29 Sec. 17. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5, 187.30as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read: 187.31 Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 187.32at the earlier of (1) ten years, or (2) when the city council determines that the amount of 187.33revenue received from the taxes is sufficient to pay for the projects under subdivision 3 187.34equals or exceeds $6,000,000 $7,300,000 plus the additional amount needed to pay the costs 188.1related to issuance of bonds under subdivision 4, including interest on the bonds. Any funds 188.2remaining after completion of the project and retirement or redemption of the bonds shall 188.3be placed in a capital project fund of the city. The taxes imposed under subdivisions 1 and 188.42 may expire at an earlier time if the city so determines by ordinance. 188.5 (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the taxes 188.6imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional 188.7revenues that exceed those necessary to fund the projects and associated financing costs 188.8listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds issued 188.9under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 188.10System Project. 188.11EFFECTIVE DATE.This section is effective the day after the governing body of the 188.12city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 188.13645.021, subdivisions 2 and 3. 188.14 Sec. 18. Laws 2008, chapter 366, article 7, section 20, is amended to read: 188.15 Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED. 188.16 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 188.17section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 188.18approval of the voters on November 7, 2006, the city of North Mankato may impose by 188.19ordinance a sales and use tax of one-half of one percent for the purposes specified in 188.20subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 188.21administration, collection, and enforcement of the taxes authorized under this subdivision. 188.22 Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 188.23must be used to pay all or part of the capital costs of the following projects: 188.24 (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 188.25project; 188.26 (2) development of regional parks and hiking and biking trails, including construction 188.27of indoor regional athletic facilities; 188.28 (3) expansion of the North Mankato Taylor Library; 188.29 (4) riverfront redevelopment; and 188.30 (5) lake improvement projects. 188.31 The total amount of revenues from the tax in subdivision 1 that may be used to fund 188.32these projects is $6,000,000 $15,000,000 plus any associated bond costs. 189.1 Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes, section 189.2297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax 189.3authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated 189.4bond costs, to fund the projects in subdivision 2 pursuant to voter approval to extend the 189.5tax at the November 8, 2016, general election. 189.6 Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 189.7at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 189.8may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 189.9expenses for the projects described in subdivision 2, in an amount that does not exceed 189.10$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 189.11475.58 , is not required. 189.12(b) The city of North Mankato, pursuant to approval of the voters at the November 8, 189.132016, referendum extending the tax to provide additional revenue to be spent for the projects 189.14in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 475, to pay 189.15capital and administrative expenses for those projects in an amount that does not exceed 189.16$9,000,000. A separate election to approve the bonds under Minnesota Statutes, section 189.17475.58 , is not required. 189.18 (b) (c) The debt represented by the bonds is not included in computing any debt limitation 189.19applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 189.20pay principal and interest on the bonds is not subject to any levy limitation. 189.21 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the 189.22city council determines that the amount of revenues received from the taxes to pay for the 189.23projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 189.24needed to pay the costs related to issuance of bonds under subdivision 3, including interest 189.25on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first 189.26equal or exceed $15,000,000 plus the additional amount needed to pay costs related to 189.27issuance of bonds under subdivision 3, including interest. Any funds remaining after 189.28completion of the projects and retirement or redemption of the bonds shall be placed in a 189.29capital facilities and equipment replacement fund of the city. The tax imposed under 189.30subdivision 1 may expire at an earlier time if the city so determines by ordinance. 189.31EFFECTIVE DATE.This section is effective the day after the governing body of the 189.32city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 189.33645.021, subdivisions 2 and 3. 190.1 Sec. 19. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED. 190.2 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 190.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 190.4charter, and as approved by the voters at a special election on March 7, 2016, the city of 190.5East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for 190.6the purposes specified in subdivision 2. Except as otherwise provided in this section, the 190.7provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 190.8collection, and enforcement of the tax authorized under this subdivision. 190.9 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 190.10under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 190.11collecting and administering the tax and to finance the capital and administrative costs of 190.12improvement to the city public swimming pool. Authorized expenses include, but are not 190.13limited to, paying construction expenses related to the renovation and the development of 190.14these facilities and improvements, and securing and paying debt service on bonds issued 190.15under subdivision 3 or other obligations issued to finance improvement of the public 190.16swimming pool in the city of East Grand Forks 190.17 Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds under 190.18Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 190.19authorized in subdivision 2. The aggregate principal amount of bonds issued under this 190.20subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of 190.21the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 190.22to the city of East Grand Forks, including the tax authorized under subdivision 1. The 190.23issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 190.24and 275.61. 190.25(b) The bonds are not included in computing any debt limitation applicable to the city 190.26of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to 190.27pay principal and interest on the bonds is not subject to any levy limitation. A separate 190.28election to approve the bonds under Minnesota Statutes, section 475.58, is not required. 190.29 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the later 190.30of: (1) five years after the tax is first imposed; or (2) when the city council determines that 190.31$2,820,000 has been received from the tax to pay for the cost of the projects authorized 190.32under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 190.33bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 190.34after payment of all such costs and retirement or redemption of the bonds shall be placed 191.1in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 191.2time if the city so determines by ordinance. 191.3EFFECTIVE DATE.This section is effective the day after the governing body of the 191.4city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes, 191.5section 645.021, subdivisions 2 and 3. 191.6 Sec. 20. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED. 191.7 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 191.8section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 191.9charter, and as approved by the voters at the general election of November 8, 2016, the city 191.10of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for 191.11the purposes specified in subdivision 2. Except as otherwise provided in this section, the 191.12provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 191.13collection, and enforcement of the tax authorized under this subdivision. 191.14 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 191.15under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and 191.16administering the tax and to finance the capital and administrative costs of constructing and 191.17funding recreational amenities, trails, and a community center. The total that may be raised 191.18from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the 191.19issuance and paying debt service on bonds for these projects. 191.20 Subd. 3. Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota 191.21Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 191.22subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 191.23not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing 191.24the bonds. The bonds may be paid from or secured by any funds available to the city of 191.25Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under 191.26this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. 191.27(b) The bonds are not included in computing any debt limitation applicable to the city 191.28of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 191.29and interest on the bonds is not subject to any levy limitation. A separate election to approve 191.30the bonds under Minnesota Statutes, section 475.58, is not required. 191.31 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 191.32earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 191.33that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 192.1authorized under subdivision 3, including interest on the bonds, has been received from the 192.2tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 192.3after payment of all such costs and retirement or redemption of the bonds shall be placed 192.4in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 192.5time if the city so determines by ordinance. 192.6EFFECTIVE DATE.This section is effective the day after the governing body of the 192.7city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section 192.8645.021, subdivisions 2 and 3. 192.9 Sec. 21. CITY OF FERGUS FALLS; TAXES AUTHORIZED. 192.10 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 192.11section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city 192.12charter, and as approved by the voters at the November 8, 2016, general election, the city 192.13of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one 192.14percent for the purposes specified in subdivision 2. Except as otherwise provided in this 192.15section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 192.16administration, collection, and enforcement of the tax authorized under this subdivision. 192.17 Subd. 2. Use of sales and use tax revenues. The revenues from the tax authorized under 192.18subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and 192.19administering the tax and securing and paying debt service on bonds issued to finance all 192.20or part of the costs of the expansion and betterment of the Fergus Falls Public Library located 192.21at 205 East Hampden Avenue in the city of Fergus Falls. 192.22 Subd. 3. Bonding authority. (a) The city of Fergus Falls may issue bonds under 192.23Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 192.24authorized in subdivision 2. The aggregate principal amount of bonds issued under this 192.25subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of 192.26issuing the bonds. The bonds may be paid from or secured by any funds available to the 192.27city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds 192.28under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61. 192.29(b) The bonds are not included in computing any debt limitation applicable to the city, 192.30and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 192.31interest on the bonds is not subject to any levy limitation. A separate election to approve 192.32the bonds under Minnesota Statutes, section 475.58, is not required. 193.1 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 193.2earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines 193.3that $9,800,000 has been received from the tax to pay for the cost of the project authorized 193.4under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the 193.5bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 193.6after payment of all such costs and retirement or redemption of the bonds shall be placed 193.7in the general fund of the city. The tax imposed under subdivision 1 may expire at any 193.8earlier time if the city so determines by ordinance. 193.9EFFECTIVE DATE.This section is effective the day after the governing body of the 193.10city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 193.11645.021, subdivisions 2 and 3. 193.12 Sec. 22. CITY OF MOOSE LAKE; TAXES AUTHORIZED. 193.13 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 193.14section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 193.15as approved by the voters at the November 6, 2012, general election, the city of Moose Lake 193.16may impose, by ordinance, a sales and use tax of up to one-half of one percent for the 193.17purposes specified in subdivision 2. Except as otherwise provided in this section, the 193.18provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 193.19collection, and enforcement of the tax authorized under this subdivision. 193.20 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 193.21under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting 193.22and administering the tax and to finance the costs of: (1) improvements to the city's park 193.23system; (2) street and related infrastructure improvements; and (3) municipal arena 193.24improvements. Authorized costs include construction and engineering costs and associated 193.25bond costs. 193.26 Subd. 3. Bonding authority. The city of Moose Lake may issue bonds under Minnesota 193.27Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 193.28subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 193.29not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing 193.30the bonds. The bonds may be paid from or secured by any funds available to the city of 193.31Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under 193.32this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. 193.33The bonds are not included in computing any debt limitation applicable to the city of 193.34Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 194.1and interest on the bonds is not subject to any levy limitation. A separate election to approve 194.2the bonds under Minnesota Statutes, section 475.58, is not required. 194.3 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 194.4earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 194.5that $3,000,000 has been received from the tax to pay for the cost of the projects authorized 194.6under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 194.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 194.8after payment of all such costs and retirement or redemption of the bonds shall be placed 194.9in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 194.10time if the city so determines by ordinance. 194.11EFFECTIVE DATE.This section is effective the day after the governing body of the 194.12city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section 194.13645.021, subdivisions 2 and 3. 194.14 Sec. 23. CITY OF NEW LONDON; TAX AUTHORIZED. 194.15 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 194.16section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 194.17charter, and as approved by the voters at the general election of November 8, 2016, the city 194.18of New London may impose, by ordinance, a sales and use tax of one-half of one percent 194.19for the purposes specified in subdivision 2. Except as otherwise provided in this section, 194.20the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 194.21collection, and enforcement of the tax authorized under this subdivision. 194.22 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 194.23under subdivision 1 must be used by the city of New London to pay the costs of collecting 194.24and administering the tax and to finance the capital and administrative costs of the following 194.25projects: 194.26(1) construction and equipping of a new library and community room; 194.27(2) construction of an ambulance bay at the fire hall; and 194.28(3) improvements to the New London Senior Citizen Center. 194.29The total that may be raised from the tax to pay for these projects is limited to $872,000 194.30plus the costs related to the issuance and paying debt service on bonds for these projects. 194.31 Subd. 3. Bonding authority. (a) The city of New London may issue bonds under 194.32Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 195.1authorized in subdivision 2. The aggregate principal amount of bonds issued under this 195.2subdivision may not exceed $872,000, plus an amount to be applied to the payment of the 195.3costs of issuing the bonds. The bonds may be paid from or secured by any funds available 195.4to the city of New London, including the tax authorized under subdivision 1. The issuance 195.5of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 195.6275.61. 195.7(b) The bonds are not included in computing any debt limitation applicable to the city 195.8of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 195.9principal and interest on the bonds is not subject to any levy limitation. A separate election 195.10to approve the bonds under Minnesota Statutes, section 475.58, is not required. 195.11 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 195.12earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 195.13that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds 195.14authorized under subdivision 3, including interest on the bonds, has been received from the 195.15tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 195.16after payment of all such costs and retirement or redemption of the bonds shall be placed 195.17in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 195.18time if the city so determines by ordinance. 195.19EFFECTIVE DATE.This section is effective the day after the governing body of the 195.20city of New London and its chief clerical officer comply with Minnesota Statutes, section 195.21645.021, subdivisions 2 and 3. 195.22 Sec. 24. CITY OF SLEEPY EYE; LODGING TAX. 195.23Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, 195.24ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by 195.25ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under 195.26Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 195.27Minnesota Statutes, section 469.190, and the total tax imposed under that section and this 195.28provision must not exceed five percent. Revenue from the tax imposed under this section 195.29may only be used for the same purposes as a tax imposed under Minnesota Statutes, section 195.30469.190. 195.31EFFECTIVE DATE.This section is effective the day after the governing body of the 195.32city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section 195.33645.021, subdivisions 2 and 3. 196.1 Sec. 25. CITY OF SPICER; TAX AUTHORIZED. 196.2 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 196.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 196.4charter, and as approved by the voters at the general election of November 8, 2016, the city 196.5of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the 196.6purposes specified in subdivision 2. Except as otherwise provided in this section, the 196.7provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 196.8collection, and enforcement of the tax authorized under this subdivision. 196.9 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 196.10under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and 196.11administering the tax and to finance the capital and administrative costs of the following 196.12projects: 196.13(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk 196.14signals at marked Trunk Highway 23; 196.15(2) park and trail capital improvements including signage for bicycle share the road 196.16improvements and replacement of playground and related facilities; and 196.17(3) capital improvements to regional community facilities such as the Dethelfs roof and 196.18window replacement and the Pioneerland branch library roof replacement. 196.19 Subd. 3. Bonding authority. (a) The city of Spicer may issue bonds under Minnesota 196.20Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 196.21subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 196.22not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing 196.23the bonds. The bonds may be paid from or secured by any funds available to the city of 196.24Spicer, including the tax authorized under subdivision 1. The issuance of bonds under this 196.25subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. 196.26(b) The bonds are not included in computing any debt limitation applicable to the city 196.27of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 196.28and interest on the bonds is not subject to any levy limitation. A separate election to approve 196.29the bonds under Minnesota Statutes, section 475.58, is not required. 196.30 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 196.31earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or (3) when 196.32the city council determines that $800,000, plus an amount sufficient to pay the costs related 196.33to issuing the bonds authorized under subdivision 3, including interest on the bonds, has 197.1been received from the tax to pay for the cost of the projects authorized under subdivision 197.22. All funds not used to pay collection and administration costs of the tax must be used for 197.3projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier 197.4time if the city so determines by ordinance. 197.5EFFECTIVE DATE.This section is effective the day after compliance by the governing 197.6body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 197.7 Sec. 26. CITY OF WALKER; LOCAL TAXES AUTHORIZED. 197.8 Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 197.9section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the 197.10approval of the voters at the general election on November 6, 2012, the city of Walker may 197.11impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in 197.12subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 197.13administration, collection, and enforcement of the taxes authorized under this subdivision. 197.14 Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 197.15must be used to pay all or part of the capital and administrative costs of underground utility, 197.16street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012 197.17capital improvement plan of the engineer of the city of Walker. 197.18 Subd. 3. Bonding authority. The city of Walker, pursuant to the approval of the voters 197.19at the November 6, 2012, referendum authorizing the imposition of the taxes in this section, 197.20may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 197.21expenses for the projects described in subdivision 2, in an amount that does not exceed 197.22$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section 197.23475.58, is not required. 197.24 Subd. 4. Termination of tax. (a) The tax authorized under subdivision 1 terminates at 197.25the earlier of: 197.26(1) 20 years after the date of initial imposition of the tax; or 197.27(2) when the city council determines that sufficient funds have been raised from the tax 197.28to finance the capital and administrative costs of the improvements described in subdivision 197.292, plus the additional amount needed to pay the costs related to issuance of bonds under 197.30subdivision 3, including interest on the bonds. 197.31(b) Any funds remaining after completion of the projects specified in subdivision 2 and 197.32retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of 198.1the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 198.2determines by ordinance. 198.3EFFECTIVE DATE.This section is effective the day after the governing body of the 198.4city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021, 198.5subdivisions 2 and 3. 198.6 Sec. 27. CLAY COUNTY; TAX AUTHORIZED. 198.7 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 198.8section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as 198.9approved by the voters at the November 8, 2016, general election, Clay County may impose, 198.10by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified 198.11in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 198.12Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 198.13of the tax authorized under this subdivision. 198.14 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 198.15under subdivision 1 must be used by Clay County to pay the costs of collecting and 198.16administering the tax and to finance the capital and administrative costs of constructing and 198.17equipping a new correctional facility, law enforcement center, and related parking facility. 198.18Authorized expenses include but are not limited to paying design, development, and 198.19construction costs related to these facilities and improvements, and securing and paying 198.20debt service on bonds issued under subdivision 3 or other obligations issued to finance the 198.21facilities listed in this subdivision. 198.22 Subd. 3. Bonding authority. Clay County may issue bonds under Minnesota Statutes, 198.23chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision 198.242. The aggregate principal amount of bonds issued under this subdivision may not exceed 198.25$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds. 198.26The bonds may be paid from or secured by any funds available to Clay County, including 198.27the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 198.28subject to Minnesota Statutes, sections 275.60 and 275.61. 198.29 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 198.30earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines 198.31that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds 198.32authorized under subdivision 3, including interest on the bonds, has been received from the 198.33tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 198.34after payment of all such costs and retirement or redemption of the bonds shall be placed 199.1in the general fund of the county. The tax imposed under subdivision 1 may expire at an 199.2earlier time if the county so determines by ordinance. 199.3EFFECTIVE DATE.This section is effective the day after the governing body of Clay 199.4County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 199.5subdivisions 2 and 3. 199.6 Sec. 28. GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY 199.7DISTRICT; TAXES AUTHORIZED. 199.8 Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes, 199.9section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by 199.10the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs 199.11Lake Sanitary District may impose, by majority vote of the governing body of the district, 199.12a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except 199.13as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 199.14govern the imposition, administration, collection, and enforcement of the tax authorized 199.15under this subdivision. 199.16 Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized 199.17under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary 199.18District to pay the costs of collecting and administering the tax and to repay general obligation 199.19revenue notes issued or other debt incurred for the construction of the wastewater collection 199.20system through the Minnesota Public Facilities Authority, general obligation disposal system 199.21bonds issued to finance the expense incurred in financing construction of sewer system 199.22improvements, and notes payable issued for costs associated with the sewer services 199.23agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML 199.24Wastewater Inc., and any other costs associated with system maintenance and improvements, 199.25including extension of the system to unserved customers as determined by the governing 199.26body of the district. 199.27 Subd. 3. Bonds. The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant 199.28to the approval of the voters at the November 8, 2016, referendum authorizing the imposition 199.29of the tax under this section, may issue general obligation disposal system bonds for financing 199.30construction of sewer system improvements without a separate election required under 199.31Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued 199.32without a separate election is equal to $10,000,000 minus the amount of the tax revenue 199.33under this section committed to repay other notes as allowed under subdivision 2. 200.1 Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the 200.2earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the 200.3Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has 200.4been received from the tax to pay for the costs authorized under subdivision 2. Any funds 200.5remaining after payment of all such costs and retirement or redemption of the bonds shall 200.6be placed in the general fund of the district. The tax imposed under subdivision 1 may expire 200.7at an earlier time if the governing body of the district so determines. 200.8EFFECTIVE DATE.This section is effective the day after the governing body of the 200.9Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply 200.10with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 200.11 Sec. 29. EFFECTIVE DATE; VALIDATION OF PRIOR ACT. 200.12Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 200.13Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter 200.14389, article 5, sections 1 and 2, and file its approval with the secretary of state by January 200.151, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the 200.16approval of the voters on November 2, 2010, and otherwise in accordance with those laws 200.17are validated. 200.18EFFECTIVE DATE.This section is effective the day following final enactment. 200.19ARTICLE 6 200.20TAX INCREMENT FINANCING 200.21 Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read: 200.22 Subd. 12. Economic development district. "Economic development district" means a 200.23type of tax increment financing district which consists of any project, or portions of a project, 200.24which the authority finds to be in the public interest because: 200.25(1) it will discourage commerce, industry, or manufacturing from moving their operations 200.26to another state or municipality; or 200.27(2) it will result in increased employment in the state; or 200.28(3) it will result in preservation and enhancement of the tax base of the state; or 200.29(4) it satisfies the requirements of a workforce housing project under section 469.176, 200.30subdivision 4c, paragraph (d). 201.1EFFECTIVE DATE.This section is effective for districts for which the request for 201.2certification was made after June 30, 2017. 201.3 Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read: 201.4 Subd. 3. Municipality approval. (a) A county auditor shall not certify the original net 201.5tax capacity of a tax increment financing district until the tax increment financing plan 201.6proposed for that district has been approved by the municipality in which the district is 201.7located. If an authority that proposes to establish a tax increment financing district and the 201.8municipality are not the same, the authority shall apply to the municipality in which the 201.9district is proposed to be located and shall obtain the approval of its tax increment financing 201.10plan by the municipality before the authority may use tax increment financing. The 201.11municipality shall approve the tax increment financing plan only after a public hearing 201.12thereon after published notice in a newspaper of general circulation in the municipality at 201.13least once not less than ten days nor more than 30 days prior to the date of the hearing. The 201.14published notice must include a map of the area of the district from which increments may 201.15be collected and, if the project area includes additional area, a map of the project area in 201.16which the increments may be expended. The hearing may be held before or after the approval 201.17or creation of the project or it may be held in conjunction with a hearing to approve the 201.18project. 201.19 (b) Before or at the time of approval of the tax increment financing plan, the municipality 201.20shall make the following findings, and shall set forth in writing the reasons and supporting 201.21facts for each determination: 201.22 (1) that the proposed tax increment financing district is a redevelopment district, a 201.23renewal or renovation district, a housing district, a soils condition district, or an economic 201.24development district; if the proposed district is a redevelopment district or a renewal or 201.25renovation district, the reasons and supporting facts for the determination that the district 201.26meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or 201.27subdivision 10a, must be documented in writing and retained and made available to the 201.28public by the authority until the district has been terminated; 201.29 (2) that, in the opinion of the municipality: 201.30 (i) the proposed development or redevelopment would not reasonably be expected to 201.31occur solely through private investment within the reasonably foreseeable future; and 201.32 (ii) the increased market value of the site that could reasonably be expected to occur 201.33without the use of tax increment financing would be less than the increase in the market 202.1value estimated to result from the proposed development after subtracting the present value 202.2of the projected tax increments for the maximum duration of the district permitted by the 202.3plan. The requirements of this item do not apply if the district is a housing district; 202.4 (3) that the tax increment financing plan conforms to the general plan for the development 202.5or redevelopment of the municipality as a whole; 202.6 (4) that the tax increment financing plan will afford maximum opportunity, consistent 202.7with the sound needs of the municipality as a whole, for the development or redevelopment 202.8of the project by private enterprise; 202.9 (5) that the municipality elects the method of tax increment computation set forth in 202.10section 469.177, subdivision 3, paragraph (b), if applicable. 202.11 (c) When the municipality and the authority are not the same, the municipality shall 202.12approve or disapprove the tax increment financing plan within 60 days of submission by 202.13the authority. When the municipality and the authority are not the same, the municipality 202.14may not amend or modify a tax increment financing plan except as proposed by the authority 202.15pursuant to subdivision 4. Once approved, the determination of the authority to undertake 202.16the project through the use of tax increment financing and the resolution of the governing 202.17body shall be conclusive of the findings therein and of the public need for the financing. 202.18 (d) For a district that is subject to the requirements of paragraph (b), clause (2), item 202.19(ii), the municipality's statement of reasons and supporting facts must include all of the 202.20following: 202.21 (1) an estimate of the amount by which the market value of the site will increase without 202.22the use of tax increment financing; 202.23 (2) an estimate of the increase in the market value that will result from the development 202.24or redevelopment to be assisted with tax increment financing; and 202.25 (3) the present value of the projected tax increments for the maximum duration of the 202.26district permitted by the tax increment financing plan. 202.27 (e) For purposes of this subdivision, "site" means the parcels on which the development 202.28or redevelopment to be assisted with tax increment financing will be located. 202.29(f) Before or at the time of approval of the tax increment financing plan for a district to 202.30be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph 202.31(d), the municipality shall make the following findings and set forth in writing the reasons 202.32and supporting facts for each determination: 203.1(1) the city is located outside of the metropolitan area, as defined in section 473.121, 203.2subdivision 2; 203.3(2) the average vacancy rate for rental housing located in the municipality and in any 203.4statutory or home rule charter city located within 15 miles or less of the boundaries of the 203.5municipality has been three percent or less for at least the immediately preceding two-year 203.6period; 203.7(3) at least one business located in the municipality or within 15 miles of the municipality 203.8that employs a minimum of 20 full-time equivalent employees in aggregate has provided a 203.9written statement to the municipality indicating that the lack of available rental housing has 203.10impeded the ability of the business to recruit and hire employees; and 203.11(4) the municipality and the development authority intend to use increments from the 203.12district for the development of rental housing to serve employees of businesses located in 203.13the municipality or surrounding area. 203.14(g) The county auditor may not certify the original tax capacity of an economic 203.15development tax increment financing district for a workforce housing project if the request 203.16for certification is made after June 30, 2027. 203.17EFFECTIVE DATE.This section is effective for districts for which the request for 203.18certification was made after June 30, 2017. 203.19 Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read: 203.20 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment 203.21from an economic development district may not be used to provide improvements, loans, 203.22subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting 203.23of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities 203.24(determined on the basis of square footage) are used for a purpose other than: 203.25 (1) the manufacturing or production of tangible personal property, including processing 203.26resulting in the change in condition of the property; 203.27 (2) warehousing, storage, and distribution of tangible personal property, excluding retail 203.28sales; 203.29 (3) research and development related to the activities listed in clause (1) or (2); 203.30 (4) telemarketing if that activity is the exclusive use of the property; 203.31 (5) tourism facilities; or 204.1 (6) space necessary for and related to the activities listed in clauses (1) to (5); or 204.2 (7) a workforce housing project that satisfies the requirements of paragraph (d). 204.3 (b) Notwithstanding the provisions of this subdivision, revenues derived from tax 204.4increment from an economic development district may be used to provide improvements, 204.5loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 204.6square feet of any separately owned commercial facility located within the municipal 204.7jurisdiction of a small city, if the revenues derived from increments are spent only to assist 204.8the facility directly or for administrative expenses, the assistance is necessary to develop 204.9the facility, and all of the increments, except those for administrative expenses, are spent 204.10only for activities within the district. 204.11 (c) A city is a small city for purposes of this subdivision if the city was a small city in 204.12the year in which the request for certification was made and applies for the rest of the 204.13duration of the district, regardless of whether the city qualifies or ceases to qualify as a 204.14small city. 204.15(d) A project qualifies as a workforce housing project under this subdivision if: 204.16(1) increments from the district are used exclusively to assist in the acquisition of 204.17property; construction of improvements; and provision of loans or subsidies, grants, interest 204.18rate subsidies, public infrastructure, and related financing costs for rental housing 204.19developments in the municipality; 204.20(2) the governing body of the municipality made the findings for the project required 204.21by section 469.175, subdivision 3, paragraph (f); and 204.22(3) the governing bodies of the county and the school district, following receipt, review, 204.23and discussion of the materials required by section 469.175, subdivision 2, for the tax 204.24increment financing district, have each approved the tax increment financing plan, by 204.25resolution. 204.26EFFECTIVE DATE.This section is effective for districts for which the request for 204.27certification was made after June 30, 2017. 204.28 Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision 204.29to read: 204.30 Subd. 5. Income limits; Minnesota Housing Finance Agency challenge program. 204.31For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge 205.1program under section 462A.33, the income limits under section 462A.33 are substituted 205.2for the applicable income limits for the project under subdivision 2 or 3. 205.3EFFECTIVE DATE.This section is effective for districts for which the request for 205.4certification was made after June 30, 2017. 205.5 Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read: 205.6 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 205.7the meanings given. 205.8(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 205.9correction, removal of hazardous waste or pollution, installation of utilities, construction 205.10of public or private improvements, and other similar activities, but only to the extent that 205.11tax increment revenues may be spent for such purposes under other law. 205.12(c) "Third party" means an entity other than (1) the person receiving the benefit of 205.13assistance financed with tax increments, or (2) the municipality or the development authority 205.14or other person substantially under the control of the municipality. 205.15(d) "Revenues derived from tax increments paid by properties in the district" means only 205.16tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 205.17tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5). 205.18EFFECTIVE DATE.This section is effective the day following final enactment. 205.19 Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read: 205.20 Subd. 2. Expenditures outside district. (a) For each tax increment financing district, 205.21an amount equal to at least 75 percent of the total revenue derived from tax increments paid 205.22by properties in the district must be expended on activities in the district or to pay bonds, 205.23to the extent that the proceeds of the bonds were used to finance activities in the district or 205.24to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 205.25than redevelopment districts for which the request for certification was made after June 30, 205.261995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 205.27more than 25 percent of the total revenue derived from tax increments paid by properties 205.28in the district may be expended, through a development fund or otherwise, on activities 205.29outside of the district but within the defined geographic area of the project except to pay, 205.30or secure payment of, debt service on credit enhanced bonds. For districts, other than 205.31redevelopment districts for which the request for certification was made after June 30, 1995, 205.32the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue 206.1revenues derived from tax increments for paid by properties in the district that are expended 206.2on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 206.3calculating the percentages that must be expended within and without the district. 206.4 (b) In the case of a housing district, a housing project, as defined in section 469.174, 206.5subdivision 11 , is an activity in the district. 206.6 (c) All administrative expenses are for activities outside of the district, except that if the 206.7only expenses for activities outside of the district under this subdivision are for the purposes 206.8described in paragraph (d), administrative expenses will be considered as expenditures for 206.9activities in the district. 206.10 (d) The authority may elect, in the tax increment financing plan for the district, to increase 206.11by up to ten percentage points the permitted amount of expenditures for activities located 206.12outside the geographic area of the district under paragraph (a). As permitted by section 206.13469.176, subdivision 4k , the expenditures, including the permitted expenditures under 206.14paragraph (a), need not be made within the geographic area of the project. Expenditures 206.15that meet the requirements of this paragraph are legally permitted expenditures of the district, 206.16notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 206.17under this paragraph, the expenditures must: 206.18 (1) be used exclusively to assist housing that meets the requirement for a qualified 206.19low-income building, as that term is used in section 42 of the Internal Revenue Code; and 206.20 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 206.21Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 206.22Revenue Code; and 206.23 (3) be used to: 206.24 (i) acquire and prepare the site of the housing; 206.25 (ii) acquire, construct, or rehabilitate the housing; or 206.26 (iii) make public improvements directly related to the housing; or 206.27(4) be used to develop housing: 206.28(i) if the market value of the housing does not exceed the lesser of: 206.29(A) 150 percent of the average market value of single-family homes in that municipality; 206.30or 206.31(B) $200,000 for municipalities located in the metropolitan area, as defined in section 206.32473.121 , or $125,000 for all other municipalities; and 207.1(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 207.2of existing structures, site preparation, and pollution abatement on one or more parcels, if 207.3the parcel contains a residence containing one to four family dwelling units that has been 207.4vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 207.57 , but without regard to whether the residence is the owner's principal residence, and only 207.6after the redemption period has expired. 207.7(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 207.8Increments may continue to be expended under this authority after that date, if they are used 207.9to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 207.10December 31, 2016, is considered to be the last date of the five-year period after certification 207.11under that provision. 207.12EFFECTIVE DATE.This section is effective the day following final enactment. 207.13 Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read: 207.14 Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties 207.15in the district are considered to have been expended on an activity within the district under 207.16subdivision 2 only if one of the following occurs: 207.17(1) before or within five years after certification of the district, the revenues are actually 207.18paid to a third party with respect to the activity; 207.19(2) bonds, the proceeds of which must be used to finance the activity, are issued and 207.20sold to a third party before or within five years after certification, the revenues are spent to 207.21repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 207.22expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 207.23temporary period within the meaning of the use of that term under section 148(c)(1) of the 207.24Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 207.25fund; 207.26(3) binding contracts with a third party are entered into for performance of the activity 207.27before or within five years after certification of the district and the revenues are spent under 207.28the contractual obligation; 207.29(4) costs with respect to the activity are paid before or within five years after certification 207.30of the district and the revenues are spent to reimburse a party for payment of the costs, 207.31including interest on unreimbursed costs; or 208.1(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 208.2(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 208.32, paragraph (e). 208.4(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 208.5original refunded bonds meet the requirements of paragraph (a), clause (2). 208.6(c) For a redevelopment district or a renewal and renovation district certified after June 208.730, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 208.8extended to ten years after certification of the district. For a redevelopment district certified 208.9after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 208.10(a) are extended to eight years after certification of the district. This extension is provided 208.11primarily to accommodate delays in development activities due to unanticipated economic 208.12circumstances. 208.13EFFECTIVE DATE.This section is effective the day following final enactment. 208.14 Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read: 208.15 Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money 208.16to finance expenditures under section 469.176, subdivision 4, from its general fund or any 208.17other fund under which it has legal authority to do so. 208.18 (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is 208.19earliest, the loan or advance must be authorized, by resolution of the governing body or of 208.20the authority, whichever has jurisdiction over the fund from which the advance or loan is 208.21authorized, before money is transferred, advanced, or spent, whichever is earliest. 208.22 (c) The resolution may generally grant to the municipality or the authority the power to 208.23make interfund loans under one or more tax increment financing plans or for one or more 208.24districts. The resolution may be adopted before or after the adoption of the tax increment 208.25financing plan or the creation of the tax increment financing district from which the advance 208.26or loan is to be repaid. 208.27 (d) The terms and conditions for repayment of the loan must be provided in writing and. 208.28The written terms and conditions may be in any form, but must include, at a minimum, the 208.29principal amount, the interest rate, and maximum term. Written terms may be modified or 208.30amended in writing by the municipality or the authority before the latest decertification of 208.31any tax increment financing district from which the interfund loan is to be repaid. The 208.32maximum rate of interest permitted to be charged is limited to the greater of the rates 208.33specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 209.1unless the written agreement states that the maximum interest rate will fluctuate as the 209.2interest rates specified under section 270C.40 or 549.09 are from time to time adjusted. 209.3Loans or advances may be structured as draw-down or line-of-credit obligations of the 209.4lending fund. 209.5 (e) The authority shall report in the annual report submitted under section 469.175, 209.6subdivision 6: 209.7 (1) the amount of any interfund loan or advance made in a calendar year; and 209.8 (2) any amendment of an interfund loan or advance made in a calendar year. 209.9EFFECTIVE DATE.This section is effective the day following final enactment and 209.10applies to all districts, regardless of when the request for certification was made. 209.11 Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read: 209.12 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 209.13financing plan for a district, the rules under this section apply to a redevelopment district, 209.14renewal and renovation district, economic development district, soil condition district, or 209.15a soil deficiency district established by the city or a development authority of the city in the 209.16project area. 209.17 (b) Prior to or upon the adoption of the first tax increment plan subject to the special 209.18rules under this subdivision, the city must find by resolution that parcels consisting of at 209.19least 80 percent of the acreage of the project area (excluding street and railroad right of 209.20way) are characterized by one or more of the following conditions: 209.21 (1) peat or other soils with geotechnical deficiencies that impair development of 209.22residential or commercial buildings or infrastructure; 209.23 (2) soils or terrain that requires substantial filling in order to permit the development of 209.24commercial or residential buildings or infrastructure; 209.25 (3) landfills, dumps, or similar deposits of municipal or private waste; 209.26 (4) quarries or similar resource extraction sites; 209.27 (5) floodway; and 209.28 (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 209.29subdivision 10 . 209.30 (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 209.31characterized by the relevant condition if at least 70 percent of the area of the parcel contains 210.1the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 210.2be characterized by substandard buildings if the buildings occupy at least 30 percent of the 210.3area of the parcel. 210.4 (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 210.5extended to nine years for any district. The five-year rule under Minnesota Statutes, section 210.6469.1763, subdivision 3 , is extended to ten years for any district, and section 469.1763, 210.7subdivision 4 , does not apply to any district. 210.8 (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 210.9(a), not more than 80 percent of the total revenue derived from tax increments paid by 210.10properties in any district (measured over the life of the district) may be expended on activities 210.11outside the district but within the project area. 210.12 (f) For a soil deficiency district: 210.13 (1) increments may be collected through 20 years after the receipt by the authority of 210.14the first increment from the district; and 210.15 (2) except as otherwise provided in this subdivision, increments may be used only to: 210.16 (i) acquire parcels on which the improvements described in item (ii) will occur; 210.17 (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 210.18cost of installing public improvements directly caused by the deficiencies; and 210.19 (iii) pay for the administrative expenses of the authority allocable to the district. 210.20 (g) Increments spent for any infrastructure costs, whether inside a district or outside a 210.21district but within the project area, are deemed to satisfy the requirements of paragraph (f) 210.22and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j. 210.23 (h) Increments from any district may not be used to pay the costs of landfill closure or 210.24public infrastructure located on the following parcels within the plat known as Burnsville 210.25Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. 210.26 (i) The authority to approve tax increment financing plans to establish tax increment 210.27financing districts under this section expires on December 31, 2018 2020. 210.28EFFECTIVE DATE.This section is effective the day after the governing body of the 210.29city of Burnsville and its chief clerical officer comply with Minnesota Statutes, section 210.30645.021, subdivisions 2 and 3. 211.1 Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 211.2382, section 84, is amended to read: 211.3 Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 211.4FINANCING DISTRICT; SPECIAL RULES. 211.5(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 211.6the governing body of the city of Duluth approves the plan for the tax increment financing 211.7district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 211.8010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 211.9010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 211.10010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250; 211.11010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 211.12010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 211.13010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 211.14010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 211.15010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 211.16Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 211.17period from the date of certification of the tax increment financing district, must be 211.18considered to be met if the activities are undertaken within five years after the date all 211.19qualifying parcels are delisted from the Federal Superfund list. 211.20(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 211.21in the sixth year following certification of the district requirement, will begin in the sixth 211.22year following the date all qualifying parcels are delisted from the Federal Superfund list. 211.23(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 211.24satisfied if the action is commenced within four years after the date all qualifying parcels 211.25are delisted from the Federal Superfund list and evidence of the action required is submitted 211.26to the county auditor by February 1 of the fifth year following the year in which all qualifying 211.27parcels are delisted from the Federal Superfund list. 211.28(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 211.29listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 211.30USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the 211.31tax increment financing district. 211.32(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 211.33subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels 211.34listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund 212.1Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted 212.2status, and if delisted, the delisting date. 212.3(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other 212.4law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan 212.5program before approval of the tax increment financing plan for or the establishment of the 212.6district authorized by this section. The authority may make loans under this program. The 212.7proceeds of the loans may be used for any permitted use of increments under this law or 212.8Minnesota Statutes, section 469.176, for the district and may be repaid with increments 212.9from the district established under this section. This paragraph applies to any action 212.10authorized by the Seaway Port Authority of Duluth on or after March 25, 2010. 212.11EFFECTIVE DATE.This section is effective the day after the governing body of the 212.12city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 212.13subdivisions 2 and 3. 212.14 Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read: 212.15 Subdivision 1. Authority to create districts. (a) The governing body of the city of 212.16Edina or its development authority may establish one or more tax increment financing 212.17housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 212.18exist on March 31, 2014. 212.19(b) The authority to request certification of districts under this section expires on June 212.2030, 2017 December 31, 2019. 212.21EFFECTIVE DATE.This section is effective the day after the governing body of the 212.22city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, 212.23subdivisions 2 and 3. 212.24 Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read: 212.25 Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT. 212.26 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 212.27the meanings given them. 212.28(b) "City" means the city of Maple Grove. 212.29(c) "Project area" means all or a portion of the area in the city commencing at a point 212.30130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 212.3123, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 213.1line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 213.2Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 213.3thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 213.4Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 213.5East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 213.6of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 213.7North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 213.8of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 213.9line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 213.10degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 213.1124; thence West along said south line to the east right-of-way line of Zachary Lane; thence 213.12North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 213.13Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 213.14Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 213.15South along the east line of said Outlot A and its southerly extension to the south right-of-way 213.16line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 213.17line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 213.18Section 24; thence South along said east line to the north line of the South Half of the 213.19Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 213.20line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 213.21Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 213.22right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 213.23A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 213.24Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 213.25line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 213.26line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 213.27Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 213.28westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 213.29Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 213.30line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 213.31Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 213.32westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 213.33and there terminating, provided that the project area includes the rights-of-way for all present 213.34and future highway interchanges abutting the area described in this paragraph, and may 213.35include any additional property necessary to cause the property included in the tax increment 213.36financing district to consist of complete parcels. 214.1(d) "Soil deficiency district" means a type of tax increment financing district consisting 214.2of a portion of the project area in which the city finds by resolution that the following 214.3conditions exist: 214.4(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 214.5the district require substantial filling, grading, or other physical preparation for use; and 214.6(2) the estimated cost of the physical preparation under clause (1), but excluding costs 214.7directly related to roads as defined in Minnesota Statutes, section 160.01, and local 214.8improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 214.9(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 214.10completion of the preparation. 214.11 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 214.12financing plan for a district, the rules under this section apply to a redevelopment district, 214.13renewal and renovation district, soil condition district, or soil deficiency district established 214.14by the city or a development authority of the city in the project area. 214.15(b) Prior to or upon the adoption of the first tax increment plan subject to the special 214.16rules under this subdivision, the city must find by resolution that parcels consisting of at 214.17least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 214.18are characterized by one or more of the following conditions: 214.19(1) peat or other soils with geotechnical deficiencies that impair development of 214.20commercial buildings or infrastructure; 214.21(2) soils or terrain that require substantial filling in order to permit the development of 214.22commercial buildings or infrastructure; 214.23(3) landfills, dumps, or similar deposits of municipal or private waste; 214.24(4) quarries or similar resource extraction sites; 214.25(5) floodway; and 214.26(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 214.27subdivision 10 . 214.28(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 214.29relevant condition if at least 70 percent of the area of the parcel contains the relevant 214.30condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 214.31substandard buildings if substandard buildings occupy at least 30 percent of the area of the 214.32parcel. 215.1(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 215.2extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 215.34 , does not apply to any district. 215.4(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 215.5subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax 215.6increments paid by properties in any district, measured over the life of the district, may be 215.7expended on activities outside the district but within the project area. 215.8(f) For a soil deficiency district: 215.9(1) increments may be collected through 20 years after the receipt by the authority of 215.10the first increment from the district; 215.11(2) increments may be used only to: 215.12(i) acquire parcels on which the improvements described in item (ii) will occur; 215.13(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 215.14cost of installing public improvements directly caused by the deficiencies; and 215.15(iii) pay for the administrative expenses of the authority allocable to the district; and 215.16(3) any parcel acquired with increments from the district must be sold at no less than 215.17their fair market value. 215.18(g) Increments spent for any infrastructure costs, whether inside a district or outside a 215.19district but within the project area, are deemed to satisfy the requirements of Minnesota 215.20Statutes, section 469.176, subdivision 4j. 215.21(h) The authority to approve tax increment financing plans to establish tax increment 215.22financing districts under this section expires June 30, 2020. 215.23(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 215.24increments from a soil deficiency district to acquire parcels and for other infrastructure costs 215.25either inside or outside of the district, but within the project area, if the acquisition or 215.26infrastructure is for a qualified development. For purposes of this paragraph, a development 215.27is a qualified development only if all of the following requirements are satisfied: 215.28(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 215.29primarily to serve the development; 215.30(2) the city has a binding, written commitment and adequate financial assurances from 215.31the developer that the development will be constructed; and 216.1(3) the development does not consist of retail trade or housing improvements. 216.2EFFECTIVE DATE.This section is effective the day after the governing body of the 216.3city of Maple Grove and its chief clerical officer comply with Minnesota Statutes, section 216.4645.021, subdivisions 2 and 3. 216.5 Sec. 13. CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT. 216.6For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 216.7city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed 216.8to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and 216.9the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if 216.10the district were certified on that date. 216.11EFFECTIVE DATE.This section is effective the day after the governing body of the 216.12city of Anoka and its chief clerical officer comply with Minnesota Statutes, section 645.021, 216.13subdivisions 2 and 3. 216.14 Sec. 14. CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK. 216.15Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, 216.16or any other law to the contrary, the city of Coon Rapids may collect tax increment from 216.17District 6-1 Port Riverwalk through December 31, 2038. 216.18EFFECTIVE DATE.This section is effective upon compliance by the governing bodies 216.19of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with 216.20the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 216.21subdivisions 2 and 3. 216.22 Sec. 15. CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH. 216.23The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 216.24must be undertaken within a five-year period from the date of certification of a tax increment 216.25financing district, is considered to be met for Tax Increment Financing District No. 1-12 216.26(Gateway North), administered by the Cottage Grove Economic Development Authority, 216.27if the activities are undertaken prior to January 1, 2017. 216.28EFFECTIVE DATE.This section is effective the day after the governing body of the 216.29city of Cottage Grove and its chief clerical officer comply with Minnesota Statutes, section 216.30645.021, subdivisions 2 and 3. 217.1 Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW. 217.2Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, 217.3the chief clerical officer of the city of Edina may file with the secretary of state certificate 217.4of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if 217.5the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, 217.6subdivision 3, are otherwise complied with, the special law is deemed approved, and all 217.7actions taken by the city before the effective date of this section in reliance on Laws 2014, 217.8chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article 217.96, section 8, and this act. 217.10EFFECTIVE DATE.This section is effective the day following final enactment. 217.11 Sec. 17. CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH. 217.12For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 217.13city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment 217.14Financing District is deemed to be certified on June 29, 2012, rather than its actual 217.15certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions 217.163 and 4, apply as if the district were certified on that date. 217.17EFFECTIVE DATE.This section is effective the day after the governing body of the 217.18city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section 217.19645.021, subdivisions 2 and 3. 217.20 Sec. 18. CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF 217.21DISTRICT. 217.22Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 217.23to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and 217.24for the city of Richfield may elect to extend the duration limit of the redevelopment tax 217.25increment financing district known as the Cedar Avenue Tax Increment Financing District 217.26established by Laws 2005, chapter 152, article 2, section 25, by ten years. 217.27EFFECTIVE DATE.This section is effective upon compliance by the governing bodies 217.28of the city of Richfield, Hennepin County, and Independent School District No. 280 with 217.29the requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, 217.30subdivisions 2 and 3. 218.1 Sec. 19. CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT; 218.2FIVE-YEAR RULE EXTENSION. 218.3The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities 218.4must be undertaken within a five-year period from the date of certification of a tax increment 218.5financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing 218.6District established by the city of Richfield and the housing and redevelopment authority 218.7in and for the city of Richfield if the activities are undertaken within seven years from the 218.8date of certification. 218.9EFFECTIVE DATE.This section is effective the day after the city of Richfield and 218.10its chief clerical officer comply with Minnesota Statutes, sections 469.1782, subdivision 2, 218.11and 645.021, subdivisions 2 and 3. 218.12 Sec. 20. CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT; 218.13POOLING PERCENTAGE INCREASE. 218.14For purposes of the Elmwood Village Tax Increment Financing District in the city of 218.15St. Louis Park, including the duration extension authorized by Laws 2009, chapter 88, article 218.165, section 19, the permitted percentage of increments that may be expended on activities 218.17outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is increased 218.18to 30 percent for the district. 218.19EFFECTIVE DATE.This section is effective the day after the governing body of the 218.20city of St. Louis Park and its chief clerical officer comply with Minnesota Statutes, section 218.21645.021, subdivisions 2 and 3. 218.22 Sec. 21. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT. 218.23(a) For purposes of computing the duration limits under Minnesota Statutes, section 218.24469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 218.25may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 218.26District. This authority is limited to the first four years of increment or increments derived 218.27from taxes payable in 2023, whichever occurs first. 218.28(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 218.29applying any limits based on when the district was certified under Minnesota Statutes, 218.30section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 218.31to be January 2 of the property tax assessment year for which increment is first received 218.32under the waiver. 219.1EFFECTIVE DATE.This section is effective July 1, 2017, without local approval 219.2under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). 219.3 Sec. 22. WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT 219.4TIF DISTRICT; SPECIAL RULES AUTHORIZATION. 219.5(a) If Washington County elects, upon the adoption of a tax increment financing plan 219.6for a district, the rules under this section apply to one or more tax increment financing 219.7districts established by the county or the community development agency of the county. 219.8The area within which the tax increment districts may be created is located in the city of 219.9Newport and is south of marked Interstate Highway 494, north of 15th Street extended to 219.10the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway 219.1161 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing 219.12Project Area" or "project area." 219.13(b) The requirements for qualifying a redevelopment district under Minnesota Statutes, 219.14section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification 219.15numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, 219.162602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, 219.17260282244024, and 2602822440023, which are deemed substandard for the purpose of 219.18qualifying the district as a redevelopment district. 219.19(c) Increments spent outside a district shall only be spent within the project area and on 219.20costs described in Minnesota Statutes, section 469.176, subdivision 4j. 219.21(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763, 219.22subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived from tax 219.23increments paid by properties in any district, measured over the life of the district, may be 219.24expended on activities outside the district but within the project area. The five-year rule 219.25under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine 219.26years. 219.27(e) The authority to approve a tax increment financing plan and to establish a tax 219.28increment financing district under this section expires December 31, 2027. 219.29EFFECTIVE DATE.This section is effective and shall retroactively include the 219.30redevelopment district in the project area approved by Washington County on November 219.318, 2016, upon approval by the governing body of the city of Newport and upon compliance 219.32by Washington County and its chief clerical officer with Minnesota Statutes, section 645.021, 219.33subdivisions 2 and 3. 220.1 Sec. 23. CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN. 220.2(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 220.3activities must be undertaken within a five-year period from the date of certification of a 220.4tax increment financing district, are considered to be met for Tax Increment Financing 220.5District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from 220.6the district are expended for any project contemplated by the original tax increment financing 220.7plan for the district, including, without limitation, a municipal parking ramp within the 220.8district. 220.9(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not 220.10apply to the district if the revenues derived from tax increment from the district are expended 220.11for any project contemplated by the original tax increment financing plan for the district, 220.12including, without limitation, a municipal parking ramp within the district. 220.13EFFECTIVE DATE.This section is effective upon compliance by the chief clerical 220.14officer of the governing body of the city of Wayzata with the requirements of Minnesota 220.15Statutes, section 645.021, subdivisions 2 and 3. 220.16ARTICLE 7 220.17PUBLIC FINANCE 220.18 Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read: 220.19 Subdivision 1. Certificates of indebtedness. The town board may issue certificates of 220.20indebtedness within the debt limits for a town purpose otherwise authorized by law. The 220.21certificates shall be payable in not more than ten years and be issued on the terms and in 220.22the manner as the board may determine, provided that notes issued for projects that eliminate 220.23R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more 220.24than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the 220.25estimated market value of the town, they shall not be issued for at least ten days after 220.26publication in a newspaper of general circulation in the town of the board's resolution 220.27determining to issue them. If within that time, a petition asking for an election on the 220.28proposition signed by voters equal to ten percent of the number of voters at the last regular 220.29town election is filed with the clerk, the certificates shall not be issued until their issuance 220.30has been approved by a majority of the votes cast on the question at a regular or special 220.31election. A tax levy shall be made to pay the principal and interest on the certificates as in 220.32the case of bonds. 221.1 Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read: 221.2 Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 221.3without public referendum, issue capital notes within existing debt limits for the purpose 221.4of purchasing ambulance and other medical equipment, road construction or maintenance 221.5equipment, public safety equipment and other capital equipment having an expected useful 221.6life at least equal to the term of the notes issued. The notes shall be payable in not more 221.7than ten years and shall be issued on terms and in a manner as the board determines, provided 221.8that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 221.9(b), clause (2), must be payable in not more than 20 years. The total principal amount of 221.10the notes issued for any fiscal year shall not exceed one percent of the total annual budget 221.11for that year and shall be issued solely for the purchases authorized in this subdivision. A 221.12tax levy shall be made for the payment of the principal and interest on such notes as in the 221.13case of bonds. For purposes of this subdivision, "equipment" includes computer hardware 221.14and software, whether bundled with machinery or equipment or unbundled. For purposes 221.15of this subdivision, the term "medical equipment" includes computer hardware and software 221.16and other intellectual property for use in medical diagnosis, medical procedures, research, 221.17record keeping, billing, and other hospital applications, together with application development 221.18services and training related to the use of the computer hardware and software and other 221.19intellectual property, all without regard to their useful life. For purposes of determining the 221.20amount of capital notes which the county may issue in any year, the budget of the county 221.21and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this 221.22subdivision shall be in addition to obligations issuable under section 373.01, subdivision 221.233 . 221.24 Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read: 221.25410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 221.26 (a) Notwithstanding any contrary provision of other law or charter, a home rule charter 221.27city may, by resolution and without public referendum, issue capital notes subject to the 221.28city debt limit to purchase capital equipment. 221.29 (b) For purposes of this section, "capital equipment" means: 221.30 (1) public safety equipment, ambulance and other medical equipment, road construction 221.31and maintenance equipment, and other capital equipment; and 222.1 (2) computer hardware and software, whether bundled with machinery or equipment or 222.2unbundled, together with application development services and training related to the use 222.3of the computer hardware and software. 222.4 (c) The equipment or software must have an expected useful life at least as long as the 222.5term of the notes. 222.6 (d) The notes shall be payable in not more than ten years and be issued on terms and in 222.7the manner the city determines, provided that notes issued for projects that eliminate R-22, 222.8as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 222.920 years. The total principal amount of the capital notes issued in a fiscal year shall not 222.10exceed 0.03 percent of the estimated market value of taxable property in the city for that 222.11year. 222.12 (e) A tax levy shall be made for the payment of the principal and interest on the notes, 222.13in accordance with section 475.61, as in the case of bonds. 222.14 (f) Notes issued under this section shall require an affirmative vote of two-thirds of the 222.15governing body of the city. 222.16 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 222.17city may also issue capital notes subject to its debt limit in the manner and subject to the 222.18limitations applicable to statutory cities pursuant to section 412.301. 222.19 Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read: 222.20412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 222.21 (a) The council may issue certificates of indebtedness or capital notes subject to the city 222.22debt limits to purchase capital equipment. 222.23 (b) For purposes of this section, "capital equipment" means: 222.24 (1) public safety equipment, ambulance and other medical equipment, road construction 222.25and maintenance equipment, and other capital equipment; and 222.26 (2) computer hardware and software, whether bundled with machinery or equipment or 222.27unbundled, together with application development services and training related to the use 222.28of the computer hardware or software. 222.29 (c) The equipment or software must have an expected useful life at least as long as the 222.30terms of the certificates or notes. 223.1 (d) Such certificates or notes shall be payable in not more than ten years and shall be 223.2issued on such terms and in such manner as the council may determine, provided, however, 223.3that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 223.4(b), clause (2), must be payable in not more than 20 years. 223.5 (e) If the amount of the certificates or notes to be issued to finance any such purchase 223.6exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 223.7not be issued for at least ten days after publication in the official newspaper of a council 223.8resolution determining to issue them; and if before the end of that time, a petition asking 223.9for an election on the proposition signed by voters equal to ten percent of the number of 223.10voters at the last regular municipal election is filed with the clerk, such certificates or notes 223.11shall not be issued until the proposition of their issuance has been approved by a majority 223.12of the votes cast on the question at a regular or special election. 223.13 (f) A tax levy shall be made for the payment of the principal and interest on such 223.14certificates or notes, in accordance with section 475.61, as in the case of bonds. 223.15 Sec. 5. [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC 223.16BUILDINGS. 223.17 Subdivision 1. Reverse referendum; certain leases. (a) Before executing a qualified 223.18lease, a municipality must publish notice of its intention to execute the lease and the date 223.19and time of a hearing to obtain public comment on the matter. The notice must be published 223.20in the official newspaper of the municipality or in a newspaper of general circulation in the 223.21municipality and must include a statement of the amount of the obligations to be issued by 223.22the authority and the maximum amount of annual rent to be paid by the municipality under 223.23the qualified lease. The notice must be published at least 14, but not more than 28, days 223.24before the date of the hearing. 223.25(b) A municipality may enter a lease subject to paragraph (a) only upon obtaining the 223.26approval of a majority of the voters voting on the question of issuing the obligations, if a 223.27petition requesting a vote on the issuance is signed by voters equal to ten percent of the 223.28votes cast in the municipality in the last state general election and is filed with the county 223.29auditor within 30 days after the public hearing. 223.30 Subd. 2. Definitions. (a) For purposes of this section, the following terms have the 223.31meanings given them. 223.32(b) "Authority" includes any of the following governmental units, the boundaries of 223.33which include all or part of the geographic area of the municipality: 224.1(1) a housing and redevelopment authority, as defined in section 469.002, subdivision 224.22; 224.3(2) a port authority, as defined in section 469.048; 224.4(3) an economic development authority, as established under section 469.091; or 224.5(4) an entity established or exercising powers under a special law with powers similar 224.6to those of an entity described in clauses (1) to (3). 224.7(c) "Municipality" means a statutory or home rule charter city, a county, or a town 224.8described in section 368.01, but does not include a city of the first class, however organized, 224.9as defined in section 410.01. 224.10(d) "Qualified lease" means a lease for use of public land, all or part of a public building, 224.11or other public facilities consisting of real property for a term of three or more years as a 224.12lessee if the property to be leased to the municipality was acquired or improved with the 224.13proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an authority. 224.14 Sec. 6. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read: 224.15 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general 224.16obligation of the general jurisdiction governmental unit as additional security for bonds 224.17payable from income or revenues of the project or the authority. The authority must find 224.18that the pledged revenues will equal or exceed 110 percent of the principal and interest due 224.19on the bonds for each year. The proceeds of the bonds must be used for a qualified housing 224.20development project or projects. The obligations must be issued and sold in the manner and 224.21following the procedures provided by chapter 475, except the obligations are not subject to 224.22approval by the electors, and the maturities may extend to not more than 35 years for 224.23obligations sold to finance housing for the elderly and 40 years for other obligations issued 224.24under this subdivision. The authority is the municipality for purposes of chapter 475. 224.25 (b) The principal amount of the issue must be approved by the governing body of the 224.26general jurisdiction governmental unit whose general obligation is pledged. Public hearings 224.27must be held on issuance of the obligations by both the authority and the general jurisdiction 224.28governmental unit. The hearings must be held at least 15 days, but not more than 120 days, 224.29before the sale of the obligations. 224.30 (c) The maximum amount of general obligation bonds that may be issued and outstanding 224.31under this section equals the greater of (1) one-half of one percent of the estimated market 224.32value of the general jurisdiction governmental unit whose general obligation is pledged, or 224.33(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, 225.1the outstanding general obligation bonds of all cities in the county or counties issued under 225.2this subdivision must be added in calculating the limit under clause (1). 225.3 (d) "General jurisdiction governmental unit" means the city in which the housing 225.4development project is located. In the case of a county or multicounty authority, the county 225.5or counties may act as the general jurisdiction governmental unit. In the case of a multicounty 225.6authority, the pledge of the general obligation is a pledge of a tax on the taxable property 225.7in each of the counties. 225.8 (e) "Qualified housing development project" means a housing development project 225.9providing housing either for the elderly or for individuals and families with incomes not 225.10greater than 80 percent of the median family income as estimated by the United States 225.11Department of Housing and Urban Development for the standard metropolitan statistical 225.12area or the nonmetropolitan county in which the project is located. The project must be 225.13owned for the term of the bonds either by the authority or by a limited partnership or other 225.14entity in which the authority or another entity under the sole control of the authority is the 225.15sole general partner and the partnership or other entity must receive (1) an allocation from 225.16the Department of Management and Budget or an entitlement issuer of tax-exempt bonding 225.17authority for the project and a preliminary determination by the Minnesota Housing Finance 225.18Agency or the applicable suballocator of tax credits that the project will qualify for four 225.19percent low-income housing tax credits or (2) a reservation of nine percent low-income 225.20housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax 225.21credits for the project. A qualified housing development project may admit nonelderly 225.22individuals and families with higher incomes if: 225.23 (1) three years have passed since initial occupancy; 225.24 (2) the authority finds the project is experiencing unanticipated vacancies resulting in 225.25insufficient revenues, because of changes in population or other unforeseen circumstances 225.26that occurred after the initial finding of adequate revenues; and 225.27 (3) the authority finds a tax levy or payment from general assets of the general jurisdiction 225.28governmental unit will be necessary to pay debt service on the bonds if higher income 225.29individuals or families are not admitted. 225.30 (f) The authority may issue bonds to refund bonds issued under this subdivision in 225.31accordance with section 475.67. The finding of the adequacy of pledged revenues required 225.32by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 225.33issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after 225.34July 1, 1992. 226.1 Sec. 7. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read: 226.2 Subdivision 1. Establishment. An economic development authority may create and 226.3define the boundaries of economic development districts at any place or places within the 226.4city, except that the district boundaries must be contiguous, and may use the powers granted 226.5in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a 226.6public hearing on the matter. At least ten days before the hearing, the authority shall publish 226.7notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 226.8shall find that an economic development district is proper and desirable to establish and 226.9develop within the city. 226.10 Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 226.11read: 226.12 Subd. 1u. Obligations. In addition to other authority in this section, the council may 226.13issue certificates of indebtedness, bonds, or other obligations under this section in an amount 226.14not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit 226.15capital improvement program and for related costs, including the costs of issuance and sale 226.16of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates 226.17of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and 226.18after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other 226.19obligations in an additional amount not exceeding $43,900,000. 226.20EFFECTIVE DATE.This section is effective the day following final enactment and 226.21applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 226.22 Sec. 9. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 226.23read: 226.24 Subd. 6. Limitation; light rail transit. The council is prohibited from expending any 226.25proceeds from certificates of indebtedness, bonds, or other obligations under this section 226.26for project development, land acquisition, or construction to (1) establish a light rail transit 226.27line; or (2) expand a light rail transit line, including by extending a line or adding additional 226.28stops. 226.29EFFECTIVE DATE.This section applies to the expenditures made after the day 226.30following final enactment, but does not apply to amounts expended under binding contracts 226.31entered into before March 25, 2017. This section applies in the counties of Anoka, Carver, 226.32Dakota, Hennepin, Ramsey, Scott, and Washington. 227.1 Sec. 10. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read: 227.2 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, 227.3without regard to the election requirement under subdivision 1, issue and sell obligations 227.4for street reconstruction or bituminous overlays, if the following conditions are met: 227.5 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 227.6that describes the street reconstruction or overlay to be financed, the estimated costs, and 227.7any planned reconstruction or overlay of other streets in the municipality over the next five 227.8years, and the plan and issuance of the obligations has been approved by a vote of all a 227.9two-thirds majority of the members of the governing body present at the meeting following 227.10a public hearing for which notice has been published in the official newspaper at least ten 227.11days but not more than 28 days prior to the hearing; and 227.12 (2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 227.13of the votes cast in the last municipal general election and is filed with the municipal clerk 227.14within 30 days of the public hearing, the municipality may issue the bonds only after 227.15obtaining the approval of a majority of the voters voting on the question of the issuance of 227.16the obligations. If the municipality elects not to submit the question to the voters, the 227.17municipality shall not propose the issuance of bonds under this section for the same purpose 227.18and in the same amount for a period of 365 days from the date of receipt of the petition. If 227.19the question of issuing the bonds is submitted and not approved by the voters, the provisions 227.20of section 475.58, subdivision 1a, shall apply. 227.21 (b) Obligations issued under this subdivision are subject to the debt limit of the 227.22municipality and are not excluded from net debt under section 475.51, subdivision 4. 227.23 (c) For purposes of this subdivision, street reconstruction and bituminous overlays 227.24includes utility replacement and relocation and other activities incidental to the street 227.25reconstruction, turn lanes and other improvements having a substantial public safety function, 227.26realignments, other modifications to intersect with state and county roads, and the local 227.27share of state and county road projects. For purposes of this subdivision, "street 227.28reconstruction" includes expenditures for street reconstruction that have been incurred by 227.29a municipality before approval of a street reconstruction plan, if such expenditures are 227.30included in a street reconstruction plan approved on or before the date of the public hearing 227.31under paragraph (a), clause (1), regarding issuance of bonds for such expenditures. 227.32 (d) Except in the case of turn lanes, safety improvements, realignments, intersection 227.33modifications, and the local share of state and county road projects, street reconstruction 228.1and bituminous overlays does not include the portion of project cost allocable to widening 228.2a street or adding curbs and gutters where none previously existed. 228.3 Sec. 11. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read: 228.4 Subd. 2. Requirements waived. The requirements as to public sale shall not apply: 228.5(1) to obligations issued under the provisions of a home rule charter or of a law 228.6specifically authorizing a different method of sale, or authorizing them to be issued in such 228.7manner or on such terms and conditions as the governing body may determine; 228.8(2) to obligations sold by an issuer in an amount not exceeding the total sum of 228.9$1,200,000 in any 12-month period; 228.10(3) to obligations issued by a governing body other than a school board in anticipation 228.11of the collection of taxes or other revenues appropriated for expenditure in a single year, if 228.12sold in accordance with the most favorable of two or more proposals solicited privately; 228.13(4) to obligations sold to any board, department, or agency of the United States of 228.14America or of the state of Minnesota, in accordance with rules or regulations promulgated 228.15by such board, department, or agency; 228.16(5) to obligations issued to fund pension and retirement fund liabilities under section 228.17475.52, subdivision 6 , obligations issued with tender options under section 475.54, 228.18subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision 228.1913 , and any issue of obligations comprised in whole or in part of obligations bearing interest 228.20at a rate or rates which vary periodically referred to in section 475.56; 228.21(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 228.22authorized by law, if the governing body of the municipality, on the advice of bond counsel 228.23or special tax counsel, determines that interest on the obligations cannot be represented to 228.24be excluded from gross income for purposes of federal income taxation; 228.25(7) to obligations issued in the form of an installment purchase contract, lease purchase 228.26agreement, or other similar agreement; 228.27(8) to obligations sold under a bond reinvestment program; and 228.28(9) if the municipality has retained an independent financial advisor municipal adviser, 228.29obligations which the governing body determines shall be sold by private negotiation. 229.1ARTICLE 8 229.2TAX ADMINISTRATION 229.3 Section 1. [270C.075] PRIVATE LETTER RULINGS. 229.4 Subdivision 1. Program established. By January 1, 2018, the commissioner shall, by 229.5administrative rule adopted under chapter 14, establish and implement a program for issuing 229.6private letter rulings to taxpayers to provide guidance as to how the commissioner will apply 229.7Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other 229.8fact situation of the applying taxpayer. The commissioner must include in each ruling an 229.9explanation of the reasoning for the determination. In establishing the terms of the program, 229.10the commissioner may provide that rulings will not be issued in specified subject areas, for 229.11categories of transactions, or under specified provisions of law, if the commissioner 229.12determines doing so is in the best interests of the state and sound tax administration. The 229.13program must include a process for the representative of a taxpayer to apply for a private 229.14letter ruling and to communicate with the commissioner regarding the requested ruling. 229.15 Subd. 2. Application procedure; fees. (a) The commissioner shall establish an 229.16application procedure and forms for a taxpayer or the taxpayer's appointed representative 229.17to request a private letter ruling. The commissioner may require the taxpayer to provide any 229.18supporting factual information and certifications that the commissioner determines necessary 229.19or appropriate to issue a private letter ruling. The requirements may vary based on the type 229.20of ruling requested. 229.21(b) The commissioner may, in the administrative rule, establish a fee schedule to recover 229.22the department's actual cost of preparing private letter rulings. The maximum fee per private 229.23letter ruling is $1,000. The commissioner may require the applicant to pay the required fee 229.24for a private letter ruling before the application is considered. If the administrative rule 229.25provides for payment of a fee as a condition for providing a private letter ruling, the rule 229.26must provide a fee structure that varies the amount of the fee by the complexity of the request 229.27or the number and type of issues or both. 229.28(c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the 229.29taxpayer's filing of a completed application, the commissioner must refund the application 229.30fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the 229.31taxpayer withdraws the request. 229.32(d) Any fees collected under this section must be deposited in the Revenue Department 229.33service and recovery special revenue fund established under section 270C.15, and are 230.1appropriated to the commissioner to offset the cost of issuing private letter rulings and 230.2related administrative costs. 230.3 Subd. 3. Effect. (a) A private letter ruling is binding on the commissioner with respect 230.4to the taxpayer to whom the ruling is issued if: 230.5(1) there was no misstatement or omission of material facts in the application or other 230.6information provided to the commissioner; 230.7(2) the facts that subsequently developed were not materially different from the facts 230.8upon which the ruling was based; 230.9(3) the applicable statute, administrative rule, federal law referenced by state law, or 230.10other relevant law has not changed; and 230.11(4) the taxpayer acted in good faith in applying for and relying on the ruling. 230.12(b) Private letter rulings have no precedential effect and may not be relied upon by a 230.13taxpayer other than as provided in paragraph (a). 230.14 Subd. 4. Public access. The commissioner shall make private letter rulings issued under 230.15this section available to the public on the department's Web site. The commissioner must 230.16organize the private letter rulings by tax type and must make them available in a searchable 230.17format. The published rulings must redact any information that would permit identification 230.18of the requesting taxpayer. 230.19 Subd. 5. Legislative report. (a) By January 31 of each odd-numbered year, the 230.20commissioner shall report in writing to the legislature the following information for the 230.21immediately preceding two calendar years: 230.22(1) the number of applications for private letter rulings; 230.23(2) the number of private letter rulings issued, including the number issued within the 230.2490-day time period under subdivision 2, paragraph (c); 230.25(3) the amount of application fees refunded by tax type; 230.26(4) the tax types for which rulings were requested; 230.27(5) the types and characteristics of taxpayers applying for rulings; and 230.28(6) any other information that the commissioner considers relevant to legislative oversight 230.29of the private letter ruling program. 231.1(b) The report must be filed as provided in section 3.195, and copies must be provided 231.2to the chairs and ranking minority members of the committees of the house of representatives 231.3and the senate with jurisdiction over taxes and appropriations to the Department of Revenue. 231.4EFFECTIVE DATE.This section is effective the day following final enactment, except 231.5that the first legislative report under subdivision 5 is due January 31, 2020. 231.6 Sec. 2. Minnesota Statutes 2016, section 270C.31, is amended by adding a subdivision to 231.7read: 231.8 Subd. 8. Authority to request dual examination. (a) A qualified taxpayer that is subject 231.9to an on-site examination or audit under this section of the amount of tax due under chapter 231.10290 or 297A may request in writing that the commissioner conduct the examination or audit 231.11of the taxpayer's tax due under both chapters at the same time. The request must be made 231.12within 30 days of the receipt of the commissioner's notice of intent to conduct the on-site 231.13audit or examination in the form prescribed by the commissioner. If a qualified taxpayer 231.14files a timely written request under this subdivision and the commissioner elects to audit or 231.15examine the tax due under only one of the two chapters, the commissioner may not audit 231.16or examine the tax due under the other chapter for each taxable year or period that includes 231.17the taxable year or the period covered by the audit or examination that was conducted. 231.18(b) For purposes of this subdivision, "qualified taxpayer" means a taxpayer that meets 231.19each of the following requirements: 231.20(1) the taxpayer has been issued a permit to collect tax under section 297A.84; 231.21(2) the gross receipts of the taxpayer, as reported on the return filed under chapter 290 231.22for the most recent taxable year, is no more than $150,000. In applying this clause to a 231.23taxpayer that is a member of a unitary business, as defined in section 290.17, gross receipts 231.24include the gross receipts of all members of the unitary business; and 231.25(3) the commissioner audited or examined the taxpayer's return filed under chapter 290 231.26or 297A or both for a period that ended no more than five years prior to the taxable year or 231.27the period for which the qualified taxpayer made the request under this subdivision, and the 231.28commissioner determined that no more than the greater of (1) $1,000 or (2) five percent of 231.29the liability for tax in additional tax was owed by the taxpayer as a result of the audit or 231.30examination. 231.31EFFECTIVE DATE.This section is effective for examinations and audits commenced 231.32after June 30, 2017. 232.1 Sec. 3. Minnesota Statutes 2016, section 270C.33, is amended by adding a subdivision to 232.2read: 232.3 Subd. 4a. Limitations; sales taxes. (a) The provisions of this subdivision are a limitation 232.4on the assessment authority of the commissioner under this section. 232.5(b) The commissioner must not assess additional tax under chapter 297A if each of the 232.6following requirements are met: 232.7(1) the tax reported by the taxpayer is consistent with and based on past reporting or 232.8other practices of the taxpayer that were fully disclosed to the commissioner and were 232.9specifically reviewed by the commissioner, including by issuing an audit assessing no 232.10additional tax liability with respect to that item for a prior taxable period; and 232.11(2) effective for a taxable period beginning after the period covered by clause (1), neither 232.12the statute or administrative rule on which the reporting or other practice is based has been 232.13materially changed, nor has the commissioner issued a revenue notice or directly notified 232.14the taxpayer in writing of a change in the commissioner's position as to the proper reporting 232.15or other treatment of the relevant transaction or other item. 232.16(c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1), 232.17applies only to issues within the scope of and specifically addressed by the audit. 232.18EFFECTIVE DATE.This section is effective for assessments made after June 30, 232.192017. 232.20 Sec. 4. Minnesota Statutes 2016, section 270C.33, is amended by adding a subdivision to 232.21read: 232.22 Subd. 4b. Limit on assessments; reasonable cause for failure to collect or withhold. 232.23(a) An assessment issued under subdivision 4 is reduced or eliminated to the extent that the 232.24amount that would otherwise be assessed arose from the taxpayer's failure to collect or 232.25withhold a tax from another individual or entity and the taxpayer had reasonable cause for 232.26not collecting or withholding the tax. A taxpayer may raise this ground for prohibition of 232.27an assessment during an audit, upon appeal from an assessment, or by refund claim following 232.28payment of the assessment. 232.29(b) For purposes of this subdivision and section 270C.35, subdivision 4: 232.30(1) ignorance of the law is not reasonable cause; 232.31(2) lack of clarity as to whether the law requires collection or withholding under the 232.32circumstances may be reasonable cause; and 233.1(3) failure to collect or withhold in accordance with prior written advice from the 233.2commissioner on the specific question of the requirement to collect or withhold under the 233.3same or similar circumstances that has not been superseded or preempted by a change in 233.4statute or administrative rule or a subsequent written notice from the commissioner to the 233.5taxpayer prior to commencement of the period for which the failure to collect or withhold 233.6occurred is reasonable cause. 233.7EFFECTIVE DATE.This section is effective for assessments made after June 30, 233.82017. 233.9 Sec. 5. Minnesota Statutes 2016, section 270C.34, subdivision 1, is amended to read: 233.10 Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any penalty 233.11or interest that is imposed by a law administered by the commissioner, or imposed by section 233.12270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late payment of 233.13tax or late filing of a return, or any part of an additional tax charge under section 289A.25, 233.14subdivision 2 , or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to 233.15timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially 233.16declared disaster or in a presidentially declared state of emergency area or in an area declared 233.17to be in a state of emergency by the governor under section 12.31. 233.18 (b) The commissioner shall abate any part of a penalty or additional tax charge under 233.19section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice 233.20given to the taxpayer in writing by an employee of the department acting in an official 233.21capacity, if the advice: 233.22 (1) was reasonably relied on and was in response to a specific written request of the 233.23taxpayer; and 233.24 (2) was not the result of failure by the taxpayer to provide adequate or accurate 233.25information. 233.26(c) In addition to the authority under paragraphs (a) and (b), the commissioner may 233.27decline to impose or may abate any penalty under section 289A.60 or other law, or an 233.28additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4. 233.29EFFECTIVE DATE.This section is effective the day following final enactment. 234.1 Sec. 6. Minnesota Statutes 2016, section 270C.35, subdivision 4, is amended to read: 234.2 Subd. 4. Time and content for administrative appeal. Within 60 days after the notice 234.3date, the taxpayer must file a written appeal with the commissioner. The appeal need not 234.4be in any particular form but must contain the following information: 234.5(1) name and address of the taxpayer; 234.6(2) if a corporation, the state of incorporation of the taxpayer, and the principal place of 234.7business of the corporation; 234.8(3) the Minnesota identification number or Social Security number of the taxpayer; 234.9(4) the type of tax involved; 234.10(5) the date; 234.11(6) the tax years or periods involved and the amount of tax involved for each year or 234.12period; 234.13(7) the findings in the notice that the taxpayer disputes; 234.14(8) for a request to reduce or eliminate an assessment under section 270C.33, subdivision 234.154b, a statement of the taxpayer's grounds, along with a brief statement of the supporting 234.16facts, for the assertion of reasonable cause for the failure to collect or withhold tax from 234.17another individual or entity; 234.18(9) a summary statement that the taxpayer relies on for each exception; and 234.19(9) (10) the taxpayer's signature or signature of the taxpayer's duly authorized agent. 234.20EFFECTIVE DATE.This section is effective for assessments made after June 30, 234.212017. 234.22 Sec. 7. Minnesota Statutes 2016, section 271.06, subdivision 2a, is amended to read: 234.23 Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed by 234.24subdivision 2, the original notice of appeal, proof of service upon the commissioner, and 234.25filing fee are delivered by United States mail to the Tax Court administrator or the court 234.26administrator of district court acting as court administrator of the Tax Court, then the date 234.27of filing is the date of the United States postmark stamped on the envelope or other 234.28appropriate wrapper in which the notice of appeal, proof of service upon the commissioner, 234.29and filing fee are mailed. 234.30(b) This subdivision applies only if the postmark date falls within the period prescribed 234.31by subdivision 2 and the original notice of appeal, proof of service upon the commissioner, 235.1and filing fee are, within the time prescribed by subdivision 2, deposited in the mail in the 235.2United States in an envelope or other appropriate wrapper, postage prepaid, properly 235.3addressed to the Tax Court administrator or the court administrator of district court acting 235.4as court administrator of the Tax Court. 235.5(c) Only the postmark of the United States Postal Service qualifies as proof of timely 235.6mailing under this subdivision. Private postage meters do not qualify as proof of timely 235.7filing under this subdivision. If the original notice of appeal, proof of service upon the 235.8commissioner, and filing fee are sent by United States registered mail, the date of registration 235.9is the postmark date. If the original notice of appeal, proof of service upon the commissioner, 235.10and filing fee are sent by United States certified mail and the sender's receipt is postmarked 235.11by the postal employee to whom the envelope containing the original notice of appeal, proof 235.12of service upon the commissioner, and filing fee is presented, the date of the United States 235.13postmark on the receipt is the postmark date. If the envelope or other wrapper in which the 235.14notice of appeal, proof of service upon the commissioner, and filing fee are mailed does 235.15not contain a postmark of the United States Postal Service but is delivered by United States 235.16mail to the Tax Court administrator or the court administrator of the district court acting as 235.17court administrator of the Tax Court, then the date of mailing qualifies as timely filed under 235.18this subdivision, if proof of mailing within the time prescribed by subdivision 2 is provided 235.19by affidavit of the petitioner or counsel. 235.20(d) A reference in this section to the United States mail must be treated as including a 235.21reference to any designated delivery service and a reference in this section to a postmark 235.22by the United States Postal Service must be treated as including a reference to any date 235.23recorded or marked by any designated delivery service in accordance with section 7502(f) 235.24of the Internal Revenue Code. 235.25EFFECTIVE DATE.This section is effective the day following final enactment and 235.26applies to notices mailed after June 30, 2017. 235.27 Sec. 8. Minnesota Statutes 2016, section 271.06, subdivision 6, is amended to read: 235.28 Subd. 6. Hearings; determination of issues; default. (a) The Tax Court shall hear, 235.29consider, and determine without a jury every appeal de novo. A Tax Court judge may 235.30empanel an advisory jury upon the judge's motion. The Tax Court shall hold a public hearing 235.31in every case. All such parties shall have an opportunity to offer evidence and arguments 235.32at the hearing; provided, that the order of the commissioner or the appropriate unit of 235.33government in every case shall be prima facie valid. When an appeal to the Tax Court has 235.34been taken from an order or determination of the commissioner or from the appropriate unit 236.1of government, the proceeding shall be an original proceeding in the nature of a suit to set 236.2aside or modify the order or determination. In case no appellant shall appear the Tax Court 236.3shall enter its order affirming the order of the commissioner of revenue or the appropriate 236.4unit of government from which the appeal was taken. If the Department of Revenue's sales 236.5ratio study is introduced in Tax Court as evidence, the sales ratio data from the study shall 236.6be admissible as evidence only as provided in section 278.05, subdivision 4. 236.7(b) The commissioner, the taxpayer, and any other party to an appeal to the Tax Court 236.8may file all necessary notices, documents, and other necessary information with the Tax 236.9Court in a manner approved by the Tax Court. 236.10EFFECTIVE DATE.This section is effective the day following final enactment. 236.11 Sec. 9. Minnesota Statutes 2016, section 271.08, subdivision 1, is amended to read: 236.12 Subdivision 1. Written order. The Tax Court, except in Small Claims Division, shall 236.13determine every appeal by written order containing findings of fact and the decision of the 236.14Tax Court. A memorandum of the grounds of the decision shall be appended. Notice of the 236.15entry of the order and of the substance of the decision shall be mailed to all parties. A motion 236.16for rehearing, which includes a motion for amended findings of fact, conclusions of law, 236.17or a new trial, must be served by the moving party within 15 30 days after mailing of the 236.18notice by the court as specified in this subdivision, and the motion must be heard within 30 236.19days thereafter, unless the time for hearing is extended by the court within the 30-day period 236.20for good cause shown. 236.21EFFECTIVE DATE.This section is effective for petitions and appeals filed after June 236.2230, 2017. 236.23 Sec. 10. Minnesota Statutes 2016, section 271.18, is amended to read: 236.24271.18 EX-JUDGES NOT TO REPRESENT CLIENTS; EXCEPTION; 236.25VIOLATION. 236.26No judge or employee of the Tax Court, except referees appointed for the Small Claims 236.27Division, shall, within one year after the office or employment has terminated, act as counsel, 236.28attorney, or agent for a taxpayer in connection with any claim or proceeding pending in the 236.29department of revenue or in the Tax Court at the time of termination. No judge, referee, or 236.30employee shall, at any time after the termination of the office or employment, act as counsel, 236.31attorney, or agent in connection with any claim or proceeding of which the person terminated 237.1has knowledge which was acquired in the course of a term of office or employment in the 237.2Tax Court. Any violation of the provisions of this section shall be a gross misdemeanor. 237.3EFFECTIVE DATE.This section is effective the day following final enactment. 237.4 Sec. 11. Minnesota Statutes 2016, section 289A.40, subdivision 1, is amended to read: 237.5 Subdivision 1. Time limit; generally. (a) Unless otherwise provided in this chapter, a 237.6claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the 237.7date prescribed for filing the return, plus any extension of time granted for filing the return, 237.8but only if filed within the extended time, or one year from the date of an order assessing 237.9tax under section or an order determining an appeal under section 270C.35, 237.10subdivision 8 , or one year from the date of a return made by the commissioner under section 237.11270C.33, subdivision 3 , upon payment in full of the tax, penalties, and interest shown on 237.12the order or return made by the commissioner two years from the time the tax was paid, 237.13whichever period expires later. Claims for refund, except for taxes under chapter 297A, 237.14filed after the 3-1/2 year period but within the one-year period are limited to the amount of 237.15the tax, penalties, and interest on the order or return made by the commissioner and to issues 237.16determined by the order or return made by the commissioner. 237.17In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund 237.18under chapter 297A filed after the 3-1/2 year period but within the one-year period are 237.19limited to the amount of the tax, penalties, and interest on the order or return made by the 237.20commissioner that are due for the period before the 3-1/2 year period. 237.21(b) For refunds due on a report required to be filed under section 289A.38, subdivision 237.227, the period under paragraph (a) is extended to the due date for the report required by 237.23section 289A.38, subdivision 7. 237.24EFFECTIVE DATE.This section is effective for claims for refund filed after the day 237.25following final enactment. 237.26 Sec. 12. Minnesota Statutes 2016, section 289A.60, subdivision 1, is amended to read: 237.27 Subdivision 1. Penalty for failure to pay tax. (a) If a corporate franchise, fiduciary 237.28income, mining company, estate, partnership, S corporation, or nonresident entertainer tax 237.29is not paid within the time specified for payment, a penalty of six percent is added to the 237.30unpaid tax, except that if a corporation or mining company meets the requirements of section 237.31289A.19, subdivision 2 , the penalty is not imposed. 238.1(b) For the taxes listed in paragraph (a), in addition to the penalty in that paragraph, 238.2whether imposed or not, if a return or amended return is filed after the due date, without 238.3regard to extensions, and any tax reported as remaining due is not remitted with the return 238.4or amended return, a penalty of five percent of the tax not paid is added to the tax. If the 238.5commissioner issues an order assessing additional tax for a tax listed in paragraph (a), and 238.6the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60 238.7days after final resolution of the appeal, a penalty of five percent of the unpaid tax is added 238.8to the tax. 238.9(c) If an individual income tax is not paid within the time specified for payment, a penalty 238.10of four percent is added to the unpaid tax. There is a presumption of reasonable cause for 238.11the late payment if the individual: (i) pays by the due date of the return at least 90 percent 238.12of the amount of tax, after credits other than withholding and estimated payments, shown 238.13owing on the return; (ii) files the return within six months after the due date; and (iii) pays 238.14the remaining balance of the reported tax when the return is filed. 238.15(d) If the commissioner issues an order assessing additional individual income tax, and 238.16the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60 238.17days after final resolution of the appeal, a penalty of four percent of the unpaid tax is added 238.18to the tax. 238.19(e) If a withholding or sales or use tax is not paid within the time specified for payment, 238.20a penalty must be added to the amount required to be shown as tax. The penalty is five 238.21percent of the tax not paid on or before the date specified for payment of the tax if the failure 238.22is for not more than 30 days, with an additional penalty of five percent of the amount of tax 238.23remaining unpaid during each additional 30 days or fraction of 30 days during which the 238.24failure continues, not exceeding 15 percent in the aggregate. 238.25(f) No penalty applies under this section if: 238.26(1) the total calculated penalty that would otherwise apply under paragraphs (a) to (e) 238.27is less than $150; or 238.28(2) for an underpayment of individual income tax under chapter 290 or sales tax under 238.29chapter 297A, the liability for tax on which the penalty is calculated is less than $1,000 and 238.30the taxpayer timely filed any returns required to be filed during the prior three calendar 238.31years and was not subject to a penalty under this section, determined without regard to the 238.32provisions of this paragraph, for any taxes on returns due during that three-year period. 238.33EFFECTIVE DATE.This section is effective for penalties imposed after January 1, 238.342019. 239.1ARTICLE 9 239.2MISCELLANEOUS 239.3 Section 1. [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS. 239.4(a) Except as provided in paragraph (b), no appropriation or other state money, whether 239.5in the general or another fund, must be expended or used for any costs related to studying 239.6the feasibility of, planning for, designing, engineering, acquiring property or constructing 239.7facilities for or related to, or development or operation of intercity or interregional passenger 239.8rail facilities or operations between the city of Rochester or locations in its metropolitan 239.9area and any location in the metropolitan area, as defined in section 473.121, subdivision 239.102. 239.11(b) The restrictions under this section do not apply to: 239.12(1) funds obtained from contributions, grants, or other voluntary payments made by 239.13nongovernmental entities from private sources; or 239.14(2) amounts specifically appropriated for a project or costs subject to paragraph (a), but 239.15only after enactment of a law that explicitly adds the project for which the expenditures are 239.16made to the statewide freight and passenger rail plan under section 174.03, subdivision 1b. 239.17EFFECTIVE DATE.This section is effective the day following final enactment. 239.18 Sec. 2. [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS. 239.19(a) If a state official leases, loans, or otherwise makes available state lands, air rights, 239.20or any other state property for use in connection with passenger rail facilities, as described 239.21in section 16A.1246, the lease or other agreement must include or be secured by a security 239.22bond or equivalent guarantee that allows the state to recover any costs it incurs in connection 239.23with the rail project from a responsible third party or secure source of capital, if the passenger 239.24rail facilities are not constructed, do not go into operation, or are abandoned, whether or 239.25not the facilities began operations. The security bond or equivalent guarantee must remain 239.26in place for the term of lease, loan, or other agreement that makes state property available 239.27for use by the project. These costs include restoring state property to its original condition. 239.28(b) For purposes of this section, "state official" includes the commissioner, the 239.29commissioner of transportation, or any other state official with authority to enter a lease or 239.30other agreement providing for use by a nonstate entity of state property. 239.31EFFECTIVE DATE.This section is effective the day following final enactment. 240.1 Sec. 3. [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES 240.2PROHIBITED. 240.3Notwithstanding section 222.27 or any other law to the contrary, no condemning authority 240.4may take property for the development or construction of or for facilities related to intercity 240.5or interregional passenger rail facilities or operations between the city of Rochester or 240.6locations in its metropolitan area and any location in the metropolitan area, as defined in 240.7section 473.121, subdivision 2. 240.8EFFECTIVE DATE.This section is effective the day following final enactment. 240.9 Sec. 4. Minnesota Statutes 2016, section 174.03, subdivision 1b, is amended to read: 240.10 Subd. 1b. Statewide freight and passenger rail plan. (a) The commissioner shall 240.11develop a comprehensive statewide freight and passenger rail plan to be included and revised 240.12as a part of the statewide multimodal transportation plan. 240.13 (b) Before the initial version of the plan is adopted, the commissioner shall provide a 240.14copy for review and comment to the chairs and ranking minority members of the senate and 240.15house of representatives committees with jurisdiction over transportation policy and finance. 240.16Notwithstanding paragraph (a), the commissioner may adopt the next revision of the statewide 240.17transportation plan, scheduled to be completed in calendar year 2009, prior to completion 240.18of the initial version of the comprehensive statewide freight and passenger rail plan. The 240.19statewide freight and passenger rail plan must not include prioritization, planning, or 240.20references, other than references for historical purposes, to intercity passenger rail between 240.21the city of Rochester or locations in its metropolitan area and any location in the metropolitan 240.22area, as defined in section 473.121, subdivision 2. Before February 1, 2018, the commissioner 240.23shall revise the statewide freight and passenger rail plan to meet the requirements of this 240.24paragraph. 240.25EFFECTIVE DATE.This section is effective the day following final enactment. 240.26 Sec. 5. [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL 240.27INSURANCE REQUIRED. 240.28 Subdivision 1. Scope. (a) This section applies to any person that seeks a federal or state 240.29permit or other formal legal authorization to construct or operate a passenger rail project 240.30with an estimated capital cost exceeding $1,000,000,000. 240.31(b) This section does not apply to a person whose only action within the scope of 240.32paragraph (a) is an application for a building permit. 241.1 Subd. 2. Definitions. (a) For purposes of this section, unless the context clearly indicates 241.2otherwise, the following definitions apply. 241.3(b) "Commissioner" means the commissioner of the Pollution Control Agency. 241.4(c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent 241.5guarantee that provides assurance of the project's ability to pay claims for any liability under 241.6chapter 115B or similar provisions of common law or federal law resulting from construction 241.7or operation of the passenger rail project. 241.8(d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway 241.9located within or partly within Minnesota intended to provide passenger service, regardless 241.10of whether freight service is also provided, by a common carrier other than a federal or state 241.11government unit, a political subdivision of the state, or the National Railroad Passenger 241.12Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518. 241.13(e) "Person" includes a corporation, limited liability company, partnership, other entity, 241.14or an individual. 241.15 Subd. 3. Environmental insurance required. (a) Any person subject to this section 241.16must obtain and maintain insurance that is adequate to cover potential claims and meets the 241.17other requirements of this section, as approved by the commissioner under paragraph (b). 241.18The insurance must not contain dollar limits on liability, or if it does contain a dollar limit 241.19the limit must be not less than a reasonable estimate of the potential exposure of the project 241.20for environmental remediation or impairment damages. Any dollar limit must be adjusted 241.21if the scope, size, or cost of the project increases materially. The insurance must cover any 241.22liability incurred during and after the construction and operation of the project and must 241.23not contain exclusions, limitations, or other restrictions that are not standard in comprehensive 241.24environmental remediation insurance or in environmental impairment insurance, as 241.25applicable. 241.26(b) In order to satisfy the requirements of this section, the commissioner must determine 241.27that the insurance is adequate and that it meets the other requirements of this section. The 241.28commissioner may require that the project provide any supporting documentation to 241.29determine that insurance is adequate and meets the other requirements of this section and 241.30that the project has the financial ability to maintain insurance during the project's operations. 241.31EFFECTIVE DATE.This section is effective for passenger rail projects for which 241.32application for a permit or other formal legal authorization to construct is made after the 241.33day following final enactment. 242.1 Sec. 6. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read: 242.2 Subdivision 1. Biennial report. The commissioner shall report to the legislature by 242.3March 1 of each odd-numbered year on the overall incidence of the income tax, sales and 242.4excise taxes, and property tax. The report shall present information on the distribution of 242.5the tax burden as follows: (1) for the overall income distribution, using a systemwide 242.6incidence measure such as the Suits index or other appropriate measures of equality and 242.7inequality; (2) by income classes, including at a minimum deciles of the income distribution; 242.8and (3) by other appropriate taxpayer characteristics. The report must also include information 242.9on the distribution of the burden of federal taxes borne by Minnesota residents. 242.10 Sec. 7. Minnesota Statutes 2016, section 287.08, is amended to read: 242.11287.08 TAX, HOW PAYABLE; RECEIPTS. 242.12 (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 242.13county in this state in which the real property or some part is located at or before the time 242.14of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 242.15the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 242.16any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 242.17be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 242.18taxation the endorsement shall, in substance, be "exempt from registration tax." In either 242.19case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 242.20whether a claim of exemption should be allowed, the tax must be paid as in the case of a 242.21taxable mortgage. For documents submitted electronically, the endorsements and tax amount 242.22shall be affixed electronically and no signature by the treasurer will be required. The actual 242.23payment method must be arranged in advance between the submitter and the receiving 242.24county. 242.25 (b) The county treasurer may refund in whole or in part any mortgage registry tax 242.26overpayment if a written application by the taxpayer is submitted to the county treasurer 242.27within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 242.28of the application, the taxpayer may bring an action in Tax Court in the county in which 242.29the tax was paid at any time after the expiration of six months from the time that the 242.30application was submitted. A denial of refund may be appealed within 60 days from the 242.31date of the denial by bringing an action in Tax Court in the county in which the tax was 242.32paid. The action is commenced by the serving of a petition for relief on the county treasurer, 242.33and by filing a copy with the court. The county attorney shall defend the action. The county 243.1treasurer shall notify the treasurer of each county that has or would receive a portion of the 243.2tax as paid. 243.3 (c) If the county treasurer determines a refund should be paid, or if a refund is ordered 243.4by the court, the county treasurer of each county that actually received a portion of the tax 243.5shall immediately pay a proportionate share of three percent of the refund using any available 243.6county funds. The county treasurer of each county that received, or would have received, 243.7a portion of the tax shall also pay their county's proportionate share of the remaining 97 243.8percent of the court-ordered refund on or before the 20th day of the following month using 243.9solely the mortgage registry tax funds that would be paid to the commissioner of revenue 243.10on that date under section 287.12. If the funds on hand under this procedure are insufficient 243.11to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 243.12which the action was brought shall file a claim with the commissioner of revenue under 243.13section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 243.14remaining portion upon receipt of a warrant from the state issued pursuant to the claim. 243.15 (d) When any mortgage covers real property located in more than one county in this 243.16state the total tax must be paid to the treasurer of the county where the mortgage is first 243.17presented for recording, and the payment must be receipted as provided in paragraph (a). 243.18If the principal debt or obligation secured by such a multiple county mortgage exceeds 243.19$10,000,000, the nonstate portion of the tax must be divided and paid over by the county 243.20treasurer receiving it, on or before the 20th day of each month after receipt, to the county 243.21or counties entitled remitted by the county treasurer receiving the tax to the commissioner 243.22of revenue with the state tax due under section 287.12. The commissioner shall determine 243.23the nonstate portion of the tax owed to each county in the ratio that the estimated market 243.24value of the real property covered by the mortgage in each county bears to the estimated 243.25market value of all the real property in this state described in the mortgage. The commissioner 243.26shall pay each county within 60 days of receiving the tax from the county that collected the 243.27tax. In making the division and payment the county treasurer commissioner of revenue shall 243.28send a statement giving the description of the real property described in the mortgage and 243.29the estimated market value of the part located in each county. For this purpose, the treasurer 243.30of any county commissioner of revenue may require the treasurer of any other county to 243.31certify to the former the estimated market value of any tract of real property in any mortgage 243.32in the county. 243.33 (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 243.34may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 243.35collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 244.1has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 244.2collected for that purpose and the mortgagor is relieved of any further obligation to pay the 244.3tax as to the amount collected by the mortgagee for this purpose. 244.4EFFECTIVE DATE.This section is effective for tax collected after June 30, 2017. 244.5 Sec. 8. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read: 244.6 Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of 244.7use for the purpose of producing or generating used to produce or generate power for 244.8propelling internal combustion engine aircraft, that meets the specifications in ASTM 244.9specification D910-11, and that either. 244.10 Aviation gasoline includes any gasoline: 244.11 (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor 244.12or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation 244.13gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM 244.14specification as gasoline appropriate for use in producing or generating power for propelling 244.15internal combustion engine aircraft; or 244.16 (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, 244.17or withdrawn from storage by any person, to be used for the purpose of producing or 244.18generating power for propelling internal combustion engine aircraft sold to a dealer of 244.19aviation gasoline for dispensing directly into the fuel tank of an aircraft. 244.20EFFECTIVE DATE.This section is effective the day following final enactment except 244.21that the change to clause (2) is effective for sales and purchases made after June 30, 2017. 244.22 Sec. 9. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read: 244.23 Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 244.24means natural gas, primarily methane, condensed under high pressure and stored in specially 244.25designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes 244.26of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic 244.27foot. 244.28EFFECTIVE DATE.This section is effective for sales and purchases made after June 244.2930, 2017. 245.1 Sec. 10. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision 245.2to read: 245.3 Subd. 13a. Dealer of aviation gasoline. "Dealer of aviation gasoline" means any person 245.4who sells gasoline on the premises of an airport as defined under section 360.013, subdivision 245.539, to be dispensed directly into the fuel tank of an aircraft. 245.6EFFECTIVE DATE.This section is effective for sales and purchases made after June 245.730, 2017. 245.8 Sec. 11. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read: 245.9 Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or 245.10denatured ethanol purchased by: 245.11 (1) a transit system or transit provider receiving financial assistance or reimbursement 245.12under section 174.24, 256B.0625, subdivision 17, or 473.384; 245.13 (2) providers of transportation to recipients of medical assistance home and 245.14community-based services waivers enrolled in day programs, including adult day care, 245.15family adult day care, day treatment and habilitation, prevocational services, and structured 245.16day services; 245.17(3) an ambulance service licensed under chapter 144E; 245.18(4) providers of medical or dental services by a federally qualified health center, as 245.19defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 245.20Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile 245.21medical unit; or 245.22 (5) a licensed distributor to be delivered to a terminal for use in blending; or 245.23 (6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended to 245.24be dispensed directly into the fuel tank of an aircraft. 245.25EFFECTIVE DATE.This section is effective for sales and purchases made after June 245.2630, 2017. 245.27 Sec. 12. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read: 245.28 Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates: 245.29 (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon. 245.30 (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon. 246.1 (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; 246.2or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," 246.3as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural 246.4gas or 126.67 cubic feet. 246.5 (d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified 246.6in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed 246.7by the commissioner. 246.8EFFECTIVE DATE.This section is effective for sales and purchases made after June 246.930, 2017. 246.10 Sec. 13. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read: 246.11 Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided 246.12in paragraph (e), on or before the 23rd day of each month, every person who is required to 246.13pay a gasoline tax shall file with the commissioner a report, in the form and manner 246.14prescribed by the commissioner, showing the number of gallons of petroleum products 246.15received by the reporter during the preceding calendar month, and other information the 246.16commissioner may require. A written report is deemed to have been filed as required in this 246.17subdivision if postmarked on or before the 23rd day of the month in which the tax is payable. 246.18(b) The number of gallons of gasoline must be reported in United States standard liquid 246.19gallons, 231 cubic inches, except that the commissioner may upon written application and 246.20for cause shown permit the distributor to report the number of gallons of gasoline as corrected 246.21to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered 246.22in the application and allowed by the commissioner must continue to be reported by the 246.23distributor on the adjusted basis for a period of one year from the date of the granting of 246.24the application. The number of gallons of petroleum products other than gasoline must be 246.25reported as originally invoiced. Each report must show separately the number of gallons of 246.26aviation gasoline received by the reporter during each calendar month and the number of 246.27gallons of gasoline sold to a dealer of aviation gasoline during each calendar month. 246.28(c) Each report must also include the amount of gasoline tax on gasoline received by 246.29the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 246.30of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 246.31At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 246.322.5 percent deduction has been credited or paid to dealers on quantities sold to them. 247.1(d) Each report shall contain a confession of judgment for the amount of the tax shown 247.2due to the extent not timely paid. 247.3(e) Under certain circumstances and with the approval of the commissioner, taxpayers 247.4may be allowed to file reports annually. 247.5EFFECTIVE DATE.This section is effective for sales and purchases made after June 247.630, 2017. 247.7 Sec. 14. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read: 247.8 Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person 247.9who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for 247.10aircraft use, and who has paid the excise taxes due directly or indirectly through the amount 247.11of the tax being included in the price, or otherwise, and uses said gasoline or special fuel 247.12in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or 247.13before the 23rd day of the month following that in which such gasoline or special fuel was 247.14so used or sold, report the fact of the use or sale to the commissioner in the form and manner 247.15prescribed by the commissioner. 247.16(b) Any person who buys gasoline other than aviation gasoline and who has paid the 247.17motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 247.18included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to 247.19any person to be used for the purpose of producing or generating power for propelling 247.20aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that 247.21purpose, shall, on or before the 23rd day of the month following that in which such gasoline 247.22was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or 247.23withdrawal from storage to the commissioner in the form and manner prescribed by the 247.24commissioner. 247.25EFFECTIVE DATE.This section is effective for sales and purchases made after June 247.2630, 2017. 247.27 Sec. 15. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read: 247.28 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid 247.29the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter 247.30and has either paid the airflight property tax under section 270.072 or is an aerial applicator 247.31with a category B, general aerial license, under section 18B.33, shall, as to all such aviation 247.32gasoline and special fuel received, stored, or withdrawn from storage by the person in this 248.1state in any calendar year and not sold or otherwise disposed of to others, or intended for 248.2sale or other disposition to others, on which such tax has been so paid, be entitled to the 248.3following graduated reductions in such tax for that calendar year, to be obtained by means 248.4of the following refunds: 248.5(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but 248.6five cents per gallon; 248.7(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 248.8not more than 150,000 gallons, all but two cents per gallon; 248.9(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and 248.10not more than 200,000 gallons, all but one cent per gallon; 248.11(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half 248.12cent per gallon. 248.13EFFECTIVE DATE.This section is effective for sales and purchases made after June 248.1430, 2017. 248.15 Sec. 16. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read: 248.16 Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers, 248.17dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record 248.18of all purchases, transfers, sales, and use of petroleum products and special fuel, including 248.19copies of all sales tickets issued, in a form and manner approved by the commissioner, and 248.20shall retain all such records for 3-1/2 years. 248.21EFFECTIVE DATE.This section is effective for sales and purchases made after June 248.2230, 2017. 248.23 Sec. 17. Minnesota Statutes 2016, section 297F.01, subdivision 13a, is amended to read: 248.24 Subd. 13a. Premium cigar. "Premium cigar" means any cigar that is hand-constructed 248.25and hand-rolled, has a wrapper that is made entirely from whole tobacco leaf, has a filler 248.26and binder that is made entirely of tobacco, except for adhesives or other materials used to 248.27maintain size, texture, or flavor, and has a wholesale price of no less than $2. 248.28EFFECTIVE DATE.This section is effective July 1, 2017. 249.1 Sec. 18. Minnesota Statutes 2016, section 297F.05, subdivision 1, is amended to read: 249.2 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this 249.3state, upon having cigarettes in possession in this state with intent to sell, upon any person 249.4engaged in business as a distributor, and upon the use or storage by consumers, at the rate 249.5of 141.5 152 mills, or 14.15 15.2 cents, on each cigarette. 249.6EFFECTIVE DATE.This section is effective July 1, 2017. 249.7 Sec. 19. Minnesota Statutes 2016, section 297F.05, subdivision 3a, is amended to read: 249.8 Subd. 3a. Rates; premium cigars. (a) A tax is imposed upon all premium cigars in this 249.9state and upon any person engaged in business as a tobacco product distributor, at the lesser 249.10of: 249.11(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or 249.12(2) $3.50 $0.50 per premium cigar. 249.13(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products 249.14distributor: 249.15(1) brings, or causes to be brought, into this state from outside the state premium cigars 249.16for sale; 249.17(2) makes, manufactures, or fabricates premium cigars in this state for sale in this state; 249.18or 249.19(3) ships or transports premium cigars to retailers in this state, to be sold by those retailers. 249.20EFFECTIVE DATE.This section is effective July 1, 2017. 249.21 Sec. 20. Minnesota Statutes 2016, section 297F.05, subdivision 4a, is amended to read: 249.22 Subd. 4a. Use tax; premium cigars. A tax is imposed upon the use or storage by 249.23consumers of all premium cigars in this state, and upon such consumers, at the lesser of: 249.24(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or 249.25(2) $3.50 $0.50 per premium cigar. 249.26EFFECTIVE DATE.This section is effective July 1, 2017. 250.1 Sec. 21. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision 250.2to read: 250.3 Subd. 6. Small winery credit. (a) A qualified winery producing wine or cider is entitled 250.4to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to (g), on the 250.5wine or cider sold in any fiscal year beginning July 1. A qualified winery may take the credit 250.6on the 18th day of each month, but the total credit allowed may not exceed, in any fiscal 250.7year, the lesser of: 250.8(1) the liability for tax; or 250.9(2) $136,275. 250.10(b) For purposes of this subdivision, "qualified winery" means a winery, whether or not 250.11located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually. 250.12(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall 250.13provide a report to the chairs and ranking minority members of the legislative committees 250.14having jurisdiction over taxes that includes the following information for the previous fiscal 250.15year, regarding the credit authorized under this subdivision: 250.16(1) the total amount of the tax expenditure for the credit, including the amount of credits 250.17claimed by Minnesota small wineries and out-of-state small wineries; and 250.18(2) the number of claimants for the credit, including the number of Minnesota small 250.19wineries and the number of out-of-state small wineries. 250.20EFFECTIVE DATE.This section is effective January 1, 2018. 250.21 Sec. 22. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read: 250.22 Subdivision 1. Guaranteed distribution. (a) Except as provided under paragraph (c), 250.23the distribution of the taconite production tax as provided in section 298.28, subdivisions 250.243 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts: 250.25(1) the amount distributed pursuant to this section and section 298.28, with respect to 250.261983 production if the production for the year prior to the distribution year is no less than 250.2742,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount 250.28of the distributions shall be reduced proportionately at the rate of two percent for each 250.291,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000 250.30tons; or 251.1(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs 251.2(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this 251.3section and section 298.28, with respect to 1983 production; 251.4(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b) 251.5and (d), 75 percent of the amount distributed pursuant to this section and section 298.28, 251.6with respect to 1983 production provided that the aid guarantee for distributions under 251.7section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton 251.8for production years 2014 and thereafter. 251.9(b) The distribution of the taconite production tax as provided in section 298.28, 251.10subdivision 2 , shall equal the following amount: 251.11(1) if the production for the year prior to the distribution year is at least 42,000,000 251.12taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 251.13to 1999 production; or 251.14(2) if the production for the year prior to the distribution year is less than 42,000,000 251.15taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 251.16to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000 251.17tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons. 251.18(c) The distribution of the taconite production tax under section , subdivision 3, 251.19paragraph (a), guaranteed under this section is equal to the amount distributed under section 251.20298.28, with respect to 1983 production. 251.21EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter. 251.22 Sec. 23. Minnesota Statutes 2016, section 298.227, is amended to read: 251.23298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 251.24 (a) An amount equal to that distributed pursuant to each taconite producer's taxable 251.25production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 251.26Iron Range Resources and Rehabilitation Board in a separate taconite economic development 251.27fund for each taconite and direct reduced ore producer. Money from the fund for each 251.28producer shall be released by the commissioner after review by a joint committee consisting 251.29of an equal number of representatives of the salaried employees and the nonsalaried 251.30production and maintenance employees of that producer. The District 11 director of the 251.31United States Steelworkers of America, on advice of each local employee president, shall 251.32select the employee members. In nonorganized operations, the employee committee shall 251.33be elected by the nonsalaried production and maintenance employees. The review must be 252.1completed no later than six months after the producer presents a proposal for expenditure 252.2of the funds to the committee. The funds held pursuant to this section may be released only 252.3for workforce development and associated public facility improvement, concurrent 252.4reclamation, or for acquisition of plant and stationary mining equipment and facilities for 252.5the producer or for research and development in Minnesota on new mining, or taconite, 252.6iron, or steel production technology, but only if the producer provides a matching expenditure 252.7equal to the amount of the distribution to be used for the same purpose beginning with 252.8distributions in 2014. Effective for proposals for expenditures of money from the fund 252.9beginning May 26, 2007, the commissioner may not release the funds before the next 252.10scheduled meeting of the board. If a proposed expenditure is not approved by the board, 252.11the funds must be deposited in the Taconite Environmental Protection Fund under sections 252.12298.222 to 298.225. If a producer uses money which has been released from the fund prior 252.13to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the 252.14producer removes the piece of equipment from the taconite tax relief area defined in section 252.15273.134 within ten years from the date of receipt of the money from the fund, a portion of 252.16the money granted from the fund must be repaid to the taconite economic development 252.17fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is 252.18removed from the taconite tax relief area within 12 months after receipt of the money from 252.19the fund, declining by ten percent for each of the subsequent nine years during which the 252.20equipment remains within the taconite tax relief area. If a taconite production facility is sold 252.21after operations at the facility had ceased, any money remaining in the fund for the former 252.22producer may be released to the purchaser of the facility on the terms otherwise applicable 252.23to the former producer under this section. If a producer fails to provide matching funds for 252.24a proposed expenditure within six months after the commissioner approves release of the 252.25funds, the funds are available for release to another producer in proportion to the distribution 252.26provided and under the conditions of this section. Any portion of the fund which is not 252.27released by the commissioner within one year of its deposit in the fund shall be divided 252.28between the taconite environmental protection fund created in section 298.223 and the 252.29Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 252.30in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 252.31to the taconite environmental protection fund and one-third to the Douglas J. Johnson 252.32economic protection trust fund. 252.33 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 252.34distributions and the review process, an amount equal to ten cents per taxable ton of 252.35production in 2007, for distribution in 2008 only, that would otherwise be distributed under 252.36paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 253.1wood product facility located in the taconite tax relief area and in a county that contains a 253.2city of the first class. This amount must be deducted from the distribution under paragraph 253.3(a) for which a matching expenditure by the producer is not required. The granting of the 253.4loan or grant is subject to approval by the board. If the money is provided as a loan, interest 253.5must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 253.6Repayments of the loan and interest, if any, must be deposited in the taconite environment 253.7protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 253.8paragraph by July 1, 2012, the amount that had been made available for the loan under this 253.9paragraph must be transferred to the taconite environment protection fund under sections 253.10298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 253.11that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 253.12pro rata basis. 253.13(c) Repayment or transfer of money to the taconite environmental protection fund under 253.14paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation 253.15Board for public works projects in house legislative districts in the same proportion as 253.16taxable tonnage of production in 2007 in each house legislative district, for distribution in 253.172008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 253.18Notwithstanding any other law to the contrary, expenditures under this paragraph do not 253.19require approval by the governor. For purposes of this paragraph, "house legislative districts" 253.20means the legislative districts in existence on May 15, 2009. 253.21EFFECTIVE DATE.This section is effective the day following final enactment. 253.22 Sec. 24. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read: 253.23 Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under 253.24subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account 253.25to be distributed as provided in section 298.282. The amount allocated to the taconite 253.26municipal aid account must be annually increased in the same proportion as the increase in 253.27the implicit price deflator as provided in section 298.24, subdivision 1. 253.28 (b) An amount must be allocated to towns or cities that is annually certified by the county 253.29auditor of a county containing a taconite tax relief area as defined in section 273.134, 253.30paragraph (b) , within which there is (1) an organized township if, as of January 2, 1982, 253.31more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a 253.32city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city 253.33consists of iron ore. 254.1 (c) The amount allocated under paragraph (b) will be the portion of a township's or city's 254.2certified levy equal to the proportion of (1) the difference between 50 percent of January 254.32, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, 254.4assessed value in the case of a city and its current assessed value to (2) the sum of its current 254.5assessed value plus the difference determined in (1), provided that the amount distributed 254.6shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a 254.7city. For purposes of this limitation, population will be determined according to the 1980 254.8decennial census conducted by the United States Bureau of the Census. If the current assessed 254.9value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, 254.10or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, 254.11assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed 254.12value," when used in reference to years other than 1980 or 1982, means the appropriate net 254.13tax capacities multiplied by 10.2. 254.14 (d) In addition to other distributions under this subdivision, three cents per taxable ton 254.15for distributions in 2009 must be allocated for distribution to towns that are entirely located 254.16within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution 254.17in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent 254.18amount must be annually increased in the same proportion as the increase in the implicit 254.19price deflator as provided in section 298.24, subdivision 1. The amount available under this 254.20paragraph will be distributed to eligible towns on a per capita basis, provided that no town 254.21may receive more than $50,000 in any year under this paragraph. Any amount of the 254.22distribution that exceeds the $50,000 limitation for a town under this paragraph must be 254.23redistributed on a per capita basis among the other eligible towns, to whose distributions 254.24do not exceed $50,000. 254.25EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter. 254.26 Sec. 25. [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL 254.27PROJECTS. 254.28(a) Except as provided in paragraph (b), a governmental unit must not spend or use any 254.29money for any costs related to studying the feasibility of, planning for, designing, 254.30engineering, acquiring property or constructing facilities for or related to, or development 254.31or operation of intercity or interregional passenger rail facilities or operations between the 254.32city of Rochester, or locations in its metropolitan area, and any location in the metropolitan 254.33area, as defined in section 473.121, subdivision 2. 254.34(b) The restrictions under this section do not apply to: 255.1(1) funds the governmental unit obtains from contributions, grants, or other voluntary 255.2payments made by nongovernmental entities from private sources; 255.3(2) expenditures for costs of public infrastructure, including public utilities, parking 255.4facilities, a multimode transit hub, or similar projects located within the area of the 255.5development district, as defined under section 469.40, and reflected in the development 255.6plan adopted before the enactment of this section, that are intended to serve, and that are 255.7made following the completed construction and commencement of operation of privately 255.8financed and operated intercity or interregional passenger rail facilities; or 255.9(3) expenditures made after enactment of a law that explicitly adds the intercity or 255.10interregional passenger rail project for which the expenditures are made to the statewide 255.11freight and passenger rail plan under section 174.03, subdivision 1b. 255.12(c) For purposes of this section, "governmental unit" means any of the following, located 255.13in development regions 10 and 11, as designated under section 462.385, subdivision 1: 255.14(1) statutory or home rule charter city; 255.15(2) county; 255.16(3) special taxing district, as defined in section 275.066; 255.17(4) metropolitan planning organization; or 255.18(5) destination medical center entity, which includes the Destination Medical Center 255.19Corporation and agency, as those terms are defined in section 469.40, and any successor or 255.20related entity. 255.21EFFECTIVE DATE.This section is effective the day following final enactment without 255.22local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c). 255.23 Sec. 26. [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS. 255.24(a) Except as provided in paragraph (b), the council must not spend or use any money 255.25for any costs related to studying the feasibility of, planning for, designing, engineering, 255.26acquiring property or constructing facilities for or related to, or development or operation 255.27of intercity or interregional passenger rail facilities or operations between the city of 255.28Rochester or locations in its metropolitan area and any location in the metropolitan area, as 255.29defined in section 473.121, subdivision 2. 255.30(b) The restrictions under this section do not apply to: 256.1(1) funds the council obtains from contributions, grants, or other voluntary payments 256.2made by nongovernmental entities from private sources; or 256.3(2) expenditures made after enactment of a law that explicitly adds the intercity or 256.4interregional passenger rail project for which the expenditures are made to the statewide 256.5freight and passenger rail plan under section 174.03, subdivision 1b. 256.6EFFECTIVE DATE; APPLICATION.This section is effective the day following 256.7final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 256.8Scott, and Washington. 256.9 Sec. 27. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, 256.10article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read: 256.11 Sec. 58. 2010 DISTRIBUTIONS ONLY. 256.12 For distributions in 2010 only, a special fund is established to receive the sum of the 256.13following amounts that otherwise would be allocated under Minnesota Statutes, section 256.14298.28, subdivision 6 . The following amounts are allocated to St. Louis County acting as 256.15the fiscal agent for the recipients for the specific purposes: 256.16 (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives 256.17for at least two dentists to establish dental practices in high-need areas of the taconite tax 256.18relief area; 256.19(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 256.20heat at the Olcott Park Greenhouse/Virginia Commons project; 256.21(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs 256.22at the Miners Memorial; 256.23(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of 256.24Highway 142/Grant and Park Avenues; 256.25(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades 256.26and capital improvements to the public arena in Coleraine; 256.27(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 256.28pumphouse modifications; 256.29(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 256.30claims for water damage due to water and flood-related damage caused by the Canisteo Pit; 257.1(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child 257.2care center; 257.3(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades; 257.4(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library 257.5project; 257.6(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water 257.7and sewer services for Lakewood Housing; 257.8(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the 257.9Children's Museum; 257.10(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 257.11corrections. This amount must be matched by local sources; 257.12(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops; 257.13(15) 0.048 cent per ton must be paid to the city of Aitkin for signage; 257.14(16) 0.159 cent per ton must be paid to Aitkin County for a trail; 257.15(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad 257.16crossing; 257.17(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping 257.18of the community center parking lot; 257.19(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement; 257.20(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, 257.21milling, and overlay for Summit Street between Alaska Avenue and Highway 135; 257.22(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 257.23replacements and improvements in the Northeast Lower Alley area; 257.24(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz 257.25Road culvert; 257.26(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 257.27Street and associated infrastructure; 257.28(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements 257.29at the Park Ridge development; 258.1(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and 258.2site preparation for its renewable and sustainable energy park; 258.3(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 258.4improvements; 258.5(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding 258.6for the Summit Addition; 258.7(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 258.8improvements; 258.9(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer 258.10infrastructure improvements; 258.11(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 258.12improvements; 258.13(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 258.14improvements and land purchase, provided that if the city sells or otherwise disposes of any 258.15of the land purchased with the money provided under this clause within a period of ten five 258.16years after it was purchased, the city must transfer a portion of the proceeds of the sale equal 258.17to the amount of the purchase price paid from the money provided under this clause to the 258.18commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite 258.19environmental protection fund to be used for the purposes of the fund under Minnesota 258.20Statutes, section 298.223; 258.21(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 258.22improvements; 258.23(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 258.24improvements; 258.25(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 258.26improvements; 258.27(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 258.28improvements; 258.29(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 258.30improvements; 258.31(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 258.32improvements; 259.1(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements; 259.2(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 259.3infrastructure improvements; 259.4(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 259.5improvements at the athletic facility; 259.6(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 259.7improvements; 259.8(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure 259.9related to a housing development; 259.10(43) 0.159 cent per ton must be paid to Balkan Township for building improvements; 259.11(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit 259.12for a signage kiosk; 259.13(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines 259.14and adjacent development near County State-Aid Highway 24; and 259.15(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall 259.16infrastructure around the athletic complex. 259.17EFFECTIVE DATE.This section is effective the day following final enactment. 259.18 Sec. 28. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 259.19TACONITE TAX PROCEEDS. 259.20The commissioner of Iron Range Resources and Rehabilitation may use any unspent 259.21amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause 259.22(19), remaining as of May 22, 2016, for the specific purposes identified in that section. 259.23Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any 259.24other law to the contrary, interest accrued on this amount shall also be distributed to the 259.25recipient. Amounts under this section are available until expended and do not lapse or cancel 259.26under Minnesota Statutes, section 16A.28. 259.27EFFECTIVE DATE.This section is effective retroactively from May 22, 2016. 259.28 Sec. 29. 2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION. 259.29(a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph (a), 259.3025.1 cents per taxable ton of the tax collected under Minnesota Statutes, section 298.24, for 260.1production year 2016, shall be transferred by the commissioner of Iron Range Resources 260.2and Rehabilitation, as provided in paragraph (b), to the taconite economic development 260.3fund under Minnesota Statutes, section 298.227. 260.4(b) Of the amount transferred under paragraph (a), two-thirds shall be transferred from 260.5the taconite environmental protection fund, and one-third shall be transferred from the 260.6Douglas J. Johnson economic protection fund, and deposited into the taconite economic 260.7development fund by June 30, 2017. 260.8(c) Money from the taconite economic development fund shall be released as provided 260.9in Minnesota Statutes, section 298.227, except that no distribution shall be made to a taconite 260.10producer's fund unless the producer has timely paid its tax under Minnesota Statutes, section 260.11298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided for 260.12by administrative agreement. 260.13EFFECTIVE DATE.This section is effective the day following final enactment. 260.14 Sec. 30. SUPPLEMENT TO 2017 REPORT. 260.15By January 2, 2018, the commissioner of revenue shall prepare a supplement to the 2017 260.16tax incidence report containing the information required by section 6. 260.17EFFECTIVE DATE.This section is effective the day following final enactment. 260.18 Sec. 31. APPROPRIATION CANCELLATION. 260.19All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt 260.20Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled 260.21to the Minnesota 21st century fund on June 1, 2017. 260.22 Sec. 32. APPROPRIATIONS. 260.23In addition to other amounts appropriated, $5,000,000 in fiscal year 2018 and $5,000,000 260.24in fiscal year 2019 are appropriated from the general fund to the commissioner of revenue 260.25to administer this act. 260.26 Sec. 33. REPEALER. 260.27(a) Minnesota Statutes 2016, section 297F.05, subdivision 1a, is repealed. 260.28(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed. 261.1EFFECTIVE DATE.Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective 261.2the day following final enactment. 261.3ARTICLE 10 261.4DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION PROVISIONS 261.5 Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; 261.6DEFINITIONS. 261.7(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and 261.8609.5316, subdivision 3, the following terms have the meanings given. 261.9(b) "Automated sales suppression device" or "zapper" means a software program, carried 261.10on any tangible medium, or accessed through any other means, that falsifies the electronic 261.11records of electronic cash registers and other point-of-sale systems including, but not limited 261.12to, transaction data and transaction reports. 261.13(c) "Electronic cash register" means a device that keeps a register or supporting documents 261.14through the means of an electronic device or computer system designed to record transaction 261.15data for the purpose of computing, compiling, or processing retail sales transaction data in 261.16whatever manner. 261.17(d) "Phantom-ware" means hidden preinstalled or later-installed programming option 261.18embedded in the operating system of an electronic cash register or hardwired into the 261.19electronic cash register that can be used to create a virtual second electronic cash register 261.20or may eliminate or manipulate transaction records that may or may not be preserved in 261.21digital formats to represent the true or manipulated record of transactions in the electronic 261.22cash register. 261.23(e) "Transaction data" includes items purchased by a customer, the price of each item, 261.24the taxability determination for each item, a segregated tax amount for each of the taxed 261.25items, the date and time of the purchase, the name, address, and identification number of 261.26the vendor, and the receipt or invoice number of the transaction. 261.27(f) "Transaction report" means a report documenting, but not limited to, the sales, taxes 261.28collected, media totals, and discount voids at an electronic cash register that is printed on 261.29cash register tape at the end of a day or shift, or a report documenting every action at an 261.30electronic cash register that is stored electronically. 262.1EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota 262.2Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after 262.3August 1, 2017. 262.4 Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 262.5read: 262.6 Subd. 32. Sales suppression. (a) A person who: 262.7(1) sells; 262.8(2) transfers; 262.9(3) develops; 262.10(4) manufactures; or 262.11(5) possesses with the intent to sell or transfer 262.12an automated sales suppression device, zapper, phantom-ware, or similar device capable of 262.13being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under 262.14paragraph (b). 262.15(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total 262.16amount of all taxes and penalties due that are attributable to the use of any automated sales 262.17suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, 262.18development, or manufacture of the automated sales suppression device, zapper, 262.19phantom-ware, or similar device by the person. 262.20(c) The definitions in section 289A.14 apply to this subdivision. 262.21(d) This subdivision does not apply to the commissioner, a person acting at the direction 262.22of the commissioner, an agent of the commissioner, law enforcement agencies, or 262.23postsecondary education institutions that possess an automated sales suppression device, 262.24zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 262.25sales suppression devices, zappers, or phantom-ware. 262.26EFFECTIVE DATE.This section is effective for activities enumerated that occur on 262.27or after August 1, 2017. 263.1 Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 263.2read: 263.3 Subd. 12. Felony. (a) A person who sells, purchases, installs, transfers, develops, 263.4manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or 263.5similar device knowing that the device or phantom-ware is capable of being used to commit 263.6tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for 263.7not more than five years or to a payment of a fine of not more than $10,000, or both. 263.8(b) An automated sales suppression device, zapper, phantom-ware, and any other device 263.9containing an automated sales suppression, zapper, or phantom-ware device or software is 263.10contraband and subject to forfeiture under section 609.5316. 263.11(c) The definitions in section 289A.14 apply to this subdivision. 263.12(d) This subdivision does not apply to the commissioner, a person acting at the direction 263.13of the commissioner, an agent of the commissioner, law enforcement agencies, or 263.14postsecondary education institutions that possess an automated sales suppression device, 263.15zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 263.16sales suppression devices, zappers, or phantom-ware. 263.17EFFECTIVE DATE.This section is effective for activities enumerated that occur on 263.18or after August 1, 2017. 263.19 Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read: 263.20 Subd. 3. Weapons, telephone cloning paraphernalia, automated sales suppression 263.21devices, and bullet-resistant vests. Weapons used are contraband and must be summarily 263.22forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 263.23a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 263.24of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 263.25defined in section 609.486, worn or possessed during the commission or attempted 263.26commission of a crime are contraband and must be summarily forfeited to the appropriate 263.27agency upon conviction of the owner or possessor for a controlled substance crime or for 263.28any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 263.29609.894 , and automated sales suppression devices, phantom-ware, and other devices 263.30containing an automated sales suppression or phantom-ware device or software used in 263.31violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited 263.32to the appropriate agency upon a conviction. 264.1EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota 264.2Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017. 264.3ARTICLE 11 264.4DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 264.5PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES 264.6 Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read: 264.7 Subd. 11. Information included in income tax return. (a) The return must state: 264.8 (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 264.9of the taxpayer in the same name or names and same address as the taxpayer has used in 264.10making the taxpayer's income tax return to the United States; 264.11 (2) the date or dates of birth of the taxpayer or taxpayers; 264.12 (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 264.13has been issued by the United States with respect to the taxpayers; and 264.14 (4) the amount of the taxable income of the taxpayer as it appears on the federal return 264.15for the taxable year to which the Minnesota state return applies. 264.16 (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 264.17of the federal income tax return that the taxpayer has filed or is about to file for the period, 264.18unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 264.19by telefiling. 264.20EFFECTIVE DATE.This section is effective the day following final enactment. 264.21 Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read: 264.22 Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed. 264.23(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph 264.24(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue 264.25Code, and who reasonably expects to prepare more than ten Minnesota individual income, 264.26corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior 264.27calendar year must file all Minnesota individual income, corporate franchise, S corporation, 264.28partnership, or fiduciary income tax returns prepared for that calendar year by electronic 264.29means. 264.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 264.31that the taxpayer did not want the return filed by electronic means. 265.1(c) For each return that is not filed electronically by a tax refund or return preparer under 265.2this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is 265.3imposed upon the preparer. The fee is collected from the preparer in the same manner as 265.4income tax. The fee does not apply to returns that the commissioner requires to be filed in 265.5paper form. 265.6EFFECTIVE DATE.This section is effective for taxable years beginning after December 265.731, 2016. 265.8 Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read: 265.9 Subd. 2. Withholding statement. (a) A person required to deduct and withhold from 265.10an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 265.11who would have been required to deduct and withhold a tax under section 290.92, subdivision 265.122a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 265.13without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 265.14more than one withholding exemption, or who paid wages or made payments not subject 265.15to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 265.16employee or person receiving royalty payments in excess of $600, or who has entered into 265.17a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 265.18give every employee or person receiving royalty payments in respect to the remuneration 265.19paid by the person to the employee or person receiving royalty payments during the calendar 265.20year, on or before January 31 of the succeeding year, or, if employment is terminated before 265.21the close of the calendar year, within 30 days after the date of receipt of a written request 265.22from the employee if the 30-day period ends before January 31, a written statement showing 265.23the following: 265.24 (1) name of the person; 265.25 (2) the name of the employee or payee and the employee's or payee's Social Security 265.26account number; 265.27 (3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 265.28paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 265.29subdivision 20 ; the amount of sick pay as required under section 6051(f) of the Internal 265.30Revenue Code; and the amount of royalties subject to withholding under section 290.923, 265.31subdivision 2 ; and 265.32 (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a 265.33or 3, or 290.923, subdivision 2. 266.1 (b) The statement required to be furnished by paragraph (a) with respect to any 266.2remuneration must be furnished at those times, must contain the information required, and 266.3must be in the form the commissioner prescribes. 266.4 (c) The commissioner may prescribe rules providing for reasonable extensions of time, 266.5not in excess of 30 days, to employers or payers required to give the statements to their 266.6employees or payees under this subdivision. 266.7 (d) A duplicate of any statement made under this subdivision and in accordance with 266.8rules prescribed by the commissioner, along with a reconciliation in the form the 266.9commissioner prescribes of the statements for the calendar year, including a reconciliation 266.10of the quarterly returns required to be filed under subdivision 1, must be filed with the 266.11commissioner on or before February 28 January 31 of the year after the payments were 266.12made. 266.13 (e) If an employer cancels the employer's Minnesota withholding account number required 266.14by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 266.15with the commissioner within 30 days of the end of the quarter in which the employer 266.16cancels its account number. 266.17 (f) The employer must submit the statements required to be sent to the commissioner in 266.18the same manner required to satisfy the federal reporting requirements of section 6011(e) 266.19of the Internal Revenue Code and the regulations issued under it. An employer must submit 266.20statements to the commissioner required by this section by electronic means if the employer 266.21is required to send more than 25 statements to the commissioner, even though the employer 266.22is not required to submit the returns federally by electronic means. For statements issued 266.23for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 266.24required under section are aggregated for purposes of determining whether the 266.25electronic submission threshold is met. The commissioner shall prescribe the content, format, 266.26and manner of the statement pursuant to section 270C.30. 266.27 (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 266.28(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 266.29paragraph (a), with the commissioner by electronic means. 266.30EFFECTIVE DATE.This section is effective for statements required to be sent to the 266.31commissioner after December 31, 2017, except that the date change in paragraph (d) is 266.32effective for wages paid after December 31, 2016. 267.1 Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read: 267.2 Subd. 14. Regulated investment companies; Reporting exempt interest and 267.3exempt-interest dividends. (a) A regulated investment company paying $10 or more in 267.4exempt-interest dividends to an individual who is a resident of Minnesota, or any person 267.5receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee 267.6to an individual who is a resident of Minnesota, must make a return indicating the amount 267.7of the exempt interest or exempt-interest dividends, the name, address, and Social Security 267.8number of the recipient, and any other information that the commissioner specifies. The 267.9return must be provided to the shareholder recipient by February 15 of the year following 267.10the year of the payment. The return provided to the shareholder recipient must include a 267.11clear statement, in the form prescribed by the commissioner, that the exempt interest or 267.12exempt-interest dividends must be included in the computation of Minnesota taxable income. 267.13By June 1 of each year, the regulated investment company payer must file a copy of the 267.14return with the commissioner. 267.15 (b) For purposes of this subdivision, the following definitions apply. 267.16 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 267.17852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 267.18dividends that are not required to be added to federal taxable income under section 290.0131, 267.19subdivision 2 , paragraph (b). 267.20 (2) "Regulated investment company" means regulated investment company as defined 267.21in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 267.22as defined in section 851(g) of the Internal Revenue Code. 267.23 (3) "Exempt interest" means income on obligations of any state other than Minnesota, 267.24or a political or governmental subdivision, municipality, or governmental agency or 267.25instrumentality of any state other than Minnesota, and exempt from federal income taxes 267.26under the Internal Revenue Code or any other federal statute. 267.27EFFECTIVE DATE.This section is effective for reports required to be filed after 267.28December 31, 2017. 267.29 Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 267.30read: 267.31 Subd. 2a. Annual withholding returns; eligible employers. (a) An employer who 267.32deducts and withholds an amount required to be withheld by section 290.92 may file an 267.33annual return and make an annual payment of the amount required to be deducted and 268.1withheld for that calendar year if the employer has received a notification under paragraph 268.2(b). The ability to elect to file an annual return continues through the year following the 268.3year where an employer is required to deduct and withhold more than $500. 268.4(b) The commissioner is authorized to determine which employers are eligible to file 268.5an annual return and to notify employers who newly qualify to file an annual return because 268.6the amount an employer is required to deduct and withhold for that calendar year is $500 268.7or less based on the most recent period of four consecutive quarters for which the 268.8commissioner has compiled data on that employer's withholding tax for that period. At the 268.9time of notification, eligible employers may still decide to file returns and make deposits 268.10quarterly. An employer who decides to file returns and make deposits quarterly is required 268.11to make all returns and deposits required by this chapter and, notwithstanding paragraph 268.12(a), is subject to all applicable penalties for failing to do so. 268.13(c) If, at the end of any calendar month other than the last month of the calendar year, 268.14the aggregate amount of undeposited tax withheld by an employer who has elected to file 268.15an annual return exceeds $500, the employer must deposit the aggregate amount with the 268.16commissioner within 30 days of the end of the calendar month. 268.17(d) If an employer who has elected to file an annual return ceases to pay wages for which 268.18withholding is required, the employer must file a final return and deposit any undeposited 268.19tax within 30 days of the end of the calendar month following the month in which the 268.20employer ceased paying wages. 268.21(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return 268.22must file the return and pay the tax not previously deposited before February 1 of the year 268.23following the year in which the tax was withheld. 268.24(f) A notification to an employer regarding eligibility to file an annual return under 268.25Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a). 268.26EFFECTIVE DATE.This section is effective for taxable years beginning after December 268.2731, 2016. 268.28 Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read: 268.29 Subd. 2. Withholding from wages, entertainer withholding, withholding from 268.30payments to out-of-state contractors, and withholding by partnerships, small business 268.31corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax 268.32required to be deducted and withheld during the quarterly period must be paid on or before 268.33the last day of the month following the close of the quarterly period, unless an earlier time 269.1for payment is provided. A tax required to be deducted and withheld from compensation 269.2of an entertainer and from a payment to an out-of-state contractor must be paid on or before 269.3the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 269.4required to be deducted and withheld by partnerships, S corporations, and trusts must be 269.5paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 269.6trusts and under section 289A.26 for S corporations. 269.7(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 269.8under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 269.9withheld under those sections with the commissioner within the time allowed to deposit the 269.10employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 269.11section 31.6302-1, as amended through December 31, 2001, without regard to the safe 269.12harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 269.13must submit a copy of their federal notice of deposit status to the commissioner upon request 269.14by the commissioner. 269.15(c) The commissioner may prescribe by rule other return periods or deposit requirements. 269.16In prescribing the reporting period, the commissioner may classify payors according to the 269.17amount of their tax liability and may adopt an appropriate reporting period for the class that 269.18the commissioner judges to be consistent with efficient tax collection. In no event will the 269.19duration of the reporting period be more than one year. 269.20(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 269.21with respect to both the tax and the amount to be deducted must be made, without interest, 269.22in the manner and at the times the commissioner prescribes. If the underpayment cannot be 269.23adjusted, the amount of the underpayment will be assessed and collected in the manner and 269.24at the times the commissioner prescribes. 269.25(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 269.26June 30, the employer must remit each required deposit for wages paid in all subsequent 269.27calendar years by electronic means. 269.28(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 269.29clause (2), who remits withholding deposits must remit all deposits by electronic means as 269.30provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 269.31year for all of the employers. 269.32EFFECTIVE DATE.This section is effective for taxable years beginning after December 269.3331, 2016. 270.1 Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read: 270.2 Subdivision 1. Individual income, fiduciary income, mining company, corporate 270.3franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 270.4company, and corporate franchise taxes, and interest and penalties, must be paid by the 270.5taxpayer upon whom the tax is imposed, except in the following cases: 270.6(1) The tax due from a decedent for that part of the taxable year in which the decedent 270.7died during which the decedent was alive and the taxes, interest, and penalty due for the 270.8prior years must be paid by the decedent's personal representative, if any. If there is no 270.9personal representative, the taxes, interest, and penalty must be paid by the transferees, as 270.10defined in section 270C.58, subdivision 3, to the extent they receive property from the 270.11decedent; 270.12(2) The tax due from an infant or other incompetent person must be paid by the person's 270.13guardian or other person authorized or permitted by law to act for the person; 270.14(3) The tax due from the estate of a decedent must be paid by the estate's personal 270.15representative; 270.16(4) The tax due from a trust, including those within the definition of a corporation, as 270.17defined in section 290.01, subdivision 4, must be paid by a trustee; and 270.18(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 270.19trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 270.20of the business or property so far as the tax is due to the income from the business or property. 270.21(b) Entertainment taxes are the joint and several liability of the entertainer and the 270.22entertainment entity. The payor is liable to the state for the payment of the tax required to 270.23be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 270.24entertainer for the amount of the payment. 270.25(c) The tax taxes imposed under section sections 289A.35 and 290.0922 on partnerships 270.26is are the joint and several liability of the partnership and the general partners. 270.27EFFECTIVE DATE.This section is effective the day following final enactment. 270.28 Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read: 270.29289A.35 ASSESSMENTS ON RETURNS. 270.30(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 270.31income, items of federal tax preferences, or federal credit amounts to make them conform 270.32with the provisions of chapter 290 or section 298.01. If a return has been filed, the 271.1commissioner shall enter the liability reported on the return and may make any audit or 271.2investigation that is considered necessary. 271.3(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 271.4best interest of the state, the commissioner may allow S corporations and partnerships to 271.5receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 271.6owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 271.7be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b). 271.8(c) A taxpayer may petition the commissioner for the use of the method described in 271.9paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 271.10order of assessment has been issued. 271.11(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 271.12of a taxpayer cannot be appealed to the Tax Court or any other court. 271.13(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under 271.14chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 271.15shall notify the estate no later than nine months after the filing date, as provided by section 271.16289A.38, subdivision 2 , whether the return is under examination or the return has been 271.17processed as filed. 271.18EFFECTIVE DATE.This section is effective the day following final enactment. 271.19 Sec. 9. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read: 271.20 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 271.21the meanings given. 271.22(b) "Long-term care insurance" means a policy that: 271.23(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 271.24the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46; 271.25or provides similar coverage issued under the laws of another jurisdiction; and 271.26(2) has a lifetime long-term care benefit limit of not less than $100,000; and 271.27(3) has been offered in compliance with the inflation protection requirements of section 271.2862S.23 . 271.29(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse. 271.30(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 271.31long-term care insurance premiums that qualify as deductions under section 213 of the 272.1Internal Revenue Code; and (2) the total amount deductible for medical care under section 272.2213 of the Internal Revenue Code. 272.3EFFECTIVE DATE.This section is effective retroactively for taxable years beginning 272.4after December 31, 2012. 272.5 Sec. 10. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read: 272.6 Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 272.7given. 272.8 (a) "Qualified research expenses" means (i) qualified research expenses and basic research 272.9payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 272.10not include expenses incurred for qualified research or basic research conducted outside 272.11the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 272.12(ii) contributions to a nonprofit corporation established and operated pursuant to the 272.13provisions of chapter 317A for the purpose of promoting the establishment and expansion 272.14of business in this state, provided the contributions are invested by the nonprofit corporation 272.15for the purpose of providing funds for small, technologically innovative enterprises in 272.16Minnesota during the early stages of their development. 272.17 (b) "Qualified research" means qualified research as defined in section 41(d) of the 272.18Internal Revenue Code, except that the term does not include qualified research conducted 272.19outside the state of Minnesota. 272.20 (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 272.21Code, except that the average annual gross receipts and aggregate gross receipts must be 272.22calculated using Minnesota sales or receipts under section 290.191 and the definitions 272.23contained in clauses paragraphs (a) and (b) shall apply. 272.24EFFECTIVE DATE.This section is effective the day following final enactment. 272.25 Sec. 11. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read: 272.26 Subd. 2. Income not derived from conduct of a trade or business. The income of a 272.27taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 272.28business must be assigned in accordance with paragraphs (a) to (f): 272.29 (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 272.303401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 272.31that, the work of the employee is performed within it; all other income from such sources 272.32is treated as income from sources without this state. 273.1 Severance pay shall be considered income from labor or personal or professional services. 273.2 (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 273.3or entertainer, income from compensation for labor or personal services performed within 273.4this state shall be determined in the following manner: 273.5 (i) The amount of income to be assigned to Minnesota for an individual who is a 273.6nonresident salaried athletic team employee shall be determined by using a fraction in which 273.7the denominator contains the total number of days in which the individual is under a duty 273.8to perform for the employer, and the numerator is the total number of those days spent in 273.9Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 273.10at the team's facilities as part of a team imposed program, are not included in the total number 273.11of duty days. Bonuses earned as a result of play during the regular season or for participation 273.12in championship, play-off, or all-star games must be allocated under the formula. Signing 273.13bonuses are not subject to allocation under the formula if they are not conditional on playing 273.14any games for the team, are payable separately from any other compensation, and are 273.15nonrefundable; and 273.16 (ii) The amount of income to be assigned to Minnesota for an individual who is a 273.17nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 273.18athletic or entertainment performance in Minnesota shall be determined by assigning to this 273.19state all income from performances or athletic contests in this state. 273.20 (3) For purposes of this section, amounts received by a nonresident as "retirement income" 273.21as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 273.22Law 104-95, are not considered income derived from carrying on a trade or business or 273.23from wages or other compensation for work an employee performed in Minnesota, and are 273.24not taxable under this chapter. 273.25 (b) Income or gains from tangible property located in this state that is not employed in 273.26the business of the recipient of the income or gains must be assigned to this state. 273.27 (c) Income or gains from intangible personal property not employed in the business of 273.28the recipient of the income or gains must be assigned to this state if the recipient of the 273.29income or gains is a resident of this state or is a resident trust or estate. 273.30 Gain on the sale of a partnership interest is allocable to this state in the ratio of the 273.31original cost of partnership tangible property in this state to the original cost of partnership 273.32tangible property everywhere, determined at the time of the sale. If more than 50 percent 273.33of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 273.34the partnership interest is allocated to this state in accordance with the sales factor of the 274.1partnership for its first full tax period immediately preceding the tax period of the partnership 274.2during which the partnership interest was sold. 274.3Gain on the sale of an interest in a single member limited liability company that is 274.4disregarded for federal income tax purposes is allocable to this state as if the single member 274.5limited liability company did not exist and the assets of the limited liability company are 274.6personally owned by the sole member. 274.7 Gain on the sale of goodwill or income from a covenant not to compete that is connected 274.8with a business operating all or partially in Minnesota is allocated to this state to the extent 274.9that the income from the business in the year preceding the year of sale was assignable 274.10allocable to Minnesota under subdivision 3. 274.11 When an employer pays an employee for a covenant not to compete, the income allocated 274.12to this state is in the ratio of the employee's service in Minnesota in the calendar year 274.13preceding leaving the employment of the employer over the total services performed by the 274.14employee for the employer in that year. 274.15 (d) Income from winnings on a bet made by an individual while in Minnesota is assigned 274.16to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 274.172 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3). 274.18 (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 274.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile. 274.20 (f) For the purposes of this section, working as an employee shall not be considered to 274.21be conducting a trade or business. 274.22EFFECTIVE DATE.This section is effective the day following final enactment. 274.23 Sec. 12. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read: 274.24 Subdivision 1. Partners, not partnership, subject to tax. Except as provided under 274.25section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax 274.26imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 274.27carrying on business as partners shall be liable for income tax only in their separate or 274.28individual capacities. 274.29EFFECTIVE DATE.This section is effective the day following final enactment. 274.30 Sec. 13. Minnesota Statutes 2016, section 290A.19, is amended to read: 274.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE. 275.1(a) The owner or managing agent of any property for which rent is paid for occupancy 275.2as a homestead must furnish a certificate of rent paid to a person who is a renter on December 275.331, in the form prescribed by the commissioner. If the renter moves before December 31, 275.4the owner or managing agent may give the certificate to the renter at the time of moving, 275.5or mail the certificate to the forwarding address if an address has been provided by the 275.6renter. The certificate must be made available to the renter before February 1 of the year 275.7following the year in which the rent was paid. The owner or managing agent must retain a 275.8duplicate of each certificate or an equivalent record showing the same information for a 275.9period of three years. The duplicate or other record must be made available to the 275.10commissioner upon request. 275.11(b) The commissioner may require the owner or managing agent, through a simple 275.12process, to furnish to the commissioner on or before March 1 a copy of each certificate of 275.13rent paid furnished to a renter for rent paid in the prior year, in the content, format, and 275.14manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, 275.15the commissioner, after consulting with representatives of owners or managing agents, shall 275.16develop an implementation and administration plan for the requirements of this paragraph 275.17that attempts to minimize financial burdens, administration and compliance costs, and takes 275.18into consideration existing systems of owners and managing agents. 275.19(c) For the purposes of this section, "owner" includes a park owner as defined under 275.20section 327C.01, subdivision 6, and "property" includes a lot as defined under section 275.21327C.01, subdivision 3 . 275.22EFFECTIVE DATE.This section is effective for certificates of rent paid furnished to 275.23a renter for rent paid after December 31, 2016. 275.24 Sec. 14. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read: 275.25 Subd. 2. Additions. The following amounts, to the extent deducted in computing or 275.26otherwise excluded from the federal taxable estate, must be added in computing the 275.27Minnesota taxable estate: 275.28(1) the amount of the deduction for state death taxes allowed under section 2058 of the 275.29Internal Revenue Code; 275.30(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 275.31of the Internal Revenue Code; and 275.32(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 275.33Revenue Code, made by the decedent within three years of the date of death. For purposes 276.1of this clause, the amount of the addition equals the value of the gift under section 2512 of 276.2the Internal Revenue Code and excludes any value of the gift included in the federal estate. 276.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents 276.4dying after June 30, 2013. 276.5 Sec. 15. REPEALER. 276.6(a) Minnesota Rules, part 8092.1400, is repealed. 276.7(b) Minnesota Rules, part 8092.2000, is repealed. 276.8EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after 276.9December 31, 2016, except that notifications from the Department of Revenue to employers 276.10regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain 276.11in force. Paragraph (b) is effective the day following final enactment. 276.12ARTICLE 12 276.13DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 276.14PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES 276.15 Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read: 276.16 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 276.17apportionment, before the addition of the minimum fire state aid allocation amount under 276.18subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 276.19the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 276.20commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 276.21be reduced by the amount required to pay the state auditor's costs and expenses of the audits 276.22or exams of the firefighters relief associations. 276.23The total amount for apportionment in respect to fire state aid must not be less than two 276.24percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 276.25Premium Report after subtracting the following amounts: 276.26(1) the amount required to pay the state auditor's costs and expenses of the audits or 276.27exams of the firefighters relief associations; and 276.28(2) one percent of the premiums reported by town and farmers' township mutual insurance 276.29companies and mutual property and casualty companies with total assets of $5,000,000 or 276.30less. 277.1(b) The total amount for apportionment as police state aid is equal to 104 percent of the 277.2amount of premium taxes paid to the state on the premiums reported to the commissioner 277.3by insurers on the Minnesota Aid to Police Premium Report. The total amount for 277.4apportionment in respect to the police state aid program must not be less than two percent 277.5of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 277.6to Police Premium Report. 277.7(c) The commissioner shall calculate the percentage of increase or decrease reflected in 277.8the apportionment over or under the previous year's available state aid using the same 277.9premiums as a basis for comparison. 277.10(d) In addition to the amount for apportionment of police state aid under paragraph (b), 277.11each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 277.12this increase is annually appropriated from the general fund. 277.13EFFECTIVE DATE.This section is effective the day following final enactment. 277.14 Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read: 277.15 Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 277.166-1/2 years after the due date of the return or the date the return was filed, whichever is 277.17later, if: 277.18(1) the taxpayer omits from gross income an amount properly includable in it that is in 277.19excess of 25 percent of the amount of gross income stated in the return; 277.20(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax 277.21imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes 277.22reported in the return; or 277.23(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 277.24estate reported in the return. 277.25EFFECTIVE DATE.This section is effective the day following final enactment. 277.26 Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read: 277.27 Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this 277.28section: 277.29(1) corporations exempt from tax under section 290.05; 277.30(2) real estate investment trusts; 278.1(3) regulated investment companies or a fund thereof; and 278.2(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 278.3Code; 278.4(5) town and farmers' township mutual insurance companies; 278.5(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 278.6to persons age 55 and over and are classified as homesteads under section 273.124, 278.7subdivision 3 ; and 278.8(7) a qualified business as defined under section 469.310, subdivision 11, if for the 278.9taxable year all of its property is located in a job opportunity building zone designated under 278.10section 469.314 and all of its payroll is a job opportunity building zone payroll under section 278.11469.310 . 278.12Entities not specifically exempted by this subdivision are subject to tax under this section, 278.13notwithstanding section 290.05. 278.14EFFECTIVE DATE.This section is effective the day following final enactment. 278.15 Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read: 278.16 Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total 278.17amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 278.18subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 278.19distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 278.20the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 278.21295.52 , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 278.22under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 278.23refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 278.24the annual return as provided under section 295.55, subdivision 5 prescribed by the 278.25commissioner, on or before March 15 of the year following the calendar year the legend 278.26drugs were delivered outside Minnesota. The refund must be claimed within 18 months 278.27from the date the drugs were delivered outside of Minnesota shall not be allowed if the 278.28initial claim for refund is filed more than one year after the original due date of the return. 278.29Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 278.30claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 278.31date of the return if a return is due or the date of the actual claim for refund, whichever is 278.32later. 279.1EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered 279.2outside Minnesota after December 31, 2017. 279.3 Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 279.4read: 279.5 Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility" 279.6means a single property, or contiguous or adjacent properties used for a common purpose 279.7and owned or operated by the same person, on or in which are located one or more stationary 279.8tanks that are used singularly or in combination for the storage or containment of more than 279.91,100 gallons of petroleum. 279.10EFFECTIVE DATE.This section is effective the day following final enactment. 279.11 Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read: 279.12 Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless 279.13of its composition or properties, used to propel a motor vehicle. 279.14EFFECTIVE DATE.This section is effective the day following final enactment. 279.15 Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read: 279.16 Subd. 42. Petroleum products. "Petroleum products" means all of the products defined 279.17in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35. 279.18EFFECTIVE DATE.This section is effective the day following final enactment. 279.19 Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read: 279.20 Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 279.21blended with ethanol, and agricultural alcohol gasoline used in producing and generating 279.22power for propelling motor vehicles used on the public highways of this state. The tax is 279.23imposed on the first licensed distributor who received the product in Minnesota. For purposes 279.24of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 279.2525, 32, and 34 . The tax is payable at the time and in the form and manner prescribed by the 279.26commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 279.27exceptions and reductions specified in section 296A.17. 279.28EFFECTIVE DATE.This section is effective the day following final enactment. 280.1 Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read: 280.2 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed 280.3in this chapter to the extent provided. 280.4(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 280.5or partnership is exempt if the transfer constitutes a transfer within the meaning of section 280.6351 or 721 of the Internal Revenue Code. 280.7(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 280.8an aircraft for which a commercial use permit has been issued pursuant to section 360.654 280.9is exempt, if the aircraft is resold while the permit is in effect. 280.10(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 280.11companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 280.12subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 280.13maintenance of such air flight equipment, and flight simulators, but does not include airplanes 280.14aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on 280.15intermittent or irregularly timed flights. 280.16(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 280.17section 360.511 and approved by the Federal Aviation Administration, and which the seller 280.18delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 280.19transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 280.20a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 280.21within Minnesota, except in the course of interstate commerce or isolated and occasional 280.22use, and will be registered in another state or country upon its removal from Minnesota. 280.23This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 280.24and uses the aircraft in the state exclusively for training purposes for a period not to exceed 280.25ten days prior to removing the aircraft from this state. 280.26(f) The sale or purchase of the following items that relate to aircraft operated under 280.27Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 280.28equipment and parts necessary for repair and maintenance of aircraft; and equipment and 280.29parts to upgrade and improve aircraft. 280.30EFFECTIVE DATE.This section is effective for sales and purchases made after 280.31December 31, 2017. 281.1 Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read: 281.2 Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and penalties, 281.3collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 281.4in the state airports fund established in section 360.017. For purposes of this subdivision, 281.5"revenue" does not include the revenue, including interest and penalties, generated by the 281.6sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as 281.7provided under article XI, section 15, of the Minnesota Constitution. 281.8EFFECTIVE DATE.This section is effective the day following final enactment. 281.9 Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read: 281.10 Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions 281.11imposed by this chapter, a person, organization, or business entity possessing or selling a 281.12pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 281.13this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 281.14pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 281.15be assessed as if it were a full deal. 281.16(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) 281.17not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 281.18or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 281.19609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six 281.20percent of the gross receipts from that activity. 281.21(c) The tax must may be assessed by the commissioner. An assessment must be considered 281.22a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 281.23commissioner shall assess the tax based on personal knowledge or information available to 281.24the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 281.25address, or serve in person, a written notice of the amount of tax, demand its immediate 281.26payment, and, if payment is not immediately made, collect the tax by any method described 281.27in chapter 270C, except that the commissioner need not await the expiration of the times 281.28specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 281.29and correctly determined and assessed. The burden is upon the taxpayer to show its 281.30incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 281.31that is exempt from taxation under subdivision 2. 281.32(d) A person, organization, or business entity conducting gambling activity under this 281.33subdivision must file monthly tax returns with the commissioner, in the form required by 282.1the commissioner. The returns must be filed on or before the 20th day of the month following 282.2the month in which the gambling activity occurred. The tax imposed by this section is due 282.3and payable at the time when the returns are required to be filed. 282.4(e) Notwithstanding any law to the contrary, neither the commissioner nor a public 282.5employee may reveal facts contained in a tax return filed with the commissioner of revenue 282.6as required by this subdivision, nor can any information contained in the report or return 282.7be used against the tax obligor in any criminal proceeding, unless independently obtained, 282.8except in connection with a proceeding involving taxes due under this section, or as provided 282.9in section 270C.055, subdivision 1. However, this paragraph does not prohibit the 282.10commissioner from publishing statistics that do not disclose the identity of tax obligors or 282.11the contents of particular returns or reports. Any person violating this paragraph is guilty 282.12of a gross misdemeanor. 282.13EFFECTIVE DATE.This section is effective for games played or purchased after June 282.1430, 2017. 282.15 Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read: 282.16 Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal 282.17solid waste or upon the volume of nonmixed municipal solid waste for waste management 282.18services to manage the following materials: 282.19(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 282.20of Minnesota; 282.21(2) recyclable materials that are separated for recycling by the generator, collected 282.22separately from other waste, and recycled, to the extent the price of the service for handling 282.23recyclable material is separately itemized on a bill to the generator; 282.24(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 282.25generator, collected separately from other waste, delivered to a waste facility for the purpose 282.26of recycling, and recycled; 282.27(4) industrial waste, when it is transported to a facility owned and operated by the same 282.28person that generated it; 282.29(5) mixed municipal solid waste from a recycling facility that separates or processes 282.30recyclable materials and reduces the volume of the waste by at least 85 percent, provided 282.31that the exempted waste is managed separately from other waste; 283.1(6) recyclable materials that are separated from mixed municipal solid waste by the 283.2generator, collected and delivered to a waste facility that recycles at least 85 percent of its 283.3waste, and are collected with mixed municipal solid waste that is segregated in leakproof 283.4bags, provided that the mixed municipal solid waste does not exceed five percent of the 283.5total weight of the materials delivered to the facility and is ultimately delivered to a waste 283.6facility identified as a preferred waste management facility in county solid waste plans 283.7under section 115A.46; 283.8(7) source-separated compostable waste materials, if the waste is materials are delivered 283.9to a facility exempted as described in this clause. To initially qualify for an exemption, a 283.10facility must apply for an exemption in its application for a new or amended solid waste 283.11permit to the Pollution Control Agency. The first time a facility applies to the agency it 283.12must certify in its application that it will comply with the criteria in items (i) to (v) and the 283.13commissioner of the agency shall so certify to the commissioner of revenue who must grant 283.14the exemption. The facility must annually apply to the agency for certification to renew its 283.15exemption for the following year. The application must be filed according to the procedures 283.16of, and contain the information required by, the agency. The commissioner of revenue shall 283.17grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 283.18to the commissioner of revenue that based on an evaluation of the composition of incoming 283.19waste and residuals and the quality and use of the product: 283.20(i) generators separate materials at the source; 283.21(ii) the separation is performed in a manner appropriate to the technology specific to the 283.22facility that: 283.23(A) maximizes the quality of the product; 283.24(B) minimizes the toxicity and quantity of residuals rejects; and 283.25(C) provides an opportunity for significant improvement in the environmental efficiency 283.26of the operation; 283.27(iii) the operator of the facility educates generators, in coordination with each county 283.28using the facility, about separating the waste to maximize the quality of the waste stream 283.29for technology specific to the facility; 283.30(iv) process residuals rejects do not exceed 15 percent of the weight of the total material 283.31delivered to the facility; and 283.32(v) the final product is accepted for use; 283.33(8) waste and waste by-products for which the tax has been paid; and 284.1(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 284.2Control Agency. 284.3EFFECTIVE DATE.This section is effective the day following final enactment. 284.4 Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read: 284.5 Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on town 284.6and farmers' township mutual insurance companies. The rate of tax is equal to one percent 284.7of gross premiums less return premiums on all direct business received by the insurer or 284.8agents of the insurer in Minnesota, in cash or otherwise, during the year. 284.9EFFECTIVE DATE.This section is effective the day following final enactment. 284.10 Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read: 284.11 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a 284.12surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 284.13premiums, less return premiums, on all direct business received by any licensed foreign or 284.14domestic fire insurance company on property in a city of the first class, or by its agents for 284.15it, in cash or otherwise. 284.16(b) By July 31 and December 31 of each year, the commissioner of management and 284.17budget shall pay to each city of the first class a warrant for an amount equal to the total 284.18amount of the surcharge on the premiums collected within that city since the previous 284.19payment. 284.20(c) The treasurer of the city shall place the money received under this subdivision in a 284.21special account or fund to defray all or a portion of the employer contribution requirement 284.22of public employees police and fire plan coverage for city firefighters. 284.23EFFECTIVE DATE.This section is effective the day following final enactment. 284.24 Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read: 284.25 Subd. 3. Appropriation. The amount necessary to make the payments required under 284.26this section is appropriated to the commissioner of management and budget from the general 284.27fund. 284.28EFFECTIVE DATE.This section is effective the day following final enactment. 285.1 Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read: 285.2 Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining 285.3taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7 285.4and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income. 285.5(b) The amount of net operating loss incurred in a taxable year beginning before January 285.61, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 285.7the amount of net operating loss carryover determined in the calculation of the hypothetical 285.8corporate franchise tax under Minnesota Statutes 1988, sections and . 285.9EFFECTIVE DATE.This section is effective the day following final enactment. 285.10ARTICLE 13 285.11DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 285.12PROVISIONS; PROPERTY TAX 285.13 Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read: 285.14 Subd. 2. Income property assessment data. The following data collected by political 285.15subdivisions and the state from individuals or business entities concerning income properties 285.16are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12: 285.17(a) detailed income and expense figures; 285.18(b) average vacancy factors; 285.19(c) verified net rentable areas or net usable areas, whichever is appropriate; 285.20(d) anticipated income and expenses; 285.21(e) projected vacancy factors; and 285.22(f) lease information. 285.23EFFECTIVE DATE.This section is effective the day following final enactment. 285.24 Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read: 285.25 Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft of 285.26persons or property for hire in interstate, intrastate, or international transportation on regularly 285.27scheduled flights or on intermittent or irregularly timed flights by airline companies and 285.28includes transportation by any airline company making three or more flights in or out of 285.29Minnesota, or within Minnesota, during a calendar year. 286.1(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 286.2flight, a flight arranged at the convenience of an airline and the person contracting for the 286.3transportation, or a charter flight. It includes any airline company making three or more 286.4flights in or out of Minnesota during a calendar year. 286.5(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 286.6owned and used for private air flight purposes if the person furnishing the transportation 286.7does not hold out to be engaged regularly in transportation for hire. 286.8EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 286.9 Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read: 286.10 Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used 286.11in connection therewith, including spare flight equipment. Flight property also includes 286.12computers and computer software used in operating, controlling, or regulating aircraft and 286.13flight equipment. Flight property does not include aircraft with a maximum takeoff weight 286.14of less than 30,000 pounds. 286.15EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 286.16 Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read: 286.17 Subd. 8. Person. "Person" means any an individual, corporation, firm, copartnership, 286.18company, or association, and includes any guardian, trustee, executor, administrator, receiver, 286.19conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary, 286.20partnership, company, corporation, limited liability company, association, governmental 286.21unit or agency, public or private organization of any kind, or other legal entity. 286.22EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 286.23 Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 286.24read: 286.25 Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly timed 286.26flights" means any flight in which the departure time, departure location, and arrival location 286.27are specifically negotiated with the customer or the customer's representative, including but 286.28not limited to charter flights. 286.29EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 287.1 Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read: 287.2 Subd. 2. Assessment of flight property. Flight property that is owned by, or is leased, 287.3loaned, or otherwise made available to an airline company operating in Minnesota shall be 287.4assessed and appraised annually by the commissioner with reference to its value on January 287.52 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 287.6with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 287.7flights shall be excluded from the provisions of sections to . 287.8EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 287.9 Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read: 287.10 Subd. 3. Report by airline company. (a) Each year, on or before July 1, every airline 287.11company engaged in air commerce in this state shall file with the commissioner a report 287.12under oath setting forth specifically the information prescribed by the commissioner to 287.13enable the commissioner to make the assessment required in sections 270.071 to 270.079, 287.14unless the commissioner determines that the airline company or person should be excluded 287.15from is exempt from filing because its activities do not constitute air commerce as defined 287.16herein. 287.17 (b) The commissioner shall prescribe the content, format, and manner of the report 287.18pursuant to section 270C.30, except that a "law administered by the commissioner" includes 287.19the property tax laws. If a report is made by electronic means, the taxpayer's signature is 287.20defined pursuant to section 270C.304, except that a "law administered by the commissioner" 287.21includes the property tax laws. 287.22EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports filed in 287.232018 and thereafter. The amendment adding paragraph (b) is effective the day following 287.24final enactment. 287.25 Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 287.26read: 287.27 Subd. 3a. Commissioner filed reports. If an airline company fails to file a report required 287.28by subdivision 3, the commissioner may, from information in the commissioner's possession 287.29or obtainable by the commissioner, make and file a report for the airline company, or may 287.30issue a notice of net tax capacity and tax under section 270.075, subdivision 2. 287.31EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 288.1 Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 288.2read: 288.3 Subd. 6. Reassessment orders. If the State Board of Equalization determines that a 288.4considerable amount of property has been undervalued or overvalued compared to like 288.5property such that the assessment is grossly unfair or inequitable, the State Board of 288.6Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders 288.7to the county assessor to reassess all parcels or an identified set of parcels in a county. 288.8EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 288.9 Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read: 288.10 Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 288.11commissioner a copy of the abstract that will be acted upon by the local and county boards 288.12of review. The abstract must list the real and personal property in the county itemized by 288.13assessment districts. The assessor of each county in the state shall file with the commissioner, 288.14within ten working days following final action of the local board of review or equalization 288.15and within five days following final action of the county board of equalization, any changes 288.16made by the local or county board. The information must be filed in the manner prescribed 288.17by the commissioner. It must be accompanied by a printed or typewritten copy of the 288.18proceedings of the appropriate board. 288.19EFFECTIVE DATE.This section is effective for local and county boards of appeal 288.20and equalization meetings held in 2017 and thereafter. 288.21 Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read: 288.22 Subd. 9. Personal property; exceptions. Except for the taxable personal property 288.23enumerated below, all personal property and the property described in section 272.03, 288.24subdivision 1 , paragraphs (c) and (d), shall be exempt. 288.25The following personal property shall be taxable: 288.26(a) personal property which is part of (1) an electric generating, transmission, or 288.27distribution system or; (2) a pipeline system transporting or distributing water, gas, crude 288.28oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot 288.29or chilled water for heating or cooling buildings and structures; 288.30(b) railroad docks and wharves which are part of the operating property of a railroad 288.31company as defined in section 270.80; 289.1(c) personal property defined in section 272.03, subdivision 2, clause (3); 289.2(d) leasehold or other personal property interests which are taxed pursuant to section 289.3272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 289.4providing the property is taxable as if the lessee or user were the fee owner; 289.5(e) manufactured homes and sectional structures, including storage sheds, decks, and 289.6similar removable improvements constructed on the site of a manufactured home, sectional 289.7structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 289.8(f); and 289.9(f) flight property as defined in section 270.071. 289.10EFFECTIVE DATE.This section is effective the day following final enactment. 289.11 Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 289.12 Subd. 2. Definitions. (a) For the purposes of this section, the term: 289.13(1) "wind energy conversion system" has the meaning given in section 216C.06, 289.14subdivision 19, and also includes a substation that is used and owned by one or more wind 289.15energy conversion facilities; 289.16(2) "large scale wind energy conversion system" means a wind energy conversion system 289.17of more than 12 megawatts, as measured by the nameplate capacity of the system or as 289.18combined with other systems as provided in paragraph (b); 289.19(3) "medium scale wind energy conversion system" means a wind energy conversion 289.20system of over two and not more than 12 megawatts, as measured by the nameplate capacity 289.21of the system or as combined with other systems as provided in paragraph (b); and 289.22(4) "small scale wind energy conversion system" means a wind energy conversion system 289.23of two megawatts and under, as measured by the nameplate capacity of the system or as 289.24combined with other systems as provided in paragraph (b). 289.25(b) For systems installed and contracted for after January 1, 2002, the total size of a 289.26wind energy conversion system under this subdivision shall be determined according to this 289.27paragraph. Unless the systems are interconnected with different distribution systems, the 289.28nameplate capacity of one wind energy conversion system shall be combined with the 289.29nameplate capacity of any other wind energy conversion system that is: 289.30(1) located within five miles of the wind energy conversion system; 290.1(2) constructed within the same calendar year 12-month period as the wind energy 290.2conversion system; and 290.3(3) under common ownership. 290.4In the case of a dispute, the commissioner of commerce shall determine the total size of 290.5the system, and shall draw all reasonable inferences in favor of combining the systems. 290.6(c) In making a determination under paragraph (b), the commissioner of commerce may 290.7determine that two wind energy conversion systems are under common ownership when 290.8the underlying ownership structure contains similar persons or entities, even if the ownership 290.9shares differ between the two systems. Wind energy conversion systems are not under 290.10common ownership solely because the same person or entity provided equity financing for 290.11the systems. 290.12EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter. 290.13 Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 290.14to read: 290.15 Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing 290.16the report required by subdivision 4. The extension must not exceed 15 days. 290.17EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter. 290.18 Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read: 290.19 Subd. 7. Division of duties between local and county assessor. The duty of the duly 290.20appointed local assessor shall be to view and appraise the value of all property as provided 290.21by law, but all the book work shall be done by the county assessor, or the assessor's assistants, 290.22and the value of all property subject to assessment and taxation shall be determined by the 290.23county assessor, except as otherwise hereinafter provided. If directed by the county assessor, 290.24the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), 290.25and must enter construction and valuation data into the records in the manner prescribed 290.26by the county assessor. 290.27EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 290.28 Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read: 290.29273.08 ASSESSOR'S DUTIES. 291.1The assessor shall actually view, and determine the market value of each tract or lot of 291.2real property listed for taxation, including the value of all improvements and structures 291.3thereon, at maximum intervals of five years and shall enter the value opposite each 291.4description. When directed by the county assessor, local assessors must enter construction 291.5and valuation data into the records in the manner prescribed by the county assessor. 291.6EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 291.7 Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 291.8to read: 291.9 Subd. 3. Compliance. A county assessor, or a city assessor having the powers of a 291.10county assessor, who does not comply with the timely notice requirement under subdivision 291.111 must: 291.12(1) mail an additional valuation notice to each person who was not provided timely 291.13notice; and 291.14(2) convene a supplemental local board of appeal and equalization or local review session 291.15no sooner than ten days after sending the additional notices required by clause (1). 291.16EFFECTIVE DATE.This section is effective for valuation notices sent in 2018 and 291.17thereafter. 291.18 Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read: 291.19 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 291.20(c), real estate which is residential and used for homestead purposes is class 1a. In the case 291.21of a duplex or triplex in which one of the units is used for homestead purposes, the entire 291.22property is deemed to be used for homestead purposes. The market value of class 1a property 291.23must be determined based upon the value of the house, garage, and land. 291.24 The first $500,000 of market value of class 1a property has a net classification rate of 291.25one percent of its market value; and the market value of class 1a property that exceeds 291.26$500,000 has a classification rate of 1.25 percent of its market value. 291.27 (b) Class 1b property includes homestead real estate or homestead manufactured homes 291.28used for the purposes of a homestead by: 291.29 (1) any person who is blind as defined in section 256D.35, or the blind person and the 291.30blind person's spouse; 292.1 (2) any person who is permanently and totally disabled or by the disabled person and 292.2the disabled person's spouse; or 292.3 (3) the surviving spouse of a permanently and totally disabled veteran homesteading a 292.4property classified under this paragraph for taxes payable in 2008. 292.5 Property is classified and assessed under clause (2) only if the government agency or 292.6income-providing source certifies, upon the request of the homestead occupant, that the 292.7homestead occupant satisfies the disability requirements of this paragraph, and that the 292.8property is not eligible for the valuation exclusion under subdivision 34. 292.9 Property is classified and assessed under paragraph (b) only if the commissioner of 292.10revenue or the county assessor certifies that the homestead occupant satisfies the requirements 292.11of this paragraph. 292.12 Permanently and totally disabled for the purpose of this subdivision means a condition 292.13which is permanent in nature and totally incapacitates the person from working at an 292.14occupation which brings the person an income. The first $50,000 market value of class 1b 292.15property has a net classification rate of .45 percent of its market value. The remaining market 292.16value of class 1b property has a classification rate using the rates for is classified as class 292.171a or class 2a property, whichever is appropriate, of similar market value. 292.18 (c) Class 1c property is commercial use real and personal property that abuts public 292.19water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 292.20seasonal residential occupancy for recreational purposes but not devoted to commercial 292.21purposes for more than 250 days in the year preceding the year of assessment, and that 292.22includes a portion used as a homestead by the owner, which includes a dwelling occupied 292.23as a homestead by a shareholder of a corporation that owns the resort, a partner in a 292.24partnership that owns the resort, or a member of a limited liability company that owns the 292.25resort even if the title to the homestead is held by the corporation, partnership, or limited 292.26liability company. For purposes of this paragraph, property is devoted to a commercial 292.27purpose on a specific day if any portion of the property, excluding the portion used 292.28exclusively as a homestead, is used for residential occupancy and a fee is charged for 292.29residential occupancy. Class 1c property must contain three or more rental units. A "rental 292.30unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 292.31site equipped with water and electrical hookups for recreational vehicles. Class 1c property 292.32must provide recreational activities such as the rental of ice fishing houses, boats and motors, 292.33snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 292.34services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 293.1the property is transferred to an individual or entity by deeded interest, or the sale of shares 293.2or stock, no longer qualifies for class 1c even though it may remain available for rent. A 293.3camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 293.41c, regardless of the term of the rental agreement, as long as the use of the camping pad 293.5does not exceed 250 days. If the same owner owns two separate parcels that are located in 293.6the same township, and one of those properties is classified as a class 1c property and the 293.7other would be eligible to be classified as a class 1c property if it was used as the homestead 293.8of the owner, both properties will be assessed as a single class 1c property; for purposes of 293.9this sentence, properties are deemed to be owned by the same owner if each of them is 293.10owned by a limited liability company, and both limited liability companies have the same 293.11membership. The portion of the property used as a homestead is class 1a property under 293.12paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 293.13market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 293.14market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 293.151.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 293.16temporary and seasonal residential occupancy for recreation purposes in which all or a 293.17portion of the property was devoted to commercial purposes for not more than 250 days in 293.18the year preceding the year of assessment desiring classification as class 1c, must submit a 293.19declaration to the assessor designating the cabins or units occupied for 250 days or less in 293.20the year preceding the year of assessment by January 15 of the assessment year. Those 293.21cabins or units and a proportionate share of the land on which they are located must be 293.22designated as class 1c as otherwise provided. The remainder of the cabins or units and a 293.23proportionate share of the land on which they are located must be designated as class 3a 293.24commercial. The owner of property desiring designation as class 1c property must provide 293.25guest registers or other records demonstrating that the units for which class 1c designation 293.26is sought were not occupied for more than 250 days in the year preceding the assessment 293.27if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 293.28(4) conference center or meeting room, and (5) other nonresidential facility operated on a 293.29commercial basis not directly related to temporary and seasonal residential occupancy for 293.30recreation purposes does not qualify for class 1c. 293.31 (d) Class 1d property includes structures that meet all of the following criteria: 293.32 (1) the structure is located on property that is classified as agricultural property under 293.33section 273.13, subdivision 23; 293.34 (2) the structure is occupied exclusively by seasonal farm workers during the time when 293.35they work on that farm, and the occupants are not charged rent for the privilege of occupying 294.1the property, provided that use of the structure for storage of farm equipment and produce 294.2does not disqualify the property from classification under this paragraph; 294.3 (3) the structure meets all applicable health and safety requirements for the appropriate 294.4season; and 294.5 (4) the structure is not salable as residential property because it does not comply with 294.6local ordinances relating to location in relation to streets or roads. 294.7 The market value of class 1d property has the same classification rates as class 1a property 294.8under paragraph (a). 294.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 294.10 Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read: 294.11 Subdivision 1. Listing and assessment in county. The personal property of express, 294.12stage and transportation companies, and of pipeline companies engaged in the business of 294.13transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise 294.14provided by law, shall be listed and assessed in the county, town or district where the same 294.15is usually kept. 294.16EFFECTIVE DATE.This section is effective the day following final enactment. 294.17 Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read: 294.18 Subd. 2. Listing and assessment by commissioner. The personal property, consisting 294.19of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 294.20and others engaged in the operations or business of transporting natural gas, gasoline, crude 294.21oil, or other petroleum products by pipelines, shall be listed with and assessed by the 294.22commissioner of revenue and the values provided to the city or county assessor by order. 294.23This subdivision shall not apply to the assessment of the products transported through the 294.24pipelines nor to the lines of local commercial gas companies engaged primarily in the 294.25business of distributing gas products to consumers at retail nor to pipelines used by the 294.26owner thereof to supply natural gas or other petroleum products exclusively for such owner's 294.27own consumption and not for resale to others. If more than 85 percent of the natural gas or 294.28other petroleum products actually transported over the pipeline is used for the owner's own 294.29consumption and not for resale to others, then this subdivision shall not apply; provided, 294.30however, that in that event, the pipeline shall be assessed in proportion to the percentage 294.31of gas products actually transported over such pipeline that is not used for the owner's own 294.32consumption. On or before August 1, the commissioner shall certify to the auditor of each 295.1county, the amount of such personal property assessment against each company in each 295.2district in which such property is located. If the commissioner determines that the amount 295.3of personal property assessment certified on or before August 1 is in error, the commissioner 295.4may issue a corrected certification on or before October 1. The commissioner may correct 295.5errors that are merely clerical in nature until December 31. 295.6EFFECTIVE DATE.This section is effective the day following final enactment. 295.7 Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read: 295.8 Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to 295.9be brought against the commissioner under this section, the petition initiating the appeal 295.10must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 295.11as provided in paragraph (b) or (c). 295.12(b) If the appeal to court is from an order of the commissioner, it must be brought under 295.13chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, 295.14except that when the provisions of this section conflict with chapter 271 or 278, this section 295.15prevails. In addition, the petition must include all the parcels encompassed by that order 295.16which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 295.17at a valuation greater than their real or actual value, misclassified, or are exempt. For this 295.18purpose, an order of the commissioner is either (1) a certification or notice of value by the 295.19commissioner for property described in subdivision 1, or (2) the final determination by the 295.20commissioner of either an administrative appeal conference or informal administrative 295.21appeal described in subdivision 4. 295.22(c) If the appeal is from the tax that results from implementation of the commissioner's 295.23order, certification, or recommendation, it must be brought under chapter 278, and the 295.24provisions in that chapter apply, except that service shall be on the commissioner only and 295.25not on the local officials specified in section 278.01, subdivision 1, and if any other provision 295.26of this section conflicts with chapter 278, this section prevails. In addition, the petition must 295.27include either all the utility parcels or all the railroad parcels in the state in which the 295.28petitioner claims an interest and which the petitioner claims have been partially, unfairly, 295.29or unequally assessed, assessed at a valuation greater than their real or actual value, 295.30misclassified, or are exempt. 295.31EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 296.1 Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read: 296.2 Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 296.3270.82 or 273.371 by the date specified in that section, or by the date specified by the 296.4commissioner in an extension, may appeal administratively to the commissioner prior to 296.5bringing an action in court. 296.6 (b) Companies that must submit reports under section must submit file a written 296.7request to for an appeal with the commissioner for a conference within ten 30 days after 296.8the notice date of the commissioner's valuation certification or other notice to the company, 296.9or by June 15, whichever is earlier. For purposes of this section, "notice date" means the 296.10notice date of the valuation certification, commissioner's order, recommendation, or other 296.11notice. 296.12 (c) Companies that submit reports under section must submit a written request 296.13to the commissioner for a conference within ten days after the date of the commissioner's 296.14valuation certification or notice to the company, or by July 1, whichever is earlier. The 296.15appeal need not be in any particular form but must contain the following information: 296.16 (1) name and address of the company; 296.17 (2) the date; 296.18 (3) its Minnesota identification number; 296.19 (4) the assessment year or period involved; 296.20 (5) the findings in the valuation that the company disputes; 296.21 (6) a summary statement specifying its reasons for disputing each item; and 296.22 (7) the signature of the company's duly authorized agent or representative. 296.23 (d) When requested in writing and within the time allowed for filing an administrative 296.24appeal, the commissioner may extend the time for filing an appeal for a period of not more 296.25than 15 days from the expiration of the time for filing the appeal. 296.26 (d) (e) The commissioner shall conduct the conference either in person or by telephone 296.27upon the commissioner's entire files and records and such further information as may be 296.28offered. The conference must be held no later than 20 days after the date of the 296.29commissioner's valuation certification or notice to the company, or by the date specified by 296.30the commissioner in an extension request for an appeal. Within 60 30 days after the 296.31conference the commissioner shall make a final determination of the matter and shall notify 297.1the company promptly of the determination. The conference is not a contested case hearing 297.2subject to chapter 14. 297.3 (e) In addition to the opportunity for a conference under paragraph (a), the commissioner 297.4shall also provide the railroad and utility companies the opportunity to discuss any questions 297.5or concerns relating to the values established by the commissioner through certification or 297.6notice in a less formal manner. This does not change or modify the deadline for requesting 297.7a conference under paragraph (a), the deadline in section for appealing an order of 297.8the commissioner, or the deadline in section for appealing property taxes in court. 297.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 297.10 Sec. 22. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 297.11to read: 297.12 Subd. 5. Agreement determining valuation. When it appears to be in the best interest 297.13of the state, the commissioner may settle any matter under consideration regarding an appeal 297.14filed under this section. The agreement must be in writing and signed by the commissioner 297.15and the company or the company's authorized representative. The agreement is final and 297.16conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a 297.17material fact, the case may not be reopened as to the matters agreed upon. 297.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 297.19 Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 297.20to read: 297.21 Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative appeal 297.22from an order of the commissioner and also files an appeal to the tax court for that same 297.23order of the commissioner, the administrative appeal is dismissed and the commissioner is 297.24no longer required to make the determination of appeal under subdivision 4. 297.25EFFECTIVE DATE.This section is effective beginning with assessment year 2017. 297.26 Sec. 24. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES. 297.27After making the apportionment provided in Minnesota Rules, part 8100.0600, the 297.28commissioner must equalize the values of the operating structures to the level accepted by 297.29the State Board of Equalization if the appropriate sales ratio for each county, as conducted 297.30by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is 297.31outside the range accepted by the State Board of Equalization. The commissioner must not 298.1equalize the value of the operating structures if the sales ratio determined pursuant to this 298.2subdivision is within the range accepted by the State Board of Equalization. 298.3EFFECTIVE DATE.This section is effective beginning with assessment year 2017. 298.4 Sec. 25. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read: 298.5 Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board 298.6of a town, or the council or other governing body of a city, is the local board of appeal and 298.7equalization except (1) in cities whose charters provide for a board of equalization or (2) 298.8in any city or town that has transferred its local board of review power and duties to the 298.9county board as provided in subdivision 3. The county assessor shall fix a day and time 298.10when the board or the local board of equalization shall meet in the assessment districts of 298.11the county. Notwithstanding any law or city charter to the contrary, a city board of 298.12equalization shall be referred to as a local board of appeal and equalization. On or before 298.13February 15 of each year the assessor shall give written notice of the time to the city or 298.14town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 298.15be held between April 1 and May 31 each year. The clerk shall give published and posted 298.16notice of the meeting at least ten days before the date of the meeting. 298.17 The board shall meet either at a central location within the county or at the office of the 298.18clerk to review the assessment and classification of property in the town or city. No changes 298.19in valuation or classification which are intended to correct errors in judgment by the county 298.20assessor may be made by the county assessor after the board has adjourned in those cities 298.21or towns that hold a local board of review; however, corrections of errors that are merely 298.22clerical in nature or changes that extend homestead treatment to property are permitted after 298.23adjournment until the tax extension date for that assessment year. The changes must be fully 298.24documented and maintained in the assessor's office and must be available for review by any 298.25person. A copy of the changes made during this period in those cities or towns that hold a 298.26local board of review must be sent to the county board no later than December 31 of the 298.27assessment year. 298.28 (b) The board shall determine whether the taxable property in the town or city has been 298.29properly placed on the list and properly valued by the assessor. If real or personal property 298.30has been omitted, the board shall place it on the list with its market value, and correct the 298.31assessment so that each tract or lot of real property, and each article, parcel, or class of 298.32personal property, is entered on the assessment list at its market value. No assessment of 298.33the property of any person may be raised unless the person has been duly notified of the 298.34intent of the board to do so. On application of any person feeling aggrieved, the board shall 299.1review the assessment or classification, or both, and correct it as appears just. The board 299.2may not make an individual market value adjustment or classification change that would 299.3benefit the property if the owner or other person having control over the property has refused 299.4the assessor access to inspect the property and the interior of any buildings or structures as 299.5provided in section 273.20. A board member shall not participate in any actions of the board 299.6which result in market value adjustments or classification changes to property owned by 299.7the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 299.8brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 299.9board member has a financial interest. The relationship may be by blood or marriage. 299.10 (c) A local board may reduce assessments upon petition of the taxpayer but the total 299.11reductions must not reduce the aggregate assessment made by the county assessor by more 299.12than one percent. If the total reductions would lower the aggregate assessments made by 299.13the county assessor by more than one percent, none of the adjustments may be made. The 299.14assessor shall correct any clerical errors or double assessments discovered by the board 299.15without regard to the one percent limitation. 299.16 (d) A local board does not have authority to grant an exemption or to order property 299.17removed from the tax rolls. 299.18 (e) A majority of the members may act at the meeting, and adjourn from day to day until 299.19they finish hearing the cases presented. The assessor shall attend and take part in the 299.20proceedings, but must not vote. The county assessor, or an assistant delegated by the county 299.21assessor shall attend the meetings. The board shall list separately all omitted property added 299.22to the list by the board and all items of property increased or decreased, with the market 299.23value of each item of property, added or changed by the board. The county assessor shall 299.24enter all changes made by the board. 299.25 (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 299.26or by written communication before the board after being duly notified of the board's intent 299.27to raise the assessment of the property, or if a person feeling aggrieved by an assessment 299.28or classification fails to apply for a review of the assessment or classification, the person 299.29may not appear before the county board of appeal and equalization for a review. This 299.30paragraph does not apply if an assessment was made after the local board meeting, as 299.31provided in section 273.01, or if the person can establish not having received notice of 299.32market value at least five days before the local board meeting. 299.33 (g) The local board must complete its work and adjourn within 20 days from the time 299.34of convening stated in the notice of the clerk, unless a longer period is approved by the 300.1commissioner of revenue. No action taken after that date is valid. All complaints about an 300.2assessment or classification made after the meeting of the board must be heard and 300.3determined by the county board of equalization. A nonresident may, at any time, before the 300.4meeting of the board file written objections to an assessment or classification with the county 300.5assessor. The objections must be presented to the board at its meeting by the county assessor 300.6for its consideration. 300.7EFFECTIVE DATE.This section is effective the day following final enactment. 300.8 Sec. 26. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read: 300.9 Subdivision 1. Members; meetings; rules for equalizing assessments. The county 300.10commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 300.11present, the deputy county auditor, or, if there is no deputy, the court administrator of the 300.12district court, shall form a board for the equalization of the assessment of the property of 300.13the county, including the property of all cities whose charters provide for a board of 300.14equalization. This board shall be referred to as the county board of appeal and equalization. 300.15The board shall meet annually, on the date specified in section 274.14, at the office of the 300.16auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 300.17Members shall not participate in any actions of the board which result in market value 300.18adjustments or classification changes to property owned by the board member, the spouse, 300.19parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 300.20nephew, or niece of a board member, or property in which a board member has a financial 300.21interest. The relationship may be by blood or marriage. The board shall examine and compare 300.22the returns of the assessment of property of the towns or districts, and equalize them so that 300.23each tract or lot of real property and each article or class of personal property is entered on 300.24the assessment list at its market value, subject to the following rules: 300.25 (1) The board shall raise the valuation of each tract or lot of real property which in its 300.26opinion is returned below its market value to the sum believed to be its market value. The 300.27board must first give notice of intention to raise the valuation to the person in whose name 300.28it is assessed, if the person is a resident of the county. The notice must fix a time and place 300.29for a hearing. 300.30 (2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 300.31above its market value to the sum believed to be its market value. 300.32 (3) The board shall raise the valuation of each class of personal property which in its 300.33opinion is returned below its market value to the sum believed to be its market value. It 300.34shall raise the aggregate value of the personal property of individuals, firms, or corporations, 301.1when it believes that the aggregate valuation, as returned, is less than the market value of 301.2the taxable personal property possessed by the individuals, firms, or corporations, to the 301.3sum it believes to be the market value. The board must first give notice to the persons of 301.4intention to do so. The notice must set a time and place for a hearing. 301.5 (4) The board shall reduce the valuation of each class of personal property that is returned 301.6above its market value to the sum it believes to be its market value. Upon complaint of a 301.7party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 301.8property, or of any class of personal property for which the individual is assessed, which 301.9in its opinion has been assessed at too large a sum, to the sum it believes was the market 301.10value of the individual's personal property of that class. 301.11 (5) The board must not reduce the aggregate value of all the property of its county, as 301.12submitted to the county board of equalization, with the additions made by the auditor under 301.13this chapter, by more than one percent of its whole valuation. The board may raise the 301.14aggregate valuation of real property, and of each class of personal property, of the county, 301.15or of any town or district of the county, when it believes it is below the market value of the 301.16property, or class of property, to the aggregate amount it believes to be its market value. 301.17 (6) The board shall change the classification of any property which in its opinion is not 301.18properly classified. 301.19 (7) The board does not have the authority to grant an exemption or to order property 301.20removed from the tax rolls. 301.21 (8) The board may not make an individual market value adjustment or classification 301.22change that would benefit property if the owner or other person having control over the 301.23property has refused the assessor access to inspect the property and the interior of any 301.24buildings or structures as provided in section 273.20. 301.25EFFECTIVE DATE.This section is effective for county board of appeal and 301.26equalization meetings in 2018 and thereafter. 301.27 Sec. 27. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read: 301.28 Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 301.29on or before September 30, each county and each home rule charter or statutory city shall 301.30certify to the county auditor the proposed property tax levy for taxes payable in the following 301.31year. 301.32 (b) Notwithstanding any law or charter to the contrary, on or before September 15, each 301.33town and each special taxing district shall adopt and certify to the county auditor a proposed 302.1property tax levy for taxes payable in the following year. For towns, the final certified levy 302.2shall also be considered the proposed levy. 302.3 (c) On or before September 30, each school district that has not mutually agreed with 302.4its home county to extend this date shall certify to the county auditor the proposed property 302.5tax levy for taxes payable in the following year. Each school district that has agreed with 302.6its home county to delay the certification of its proposed property tax levy must certify its 302.7proposed property tax levy for the following year no later than October 7. The school district 302.8shall certify the proposed levy as: 302.9 (1) a specific dollar amount by school district fund, broken down between voter-approved 302.10and non-voter-approved levies and between referendum market value and tax capacity 302.11levies; or 302.12 (2) the maximum levy limitation certified by the commissioner of education according 302.13to section 126C.48, subdivision 1. 302.14 (d) If the board of estimate and taxation or any similar board that establishes maximum 302.15tax levies for taxing jurisdictions within a first class city certifies the maximum property 302.16tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 302.17in paragraph (a), the city shall be deemed to have certified its levies for those taxing 302.18jurisdictions. 302.19 (e) For purposes of this section, "special taxing district" means a special taxing district 302.20as defined in section 275.066. Intermediate school districts that levy a tax under chapter 302.21124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 302.22Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 302.23taxing districts for purposes of this section. 302.24(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 302.25tax levy under this subdivision, the taxing authority shall announce the time and place of 302.26its any subsequent regularly scheduled meetings at which the budget and levy will be 302.27discussed and at which the public will be allowed to speak. The time and place of those 302.28meetings must be included in the proceedings or summary of proceedings published in the 302.29official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191. 302.30EFFECTIVE DATE.This section is effective the day following final enactment. 302.31 Sec. 28. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read: 302.32 Subd. 2. Local governments required to report. For purposes of this section, "local 302.33governmental unit" means a county, home rule charter or statutory city with a population 303.1greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 303.2statutory city or town that receives a distribution from the taconite municipal aid account 303.3in the levy year. 303.4EFFECTIVE DATE.This section is effective the day following final enactment. 303.5 Sec. 29. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read: 303.6 Subdivision 1. Determination of validity. (a) Any person having personal property, or 303.7any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 303.8property has been partially, unfairly, or unequally assessed in comparison with other property 303.9in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 303.10the portion of the county excluding the first class city, or that the parcel has been assessed 303.11at a valuation greater than its real or actual value, or that the tax levied against the same is 303.12illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 303.13levied, may have the validity of the claim, defense, or objection determined by the district 303.14court of the county in which the tax is levied or by the Tax Court by serving one copy of a 303.15petition for such determination upon the county auditor, one copy on the county attorney, 303.16one copy on the county treasurer, and three copies on the county assessor. The county 303.17assessor shall immediately forward one copy of the petition to the appropriate governmental 303.18authority in a home rule charter or statutory city or town in which the property is located if 303.19that city or town employs its own certified assessor. A copy of the petition shall also be 303.20forwarded by the assessor to the school board of the school district in which the property 303.21is located. 303.22(b) In counties where the office of county treasurer has been combined with the office 303.23of county auditor, the county may elect to require the petitioner to serve the number of 303.24copies as determined by the county. The county assessor shall immediately forward one 303.25copy of the petition to the appropriate governmental authority in a home rule charter or 303.26statutory city or town in which the property is located if that city or town employs its own 303.27certified assessor. A list of petitioned properties, including the name of the petitioner, the 303.28identification number of the property, and the estimated market value, shall be sent on or 303.29before the first day of July by the county auditor/treasurer to the school board of the school 303.30district in which the property is located. 303.31(c) For all counties, the petitioner must file the copies with proof of service, in the office 303.32of the court administrator of the district court on or before April 30 of the year in which the 303.33tax becomes payable. A petition for determination under this section may be transferred by 303.34the district court to the Tax Court. An appeal may also be taken to the Tax Court under 304.1chapter 271 at any time following receipt of the valuation notice that county assessors or 304.2city assessors having the powers of a county assessor are required by section 273.121 to 304.3send to persons whose property is to be included on the assessment roll that year, but prior 304.4to May 1 of the year in which the taxes are payable. 304.5EFFECTIVE DATE.This section is effective the day following final enactment. 304.6 Sec. 30. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read: 304.7 Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency 304.8or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 304.9withheld from sale or lease to others for a maximum of six months. The request must be 304.10submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 304.11from sale or lease to any other party for six months, and must confirm the starting date of 304.12the six-month withholding period to the requesting agency or subdivision. If the request is 304.13from a governmental subdivision of the state, the governmental subdivision must pay the 304.14maintenance costs incurred by the county during the period the parcel is withheld. The 304.15county board may approve a sale or conveyance to the requesting party during the 304.16withholding period. A conveyance of the property to the requesting party terminates the 304.17withholding period. 304.18A governmental subdivision of the state must not make, and a county auditor must not 304.19act upon, a second request to withhold a parcel from sale or lease within 18 months of a 304.20previous request for that parcel. A county may reject a request made under this paragraph 304.21if the request is made more than 30 days after the county has given notice to the requesting 304.22state agency or governmental subdivision of the state that the county intends to sell or 304.23otherwise dispose of the property. 304.24(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 304.25value as determined by the county board, to an organized or incorporated governmental 304.26subdivision of the state for any public purpose for which the subdivision is authorized to 304.27acquire property. When the term "market value" is used in this section, it means an estimate 304.28of the full and actual market value of the parcel as determined by the county board, but in 304.29making this determination, the board and the persons employed by or under contract with 304.30the board in order to perform, conduct, or assist in the determination, are exempt from the 304.31licensure requirements of chapter 82B. 304.32(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 304.33taxing districts on application to sold by the county board by, for their market value as 304.34determined by the county board, to a state agency for an authorized use at not less than their 305.1market value as determined by the county board any public purpose for which the agency 305.2is authorized to acquire property. 305.3(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 305.4or incorporated governmental subdivision of the state or state agency for less than their 305.5market value if: 305.6(1) the county board determines that a sale at a reduced price is in the public interest 305.7because a reduced price is necessary to provide an incentive to correct the blighted conditions 305.8that make the lands undesirable in the open market, or the reduced price will lead to the 305.9development of affordable housing; and 305.10(2) the governmental subdivision or state agency has documented its specific plans for 305.11correcting the blighted conditions or developing affordable housing, and the specific law 305.12or laws that empower it to acquire real property in furtherance of the plans. 305.13If the sale under this paragraph is to a governmental subdivision of the state, the 305.14commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 305.15If the sale under this paragraph is to a state agency, the property is released from the trust 305.16in favor of the taxing districts and the commissioner of revenue must issue a conveyance 305.17document that releases the property from the trust in favor of the taxing districts convey the 305.18property on behalf of the state by quitclaim deed to the agency. 305.19(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 305.20be conveyed by the commissioner of revenue in the name of the state to a governmental 305.21subdivision for an authorized public use, if an application is submitted to the commissioner 305.22which includes a statement of facts as to the use to be made of the tract and the favorable 305.23recommendation of the county board. For the purposes of this paragraph, "authorized public 305.24use" means a use that allows an indefinite segment of the public to physically use and enjoy 305.25the property in numbers appropriate to its size and use, or is for a public service facility. 305.26Authorized public uses as defined in this paragraph are limited to: 305.27(1) a road, or right-of-way for a road; 305.28(2) a park that is both available to, and accessible by, the public that contains 305.29improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters; 305.30(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 305.31with a reasonable amount of surrounding land maintained in its natural state; 306.1(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 306.2transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 306.3facilities related to a public transit system; 306.4(5) public beaches or boat launches; 306.5(6) public parking; 306.6(7) civic recreation or conference facilities; and 306.7(8) public service facilities such as fire halls, police stations, lift stations, water towers, 306.8sanitation facilities, water treatment facilities, and administrative offices. 306.9No monetary compensation or consideration is required for the conveyance, except as 306.10provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 306.11including, but not limited to, the reversion provisions of subdivisions 1c and 1d. 306.12(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 306.13land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 306.14upon the favorable recommendation of the county board if the governmental subdivision 306.15has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 306.16under a written development agreement or instrument, but the conveyance failed to occur 306.17prior to forfeiture. No compensation or consideration is required for, and no conditions 306.18attach to, the conveyance. 306.19(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 306.20land to the association of a common interest community by quitclaim deed upon the favorable 306.21recommendation of the county board if the association certifies to the board that prior to 306.22forfeiture the association was entitled to the parcel under a written agreement, but the 306.23conveyance failed to occur prior to forfeiture. No compensation or consideration is required 306.24for, and no conditions attach to, the conveyance. 306.25(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 306.26state for less than its market value for either: (1) creation or preservation of wetlands; (2) 306.27drainage or storage of storm water under a storm water management plan; or (3) preservation, 306.28or restoration and preservation, of the land in its natural state. The deed must contain a 306.29restrictive covenant limiting the use of the land to one of these purposes for 30 years or 306.30until the property is reconveyed back to the state in trust. At any time, the governmental 306.31subdivision may reconvey the property to the state in trust for the taxing districts. The deed 306.32of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 306.33price determined under this paragraph shall be refunded upon a reconveyance, but the 307.1amount paid for a conveyance under this paragraph may be taken into account by the county 307.2board when setting the terms of a future sale of the same property to the same governmental 307.3subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 307.4incorporated municipality and the commissioner of natural resources determines there is a 307.5mineral use potential, the sale is subject to the approval of the commissioner of natural 307.6resources. 307.7(i) A park and recreation board in a city of the first class is a governmental subdivision 307.8for the purposes of this section. 307.9(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 307.10the commissioner of revenue in the name of the state to a governmental subdivision for a 307.11school forest under section 89.41. An application that includes a statement of facts as to the 307.12use to be made of the tract and the favorable recommendation of the county board and the 307.13commissioner of natural resources must be submitted to the commissioner of revenue. No 307.14monetary compensation or consideration is required for the conveyance, but the conveyance 307.15is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 307.16(e). At any time, the governmental subdivision may reconvey the property back to the state 307.17in trust for the taxing districts. The deed of reconveyance is subject to approval by the 307.18commissioner of revenue. 307.19EFFECTIVE DATE.This section is effective the day following final enactment. 307.20 Sec. 31. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read: 307.21 Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from 307.22the date of any conveyance of tax-forfeited land to a governmental subdivision for an 307.23authorized public use as provided in this section, regardless of when the deed for the 307.24authorized public use was executed, if the governmental subdivision has failed to put the 307.25land to that use, or abandons that use, the governing body of the subdivision must: (1) with 307.26the approval of the county board, purchase the property for an authorized public purpose 307.27at the present market value as determined by the county board, or (2) authorize the proper 307.28officers to convey the land, or the part of the land not required for an authorized public use, 307.29to the state of Minnesota in trust for the taxing districts. If the governing body purchases 307.30the property under clause (1), the commissioner of revenue shall, upon proper application 307.31submitted by the county auditor and upon the reconveyance of the land subject to the 307.32conditional use deed to the state, convey the property on behalf of the state by quitclaim 307.33deed to the subdivision free of a use restriction and the possibility of reversion or 307.34defeasement. If the governing body decides to reconvey the property to the state under this 308.1clause, the officers shall execute a deed of conveyance immediately. The conveyance is 308.2subject to the approval of the commissioner and its form must be approved by the attorney 308.3general. For 15 years from the date of the conveyance, there is no failure to put the land to 308.4the authorized public use and no abandonment of that use if a formal plan of the governmental 308.5subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 308.6intended future use of the land for the authorized public use. 308.7(b) Property held by a governmental subdivision of the state under a conditional use 308.8deed executed under this section by the commissioner of revenue on or after January 1, 308.92007, may be acquired by that governmental subdivision after 15 years from the date of the 308.10conveyance if the commissioner determines upon written application from the subdivision 308.11that the subdivision has in fact put the property to the authorized public use for which it 308.12was conveyed, and the subdivision has made a finding that it has no current plans to change 308.13the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 308.14the county board where the land is located objects to a conveyance of the property to the 308.15subdivision without conditions and without further act by or obligation of the subdivision. 308.16If the county does not object within 60 days, and the commissioner makes a favorable 308.17determination, the commissioner shall issue a quitclaim deed on behalf of the state 308.18unconditionally conveying the property to the governmental subdivision. For purposes of 308.19this paragraph, demonstration of an intended future use for the authorized public use in a 308.20formal plan of the governmental subdivision does not constitute use for that authorized 308.21public use. 308.22(c) Property held by a governmental subdivision of the state under a conditional use 308.23deed executed under this section by the commissioner of revenue before January 1, 2007, 308.24is released from the use restriction and possibility of reversion on January 1, 2022, if the 308.25county board records a resolution describing the land and citing this paragraph. The county 308.26board may authorize the county treasurer to deduct the amount of the recording fees from 308.27future settlements of property taxes to the subdivision. 308.28(d) Except for tax-forfeited land conveyed to establish a school forest under section 308.2989.41 , property conveyed under a conditional use deed executed under this section by the 308.30commissioner of revenue, regardless of when the deed for the authorized public use was 308.31executed, is released from the use restriction and reverter, and any use restriction or reverter 308.32for which no declaration of reversion has been recorded with the county recorder or registrar 308.33of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 308.34the date the deed was acknowledged; or (3) final resolution of an appeal to district court 309.1under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 309.2county recorder or registrar of titles, as appropriate, prior to January 1, 2015. 309.3(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 309.4school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 309.5The property reverts to the state in trust for the taxing districts by operation of law if the 309.6commissioner of natural resources determines and reports to the commissioner of revenue 309.7under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 309.8land for school forest purposes for three consecutive years. The commissioner of revenue 309.9shall record a declaration of reversion for land that has reverted under this paragraph. 309.10EFFECTIVE DATE.This section is effective the day following final enactment. 309.11 Sec. 32. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 309.12to read: 309.13 Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to this 309.14section, a city must register an official electronic mail address with the commissioner, which 309.15the commissioner may use as an exclusive means to communicate with the city. 309.16EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter. 309.17 Sec. 33. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 309.18to read: 309.19 Subd. 3a. Certification. On or before June 1 of each year, the commissioner of natural 309.20resources shall certify to the commissioner of revenue the number of watercraft launches 309.21and the number of watercraft trailer parking spaces in each county. 309.22EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter. 309.23 Sec. 34. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 309.24to read: 309.25 Subd. 3b. Certification. On or before June 1 of each year, the commissioner of natural 309.26resources shall certify to the commissioner of revenue the counties that complied with the 309.27requirements of subdivision 3 the prior year and are eligible to receive aid under this section. 309.28EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter. 310.1 Sec. 35. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read: 310.2 Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if 310.3the purchaser is represented throughout the transaction by either: 310.4(1) a person licensed to practice law in this state; or 310.5(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 310.6that the representation does not create a dual agency, as that term is defined in section 82.55, 310.7subdivision 6 . 310.8EFFECTIVE DATE.This section is effective for sales of tax-forfeited land occurring 310.9the day following final enactment and thereafter. 310.10 Sec. 36. Laws 2014, chapter 308, article 9, section 94, is amended to read: 310.11 Sec. 94. REPEALER. 310.12(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 310.1319e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 310.14part 8007.0200, are repealed. 310.15(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 310.162; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 310.1782; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 310.18273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 310.198; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 310.20subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 310.21subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 310.22subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 310.23469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 310.242013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 310.25Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 310.26repealed. 310.27(c) Minnesota Statutes 2012, section 469.1764, is repealed. 310.28(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 310.29469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 310.30469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 310.31section 469.340, subdivision 4, are repealed. 310.32(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed. 311.1EFFECTIVE DATE.This section is effective retroactively from May 20, 2014, and 311.2pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, 311.3subdivision 2, is revived and reenacted as of that date. 311.4 Sec. 37. REPEALER. 311.5(a) Minnesota Statutes 2016, section 281.22, is repealed. 311.6(b) Minnesota Rules, part 8100.0700, is repealed. 311.7EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment. 311.8Paragraph (b) is effective for assessment year 2017 and thereafter. 311.9ARTICLE 14 311.10DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 311.11PROVISIONS; MISCELLANEOUS 311.12 Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read: 311.13 Subdivision 1. Annual report required. Every railroad company doing business in 311.14Minnesota shall annually file with the commissioner on or before March 31 a report under 311.15oath setting forth the information prescribed by the commissioner to enable the commissioner 311.16to make the valuation and equalization required by sections 270.80 to 270.87. The 311.17commissioner shall prescribe the content, format, and manner of the report pursuant to 311.18section 270C.30, except that a "law administered by the commissioner" includes the property 311.19tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant 311.20to section 270C.304, except that a "law administered by the commissioner" includes the 311.21property tax laws. 311.22EFFECTIVE DATE.This section is effective the day following final enactment. 311.23 Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read: 311.24 Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 311.25certain amount of money, which equals or exceeds $25 and which is due and payable to a 311.26claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 311.27fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 311.28restitution. A debt may arise under a contractual or statutory obligation, a court order, or 311.29other legal obligation, but need not have been reduced to judgment. 311.30 A debt includes any legal obligation of a current recipient of assistance which is based 311.31on overpayment of an assistance grant where that payment is based on a client waiver or 312.1an administrative or judicial finding of an intentional program violation; or where the debt 312.2is owed to a program wherein the debtor is not a client at the time notification is provided 312.3to initiate recovery under this chapter and the debtor is not a current recipient of food support, 312.4transitional child care, or transitional medical assistance. 312.5 (b) A debt does not include any legal obligation to pay a claimant agency for medical 312.6care, including hospitalization if the income of the debtor at the time when the medical care 312.7was rendered does not exceed the following amount: 312.8 (1) for an unmarried debtor, an income of $8,800 $12,560 or less; 312.9 (2) for a debtor with one dependent, an income of $11,270 $16,080 or less; 312.10 (3) for a debtor with two dependents, an income of $13,330 $19,020 or less; 312.11 (4) for a debtor with three dependents, an income of $15,120 $21,580 or less; 312.12 (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and 312.13 (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less. 312.14For purposes of this paragraph, "debtor" means the individual whose income, together 312.15with the income of the individual's spouse, other than a separated spouse, brings the 312.16individual within the income provisions of this paragraph. For purposes of this paragraph, 312.17a spouse, other than a separated spouse, shall be considered a dependent. 312.18 (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 312.19determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 312.20that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." 312.21For 2001 2016, the commissioner shall then determine the percent change from the 12 312.22months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, 312.23and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the 312.2412 months ending on August 31 of the year preceding the taxable year. The determination 312.25of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 312.26not be subject to the Administrative Procedure Act contained in chapter 14. The income 312.27amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 312.28the amount is rounded up to the nearest $10 amount. 312.29 (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 312.30dollar amount of the premium authorized under section 256L.15, subdivision 1a. 312.31EFFECTIVE DATE.The section is effective retroactively for debts incurred after 312.32December 31, 2014. 313.1 Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read: 313.2 Subdivision 1. Disclosure to commissioner of human services. (a) On the request of 313.3the commissioner of human services, the commissioner shall disclose return information 313.4regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 313.5extent provided in paragraph (b) and for the purposes set forth in paragraph (c). 313.6 (b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 313.7employment, income, and property of a person owing or alleged to be owing an obligation 313.8of child support. 313.9 (c) The commissioner of human services may request data only for the purposes of 313.10carrying out the child support enforcement program and to assist in the location of parents 313.11who have, or appear to have, deserted their children. Data received may be used only as set 313.12forth in section 256.978. 313.13 (d) The commissioner shall provide the records and information necessary to administer 313.14the supplemental housing allowance to the commissioner of human services. 313.15 (e) At the request of the commissioner of human services, the commissioner of revenue 313.16shall electronically match the Social Security numbers and names of participants in the 313.17telephone assistance plan operated under sections 237.69 to 237.71, with those of property 313.18tax refund filers, and determine whether each participant's household income is within the 313.19eligibility standards for the telephone assistance plan. 313.20 (f) The commissioner may provide records and information collected under sections 313.21295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 313.22Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 313.23102-234. Upon the written agreement by the United States Department of Health and Human 313.24Services to maintain the confidentiality of the data, the commissioner may provide records 313.25and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 313.26Medicaid Services section of the United States Department of Health and Human Services 313.27for purposes of meeting federal reporting requirements. 313.28 (g) The commissioner may provide records and information to the commissioner of 313.29human services as necessary to administer the early refund of refundable tax credits. 313.30 (h) The commissioner may disclose information to the commissioner of human services 313.31as necessary to verify income for income verification for eligibility and premium payment 313.32under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the 313.33medical assistance program under chapter 256B. 314.1 (i) The commissioner may disclose information to the commissioner of human services 314.2necessary to verify whether applicants or recipients for the Minnesota family investment 314.3program, general assistance, food support, Minnesota supplemental aid program, and child 314.4care assistance have claimed refundable tax credits under chapter 290 and the property tax 314.5refund under chapter 290A, and the amounts of the credits. 314.6 (j) The commissioner may disclose information to the commissioner of human services 314.7necessary to verify income for purposes of calculating parental contribution amounts under 314.8section 252.27, subdivision 2a. 314.9EFFECTIVE DATE.This section is effective the day following final enactment. 314.10 Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read: 314.11270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING. 314.12Except as otherwise provided by law, the commissioner shall prescribe the content and, 314.13format, and manner of all returns and other forms required to be filed under a law 314.14administered by the commissioner, and may furnish them subject to charge on application. 314.15EFFECTIVE DATE.This section is effective the day following final enactment. 314.16 Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read: 314.17 Subd. 5. Prohibition against collection during appeal period of an order. No collection 314.18action can be taken on an order of assessment, or any other order imposing a liability, 314.19including the filing of liens under section 270C.63, and no late payment penalties may be 314.20imposed when a return has been filed for the tax type and period upon which the order is 314.21based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 314.22after the order has been mailed to the taxpayer notice date designated by the commissioner 314.23on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after 314.24the notice date designated by the commissioner on the written determination of the 314.25administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 314.26decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 314.27is based upon a constitutional challenge to the tax, 60 days after final determination of the 314.28appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 314.29or a jeopardy collection under section 270C.36. 314.30EFFECTIVE DATE.This section is effective for orders dated after December 31, 314.312017. 315.1 Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read: 315.2 Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent 315.3postage prepaid by United States mail to the taxpayer at the taxpayer's last known address, 315.4or sent by electronic mail to the taxpayer's last known electronic mailing address as provided 315.5for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal 315.6disability, or, in the case of a corporation, has terminated its existence, unless the 315.7commissioner has been provided with a new address by a party authorized to receive notices 315.8of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date 315.9designated by the commissioner on the assessment. 315.10EFFECTIVE DATE.This section is effective for assessments dated after December 315.1131, 2017. 315.12 Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read: 315.13 Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 315.14section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 315.15charge, must be filed with the commissioner within 60 days of the notice date of the notice 315.16was mailed to the taxpayer's last known address, stating that a penalty has been imposed or 315.17additional tax charge. For purposes of this section, "notice date" means the notice date 315.18designated by the commissioner on the order or other notice that a penalty or additional tax 315.19charge has been imposed. 315.20(b) If the commissioner issues an order denying a request for abatement of penalty, 315.21interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 315.22in section 270C.35 or appeal to Tax Court as provided in section 271.06. 315.23(c) If the commissioner does not issue an order on the abatement request within 60 days 315.24from the date the request is received, the taxpayer may appeal to Tax Court as provided in 315.25section 271.06. 315.26EFFECTIVE DATE.This section is effective for orders and notices dated after 315.27December 31, 2017. 315.28 Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read: 315.29 Subd. 3. Notice date. For purposes of this section, the term "notice date" means the 315.30notice date of designated by the commissioner on the order adjusting the tax or order denying 315.31a request for abatement, or, in the case of a denied refund, the notice date of designated by 315.32the commissioner on the notice of denial. 316.1EFFECTIVE DATE.This section is effective for orders and notices dated after 316.2December 31, 2017. 316.3 Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 316.4read: 316.5 Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative 316.6appeal for an order of the commissioner and also files an appeal to the Tax Court for that 316.7same order of the commissioner, the administrative appeal is dismissed and the commissioner 316.8is no longer required to make a determination of appeal under subdivision 6. 316.9EFFECTIVE DATE.This section is effective for all administrative appeals filed after 316.10June 30, 2017. 316.11 Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read: 316.12 Subdivision 1. Sufficient notice. (a) If no method of notification of a written 316.13determination or action of the commissioner is otherwise specifically provided for by law, 316.14notice of the determination or action sent postage prepaid by United States mail to the 316.15taxpayer or other person affected by the determination or action at the taxpayer's or person's 316.16last known address, is sufficient. If the taxpayer or person being notified is deceased or is 316.17under a legal disability, or, in the case of a corporation being notified that has terminated 316.18its existence, notice to the last known address of the taxpayer, person, or corporation is 316.19sufficient, unless the department has been provided with a new address by a party authorized 316.20to receive notices from the commissioner. 316.21(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 316.22of a determination or action of the commissioner sent by electronic mail to the taxpayer's 316.23or person's last known electronic mailing address as provided for in section 325L.08 is 316.24sufficient. 316.25(c) Notice of a determination or action of the commissioner is sufficient if it is sent on 316.26or before the notice date designated by the commissioner on the notice. 316.27EFFECTIVE DATE.This section is effective for notices dated after December 31, 316.282017. 317.1 Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 317.2to read: 317.3 Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the imposition 317.4of a penalty or any other action against a tax preparer authorized by subdivision 6 with 317.5respect to a return may be taken by the commissioner within the period provided by section 317.6289A.38 to assess tax on that return. 317.7(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision 317.86 other than with respect to a return must be taken by the commissioner within five years 317.9of the violation of statute. 317.10EFFECTIVE DATE.This section is effective for tax preparation services provided 317.11after the day following final enactment. 317.12 Sec. 12. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read: 317.13 Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant 317.14to provide the applicant's Social Security number or individual taxpayer identification 317.15number and Minnesota business identification number, as applicable, on all license 317.16applications. Upon request of the commissioner, the licensing authority must provide the 317.17commissioner with a list of all applicants, including the name, address, business name and 317.18address, and Social Security number, or individual taxpayer identification number and 317.19business identification number, as applicable, of each applicant. The commissioner may 317.20request from a licensing authority a list of the applicants no more than once each calendar 317.21year. 317.22EFFECTIVE DATE.This section is effective the day following final enactment. 317.23 Sec. 13. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read: 317.24 Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60 317.25days after the notice of the making and filing date of an order of the commissioner of revenue, 317.26the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 317.27and file the original, with proof of such service, with the Tax Court administrator or with 317.28the court administrator of district court acting as court administrator of the Tax Court; 317.29provided, that the Tax Court, for cause shown, may by written order extend the time for 317.30appealing for an additional period not exceeding 30 days. For purposes of this section, 317.31"notice date" means the notice date designated by the commissioner on the order. The notice 317.32of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt, 318.1the commissioner shall transmit a copy of the notice of appeal to the attorney general. The 318.2attorney general shall represent the commissioner, if requested, upon all such appeals except 318.3in cases where the attorney general has appealed in behalf of the state, or in other cases 318.4where the attorney general deems it against the interests of the state to represent the 318.5commissioner, in which event the attorney general may intervene or be substituted as an 318.6appellant in behalf of the state at any stage of the proceedings. 318.7Upon a final determination of any other matter over which the court is granted jurisdiction 318.8under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 318.9petition or notice of appeal as provided by law with the court administrator of district court, 318.10acting in the capacity of court administrator of the Tax Court, with proof of service of the 318.11petition or notice of appeal as required by law and within the time required by law. As used 318.12in this subdivision, "final determination" includes a notice of assessment and equalization 318.13for the year in question received from the local assessor, an order of the local board of 318.14equalization, or an order of a county board of equalization. 318.15The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 318.16with the district court administrator acting as court administrator of the Tax Court is 318.17forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 318.18property valuation for which the assessor, a local board of equalization, a county board of 318.19equalization or the commissioner of revenue has issued an order, the officer issuing the 318.20order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 318.21in the form prescribed by the Tax Court. 318.22EFFECTIVE DATE.This section is effective for orders dated after December 31, 318.232017. 318.24 Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read: 318.25 Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of 318.26Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 318.27in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 318.2860-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court 318.29may adopt rules under chapter 14. 318.30EFFECTIVE DATE.This section is effective for orders dated after December 31, 318.312017. 319.1 Sec. 15. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read: 319.2 Subd. 10. Personal property used for pollution control. Personal property used 319.3primarily for the abatement and control of air, water, or land pollution is exempt to the 319.4extent that it is so used, and real property is exempt if it is used primarily for abatement and 319.5control of air, water, or land pollution as part of an agricultural operation, as a part of a 319.6centralized treatment and recovery facility operating under a permit issued by the Minnesota 319.7Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 319.87001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 319.9and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 319.10or inorganic materials from hazardous industrial wastes, or as part of an electric generation 319.11system. For purposes of this subdivision, personal property includes ponderous machinery 319.12and equipment used in a business or production activity that at common law is considered 319.13real property. 319.14Any taxpayer requesting exemption of all or a portion of any real property or any 319.15equipment or device, or part thereof, operated primarily for the control or abatement of air, 319.16water, or land pollution shall file an application with the commissioner of revenue. The 319.17commissioner shall develop an electronic means to notify interested parties when electric 319.18power generation facilities have filed an application. The commissioner shall prescribe the 319.19content, format, and manner of the application pursuant to section 270C.30, except that a 319.20"law administered by the commissioner" includes the property tax laws, and if an application 319.21is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, 319.22except that a "law administered by the commissioner" includes the property tax laws. The 319.23Minnesota Pollution Control Agency shall upon request of the commissioner furnish 319.24information and advice to the commissioner. 319.25The information and advice furnished by the Minnesota Pollution Control Agency must 319.26include statements as to whether the equipment, device, or real property meets a standard, 319.27rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 319.28whether the equipment, device, or real property is installed or operated in accordance with 319.29it. On determining that property qualifies for exemption, the commissioner shall issue an 319.30order exempting the property from taxation. The commissioner shall develop an electronic 319.31means to notify interested parties when the commissioner has issued an order exempting 319.32property from taxation under this subdivision. The equipment, device, or real property shall 319.33continue to be exempt from taxation as long as the order issued by the commissioner remains 319.34in effect. 319.35EFFECTIVE DATE.This section is effective the day following final enactment. 320.1 Sec. 16. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read: 320.2 Subdivision 1. Efficiency determination and certification. An owner or operator of a 320.3new or existing electric power generation facility, excluding wind energy conversion systems, 320.4may apply to the commissioner of revenue for a market value exclusion on the property as 320.5provided for in this section. This exclusion shall apply only to the market value of the 320.6equipment of the facility, and shall not apply to the structures and the land upon which the 320.7facility is located. The commissioner of revenue shall prescribe the forms content, format, 320.8manner, and procedures for this application pursuant to section 270C.30, except that a "law 320.9administered by the commissioner" includes the property tax laws. If an application is made 320.10by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except 320.11that a "law administered by the commissioner" includes the property tax laws. Upon receiving 320.12the application, the commissioner of revenue shall: (1) request the commissioner of commerce 320.13to make a determination of the efficiency of the applicant's electric power generation facility; 320.14and (2) shall develop an electronic means to notify interested parties when electric power 320.15generation facilities have filed an application. The commissioner of commerce shall calculate 320.16efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 320.17based on the performance of the facility's equipment during normal full load operation. The 320.18commissioner must include in this formula the energy used in any on-site preparation of 320.19materials necessary to convert the materials into the fuel used to generate electricity, such 320.20as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 320.21(HHV) for all substances in the commissioner's efficiency calculations, except for wood 320.22for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 320.23commissioner shall adjust the heating value to allow for energy consumed for evaporation 320.24of the moisture in the wood. The applicant shall provide the commissioner of commerce 320.25with whatever information the commissioner deems necessary to make the determination. 320.26Within 30 days of the receipt of the necessary information, the commissioner of commerce 320.27shall certify the findings of the efficiency determination to the commissioner of revenue 320.28and to the applicant. The commissioner of commerce shall determine the efficiency of the 320.29facility and certify the findings of that determination to the commissioner of revenue every 320.30two years thereafter from the date of the original certification. 320.31EFFECTIVE DATE.This section is effective the day following final enactment. 320.32 Sec. 17. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read: 320.33 Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 320.34the state of Minnesota or any political subdivision thereof, and property exempt from taxation 321.1under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 321.2provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 321.3described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 321.4the assessor of the assessment district in which the property is located. 321.5(b) A taxpayer claiming an exemption from taxation on property described in section 321.6272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue, 321.7on or before February 15 of each year for which the taxpayer claims an exemption. 321.8(c) In case of sickness, absence or other disability or for good cause, the assessor or the 321.9commissioner may extend the time for filing the statement of exemption for a period not to 321.10exceed 60 days. 321.11(d) The commissioner of revenue shall prescribe the form and contents content, format, 321.12and manner of the statement of exemption pursuant to section 270C.30, except that a "law 321.13administered by the commissioner" includes the property tax laws. 321.14(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 321.15to section 270C.304, except that a "law administered by the commissioner" includes the 321.16property tax laws. 321.17EFFECTIVE DATE.This section is effective the day following final enactment. 321.18 Sec. 18. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read: 321.19 Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under 321.20subdivision 3 shall file a report with the commissioner of revenue annually on or before 321.21February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced 321.22by the wind energy conversion system for the previous calendar year. The commissioner 321.23shall prescribe the form content, format, and manner of the report pursuant to section 321.24270C.30, except that a "law administered by the commissioner" includes the property tax 321.25laws. The report must contain the information required by the commissioner to determine 321.26the tax due to each county under this section for the current year. If an owner of a wind 321.27energy conversion system subject to taxation under this section fails to file the report by 321.28the due date, the commissioner of revenue shall determine the tax based upon the nameplate 321.29capacity of the system multiplied by a capacity factor of 60 percent. 321.30(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant 321.31to section 270C.304, except that a "law administered by the commissioner" includes the 321.32property tax laws. 322.1(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 322.2of the wind energy conversion systems of the tax due to each county for the current year 322.3and shall certify to the county auditor of each county in which the systems are located the 322.4tax due from each owner for the current year. 322.5EFFECTIVE DATE.This section is effective the day following final enactment, except 322.6that the amendment in paragraph (a) moving the date to file the report is effective for reports 322.7filed in 2018 and thereafter. 322.8 Sec. 19. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read: 322.9 Subd. 4. Reports. An owner of a solar energy generating system subject to tax under 322.10this section shall file a report with the commissioner of revenue annually on or before 322.11January 15 detailing the amount of electricity in megawatt-hours that was produced by the 322.12system in the previous calendar year. The commissioner shall prescribe the form content, 322.13format, and manner of the report pursuant to section 270C.30. The report must contain the 322.14information required by the commissioner to determine the tax due to each county under 322.15this section for the current year. If an owner of a solar energy generating system subject to 322.16taxation under this section fails to file the report by the due date, the commissioner of 322.17revenue shall determine the tax based upon the nameplate capacity of the system multiplied 322.18by a capacity factor of 30 percent. 322.19EFFECTIVE DATE.This section is effective the day following final enactment. 322.20 Sec. 20. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read: 322.21 Subd. 2. Form; information required. The certificate of value shall require such facts 322.22and information as may be determined by the commissioner to be reasonably necessary in 322.23the administration of the state education aid formulas. The form commissioner shall prescribe 322.24the content, format, and manner of the certificate of value shall be prescribed by the 322.25Department of Revenue which shall provide an adequate supply of forms to each county 322.26auditor pursuant to section 270C.30, except that a "law administered by the commissioner" 322.27includes the property tax laws. 322.28EFFECTIVE DATE.This section is effective the day following final enactment. 322.29 Sec. 21. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read: 322.30 Subd. 13. Homestead application. (a) A person who meets the homestead requirements 322.31under subdivision 1 must file a homestead application with the county assessor to initially 322.32obtain homestead classification. 323.1 (b) The format and contents of a uniform homestead application shall be prescribed by 323.2the commissioner of revenue. The commissioner shall prescribe the content, format, and 323.3manner of the homestead application required to be filed under this chapter pursuant to 323.4section 270C.30. The application must clearly inform the taxpayer that this application must 323.5be signed by all owners who occupy the property or by the qualifying relative and returned 323.6to the county assessor in order for the property to receive homestead treatment. 323.7 (c) Every property owner applying for homestead classification must furnish to the 323.8county assessor the Social Security number of each occupant who is listed as an owner of 323.9the property on the deed of record, the name and address of each owner who does not occupy 323.10the property, and the name and Social Security number of each owner's spouse who occupies 323.11the property. The application must be signed by each owner who occupies the property and 323.12by each owner's spouse who occupies the property, or, in the case of property that qualifies 323.13as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 323.14 If a property owner occupies a homestead, the property owner's spouse may not claim 323.15another property as a homestead unless the property owner and the property owner's spouse 323.16file with the assessor an affidavit or other proof required by the assessor stating that the 323.17property qualifies as a homestead under subdivision 1, paragraph (e). 323.18 Owners or spouses occupying residences owned by their spouses and previously occupied 323.19with the other spouse, either of whom fail to include the other spouse's name and Social 323.20Security number on the homestead application or provide the affidavits or other proof 323.21requested, will be deemed to have elected to receive only partial homestead treatment of 323.22their residence. The remainder of the residence will be classified as nonhomestead residential. 323.23When an owner or spouse's name and Social Security number appear on homestead 323.24applications for two separate residences and only one application is signed, the owner or 323.25spouse will be deemed to have elected to homestead the residence for which the application 323.26was signed. 323.27 (d) If residential real estate is occupied and used for purposes of a homestead by a relative 323.28of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 323.29the property to receive homestead status, a homestead application must be filed with the 323.30assessor. The Social Security number of each relative and spouse of a relative occupying 323.31the property shall be required on the homestead application filed under this subdivision. If 323.32a different relative of the owner subsequently occupies the property, the owner of the property 323.33must notify the assessor within 30 days of the change in occupancy. The Social Security 323.34number of a relative or relative's spouse occupying the property is private data on individuals 323.35as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 324.1revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 324.2personal property taxes owing, to the county treasurer. 324.3 (e) The homestead application shall also notify the property owners that if the property 324.4is granted homestead status for any assessment year, that same property shall remain 324.5classified as homestead until the property is sold or transferred to another person, or the 324.6owners, the spouse of the owner, or the relatives no longer use the property as their 324.7homestead. Upon the sale or transfer of the homestead property, a certificate of value must 324.8be timely filed with the county auditor as provided under section 272.115. Failure to notify 324.9the assessor within 30 days that the property has been sold, transferred, or that the owner, 324.10the spouse of the owner, or the relative is no longer occupying the property as a homestead, 324.11shall result in the penalty provided under this subdivision and the property will lose its 324.12current homestead status. 324.13 (f) If a homestead application has not been filed with the county by December 15, the 324.14assessor shall classify the property as nonhomestead for the current assessment year for 324.15taxes payable in the following year, provided that the owner may be entitled to receive the 324.16homestead classification by proper application under section 375.192. 324.17EFFECTIVE DATE.This section is effective the day following final enactment. 324.18 Sec. 22. Minnesota Statutes 2016, section 273.371, is amended to read: 324.19273.371 REPORTS OF UTILITY COMPANIES. 324.20 Subdivision 1. Report required. Every electric light, power, gas, water, express, stage, 324.21and transportation company, and pipeline company doing business in Minnesota shall 324.22annually file with the commissioner on or before March 31 a report under oath setting forth 324.23the information prescribed by the commissioner to enable the commissioner to make 324.24valuations, recommended valuations, and equalization required under sections 273.33, 324.25273.35 , 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format, 324.26and manner of the report pursuant to section 270C.30, except that a "law administered by 324.27the commissioner" includes the property tax laws. If all the required information is not 324.28available on March 31, the company or pipeline shall file the information that is available 324.29on or before March 31, and the balance of the information as soon as it becomes available. 324.30If a report is made by electronic means, the taxpayer's signature is defined pursuant to section 324.31270C.304, except that a "law administered by the commissioner" includes the property tax 324.32laws. 325.1 Subd. 2. Extension. The commissioner for good cause may extend the time for filing 325.2the report required by subdivision 1. The extension may must not exceed 15 days. 325.3 Subd. 3. Reports filed by the commissioner. If a company fails to file a report required 325.4by subdivision 1, the commissioner may, from information in the commissioner's possession 325.5or obtainable by the commissioner, make and file a report for the company or make the 325.6valuations, recommended valuations, and equalizations required under sections 273.33, 325.7273.35 to 273.37, and 273.3711. 325.8EFFECTIVE DATE.This section is effective the day following final enactment. 325.9 Sec. 23. Minnesota Statutes 2016, section 287.2205, is amended to read: 325.10287.2205 TAX-FORFEITED LAND. 325.11 Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 325.12the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 325.13private sale or a repurchase of tax-forfeited land. State agencies and local units of government 325.14that acquire tax-forfeited land by purchase or any other means are subject to this section. 325.15The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 325.16for an authorized public use under section 282.01, subdivision 1a, for a school forest under 325.17section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, 325.18subdivision 1b . 325.19EFFECTIVE DATE.This section is effective the day following final enactment. 325.20 Sec. 24. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 325.21to read: 325.22 Subd. 17. Format. The commissioner shall prescribe the content, format, and manner 325.23of the returns and other documents pursuant to section 270C.30. This does not authorize 325.24the commissioner to require individual income taxpayers to file individual income tax returns 325.25electronically. 325.26EFFECTIVE DATE.This section is effective the day following final enactment. 325.27 Sec. 25. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read: 325.28 Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 325.29under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 325.30under section 290.923, subdivision 2, must file a return with the commissioner for each 325.31quarterly period unless otherwise prescribed by the commissioner. 326.1(b) A person or corporation required to make deposits under section 290.9201, subdivision 326.28 , must file an entertainer withholding tax return with the commissioner. 326.3(c) A person required to withhold an amount under section 290.9705, subdivision 1, 326.4must file a return. 326.5(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 326.64b , must file a return. 326.7(e) An S corporation required to deduct and withhold tax under section 290.92, 326.8subdivision 4c , must also file a return. 326.9(f) Returns must be filed in the form and manner, and contain the information prescribed 326.10by the commissioner. The commissioner shall prescribe the content, format, and manner 326.11of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed 326.12by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 326.13designee. 326.14EFFECTIVE DATE.This section is effective the day following final enactment. 326.15 Sec. 26. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read: 326.16 Subdivision 1. Return required. (a) Except as provided in section 289A.18, subdivision 326.174 , for the month in which taxes imposed by chapter 297A are payable, or for which a return 326.18is due, a return for the preceding reporting period must be filed with the commissioner in 326.19the form and manner the commissioner prescribes. The commissioner shall prescribe the 326.20content, format, and manner of the returns pursuant to section 270C.30. A person making 326.21sales at retail at two or more places of business may file a consolidated return subject to 326.22rules prescribed by the commissioner. In computing the dollar amount of items on the return, 326.23the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 326.24cents and increasing amounts of 50 cents to 99 cents to the next highest dollar. 326.25(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 326.26permit under chapter 297A and who makes annual purchases, for use in a trade or business, 326.27of less than $18,500, or a person who is not required to hold a sales tax permit and who 326.28makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 326.29may file an annual use tax return on a form prescribed by the commissioner. The 326.30commissioner shall prescribe the content, format, and manner of the return pursuant to 326.31section 270C.30. If a person who qualifies for an annual use tax reporting period is required 326.32to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 326.33excess of $18,500 during the calendar year, the reporting period must be considered ended 327.1at the end of the month in which the permit is applied for or the purchase in excess of 327.2$18,500 is made and a return must be filed for the preceding reporting period. 327.3(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's 327.4religious beliefs from using electronics shall be allowed to file by mail, without any additional 327.5fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 327.6form prescribed by the commissioner. A return filed under this paragraph must be postmarked 327.7no later than the day the return is due in order to be considered filed on a timely basis. 327.8EFFECTIVE DATE.This section is effective the day following final enactment. 327.9 Sec. 27. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read: 327.10 Subdivision 1. Individual income, fiduciary income, corporate franchise, and 327.11entertainment taxes; partnership and S corporation returns; information returns; 327.12mining company returns. The returns required to be made under sections 289A.08 and 327.13289A.12 must be filed at the following times: 327.14 (1) returns made on the basis of the calendar year must be filed on April 15 following 327.15the close of the calendar year, except that returns of corporations and partnerships must be 327.16filed on the due date for filing the federal income tax return; 327.17 (2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 327.18month following the close of the fiscal year, except that returns of corporations and 327.19partnerships must be filed on the due date for filing the federal income tax return; 327.20 (3) returns for a fractional part of a year must be filed on the due date for filing the 327.21federal income tax return; 327.22 (4) in the case of a final return of a decedent for a fractional part of a year, the return 327.23must be filed on the 15th day of the fourth month following the close of the 12-month period 327.24that began with the first day of that fractional part of a year; 327.25 (5) in the case of the return of a cooperative association, returns must be filed on or 327.26before the 15th day of the ninth month following the close of the taxable year; 327.27 (6) if a corporation has been divested from a unitary group and files a return for a 327.28fractional part of a year in which it was a member of a unitary business that files a combined 327.29report under section 290.17, subdivision 4, the divested corporation's return must be filed 327.30on the 15th day of the third month following the close of the common accounting period 327.31that includes the fractional year; 328.1 (7) returns of entertainment entities must be filed on April 15 following the close of the 328.2calendar year; 328.3 (8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 328.4the 15th day of the fifth month following the close of the taxable year; 328.5 (9) returns of mining companies must be filed on May 1 following the close of the 328.6calendar year; and 328.7 (10) returns required to be filed with the commissioner under section 289A.12, 328.8subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the 328.9commissioner. 328.10EFFECTIVE DATE.This section is effective the day following final enactment. 328.11 Sec. 28. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read: 328.12 Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment of 328.13tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 328.14be made at any time within two years from the making of the refund. If part of the refund 328.15was induced by fraud or misrepresentation of a material fact, the assessment may be made 328.16at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs when the 328.17commissioner issues a payment to a person that exceeds the amount the person is entitled 328.18to receive under law. An erroneous refund is considered an underpayment of tax on the date 328.19issued. 328.20(b) To the extent that the amount paid does not exceed the amount claimed by the 328.21taxpayer, an erroneous refund does not include the following: 328.22(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 328.23taxpayer, including but not limited to refunds of claims made under section 290.06, 328.24subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 328.25290.0681; or 290.0692; or chapter 290A; or 328.26(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 328.27taxpayer. 328.28(c) The commissioner may make an assessment to recover an erroneous refund at any 328.29time within two years from the issuance of the erroneous refund. If all or part of the erroneous 328.30refund was induced by fraud or misrepresentation of a material fact, the assessment may 328.31be made at any time. 329.1(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 329.2conducted under section 289A.38. 329.3EFFECTIVE DATE.This section is effective July 1, 2017. 329.4 Sec. 29. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read: 329.5 Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund 329.6claim is denied in whole or in part, the taxpayer may: 329.7(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 329.8Tax Court, within 60 days after issuance the notice date of the commissioner's notice of 329.9denial; or 329.10(2) file an action in the district court to recover the refund. 329.11(b) An action in the district court on a denied claim for refund must be brought within 329.1218 months of the notice date of the denial of the claim by the commissioner. For the purposes 329.13of this section, "notice date" has the meaning given in section 270C.35, subdivision 3. 329.14(c) No action in the district court or the Tax Court shall be brought within six months 329.15of the filing of the refund claim unless the commissioner denies the claim within that period. 329.16(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 329.17of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 329.18time after the expiration of six months from the time the claim was filed. 329.19(e) The commissioner and the taxpayer may agree to extend the period for bringing an 329.20action in the district court. 329.21(f) An action for refund of tax by the taxpayer must be brought in the district court of 329.22the district in which lies the county of the taxpayer's residence or principal place of business. 329.23In the case of an estate or trust, the action must be brought at the principal place of its 329.24administration. Any action may be brought in the district court for Ramsey County. 329.25EFFECTIVE DATE.This section is effective for claims for refund denied after 329.26December 31, 2017. 329.27 Sec. 30. [290B.11] FORMS. 329.28The commissioner shall prescribe the content, format, and manner of all forms and other 329.29documents required to be filed under this chapter pursuant to section 270C.30. 329.30EFFECTIVE DATE.This section is effective the day following final enactment. 330.1 Sec. 31. [293.15] FORMS. 330.2The commissioner shall prescribe the content, format, and manner of all forms and other 330.3documents required to be filed under this chapter pursuant to section 270C.30. 330.4EFFECTIVE DATE.This section is effective the day following final enactment. 330.5 Sec. 32. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read: 330.6 Subd. 6. Form of returns. The estimated payments and annual return must contain the 330.7information and be in the form prescribed by the commissioner. The commissioner shall 330.8prescribe the content, format, and manner of the estimated payment forms and annual return 330.9pursuant to section 270C.30. 330.10EFFECTIVE DATE.This section is effective the day following final enactment. 330.11 Sec. 33. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 330.12to read: 330.13 Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner of 330.14all forms and other documents required to be filed under this chapter pursuant to section 330.15270C.30. 330.16EFFECTIVE DATE.This section is effective the day following final enactment. 330.17 Sec. 34. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read: 330.18 Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any 330.19penalty imposed under this section, if in the commissioner's opinion there is reasonable 330.20cause to do so. 330.21(b) A request for abatement of penalty must be filed with the commissioner within 60 330.22days of the notice date of the notice stating that a penalty has been imposed was mailed to 330.23the taxpayer's last known address. For purposes of this section, "notice date" means the 330.24notice date designated by the commissioner on the order or other notice that a penalty has 330.25been imposed. 330.26(c) If the commissioner issues an order denying a request for abatement of penalty, the 330.27taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 330.28Court as provided in section 271.06. If the commissioner does not issue an order on the 330.29abatement request within 60 days from the date the request is received, the taxpayer may 330.30appeal to Tax Court as provided in section 271.06. 331.1EFFECTIVE DATE.This section is effective for orders and notices dated after 331.2December 31, 2017. 331.3 Sec. 35. Minnesota Statutes 2016, section 296A.26, is amended to read: 331.4296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT. 331.5In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 331.6order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 331.760 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 331.8provided under section 271.06. For purposes of this section, "notice date" means the notice 331.9date designated by the commissioner on the order fixing a tax, penalty, or interest. 331.10EFFECTIVE DATE.This section is effective for orders dated after December 31, 331.112017. 331.12 Sec. 36. Minnesota Statutes 2016, section 297D.02, is amended to read: 331.13297D.02 ADMINISTRATION. 331.14The commissioner of revenue shall administer this chapter. The commissioner shall 331.15prescribe the content, format, and manner of all forms and other documents required to be 331.16filed under this chapter pursuant to section 270C.30. Payments required by this chapter 331.17must be made to the commissioner on the form provided by the commissioner. Tax obligors 331.18are not required to give their name, address, Social Security number, or other identifying 331.19information on the form. The commissioner shall collect all taxes under this chapter. 331.20EFFECTIVE DATE.This section is effective the day following final enactment. 331.21 Sec. 37. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read: 331.22 Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable 331.23to the commissioner when the gambling tax return is required to be filed. Distributors must 331.24file their monthly sales figures with the commissioner on a form prescribed by the 331.25commissioner. Returns covering the taxes imposed under this section must be filed with 331.26the commissioner on or before the 20th day of the month following the close of the previous 331.27calendar month. The commissioner may require that the returns be filed via magnetic media 331.28or electronic data transfer. The commissioner shall prescribe the content, format, and manner 331.29of returns or other documents pursuant to section 270C.30. The proceeds, along with the 331.30revenue received from all license fees and other fees under sections 349.11 to 349.191, 332.1349.211 , and 349.213, must be paid to the commissioner of management and budget for 332.2deposit in the general fund. 332.3(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 332.4distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 332.5the organization is exempt from taxes imposed by chapter 297A and is exempt from all 332.6local taxes and license fees except a fee authorized under section 349.16, subdivision 8. 332.7(c) One-half of one percent of the revenue deposited in the general fund under paragraph 332.8(a), is appropriated to the commissioner of human services for the compulsive gambling 332.9treatment program established under section 245.98. One-half of one percent of the revenue 332.10deposited in the general fund under paragraph (a), is appropriated to the commissioner of 332.11human services for a grant to the state affiliate recognized by the National Council on 332.12Problem Gambling to increase public awareness of problem gambling, education and training 332.13for individuals and organizations providing effective treatment services to problem gamblers 332.14and their families, and research relating to problem gambling. Money appropriated by this 332.15paragraph must supplement and must not replace existing state funding for these programs. 332.16EFFECTIVE DATE.This section is effective the day following final enactment. 332.17 Sec. 38. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read: 332.18 Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or 332.19resale in this state, or for receipt by a person or entity in this state, shall file with the 332.20commissioner, on a form prescribed by the commissioner, a report of gambling product 332.21sold to any person in the state, including the established governing body of an Indian tribe 332.22recognized by the United States Department of the Interior. The report must be filed monthly 332.23on or before the 20th day of the month succeeding the month in which the sale was made. 332.24The commissioner may require that the report be submitted via magnetic media or electronic 332.25data transfer. The commissioner shall prescribe the content, format, and manner of returns 332.26or other documents pursuant to section 270C.30. The commissioner may inspect the premises, 332.27books, records, and inventory of a manufacturer without notice during the normal business 332.28hours of the manufacturer. A person violating this section is guilty of a misdemeanor. 332.29EFFECTIVE DATE.This section is effective the day following final enactment. 332.30 Sec. 39. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read: 332.31 Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the 332.32commissioner prescribes, its sales of each type of gambling product. This report must be 333.1filed monthly on or before the 20th day of the month succeeding the month in which the 333.2sale was made. The commissioner may require that a distributor submit the monthly report 333.3and invoices required in this subdivision via magnetic media or electronic data transfer. 333.4The commissioner shall prescribe the content, format, and manner of returns or other 333.5documents pursuant to section 270C.30. 333.6EFFECTIVE DATE.This section is effective the day following final enactment. 333.7 Sec. 40. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read: 333.8 Subdivision 1. Reports. An organization must file with the commissioner, on a form 333.9prescribed by the commissioner, a report showing all gambling activity conducted by that 333.10organization for each month. Gambling activity includes all gross receipts, prizes, all 333.11gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 333.12purpose and board-approved expenditures. The report must be filed with the commissioner 333.13on or before the 20th day of the month following the month in which the gambling activity 333.14takes place. The commissioner may require that the reports be filed via magnetic media or 333.15electronic data transfer. The commissioner shall prescribe the content, format, and manner 333.16of returns or other documents pursuant to section 270C.30. 333.17EFFECTIVE DATE.This section is effective the day following final enactment. 333.18 Sec. 41. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read: 333.19 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of 333.20each calendar month, a distributor with a place of business in this state shall file a return 333.21with the commissioner showing the quantity of cigarettes manufactured or brought in from 333.22outside the state or purchased during the preceding calendar month and the quantity of 333.23cigarettes sold or otherwise disposed of in this state and outside this state during that month. 333.24A licensed distributor outside this state shall in like manner file a return showing the quantity 333.25of cigarettes shipped or transported into this state during the preceding calendar month. 333.26Returns must be made in the form and manner prescribed by The commissioner shall 333.27prescribe the content, format, and manner of returns pursuant to section 270C.30, and the 333.28returns must contain any other information required by the commissioner. The return must 333.29be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 333.30subject to the accelerated tax payment requirements in subdivision 10, the return for the 333.31May liability is due two business days before June 30th of the year and the return for the 333.32June liability is due on or before August 18th of the year. 333.33EFFECTIVE DATE.This section is effective the day following final enactment. 334.1 Sec. 42. Minnesota Statutes 2016, section 297F.23, is amended to read: 334.2297F.23 JUDICIAL REVIEW. 334.3In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 334.4order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 334.560 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 334.6provided under section 271.06. For purposes of this section, "notice date" means the notice 334.7date designated by the commissioner on the order fixing a tax, penalty, or interest. 334.8EFFECTIVE DATE.This section is effective for orders dated after December 31, 334.92017. 334.10 Sec. 43. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read: 334.11 Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers. 334.12On or before the 18th day of each calendar month following the month in which a licensed 334.13manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 334.14or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 334.15acquires title to or possession of untaxed fermented malt beverages, the licensed 334.16manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 334.17with the commissioner, and in addition must keep records and render reports as required 334.18by the commissioner. Returns must be made in a form and manner prescribed by the 334.19commissioner, and The commissioner shall prescribe the content, format, and manner of 334.20returns pursuant to section 270C.30. The returns must contain any other information required 334.21by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 334.22liability. Returns must be filed regardless of whether a tax is due. 334.23EFFECTIVE DATE.This section is effective the day following final enactment. 334.24 Sec. 44. Minnesota Statutes 2016, section 297G.22, is amended to read: 334.25297G.22 JUDICIAL REVIEW. 334.26In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 334.27the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 334.28from the date of the notice date of the order, appeal to the Tax Court in the manner provided 334.29under section 271.06. For purposes of this section, "notice date" means the notice date 334.30designated by the commissioner on the order fixing a tax, penalty, or interest. 334.31EFFECTIVE DATE.This section is effective for orders dated after December 31, 334.322017. 335.1 Sec. 45. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 335.2to read: 335.3 Subd. 11. Format. The commissioner shall prescribe the content, format, and manner 335.4of returns or other documents pursuant to section 270C.30. 335.5EFFECTIVE DATE.This section is effective the day following final enactment. 335.6 Sec. 46. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read: 335.7 Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 335.8or in part, the taxpayer may contest the denial by: 335.9(1) filing an administrative appeal with the commissioner under section 270C.35; 335.10(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; 335.11or 335.12(3) filing an action in the district court to recover the refund. 335.13(b) An action in the district court must be brought within 18 months following of the 335.14notice date of the notice of denial. For purposes of this section, "notice date" has the meaning 335.15given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be 335.16brought in the district court of the district in which lies the taxpayer's principal place of 335.17business or in the District Court for Ramsey County. If a taxpayer files a claim for refund 335.18and the commissioner has not issued a denial of the claim, the taxpayer may bring an action 335.19in the district court or the Tax Court at any time after the expiration of six months from the 335.20time the claim was filed. 335.21EFFECTIVE DATE.This section is effective for claims for refund denied after 335.22December 31, 2017. 335.23 Sec. 47. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read: 335.24 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment 335.25required under subdivision 1, if the commissioner, in consultation with the commissioner 335.26of employment and economic development and appropriate officials from the local 335.27government units in which the qualified business is located, determines that requiring 335.28repayment of the tax is not in the best interest of the state or the local government units and 335.29the business ceased operating as a result of circumstances beyond its control including, but 335.30not limited to: 335.31 (1) a natural disaster; 336.1 (2) unforeseen industry trends; or 336.2 (3) loss of a major supplier or customer. 336.3 (b)(1) The commissioner shall waive repayment required under subdivision 1a if the 336.4commissioner has waived repayment by the operating business under subdivision 1, unless 336.5the person that received benefits without having to operate a business in the zone was a 336.6contributing factor in the qualified business becoming subject to repayment under subdivision 336.71; 336.8 (2) the commissioner shall waive the repayment required under subdivision 1a, even if 336.9the repayment has not been waived for the operating business if: 336.10 (i) the person that received benefits without having to operate a business in the zone and 336.11the business that operated in the zone are not related parties as defined in section 267(b) of 336.12the Internal Revenue Code of 1986, as amended through December 31, 2007; and 336.13 (ii) actions of the person were not a contributing factor in the qualified business becoming 336.14subject to repayment under subdivision 1. 336.15(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 336.16date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 336.17issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means 336.18the notice date designated by the commissioner on the order. 336.19EFFECTIVE DATE.This section is effective for orders of the commissioner of revenue 336.20dated after December 31, 2017. 336.21 Sec. 48. Laws 2016, chapter 187, section 5, the effective date, is amended to read: 336.22EFFECTIVE DATE.This section is effective for orders and notices dated after 336.23September 30, 2015 December 31, 2017. 336.24EFFECTIVE DATE.This section is effective retroactively from September 30, 2015. 336.25ARTICLE 15 336.26DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE 336.27ACT PROVISIONS 336.28 Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read: 336.29290C.03 ELIGIBILITY REQUIREMENTS. 336.30(a) Land may be enrolled in the sustainable forest incentive program under this chapter 336.31if all of the following conditions are met: 337.1(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 337.2must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment; 337.3(2) a forest management plan for the land must be (i) prepared by an approved plan 337.4writer and implemented during the period in which the land is enrolled, and (ii) registered 337.5with the Department of Natural Resources; 337.6(3) timber harvesting and forest management guidelines must be used in conjunction 337.7with any timber harvesting or forest management activities conducted on the land during 337.8the period in which the land is enrolled; 337.9(4) the land must be enrolled for a minimum of eight years; 337.10(5) there are no delinquent property taxes on the land; and 337.11(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program 337.12must allow year-round, nonmotorized access to fish and wildlife resources and motorized 337.13access on established and maintained roads and trails, unless the road or trail is temporarily 337.14closed for safety, natural resource, or road damage reasons on enrolled land except within 337.15one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 337.16by the commissioner of natural resources.; and 337.17(7) the land is not classified as 2c managed forest land. 337.18(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 337.19action: 337.20(1) extend any assurance that the land is safe for any purpose; 337.21(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 337.22care is owed; or 337.23(3) assume responsibility for or incur liability for any injury to the person or property 337.24caused by an act or omission of the person. 337.25(c) A minimum of three acres must be excluded from enrolled land when the land is 337.26improved with a structure that is not a minor, ancillary, or nonresidential structure. If land 337.27does not meet the definition of forest land in section 290C.02, subdivision 6, because the 337.28land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal 337.29conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject 337.30to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural 337.31land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan 338.1Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is 338.2not eligible to be enrolled in the program. 338.3EFFECTIVE DATE.The amendment to paragraph (a), clause (2), is effective for 338.4certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is 338.5effective for certifications and applications due in 2017 and thereafter. The amendment 338.6adding paragraph (c) is effective the day following final enactment. 338.7 Sec. 2. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN. 338.8On request of the commissioner, the commissioner of natural resources must annually 338.9provide verification that the claimant has a current forest management plan on file with the 338.10Department of Natural Resources. 338.11EFFECTIVE DATE.This section is effective for certifications filed after July 1, 2018. 338.12 Sec. 3. REPEALER. 338.13Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are 338.14repealed. 338.15EFFECTIVE DATE.This section is effective the day following final enactment. 338.16ARTICLE 16 338.17DEPARTMENT OF REVENUE INDIVIDUAL INCOME, CORPORATE 338.18FRANCHISE, AND ESTATE TAX TECHNICAL PROVISIONS 338.19 Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read: 338.20 Subd. 21. Military service pension; retirement pay. To the extent included in federal 338.21taxable income, compensation received from a pension or other retirement pay from the 338.22federal government for service in the military, as computed under United States Code, title 338.2310, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must 338.24not include any amount used to claim the credit allowed under section is limited 338.25to individuals who do not claim the credit under section 290.0677. 338.26EFFECTIVE DATE.This section is effective retroactively for taxable years beginning 338.27after December 31, 2015. 338.28 Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read: 338.29 Subd. 3. Income. (a) "Income" means the sum of the following: 338.30 (1) federal adjusted gross income as defined in the Internal Revenue Code; and 339.1 (2) the sum of the following amounts to the extent not included in clause (1): 339.2 (i) all nontaxable income; 339.3 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 339.4paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 339.5carryover allowed under section 469(b) of the Internal Revenue Code; 339.6 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 339.7solvent individual excluded from gross income under section 108(g) of the Internal Revenue 339.8Code; 339.9 (iv) cash public assistance and relief; 339.10 (v) any pension or annuity (including railroad retirement benefits, all payments received 339.11under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 339.12which was not exclusively funded by the claimant or spouse, or which was funded exclusively 339.13by the claimant or spouse and which funding payments were excluded from federal adjusted 339.14gross income in the years when the payments were made; 339.15 (vi) interest received from the federal or a state government or any instrumentality or 339.16political subdivision thereof; 339.17 (vii) workers' compensation; 339.18 (viii) nontaxable strike benefits; 339.19 (ix) the gross amounts of payments received in the nature of disability income or sick 339.20pay as a result of accident, sickness, or other disability, whether funded through insurance 339.21or otherwise; 339.22 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 339.231986, as amended through December 31, 1995; 339.24 (xi) contributions made by the claimant to an individual retirement account, including 339.25a qualified voluntary employee contribution; simplified employee pension plan; 339.26self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 339.27the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 339.28Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 339.29the claimant and spouse; 339.30 (xii) to the extent not included in federal adjusted gross income, distributions received 339.31by the claimant or spouse from a traditional or Roth style retirement account or plan; 339.32 (xiii) nontaxable scholarship or fellowship grants; 340.1 (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code; 340.2 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 340.3Code; 340.4 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 340.5Code; and 340.6 (xvii) the amount deducted for certain expenses of elementary and secondary school 340.7teachers under section 62(a)(2)(D) of the Internal Revenue Code. 340.8 In the case of an individual who files an income tax return on a fiscal year basis, the 340.9term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 340.10the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 340.11by the amount of a net operating loss carryback or carryforward or a capital loss carryback 340.12or carryforward allowed for the year. 340.13 (b) "Income" does not include: 340.14 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102; 340.15 (2) amounts of any pension or annuity which was exclusively funded by the claimant 340.16or spouse and which funding payments were not excluded from federal adjusted gross 340.17income in the years when the payments were made; 340.18 (3) to the extent included in federal adjusted gross income, amounts contributed by the 340.19claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 340.20the retirement base amount reduced by the amount of contributions excluded from federal 340.21adjusted gross income, but not less than zero; 340.22 (4) surplus food or other relief in kind supplied by a governmental agency; 340.23 (5) relief granted under this chapter; 340.24 (6) child support payments received under a temporary or final decree of dissolution or 340.25legal separation; or 340.26 (7) restitution payments received by eligible individuals and excludable interest as 340.27defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 340.28Public Law 107-16. 340.29 (c) The sum of the following amounts may be subtracted from income: 340.30 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4; 340.31 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3; 341.1 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2; 341.2 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1; 341.3 (5) for the claimant's fifth dependent, the exemption amount; and 341.4 (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 341.5before December 31 of the year for which the taxes were levied or rent paid, the exemption 341.6amount. 341.7 (d) For purposes of this subdivision, the "exemption amount" means the exemption 341.8amount under section 151(d) of the Internal Revenue Code for the taxable year for which 341.9the income is reported; "retirement base amount" means the deductible amount for the 341.10taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 341.11Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue 341.12Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 341.13or Roth style retirement account or plan" means retirement plans under sections 401, 403, 341.14408, 408A, and 457 of the Internal Revenue Code. 341.15EFFECTIVE DATE.This section is effective the day following final enactment. 341.16 Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read: 341.17290A.10 PROOF OF TAXES PAID. 341.18Every If requested by the commissioner of revenue, a claimant who files a claim for 341.19relief for property taxes payable shall include with the claim provide a property tax statement 341.20or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue 341.21indicating that there are no delinquent property taxes on the homestead. Indication on the 341.22property tax statement from the county treasurer that there are no delinquent taxes on the 341.23homestead shall be sufficient proof. Taxes included in a confession of judgment under 341.24section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is 341.25current on the payments required to be made under section 277.23 or 279.37. 341.26EFFECTIVE DATE.This section is effective for refunds based on rent paid after 341.27December 31, 2015, and property taxes payable after December 31, 2016. 341.28 Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read: 341.29291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY. 341.30If, after the final determination of the tax imposed by this chapter, the property valued 341.31pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify 342.1and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit 342.2for state death taxes federal gross or taxable estate shall be reported to the commissioner 342.3within 90 days after final determination of the increased credit of the federal adjustment. 342.4Upon notification the commissioner may assess an additional tax in accordance with section 342.5291.03, subdivision 1 . 342.6EFFECTIVE DATE.This section is effective the day following final enactment. 342.7 Sec. 5. REPEALER. 342.8Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed. 342.9EFFECTIVE DATE.This section is effective the day following final enactment. 342.10ARTICLE 17 342.11DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT 342.12AID TECHNICAL PROVISIONS 342.13 Section 1. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read: 342.14 Subdivision 1. Conformance to federal law. If any provision of sections 270.071 to 342.15270.079 is contrary to any provision of any law of the United States of America, hereinafter 342.16enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying 342.17equipment of an airline company, such provision shall be of no effect and the commissioner 342.18is authorized and directed to prescribe by rule such provisions as may be necessary to make 342.19sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of 342.20sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher 342.21than that provided in section 270.075 or a net tax capacity based on a percentage higher 342.22than that provided in section 270.074, subdivision 2 3. 342.23EFFECTIVE DATE.This section is effective the day following final enactment. 342.24 Sec. 2. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read: 342.25 Subdivision 1. Reduction in tax; tax relief area. The property tax to be paid in respect 342.26to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on 342.27homestead property, as otherwise determined by law and regardless of the market value of 342.28the property, and on nonhomestead portions of property classified as both homestead and 342.29nonhomestead property as provided in section 273.124, subdivision 11, for all purposes 342.30shall be reduced in the amount prescribed by subdivision 2, subject to the limitations 342.31contained therein. 343.1EFFECTIVE DATE.This section is effective the day following final enactment. 343.2 Sec. 3. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read: 343.3 Subd. 2. Transmittal of order. The chief administrative law judge shall see that copies 343.4of the order are mailed to all parties entitled to mailed notice of hearing under subdivision 343.51, the secretary of state, the Department of Revenue, the state demographer, individual 343.6property owners if initiated in that manner, affected county auditor, and any other party of 343.7record. The affected county auditor shall record the order against the affected property. 343.8EFFECTIVE DATE.This section is effective the day following final enactment. 343.9 Sec. 4. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read: 343.10 Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the 343.11meanings given them. 343.12 (b) "County program aid" means the sum of "county need aid," "county tax base 343.13equalization aid," and "county transition aid." 343.14 (c) "Age-adjusted population" means a county's population multiplied by the county age 343.15index. 343.16 (d) "County age index" means the percentage of the population over age 65 and over 343.17within the county divided by the percentage of the population over age 65 and over within 343.18the state, except that the age index for any county may not be greater than 1.8 nor less than 343.190.8. 343.20 (e) "Population over age 65 and over" means the population over age 65 and over 343.21established as of July 15 in an aid calculation year by the most recent federal census, by a 343.22special census conducted under contract with the United States Bureau of the Census, by a 343.23population estimate made by the Metropolitan Council, or by a population estimate of the 343.24state demographer made pursuant to section 4A.02, whichever is the most recent as to the 343.25stated date of the count or estimate for the preceding calendar year and which has been 343.26certified to the commissioner of revenue on or before July 15 of the aid calculation year. A 343.27revision to an estimate or count is effective for these purposes only if certified to the 343.28commissioner on or before July 15 of the aid calculation year. Clerical errors in the 343.29certification or use of estimates and counts established as of July 15 in the aid calculation 343.30year are subject to correction within the time periods allowed under section 477A.014. 343.31 (f) "Part I crimes" means the three-year average annual number of Part I crimes reported 343.32for each county by the Department of Public Safety for the most recent years available. By 344.1July 1 of each year, the commissioner of public safety shall certify to the commissioner of 344.2revenue the number of Part I crimes reported for each county for the three most recent 344.3calendar years available. 344.4 (g) "Households receiving food stamps" means the average monthly number of 344.5households receiving food stamps for the three most recent years for which data is available. 344.6By July 1 of each year, the commissioner of human services must certify to the commissioner 344.7of revenue the average monthly number of households in the state and in each county that 344.8receive food stamps, for the three most recent calendar years available. 344.9 (h) "County net tax capacity" means the county's adjusted net tax capacity under section 344.10273.1325 . 344.11EFFECTIVE DATE.This section is effective the day following final enactment. 344.12 Sec. 5. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read: 344.13 Subdivision 1. Towns. (a) In 2014 and thereafter, each town is eligible for a distribution 344.14under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town 344.15area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the 344.16following terms have the meanings given them: 344.17(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 344.18agricultural property located in a town, divided by to the adjusted net tax capacity of all 344.19other property located in the town. The agricultural property factor cannot exceed eight; 344.20(2) "agricultural property" means property classified under section 273.13, as homestead 344.21and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal 344.22recreational property; 344.23(3) "town area factor" means the most recent estimate of total acreage, not to exceed 344.2450,000 acres, located in the township available as of July 1 in the aid calculation year, 344.25estimated or established by: 344.26(i) the United States Bureau of the Census; 344.27(ii) the State Land Management Information Center; or 344.28(iii) the secretary of state; and 344.29(4) "population factor" means the square root of the towns' population. 344.30(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit 344.31under section 477A.03, subdivision 2c, the distribution to each town must be reduced 345.1proportionately so that the total amount of aids distributed under this section does not exceed 345.2the limit in section 477A.03, subdivision 2c. 345.3(c) Data used in calculating aids to towns under this subdivision, other than acreage, 345.4shall be the most recently available data as of January 1 in the year in which the aid is 345.5calculated. 345.6EFFECTIVE DATE.This section is effective the day following final enactment. 345.7ARTICLE 18 345.8DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES 345.9TECHNICAL PROVISIONS 345.10 Section 1. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read: 345.11 Subdivision 1. Definitions. (a) If a special law grants a local government unit or group 345.12of units the authority to impose a local tax other than sales tax, including but not limited to 345.13taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the 345.14Department of Revenue either has agreed to or is required to administer the tax, such that 345.15the tax is reported and paid with the chapter 297A taxes, then the local government unit or 345.16group of units must adopt each definition term used in the special law is defined as follows: 345.17(1) the definition must be identical to the definition found as defined in chapter 297A 345.18or in Minnesota Rules, chapter 8130; or 345.19(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules, 345.20chapter 8130, then the definition must be defined consistent with the position of the 345.21Department of Revenue as to the extent of the tax base. 345.22(b) This subdivision does not apply to terms that are defined by the authorizing special 345.23law. 345.24(c) This subdivision applies notwithstanding whether a local government unit or group 345.25of units adopts consistent definitions into local law. 345.26EFFECTIVE DATE.This section is effective the day following final enactment. 345.27 Sec. 2. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read: 345.28 Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining, 345.29refining, or producing ores, metals, or minerals in this state, except iron ore or taconite 345.30concentrates, shall pay an occupation tax to the state of Minnesota as provided in this 345.31subdivision. For purposes of this subdivision, mining includes the application of 346.1hydrometallurgical processes. Hydrometallurgical processes are processes that extract the 346.2ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover 346.3the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by 346.4section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 346.54 , and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by 346.6applying to taxable income the rate of 2.45 percent. A person subject to occupation tax 346.7under this section shall apportion its net income on the basis of the percentage obtained by 346.8taking the sum of: 346.9 (1) 75 percent of the percentage which the sales made within this state in connection 346.10with the trade or business during the tax period are of the total sales wherever made in 346.11connection with the trade or business during the tax period; 346.12 (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 346.13in this state in connection with the trade or business during the tax period is of the total 346.14tangible property, wherever located, used by the taxpayer in connection with the trade or 346.15business during the tax period; and 346.16 (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 346.17in this state or paid in respect to labor performed in this state in connection with the trade 346.18or business during the tax period are of the taxpayer's total payrolls paid or incurred in 346.19connection with the trade or business during the tax period. 346.20 The tax is in addition to all other taxes. 346.21EFFECTIVE DATE.This section is effective the day following final enactment. 346.22 Sec. 3. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read: 346.23 Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the 346.24business of mining or producing of iron ore, taconite concentrates or direct reduced ore in 346.25this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the 346.26same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 346.271 , clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the 346.28occupation tax shall be computed by applying to taxable income the rate of 2.45 percent. 346.29A person subject to occupation tax under this section shall apportion its net income on the 346.30basis of the percentage obtained by taking the sum of: 346.31(1) 75 percent of the percentage which the sales made within this state in connection 346.32with the trade or business during the tax period are of the total sales wherever made in 346.33connection with the trade or business during the tax period; 347.1(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 347.2in this state in connection with the trade or business during the tax period is of the total 347.3tangible property, wherever located, used by the taxpayer in connection with the trade or 347.4business during the tax period; and 347.5(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 347.6in this state or paid in respect to labor performed in this state in connection with the trade 347.7or business during the tax period are of the taxpayer's total payrolls paid or incurred in 347.8connection with the trade or business during the tax period. 347.9The tax is in addition to all other taxes. 347.10EFFECTIVE DATE.This section is effective the day following final enactment. 347.11 Sec. 4. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read: 347.12 Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is 347.13imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and 347.14upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, 347.15a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The 347.16tax is also imposed upon other iron-bearing material. 347.17 (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal 347.18to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied 347.19by the percentage increase in the implicit price deflator from the fourth quarter of the second 347.20preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means 347.21the implicit price deflator for the gross domestic product prepared by the Bureau of Economic 347.22Analysis of the United States Department of Commerce. 347.23 (c) An additional tax is imposed equal to three cents per gross ton of merchantable iron 347.24ore concentrate for each one percent that the iron content of the product exceeds 72 percent, 347.25when dried at 212 degrees Fahrenheit. 347.26 (d) The tax on taconite and iron sulphides shall be imposed on the average of the 347.27production for the current year and the previous two years. The rate of the tax imposed will 347.28be the current year's tax rate. This clause shall not apply in the case of the closing of a 347.29taconite facility if the property taxes on the facility would be higher if this clause and section 347.30298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the 347.31current year production. 348.1 (e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The 348.2tax on other iron-bearing material shall be imposed on the current year production. The rate 348.3of the tax imposed is the current year's tax rate. 348.4 (e) (f) If the tax or any part of the tax imposed by this subdivision is held to be 348.5unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 348.6shall be imposed. 348.7 (f) (g) Consistent with the intent of this subdivision to impose a tax based upon the 348.8weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 348.9determine the weight of merchantable iron ore concentrate included in fluxed pellets by 348.10subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux 348.11additives included in the pellets from the weight of the pellets. For purposes of this paragraph, 348.12"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or 348.13other basic flux additives are combined with merchantable iron ore concentrate. No 348.14subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical 348.15additives other than basic flux additives, or moisture. 348.16 (g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years 348.17of a plant's commercial production of direct reduced ore from ore mined in this state, no 348.18tax is imposed under this section. As used in this paragraph, "commercial production" is 348.19production of more than 50,000 tons of direct reduced ore in the current year or in any prior 348.20year, "noncommercial production" is production of 50,000 tons or less of direct reduced 348.21ore in any year, and "direct reduced ore" is ore that results in a product that has an iron 348.22content of at least 75 percent. For the third year of a plant's commercial production of direct 348.23reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise 348.24determined under this subdivision. For the fourth commercial production year, the rate is 348.2550 percent of the rate otherwise determined under this subdivision; for the fifth commercial 348.26production year, the rate is 75 percent of the rate otherwise determined under this subdivision; 348.27and for all subsequent commercial production years, the full rate is imposed. 348.28 (2) Subject to clause (1), production of direct reduced ore in this state is subject to the 348.29tax imposed by this section, but if that production is not produced by a producer of taconite, 348.30iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or 348.31other iron-bearing material, that is consumed in the production of direct reduced iron ore 348.32in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or 348.33other iron-bearing material. 349.1 (3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct 349.2reduced ore under this section during the facility's noncommercial production of direct 349.3reduced ore. The taconite or iron sulphides consumed in the noncommercial production of 349.4direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. 349.5Three-year average production of direct reduced ore does not include production of direct 349.6reduced ore in any noncommercial year. Three-year average production for a direct reduced 349.7ore facility that has noncommercial production is the average of the commercial production 349.8of direct reduced ore for the current year and the previous two commercial years. 349.9 (4) This paragraph applies only to plants for which all environmental permits have been 349.10obtained and construction has begun before July 1, 2008. 349.11EFFECTIVE DATE.This section is effective the day following final enactment. 349.12 Sec. 5. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read: 349.13 Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of 349.14merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 349.15provided in paragraph (c), must be allocated to the city or town in the county in which the 349.16lands from which taconite was mined or quarried were located or within which the 349.17concentrate was produced. If the mining, quarrying, and concentration, or different steps 349.18in either thereof are carried on in more than one taxing district, the commissioner shall 349.19apportion equitably the proceeds of the part of the tax going to cities and towns among such 349.20subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation 349.21of mining or quarrying the taconite, and the remainder to the concentrating plant and to the 349.22processes of concentration, and with respect to each thereof giving due consideration to the 349.23relative extent of such operations performed in each such taxing district. The commissioner's 349.24order making such apportionment shall be subject to review by the Tax Court at the instance 349.25of any of the interested taxing districts, in the same manner as other orders of the 349.26commissioner. 349.27(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships 349.28affected by mining because their boundaries are within three miles of a taconite mine pit 349.29that: 349.30(i) was actively mined by LTV Steel Mining Company in 1999; or 349.31(ii) has been actively mined in at least one of the prior three years. 349.32(2) If a city or town is located near more than one mine meeting these the criteria under 349.33this paragraph, the city or town is eligible to receive aid calculated from only the mine 350.1producing the largest taxable tonnage. When more than one municipality qualifies for aid 350.2based on one company's production, the aid must be apportioned among the municipalities 350.3in proportion to their populations. The amounts distributed under this paragraph to each 350.4municipality must be used for infrastructure improvement projects. 350.5(c) The amount that would have been computed for the current year under Minnesota 350.6Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to 350.7the cities and townships within the school district in the proportion that their taxable net tax 350.8capacity within the school district bears to the taxable net tax capacity of the school district 350.9for property taxes payable in the year prior to distribution. 350.10EFFECTIVE DATE.This section is effective the day following final enactment. 350.11 Sec. 6. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read: 350.12 Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 350.13and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 350.14to be distributed, based upon certification by the commissioner of revenue, under paragraphs 350.15(b) to (d). 350.16 (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 350.17is mined or quarried or in which the concentrate is produced, less any amount which is to 350.18be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 350.192 is the basis for the distribution. 350.20 (c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 350.21shall be paid to a county that received a distribution under this section in 2000 because there 350.22was located in the county an electric power plant owned by and providing the primary source 350.23of power for a taxpayer mining and concentrating taconite is located in a different county 350.24other than the county in which the mining and the concentrating processes are conducted, 350.25one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and 350.26imposed on and collected from such taxpayer shall be paid to the county in which the power 350.27plant is located. 350.28 (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 350.29per taxable ton for distributions beginning in 2024, shall be paid to the county from which 350.30the taconite was mined, quarried or concentrated to be deposited in the county road and 350.31bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 350.32processes are carried on in more than one county, the commissioner shall follow the 350.33apportionment formula prescribed in subdivision 2. 351.1EFFECTIVE DATE.This section is effective the day following final enactment. 351.2ARTICLE 19 351.3DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT 351.4AID POLICY PROVISIONS 351.5 Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read: 351.6 Subdivision 1. Valuation. The commissioner shall determine the market valuation of 351.7all flight property operated or used by every airline company in air commerce in this state. 351.8The valuation apportioned to this state of such flight property shall be the proportion of the 351.9total valuation thereof determined on the basis of the total of the following percentages: 351.10(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and 351.11freight first received by the airline company in this state during the preceding calendar year 351.12plus the total tonnage of passengers, express and freight finally discharged by it within this 351.13state during the preceding calendar year is of the total of such tonnage first received by the 351.14airline company or finally discharged by it, within and without this state during the preceding 351.15calendar year. 351.16(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all 351.17aircraft of the airline company in flight in this state during the preceding calendar year, is 351.18of the total of such time in flight within and without this state during the preceding calendar 351.19year. 351.20(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of 351.21passengers, mail, express and freight flown by the airline company within this state during 351.22the preceding calendar year is of the total number of such miles flown by it within and 351.23without this state during the preceding calendar year. 351.24(2) 50 percent of the percentage that the total departures performed by the airline company 351.25within this state during the preceding calendar year is of the total departures performed 351.26within and without this state during the preceding calendar year. 351.27EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 351.28 Sec. 2. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read: 351.29 Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 351.30the state of Minnesota or any political subdivision thereof, and property exempt from taxation 351.31under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 351.32provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 352.1described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 352.2the assessor of the assessment district in which the property is located. By February 1, 2018, 352.3and by February 1 of each third year thereafter, the commissioner of revenue shall publish 352.4on its Web site a list of the exemptions for which a taxpayer claiming an exemption must 352.5file a statement of exemption. The commissioner's requirement that a taxpayer file a statement 352.6of exemption pursuant to this subdivision shall not be considered a rule and is not subject 352.7to the Administrative Procedure Act, chapter 14. 352.8(b) A taxpayer claiming an exemption from taxation on property described in section 352.9272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue, 352.10on or before February 15 of each year for which the taxpayer claims an exemption. 352.11(c) In case of sickness, absence or other disability or for good cause, the assessor or the 352.12commissioner may extend the time for filing the statement of exemption for a period not to 352.13exceed 60 days. 352.14(d) The commissioner of revenue shall prescribe the form and contents of the statement 352.15of exemption. 352.16EFFECTIVE DATE.This section is effective for applications for exemption submitted 352.17in 2018 and thereafter. 352.18 Sec. 3. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision 352.19to read: 352.20 Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing 352.21the report required by subdivision 4. The extension must not exceed 15 days. 352.22EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter. 352.23 Sec. 4. Minnesota Statutes 2016, section 272.115, subdivision 1, as amended by Laws 352.242017, chapter 16, section 1, is amended to read: 352.25 Subdivision 1. Requirement. Except as otherwise provided in subdivision 5, 6, or 7, 352.26whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by 352.27warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, 352.28grantee or the legal agent of either shall file a certificate of value with the county auditor 352.29in the county in which the property is located when the deed or other document is presented 352.30for recording. Contract for deeds are subject to recording under section 507.235, subdivision 352.311 . Value shall, in the case of any deed not a gift, be the amount of the full actual consideration 352.32thereof, paid or to be paid, including the amount of any lien or liens assumed. The items 353.1and value of personal property transferred with the real property must be listed and deducted 353.2from the sale price. The certificate of value shall include the classification to which the 353.3property belongs for the purpose of determining the fair market value of the property, and 353.4shall include any proposed change in use of the property known to the person filing the 353.5certificate that could change the classification of the property. The certificate shall include 353.6financing terms and conditions of the sale which are necessary to determine the actual, 353.7present value of the sale price for purposes of the sales ratio study. If the property is being 353.8acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code 353.9of 1986, as amended through December 31, 2006, that must be indicated on the certificate. 353.10The commissioner of revenue shall promulgate administrative rules specifying the financing 353.11terms and conditions which must be included on the certificate. The certificate of value 353.12must include the Social Security number or the federal employer identification number of 353.13the grantors and grantees. However, a married person who is not an owner of record and 353.14who is signing a conveyance instrument along with the person's spouse solely to release 353.15and convey their marital interest, if any, in the real property being conveyed is not a grantor 353.16for the purpose of the preceding sentence. A statement in the deed that is substantially in 353.17the following form is sufficient to allow the county auditor to accept a certificate for filing 353.18without the Social Security number of the named spouse: "(Name) claims no ownership 353.19interest in the real property being conveyed and is executing this instrument solely to release 353.20and convey a marital interest, if any, in that real property." The identification numbers of 353.21the grantors and grantees are private data on individuals or nonpublic data as defined in 353.22section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or 353.23nonpublic data may be disclosed to the commissioner of revenue for purposes of tax 353.24administration. The information required to be shown on the certificate of value is limited 353.25to the information required as of the date of the acknowledgment on the deed or other 353.26document to be recorded. The commissioner's determination of the amount for which a 353.27certificate of value is required pursuant to this subdivision shall not be considered a rule 353.28and is not subject to the Administrative Procedure Act, chapter 14. 353.29EFFECTIVE DATE.This section is effective for certificates of value filed after 353.30December 31, 2017. 353.31 Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read: 353.32 Subd. 2. Form; information required. The certificate of value shall require such facts 353.33and information as may be determined by the commissioner to be reasonably necessary in 353.34the administration of the state education aid formulas. The form of the certificate of value 354.1shall be prescribed by the Department of Revenue which shall provide an adequate supply 354.2of forms to each county auditor. 354.3EFFECTIVE DATE.This section is effective the day following final enactment. 354.4 Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read: 354.5 Subd. 3. Copies transmitted; homestead status. The county auditor shall transmit two 354.6true copies of the certificate of value to the assessor who shall insert into the certificate of 354.7value the most recent market value and when available, the year of original construction of 354.8each parcel of property on both copies, and shall transmit one copy the certificate of value 354.9to the Department of Revenue. Upon the request of a city council located within the county, 354.10a copy of each certificate of value for property located in that city shall be made available 354.11to the governing body of the city. The assessor shall remove the homestead classification 354.12for the following assessment year from a property which is sold or transferred, unless the 354.13grantee or the person to whom the property is transferred completes a homestead application 354.14under section 273.124, subdivision 13, and qualifies for homestead status. 354.15EFFECTIVE DATE.This section is effective for certificates of value filed after 354.16December 31, 2017. 354.17 Sec. 7. Minnesota Statutes 2016, section 273.0755, is amended to read: 354.18273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL. 354.19(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 354.20by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 354.21successfully complete a weeklong Minnesota laws course sponsored by the Department of 354.22Revenue at least once in every four-year period. An assessor need not attend the course if 354.23they successfully pass the test for the course. 354.24(b) The commissioner of revenue may require that each county, and each city for which 354.25the city assessor performs the duties of county assessor, have (i) a person on the assessor's 354.26staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer 354.27or employee who is certified by the Department of Revenue in tax calculations, and (iii) an 354.28officer or employee who is certified by the Department of Revenue in the proper preparation 354.29of abstracts of assessment. The commissioner of revenue may require that each county have 354.30an officer or employee who is certified by the Department of Revenue in the proper 354.31preparation of abstracts of tax lists. Certifications under this paragraph expire after four 354.32years. 355.1(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 355.2every Minnesota assessor licensed by the State Board of Assessors must attend and participate 355.3in a seminar that focuses on ethics, professional conduct and the need for standardized 355.4assessment practices developed and presented by the commissioner of revenue. This 355.5requirement must be met at least once in every subsequent four-year period. This requirement 355.6applies to all assessors licensed for one year or more in the four-year period. 355.7(d) The commissioner of revenue may require that at least one employee of any county 355.8or city that performs functions related to property tax administration complete additional 355.9training that the commissioner deems necessary to promote uniform and equitable 355.10implementation of the property tax laws, as defined in section 270C.01, subdivision 7. 355.11EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 355.12 Sec. 8. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read: 355.13 Subd. 13. Homestead application. (a) A person who meets the homestead requirements 355.14under subdivision 1 must file a homestead application with the county assessor to initially 355.15obtain homestead classification. 355.16 (b) The format and contents of a uniform homestead application shall be prescribed by 355.17the commissioner of revenue. The application must clearly inform the taxpayer that this 355.18application must be signed by all owners who occupy the property or by the qualifying 355.19relative and returned to the county assessor in order for the property to receive homestead 355.20treatment. 355.21 (c) Every property owner applying for homestead classification must furnish to the 355.22county assessor the Social Security number of each occupant who is listed as an owner of 355.23the property on the deed of record, the name and address of each owner who does not occupy 355.24the property, and the name and Social Security number of each owner's spouse who occupies 355.25the property. The application must be signed by each owner who occupies the property and 355.26by each owner's spouse who occupies the property, or, in the case of property that qualifies 355.27as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 355.28 If a property owner occupies a homestead, the property owner's spouse may not claim 355.29another property as a homestead unless the property owner and the property owner's spouse 355.30file with the assessor an affidavit or other proof required by the assessor stating that the 355.31property qualifies as a homestead under subdivision 1, paragraph (e). 355.32 Owners or spouses occupying residences owned by their spouses and previously occupied 355.33with the other spouse, either of whom fail to include the other spouse's name and Social 356.1Security number on the homestead application or provide the affidavits or other proof 356.2requested, will be deemed to have elected to receive only partial homestead treatment of 356.3their residence. The remainder of the residence will be classified as nonhomestead residential. 356.4When an owner or spouse's name and Social Security number appear on homestead 356.5applications for two separate residences and only one application is signed, the owner or 356.6spouse will be deemed to have elected to homestead the residence for which the application 356.7was signed. 356.8 (d) If residential real estate is occupied and used for purposes of a homestead by a relative 356.9of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 356.10the property to receive homestead status, a homestead application must be filed with the 356.11assessor. The Social Security number of each relative occupying the property and the name 356.12and Social Security number of the spouse of a relative occupying the property shall be 356.13required on the homestead application filed under this subdivision. If a different relative of 356.14the owner subsequently occupies the property, the owner of the property must notify the 356.15assessor within 30 days of the change in occupancy. The Social Security number of a relative 356.16occupying the property or relative's the spouse of a relative occupying the property is private 356.17data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 356.18commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 356.19Act to recover personal property taxes owing, to the county treasurer. 356.20 (e) The homestead application shall also notify the property owners that if the property 356.21is granted homestead status for any assessment year, that same property shall remain 356.22classified as homestead until the property is sold or transferred to another person, or the 356.23owners, the spouse of the owner, or the relatives no longer use the property as their 356.24homestead. Upon the sale or transfer of the homestead property, a certificate of value must 356.25be timely filed with the county auditor as provided under section 272.115. Failure to notify 356.26the assessor within 30 days that the property has been sold, transferred, or that the owner, 356.27the spouse of the owner, or the relative is no longer occupying the property as a homestead, 356.28shall result in the penalty provided under this subdivision and the property will lose its 356.29current homestead status. 356.30 (f) If a homestead application has not been filed with the county by December 15, the 356.31assessor shall classify the property as nonhomestead for the current assessment year for 356.32taxes payable in the following year, provided that the owner may be entitled to receive the 356.33homestead classification by proper application under section 375.192. 356.34EFFECTIVE DATE.This section is effective for applications for homestead filed in 356.352018 and thereafter. 357.1 Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read: 357.2 Subd. 13d. Homestead data. On or before April 30 each year beginning in 2007, each 357.3county must provide the commissioner with the following data for each parcel of homestead 357.4property by electronic means as defined in section 289A.02, subdivision 8: 357.5 (1) the property identification number assigned to the parcel for purposes of taxes payable 357.6in the current year; 357.7 (2) the name and Social Security number of each occupant of homestead property who 357.8is the property owner, property owner's spouse, or qualifying relative of a property owner, 357.9and the spouse of the property owner who occupies homestead property or spouse of a 357.10qualifying relative of a property owner who occupies homestead property; 357.11 (3) the classification of the property under section 273.13 for taxes payable in the current 357.12year and in the prior year; 357.13 (4) an indication of whether the property was classified as a homestead for taxes payable 357.14in the current year because of occupancy by a relative of the owner or by a spouse of a 357.15relative; 357.16 (5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 357.17current year and the prior year; 357.18 (6) the market value of improvements to the property first assessed for tax purposes for 357.19taxes payable in the current year; 357.20 (7) the assessor's estimated market value assigned to the property for taxes payable in 357.21the current year and the prior year; 357.22 (8) the taxable market value assigned to the property for taxes payable in the current 357.23year and the prior year; 357.24 (9) whether there are delinquent property taxes owing on the homestead; 357.25 (10) the unique taxing district in which the property is located; and 357.26 (11) such other information as the commissioner decides is necessary. 357.27 The commissioner shall use the information provided on the lists as appropriate under 357.28the law, including for the detection of improper claims by owners, or relatives of owners, 357.29under chapter 290A. 357.30EFFECTIVE DATE.This section is effective for applications for homestead filed in 357.312018 and thereafter. 358.1 Sec. 10. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read: 358.2 Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts 358.3local boards of appeal and equalization meetings must provide proof to the county assessor 358.4by February 1 that it is in compliance comply with the training requirements of subdivision 358.52 by February 1, by having at least one member who has attended an appeals and equalization 358.6course described in subdivision 2 within the last four years. This notice must also verify 358.7that there was a quorum of voting members at each meeting of the board of appeal and 358.8equalization in the previous year. A city or town that does not comply with these requirements 358.9is deemed to have transferred its board of appeal and equalization powers to the county for 358.10a minimum of two assessment years, beginning with the current year's assessment and 358.11continuing thereafter unless the powers are reinstated under paragraph (c). 358.12 (b) The county shall notify the taxpayers when the board of appeal and equalization for 358.13a city or town has been transferred to the county under this subdivision and, prior to the 358.14meeting time of the county board of equalization, the county shall make available to those 358.15taxpayers a procedure for a review of the assessments, including, but not limited to, open 358.16book meetings. This alternate review process shall take place in April and May. 358.17 (c) A local board whose powers are transferred to the county under this subdivision may 358.18be reinstated by resolution of the governing body of the city or town and upon proof of 358.19compliance with the requirements of subdivision 2. The resolution and proofs must be 358.20provided to the county assessor by February 1 in order to be effective for the following 358.21year's assessment. 358.22 (d) A local board whose powers are transferred to the county under this subdivision may 358.23continue to employ a local assessor and is not deemed to have transferred its powers to 358.24make assessments. 358.25EFFECTIVE DATE.This section is effective for board of appeal and equalization 358.26meetings held in 2018 and thereafter. 358.27 Sec. 11. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read: 358.28 Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 358.29boards of appeal and equalization meetings must provide proof to the commissioner by 358.30December 1, 2009, and each year thereafter, that it is in compliance comply with the training 358.31requirements of subdivision 2 by February 1, by having at least one member who has attended 358.32an appeals and equalization course described in subdivision 2 within the last four years. 358.33Beginning in 2009, this notice must also verify that there was a quorum of voting members 359.1at each meeting of the board of appeal and equalization in the current year. A county that 359.2does not comply with these requirements is deemed to have transferred its board of appeal 359.3and equalization powers to the special board of equalization appointed pursuant to section 359.4274.13, subdivision 2 , for a minimum of two assessment years, beginning with the following 359.5year's assessment and continuing thereafter unless the powers are reinstated under paragraph 359.6(c). A county that does not comply with the requirements of subdivision 2 and has not 359.7appointed a special board of equalization shall appoint a special board of equalization before 359.8the following year's assessment. 359.9 (b) The county shall notify the taxpayers when the board of appeal and equalization for 359.10a county has been transferred to the special board of equalization under this subdivision 359.11and, prior to the meeting time of the special board of equalization, the county shall make 359.12available to those taxpayers a procedure for a review of the assessments, including, but not 359.13limited to, open book meetings. This alternate review process must take place in April and 359.14May. 359.15 (c) A county board whose powers are transferred to the special board of equalization 359.16under this subdivision may be reinstated by resolution of the county board and upon proof 359.17of compliance with the requirements of subdivision 2. The resolution and proofs must be 359.18provided to the commissioner by December February 1 in order to be effective for the 359.19following current year's assessment. 359.20(d) If a person who was entitled to appeal to the county board of appeal and equalization 359.21or to the county special board of equalization is not able to do so in a particular year because 359.22the county board or special board did not meet the quorum and training requirements in this 359.23section and section 274.13, or because the special board was not appointed, that person may 359.24instead appeal to the commissioner of revenue, provided that the appeal is received by the 359.25commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 359.26270C.92 . The commissioner must issue an appropriate order to the county assessor in 359.27response to each timely appeal, either upholding or changing the valuation or classification 359.28of the property. Prior to October 1 of each year, the commissioner must charge and bill the 359.29county where the property is located $500 for each tax parcel covered by an order issued 359.30under this paragraph in that year. Amounts received by the commissioner under this paragraph 359.31must be deposited in the state's general fund. If payment of a billed amount is not received 359.32by the commissioner before December 1 of the year when billed, the commissioner must 359.33deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 359.34county under chapter 477A in the next year. Late payments may either be returned to the 359.35county uncashed and undeposited or may be accepted. If a late payment is accepted, the 360.1state aid paid to the county under chapter 477A must be adjusted within 12 months to 360.2eliminate any reduction that occurred because the payment was late. Amounts needed to 360.3make these adjustments are included in the appropriation under section 477A.03, subdivision 360.42 . 360.5EFFECTIVE DATE.This section is effective for board of appeal and equalization 360.6meetings held in 2018 and thereafter. 360.7 Sec. 12. REPEALER. 360.8Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed. 360.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter. 360.10ARTICLE 20 360.11DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES POLICY 360.12PROVISIONS 360.13 Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read: 360.14 Subd. 10. Proof of sales tax payment; collection and refund. (a) A person applying 360.15for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, 360.16showing a complete description of the snowmobile, the seller's name and address, the full 360.17purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must 360.18include information showing either receipt, invoice, or other document to prove that: 360.19(1) that the sales and use tax under chapter 297A was paid or; 360.20(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 360.21safety, in consultation with the commissioner and the commissioner of revenue, shall 360.22prescribe the form of the certificate.The certificate is not required if the applicant provides 360.23a receipt, invoice, or other document that shows; or 360.24(3) the snowmobile was purchased from a retailer that is maintaining a place of business 360.25in this state as defined in section 297A.66, subdivision 1, and is a dealer. 360.26(b) The commissioner or authorized deputy registrars, acting as agents of the 360.27commissioner of revenue under an agreement between the commissioner and the 360.28commissioner of revenue, as provided in section 297A.825: 360.29(1) must collect use tax from the applicant if the applicant does not provide the proof 360.30required under paragraph (a); and 360.31(2) are authorized to issue refunds of use tax paid to them in error. 361.1(c) Subdivision 11 does not apply to refunds under this subdivision. 361.2EFFECTIVE DATE.This section is effective for snowmobiles registered after June 361.330, 2017. 361.4 Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read: 361.5 Subd. 11. Proof of sales tax payment; collection and refund. (a) A person applying 361.6for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's 361.7certificate showing a complete description of the all-terrain vehicle, the seller's name and 361.8address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any. 361.9The certificate also must include information showing either receipt, invoice, or other 361.10document to prove that: 361.11(1) the sales and use tax under chapter 297A was paid, or; 361.12(2) the purchase was exempt from tax under chapter 297A. The certificate is not required 361.13if the applicant provides a receipt, invoice, or other document that shows; or 361.14(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of 361.15business in this state as defined in section 297A.66, subdivision 1, and is a dealer. 361.16(b) The commissioner or authorized deputy registrars, acting as agents of the 361.17commissioner of revenue under an agreement between the commissioner and the 361.18commissioner of revenue, as provided in section 297A.825: 361.19(1) must collect use tax from the applicant if the applicant does not provide the proof 361.20required under paragraph (a); and 361.21(2) are authorized to issue refunds of use tax paid to them in error. 361.22(c) Subdivision 12 does not apply to refunds under this subdivision. 361.23EFFECTIVE DATE.This section is effective for all-terrain vehicles registered after 361.24June 30, 2017. 361.25 Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read: 361.26 Subd. 12. Proof of sales tax payment; collection and refund. (a) A person applying 361.27for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing 361.28a complete description of the watercraft, the seller's name and address, the full purchase 361.29price of the watercraft, and the trade-in allowance, if any. The certificate must include 361.30information showing either receipt, invoice, or other document to prove that: 362.1(1) that the sales and use tax under chapter 297A was paid or; 362.2(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 362.3safety, in consultation with the commissioner and the commissioner of revenue, shall 362.4prescribe the form of the certificate.The certificate is not required if the applicant provides 362.5a receipt, invoice, or other document that shows; or 362.6(3) the watercraft was purchased from a retailer that is maintaining a place of business 362.7in this state as defined in section 297A.66, subdivision 1, and is a dealer. 362.8(b) The commissioner or authorized deputy registrars, acting as agents of the 362.9commissioner of revenue under an agreement between the commissioner and the 362.10commissioner of revenue, as provided in section 297A.825: 362.11(1) must collect use tax from the applicant if the applicant does not provide the proof 362.12required under paragraph (a); and 362.13(2) are authorized to issue refunds of use tax paid to them in error. 362.14(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision. 362.15EFFECTIVE DATE.This section is effective for watercraft licensed after June 30, 362.162017. 362.17 Sec. 4. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 362.18read: 362.19 Subd. 20. Department of Natural Resources; authorized deputy registrars of motor 362.20vehicles. The commissioner may disclose return information related to the taxes imposed 362.21by chapter 297A to the Department of Natural Resources or an authorized deputy registrar 362.22of motor vehicles only: 362.23(1) if the commissioner has an agreement with the commissioner of natural resources 362.24under section 297A.825, subdivision 1; and 362.25(2) to the extent necessary for the Department of Natural Resources or an authorized 362.26deputy registrar of motor vehicles, as agents for the commissioner, to verify that the 362.27applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase 362.28of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82, 362.29subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding 362.30either their collection of use tax or their issuance of refunds to applicants of use tax paid to 362.31them in error. 362.32EFFECTIVE DATE.This section is effective the day following final enactment. 363.1 Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 363.2read: 363.3 Subd. 21. Department of Transportation. The commissioner may disclose return 363.4information related to the taxes imposed by chapter 297A to the Department of Transportation 363.5only: 363.6(1) if the commissioner has an agreement with the commissioner of transportation under 363.7section 297A.82, subdivision 7; and 363.8(2) to the extent necessary for the Department of Transportation, as agent for the 363.9commissioner, to verify that the applicable sales or use tax has been paid or that a sales tax 363.10exemption applies on the lease, purchase, or sale of an aircraft by an individual or business 363.11who owns and operates the aircraft that must be registered or licensed in Minnesota under 363.12section 360.018, and to otherwise administer section 297A.82, regarding the collection of 363.13tax by the Department of Transportation. 363.14EFFECTIVE DATE.This section is effective the day following final enactment. 363.15 Sec. 6. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read: 363.16 Subd. 2a. Refund of sales tax to purchasers. (a) If a vendor has collected from a 363.17purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the 363.18purchaser may apply directly to the commissioner for a refund under this section if: 363.19(1) the purchaser is currently registered or was registered during the period of the claim, 363.20to collect and remit the sales tax or to remit the use tax; and 363.21(2) either 363.22(i) the amount of the refund to be applied for exceeds $500, or 363.23(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser 363.24also applies for a capital equipment claim at the same time, and the total of the two refunds 363.25exceeds $500. 363.26(b) The purchaser may not file more than two applications for refund under this 363.27subdivision in a calendar year. 363.28(c) Refunds shall not be issued for sales for resale where the vendor has a published no 363.29resale policy. 363.30EFFECTIVE DATE.This section is effective the day following final enactment. 364.1 Sec. 7. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; 364.2PAYMENT OF TAXES; REFUNDS. 364.3 Subdivision 1. Agreement with commissioners of natural resources and public 364.4safety; collection and refunds. The commissioner may enter into an agreement with the 364.5commissioner of natural resources, in consultation with the commissioner of public safety, 364.6that provides that: 364.7(1) the commissioner of natural resources and authorized deputy registrars of motor 364.8vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from 364.9persons applying for initial registration or license of the item unless the applicant provides 364.10a receipt, invoice, or other document to prove that: 364.11(i) sales tax was paid on the purchase; 364.12(ii) the purchase was exempt under this chapter; 364.13(iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or 364.14(iv) the item was purchased from a retailer that is maintaining a place of business in this 364.15state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section 364.1684.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and 364.17(2) the commissioner of natural resources and authorized deputy registrars of motor 364.18vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either 364.19the sales or use tax had already been paid or that the purchase was exempt from tax under 364.20this chapter. 364.21 Subd. 2. Agents. For the purposes of collecting or refunding the tax under this section, 364.22the commissioner of natural resources and authorized deputy registrars of motor vehicles 364.23are the agents of the commissioner and are subject to, and must strictly comply with, all 364.24rules consistent with this chapter prescribed by the commissioner. 364.25EFFECTIVE DATE.This section is effective the day following final enactment. 364.26 Sec. 8. Minnesota Statutes 2016, section 297B.07, is amended to read: 364.27297B.07 PRESUMPTIONS. 364.28 Subdivision 1. Presumption; sale and registration. For the purpose of the proper 364.29administration of Laws 1971, chapter 853 this chapter, and to prevent evasion of the tax, 364.30the following presumptions shall apply: 365.1(a) Evidence that a motor vehicle was sold for delivery in this state shall be prima facie 365.2evidence that it was sold for use in this state. 365.3(b) When an application for registration plates for a motor vehicle is received by the 365.4motor vehicle registrar within 30 days of the date it was purchased or acquired by the 365.5purchaser, it shall be presumed, until the contrary is shown by the purchaser, that it was 365.6purchased or acquired for use in this state. This presumption shall apply whether or not such 365.7vehicle was previously titled or registered in another state. 365.8 Subd. 2. Presumption; ownership. (a) When a business entity not organized under the 365.9laws of this state owns a motor vehicle that is under the control of a Minnesota resident, it 365.10is presumed that the Minnesota resident is the owner of the motor vehicle if two or more 365.11of the following are true: 365.12(1) the business entity lacks a specific business activity or purpose other than the 365.13avoidance of tax; 365.14(2) the business entity maintains no physical location in the jurisdiction where it is 365.15organized; 365.16(3) the business entity earns de minimis or no revenue; 365.17(4) the business entity maintains minimal or no business records; 365.18(5) the business entity fails to employ individual persons and provide those persons with 365.19federal income tax W-2 wage and tax statements; or 365.20(6) the business entity fails to file federal income tax returns or fails to file a required 365.21state tax return where it is organized. 365.22(b) For purposes of this subdivision, a motor vehicle is under the control of a Minnesota 365.23resident if the Minnesota resident: 365.24(1) is a partner, member, or shareholder of the business entity; 365.25(2) is insured to drive the vehicle; and 365.26(3) operates or stores the vehicle in Minnesota for any period of time. 365.27EFFECTIVE DATE.This section is effective the day following final enactment. 365.28 Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read: 365.29 Subd. 7. Surcharge. (a) By April 30 of each year, every company required to pay the 365.30surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period 365.31ending March 31 in the form prescribed by the commissioner. 366.1(b) (a) By June 30 of each year, every company required to pay the surcharge under 366.2section 297I.10, subdivision 1, shall file a return for the two-month seven-month period 366.3ending May 31 in the form prescribed by the commissioner. 366.4(c) (b) By November 30 of each year, every company required to pay the surcharge 366.5under section 297I.10, subdivision 1, shall file a return for the five-month period ending 366.6October 31 in the form prescribed by the commissioner. 366.7EFFECTIVE DATE.This section is effective for returns due after October 31, 2017. 366.8 Sec. 10. REPEALER. 366.9Minnesota Rules, part 8125.1300, subpart 3, is repealed. 366.10EFFECTIVE DATE.This section is effective the day following final enactment. 366.11ARTICLE 21 366.12DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS 366.13 Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read: 366.14 Subd. 2. Definitions. (a) For purposes of this section and sections 270C.4451 to 366.15270C.447, the following terms have the meanings given. 366.16(b) "Advertise" means to solicit business through any means or medium. 366.17(c) "Client" means an individual a person for whom a tax preparer performs or agrees 366.18to perform tax preparation services. 366.19(d) "Facilitate" means to individually or in conjunction or cooperation with another 366.20person: 366.21(1) accept an application for a refund anticipation loan; 366.22(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any 366.23other means, of a refund anticipation loan; or 366.24(3) offer, arrange, process, provide, or in any other manner act to allow the making of, 366.25a refund anticipation loan. 366.26(e) "Person" means an individual, corporation, partnership, limited liability company, 366.27association, trustee, or other legal entity. 366.28(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client 366.29by the tax preparer or another person, which is issued from the proceeds of a taxpayer's 367.1federal or state income tax refund or both and represents the net of the refund minus the tax 367.2preparation fee and any other fees. A refund anticipation check includes a refund transfer. 367.3(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether 367.4provided by the tax preparer or another entity such as a financial institution, in anticipation 367.5of, and whose payment is secured by, a client's federal or state income tax refund or both. 367.6(h) (g) "Tax preparation services" means services provided for a fee or other consideration 367.7compensation to a client to: 367.8(1) assist with preparing or filing state or federal individual income tax returns a return; 367.9(2) assume final responsibility for completed work on an individual income tax a return 367.10on which preliminary work has been done by another; or 367.11(3) sign or include on a return the preparer tax identification number required under 367.12section 6109(a)(4) of the Internal Revenue Code; or 367.13(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund 367.14anticipation checks check. 367.15(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services 367.16subject to this section. except: 367.17(1) an employee who prepares their employer's return; 367.18(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the 367.19fiduciary estate, testator, trustor, grantor, or beneficiaries of them; 367.20(3) nonprofit organizations providing tax preparation services under the Internal Revenue 367.21Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly 367.22Program; 367.23(4) a person who merely furnishes typing, reproducing, or other mechanical assistance; 367.24(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently 367.25registered with the commissioner; and 367.26(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph 367.27(c), that provides all of the sales tax functions for a retailer not maintaining a place of 367.28business in this state as described in section 297A.66. 367.29(i) Except as otherwise provided, "return" means: 367.30(1) a return as defined in section 270C.01, subdivision 8; 367.31(2) a claim for refund of an overpayment; 368.1(3) a claim filed pursuant to chapter 290A; and 368.2(4) a claim for a credit filed under section 290.0677, subdivision 1. 368.3EFFECTIVE DATE.This section is effective for claims and returns filed after December 368.431, 2017. 368.5 Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read: 368.6 Subd. 3. Standards of conduct. No tax preparer shall: 368.7(1) without good cause fail to promptly, diligently, and without unreasonable delay 368.8complete a client's tax return; 368.9(2) obtain the signature of a client to a tax return or authorizing document that contains 368.10blank spaces to be filled in after it has been signed; 368.11(3) fail to sign a client's tax return when payment compensation for services rendered 368.12has been made; 368.13(4) fail to provide on a client's return the preparer tax identification number when required 368.14under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28; 368.15(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature 368.16within a reasonable time after the client signs the document; 368.17(5) (6) fail to retain for at least four years a copy of individual income tax a client's 368.18returns; 368.19(6) (7) fail to maintain a confidential relationship with clients or former clients; 368.20(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic 368.21personal information; 368.22(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly 368.23or indirectly, any false, deceptive, or misleading statement or representation relating to or 368.24in connection with the offering or provision of tax preparation services; 368.25(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's 368.26return; 368.27(10) (11) claim credits or deductions on a client's tax return for which the tax preparer 368.28knows or reasonably should know the client does not qualify; 368.29(12) report a household income on a client's claim filed under chapter 290A that the tax 368.30preparer knows or reasonably should know is not accurate; 369.1(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 369.213, 20, 20a, 26, or 28; 369.3(14) whether or not acting as a taxpayer representative, fail to conform to the standards 369.4of conduct required by Minnesota Rules, part 8052.0300, subpart 4; 369.5(15) whether or not acting as a taxpayer representative, engage in any conduct that is 369.6incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5; 369.7(16) whether or not acting as a taxpayer representative, engage in any conduct that is 369.8disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6; 369.9(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 369.10refund for tax preparation services; 369.11(12) (18) under any circumstances, withhold or fail to return to a client a document 369.12provided by the client for use in preparing the client's tax return; 369.13(13) (19) establish an account in the preparer's name to receive a client's refund through 369.14a direct deposit or any other instrument unless the client's name is also on the account, 369.15except that a taxpayer may assign the portion of a refund representing the Minnesota 369.16education credit available under section 290.0674 to a bank account without the client's 369.17name, as provided under section 290.0679; 369.18(14) (20) fail to act in the best interests of the client; 369.19(15) (21) fail to safeguard and account for any money handled for the client; 369.20(16) (22) fail to disclose all material facts of which the preparer has knowledge which 369.21might reasonably affect the client's rights and interests; 369.22(17) (23) violate any provision of section 332.37; 369.23(18) (24) include any of the following in any document provided or signed in connection 369.24with the provision of tax preparation services: 369.25(i) a hold harmless clause; 369.26(ii) a confession of judgment or a power of attorney to confess judgment against the 369.27client or appear as the client in any judicial proceeding; 369.28(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 369.29a debtor; 369.30(iv) an assignment of or an order for payment of wages or other compensation for 369.31services; 370.1(v) a provision in which the client agrees not to assert any claim or defense otherwise 370.2available; 370.3(vi) a waiver of any provision of this section or a release of any obligation required to 370.4be performed on the part of the tax preparer; or 370.5(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 370.6a class basis; or 370.7(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide 370.8all disclosures required by the federal Truth in Lending Act, United States Code, title 15, 370.9in a form that may be retained by the client. 370.10EFFECTIVE DATE.This section is effective for claims and returns filed after December 370.1131, 2017. 370.12 Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read: 370.13 Subd. 5a. Nongame wildlife checkoff. A tax preparer must give written notice of the 370.14option to contribute to the nongame wildlife management account in section 290.431 to 370.15corporate clients that file an income tax return and to individual clients who file an income 370.16tax return or property tax refund claim form under chapter 290A. This notification must be 370.17included with information sent to the client at the same time as the preliminary worksheets 370.18or other documents used in preparing the client's return and must include a line for displaying 370.19contributions. 370.20EFFECTIVE DATE.This section is effective for claims and returns filed after December 370.2131, 2017. 370.22 Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read: 370.23 Subd. 6. Enforcement; administrative order; penalties; cease and desist. (a) The 370.24commissioner may impose an administrative penalty of not more than $1,000 per violation 370.25of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not 370.26be imposed for any conduct that is also subject to the for which a tax return preparer penalties 370.27in penalty is imposed under section 289A.60, subdivision 13. The commissioner may 370.28terminate a tax preparer's authority to transmit returns electronically to the state, if the 370.29commissioner determines the tax preparer engaged in a pattern and practice of violating 370.30this section. Imposition of a penalty under this subdivision paragraph is subject to the 370.31contested case procedure under chapter 14. The commissioner shall collect the penalty in 370.32the same manner as the income tax. There is no right to make a claim for refund under 371.1section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this 371.2subdivision paragraph are public data. 371.3(b) In addition to the penalty under paragraph (a), if the commissioner determines that 371.4a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 371.5issue an administrative order to the tax preparer requiring the tax preparer to cease and 371.6desist from committing the violation. The administrative order may include an administrative 371.7penalty provided in paragraph (a). 371.8(c) If the commissioner issues an administrative order under paragraph (b), the 371.9commissioner must send the order to the tax preparer addressed to the last known address 371.10of the tax preparer. 371.11(d) A cease and desist order under paragraph (b) must: 371.12(1) describe the act, conduct, or practice committed and include a reference to the law 371.13that the act, conduct, or practice violates; and 371.14(2) provide notice that the tax preparer may request a hearing as provided in this 371.15subdivision. 371.16(e) Within 30 days after the commissioner issues an administrative order under paragraph 371.17(b), the tax preparer may request a hearing to review the commissioner's action. The request 371.18for hearing must be made in writing and must be served on the commissioner at the address 371.19specified in the order. The hearing request must specifically state the reasons for seeking 371.20review of the order. The date on which a request for hearing is served by mail is the postmark 371.21date on the envelope in which the request for hearing is mailed. 371.22(f) If a tax preparer does not timely request a hearing regarding an administrative order 371.23issued under paragraph (b), the order becomes a final order of the commissioner and is not 371.24subject to review by any court or agency. 371.25(g) If a tax preparer timely requests a hearing regarding an administrative order issued 371.26under paragraph (b), the hearing must be commenced within ten days after the commissioner 371.27receives the request for a hearing. 371.28(h) A hearing timely requested under paragraph (e) is subject to the contested case 371.29procedure under chapter 14, as modified by this subdivision. The administrative law judge 371.30must issue a report containing findings of fact, conclusions of law, and a recommended 371.31order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 371.32or the submission of written arguments, whichever is later. 372.1(i) Within five days of the date of the administrative law judge's report issued under 372.2paragraph (h), any party aggrieved by the administrative law judge's report may submit 372.3written exceptions and arguments to the commissioner. Within 15 days after receiving the 372.4administrative law judge's report, the commissioner must issue an order vacating, modifying, 372.5or making final the administrative order. 372.6(j) The commissioner and the tax preparer requesting a hearing may by agreement 372.7lengthen any time periods prescribed in paragraphs (g) to (i). 372.8(k) An administrative order issued under paragraph (b) is in effect until it is modified 372.9or vacated by the commissioner or an appellate court. The administrative hearing provided 372.10by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 372.11the exclusive remedy for a tax preparer aggrieved by the order. 372.12(l) The commissioner may impose an administrative penalty, in addition to the penalty 372.13under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 372.14paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 372.15procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 372.16this paragraph, the tax preparer assessed the penalty may request a hearing to review the 372.17penalty order. The request for hearing must be made in writing and must be served on the 372.18commissioner at the address specified in the order. The hearing request must specifically 372.19state the reasons for seeking review of the order. The cease and desist order issued under 372.20paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 372.21this paragraph. The date on which a request for hearing is served by mail is the postmark 372.22date on the envelope in which the request for hearing is mailed. If the tax preparer does not 372.23timely request a hearing, the penalty order becomes a final order of the commissioner and 372.24is not subject to review by any court or agency. A penalty imposed by the commissioner 372.25under this paragraph may be collected and enforced by the commissioner as an income tax 372.26liability. There is no right to make a claim for refund under section 289A.50 of the penalty 372.27imposed under this paragraph. A penalty imposed under this paragraph is public data. 372.28(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 372.29commissioner may terminate the tax preparer's authority to transmit returns electronically 372.30to the state. Termination under this paragraph is public data. 372.31(n) A cease and desist order issued under paragraph (b) is public data when it is a final 372.32order. 373.1(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 373.2action under this subdivision against a tax preparer, with respect to a return, within the 373.3period to assess tax on that return as provided by section 289A.38. 373.4(p) Notwithstanding any other law, the imposition of a penalty or any other action against 373.5a tax preparer under this subdivision, other than with respect to a return, must be taken by 373.6the commissioner within five years of the violation of statute. 373.7EFFECTIVE DATE.This section is effective for claims and returns filed after December 373.831, 2017. 373.9 Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read: 373.10 Subd. 6a. Exchange of data; State Board of Accountancy. The State Board of 373.11Accountancy shall refer to the commissioner complaints it receives about tax preparers who 373.12are not subject to the jurisdiction of the State Board of Accountancy and who are alleged 373.13to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 373.14subdivision 5a, or section 270C.4451. 373.15EFFECTIVE DATE.This section is effective for claims and returns filed after December 373.1631, 2017. 373.17 Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read: 373.18 Subd. 6b. Exchange of data; Lawyers Board of Professional Responsibility. The 373.19Lawyers Board of Professional Responsibility may refer to the commissioner complaints 373.20it receives about tax preparers who are not subject to its jurisdiction and who are alleged to 373.21have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 373.22subdivision 5a, or section 270C.4451. 373.23EFFECTIVE DATE.This section is effective for claims and returns filed after December 373.2431, 2017. 373.25 Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read: 373.26 Subd. 6c. Exchange of data; commissioner. The commissioner shall refer information 373.27and complaints about tax preparers who are alleged to have violated the provisions of 373.28subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section 373.29270C.4451, to: 373.30(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and 374.1(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its 374.2jurisdiction. 374.3EFFECTIVE DATE.This section is effective for claims and returns filed after December 374.431, 2017. 374.5 Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read: 374.6 Subd. 7. Enforcement; civil actions. (a) Any violation of this section or section 374.7270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section 374.88.31 . An action taken under this section is in the public interest. 374.9(b) A client may bring a civil action seeking redress for a violation of this section in the 374.10conciliation or the district court of the county in which unlawful action is alleged to have 374.11been committed or where the respondent resides or has a principal place of business. 374.12(c) A court finding for the plaintiff must award: 374.13(1) actual damages; 374.14(2) incidental and consequential damages; 374.15(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the 374.16plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all 374.17interest and fees for a refund anticipation loan; 374.18(4) reasonable attorney fees; 374.19(5) court costs; and 374.20(6) any other equitable relief as the court considers appropriate. 374.21EFFECTIVE DATE.This section is effective for claims and returns filed after December 374.2231, 2017. 374.23 Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read: 374.24 Subd. 8. Limited exemptions. (a) Except as provided in paragraph (b), the provisions 374.25of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs 374.26(a) to (n); and 7, do not apply to: 374.27(1) an attorney admitted to practice under section 481.01; 374.28(2) a registered accounting practitioner, a registered accounting practitioner firm, a 374.29certified public accountant, or other person who is subject to the jurisdiction of the State 375.1Board of Accountancy a certified public accountant firm, licensed in accordance with chapter 375.2326A; 375.3(3) an enrolled agent who has passed the special enrollment examination administered 375.4by the Internal Revenue Service; or 375.5(4) anyone a person who provides, or assists in providing, tax preparation services within 375.6the scope of duties as an employee or supervisor under the direction or supervision of a 375.7person who is exempt under this subdivision.; or 375.8(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision. 375.9(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax 375.10preparer who would otherwise be exempt under paragraph (a) if the tax preparer has: 375.11(1) had a professional license suspended or revoked for cause, not including a failure to 375.12pay a professional licensing fee, by any authority of any state, territory, or possession of 375.13the United States, including a commonwealth, or the District of Columbia, any federal court 375.14of record, or any federal agency, body, or board; 375.15(2) irrespective of whether an appeal has been taken, been convicted of any crime 375.16involving dishonesty or breach of trust; 375.17(3) been censured, suspended, or disbarred under United States Treasury Department 375.18Circular 230; 375.19(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal 375.20proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or 375.21the tax preparer's own tax liability, for: 375.22(i) instituting or maintaining proceedings primarily for delay; 375.23(ii) advancing frivolous or groundless arguments; or 375.24(iii) failing to pursue available administrative remedies; or 375.25(5) demonstrated a pattern of willful disreputable conduct by: 375.26(i) failing to file a return that the tax preparer was required to file annually for two of 375.27the three immediately preceding tax periods; or 375.28(ii) failing to file a return that the tax preparer was required to file more frequently than 375.29annually for three of the six immediately preceding tax periods. 375.30EFFECTIVE DATE.This section is effective for claims and returns filed after December 375.3131, 2017. 376.1 Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 376.2to read: 376.3 Subd. 10. Powers additional. The powers and authority granted in this section are in 376.4addition to all other powers of the commissioner. The use of the powers granted in this 376.5section does not preclude the use of any other power or authority of the commissioner. 376.6EFFECTIVE DATE.This section is effective for claims and returns filed after December 376.731, 2017. 376.8 Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read: 376.9 Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of 376.10paragraph (b), the commissioner must publish lists of tax preparers as defined in section 376.11289A.60, subdivision 13 , paragraph (f) 270C.445, subdivision 2, paragraph (h), who have 376.12been: 376.13 (1) convicted under section 289A.63 for returns or claims prepared as a tax preparer or; 376.14 (2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13, 376.15paragraph (a).; 376.16 (3) convicted for identity theft under section 609.527, or a similar statute, for a return 376.17filed with the commissioner, the Internal Revenue Service, or another state; 376.18 (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess 376.19of $1,000; 376.20 (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph 376.21(b), that has become a final order; or 376.22 (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating 376.23a cease and desist order. 376.24 (b) For the purposes of this section, tax preparers are not subject to publication if: 376.25 (1) an administrative or court action contesting the or appealing a penalty described in 376.26paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time 376.27when notice would be given under subdivision 3; 376.28 (2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4), 376.29or (6), has not expired; or 376.30 (3) the commissioner has been notified that the tax preparer is deceased.; 377.1 (4) an appeal period to contest a cease and desist order issued under section 270C.445, 377.2subdivision 6, paragraph (b), has not expired; 377.3 (5) an administrative or court action contesting or appealing a cease and desist order 377.4issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and 377.5is unresolved at the time when notice would be given under subdivision 3; 377.6 (6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been 377.7filed or served and is unresolved at the time when the notice would be given under 377.8subdivision 3; or 377.9 (7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3), 377.10has not expired. 377.11EFFECTIVE DATE.This section is effective for claims and returns filed after December 377.1231, 2017. 377.13 Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read: 377.14 Subd. 3. Notice to tax preparer. (a) At least 30 days before publishing the name of a 377.15tax preparer subject to penalty publication under this section, the commissioner shall mail 377.16a written notice to the tax preparer, detailing the amount and nature of each penalty basis 377.17for the publication and the intended publication of the information listed in subdivision 4 377.18related to the penalty. The notice must be mailed by first class and certified mail sent to the 377.19tax preparer addressed to the last known address of the tax preparer. The notice must include 377.20information regarding the exceptions listed in subdivision 2, paragraph (b), and must state 377.21that the tax preparer's information will not be published if the tax preparer provides 377.22information establishing that subdivision 2, paragraph (b), prohibits publication of the tax 377.23preparer's name. 377.24(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the 377.25commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner 377.26may publish in a list of tax preparers subject to penalty the information about the tax preparer 377.27that is listed in subdivision 4. 377.28EFFECTIVE DATE.This section is effective for claims and returns filed after December 377.2931, 2017. 377.30 Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read: 377.31 Subd. 4. Form of list. The list may be published by any medium or method. The list 377.32must contain the name, associated business name or names, address or addresses, and 378.1violation or violations for which a penalty was imposed of that make each tax preparer 378.2subject to penalty publication. 378.3EFFECTIVE DATE.This section is effective for claims and returns filed after December 378.431, 2017. 378.5 Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read: 378.6 Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 378.7from the list of tax preparers published under this section: 378.8(1) when the commissioner determines that the name was included on the list in error; 378.9(2) within 90 days three years after the preparer has demonstrated to the commissioner 378.10that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied 378.11any sentence imposed, successfully completed any probationary period imposed, and 378.12successfully completed any remedial actions required by the commissioner, the State Board 378.13of Accountancy, or the Lawyers Board of Professional Responsibility; or 378.14(3) when the commissioner has been notified that the tax preparer is deceased. 378.15EFFECTIVE DATE.This section is effective for claims and returns filed after December 378.1631, 2017. 378.17 Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read: 378.18 Subdivision 1. Commencement of action. (a) Whenever it appears to the commissioner 378.19that a tax preparer doing business in Minnesota has engaged in any conduct described in 378.20subdivision 2, a civil action in the name of the state of Minnesota may be commenced to 378.21enjoin any person who is a tax return preparer doing business in this state from further 378.22engaging in any conduct described in subdivision 2 the conduct and enforce compliance. 378.23(b) An action under this subdivision must be brought by the attorney general in: 378.24(1) the district court for the judicial district of the tax return preparer's residence or 378.25principal place of business, or in which the; 378.26(2) the district court for the judicial district of the residence of any taxpayer with respect 378.27to whose tax return the action is brought resides; or 378.28(3) Ramsey County District Court. 378.29(c) The court may exercise its jurisdiction over the action separate and apart from any 378.30other action brought by the state of Minnesota against the tax return preparer or any taxpayer. 379.1The court must grant a permanent injunction or other appropriate relief if the commissioner 379.2shows that the person has engaged in conduct constituting a violation of a law administered 379.3by the commissioner or a cease and desist order issued by the commissioner. The 379.4commissioner shall not be required to show irreparable harm. 379.5EFFECTIVE DATE.This section is effective for claims and returns filed after December 379.631, 2017. 379.7 Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read: 379.8 Subd. 2. Injunction prohibiting specific conduct. In an action under subdivision 1, 379.9the court may enjoin the person from further engaging in that conduct if the court finds that 379.10a tax return preparer has: 379.11(1) engaged in any conduct subject to a civil penalty under section 289A.60 or, a criminal 379.12penalty under section 289A.63, or a criminal penalty under section 609.527 or a similar 379.13statute for a return filed with the commissioner, the Internal Revenue Service, or another 379.14state; 379.15(2) misrepresented the preparer's eligibility to practice before the Department of Revenue, 379.16or otherwise misrepresented the preparer's experience or education as a tax return preparer; 379.17(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or 379.18(4) violated a cease and desist order issued by the commissioner; or 379.19(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes 379.20with the proper administration of a law administered by the commissioner, and injunctive 379.21relief is appropriate to prevent the recurrence of that conduct,. 379.22the court may enjoin the person from further engaging in that conduct. 379.23EFFECTIVE DATE.This section is effective for claims and returns filed after December 379.2431, 2017. 379.25 Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read: 379.26 Subd. 3. Injunction prohibiting all business activities. If the court finds that a tax 379.27return preparer has continually or repeatedly engaged in conduct described in subdivision 379.282, and that an injunction prohibiting that conduct would not be sufficient to prevent the 379.29person's interference with the proper administration of a law administered by the 379.30commissioner, the court may enjoin the person from acting as a tax return preparer. The 379.31court may not enjoin the employer of a tax return preparer for conduct described in 380.1subdivision 2 engaged in by one or more of the employer's employees unless the employer 380.2was also actively involved in that conduct. 380.3EFFECTIVE DATE.This section is effective for claims and returns filed after December 380.431, 2017. 380.5 Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision 380.6to read: 380.7 Subd. 3a. Enforcement of cease and desist orders. (a) Whenever the commissioner 380.8under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court 380.9must consider the allegations in the cease and desist order conclusively established if the 380.10order is a final order. 380.11(b) If the court finds the tax preparer was not in compliance with a cease and desist order, 380.12the court may impose a further civil penalty against the tax preparer for contempt in an 380.13amount up to $10,000 for each violation and may grant any other relief the court determines 380.14is just and proper in the circumstances. A civil penalty imposed by a court under this section 380.15may be collected and enforced by the commissioner as an income tax liability. 380.16(c) The court may not require the commissioner to post a bond in an action or proceeding 380.17under this section. 380.18EFFECTIVE DATE.This section is effective for claims and returns filed after December 380.1931, 2017. 380.20 Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read: 380.21 Subd. 13. Penalties for tax return preparers. (a) If an understatement of liability with 380.22respect to a return or claim for refund is due to a reckless disregard of laws and rules or 380.23willful attempt in any manner to understate the liability for a tax by a person who is a tax 380.24return preparer with respect to the return or claim, the person shall pay to the commissioner 380.25a penalty of $500. If a part of a property tax refund claim filed under section 290.0677, 380.26subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt 380.27in any manner to overstate the claim for relief allowed under chapter 290A by a person who 380.28is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a 380.29penalty of $500 with respect to the claim. These penalties may not be assessed against the 380.30employer of a tax return preparer unless the employer was actively involved in the reckless 380.31disregard or willful attempt to understate the liability for a tax or to overstate the claim for 381.1refund. These penalties are income tax liabilities and may be assessed at any time as provided 381.2in section 289A.38, subdivision 5. 381.3(b) A civil action in the name of the state of Minnesota may be commenced to enjoin 381.4any person who is a tax return preparer doing business in this state as provided in section 381.5270C.447 . 381.6(c) The commissioner may terminate or suspend a tax preparer's authority to transmit 381.7returns electronically to the state, if the commissioner determines that the tax preparer has 381.8engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision 381.9or has been convicted under section 289A.63. 381.10(d) For purposes of this subdivision, the term "understatement of liability" means an 381.11understatement of the net amount payable with respect to a tax imposed by state tax law, 381.12or an overstatement of the net amount creditable or refundable with respect to a tax. The 381.13determination of whether or not there is an understatement of liability must be made without 381.14regard to any administrative or judicial action involving the taxpayer. For purposes of this 381.15subdivision, the amount determined for underpayment of estimated tax under either section 381.16289A.25 or 289A.26 is not considered an understatement of liability. 381.17(e) For purposes of this subdivision, the term "overstatement of claim" means an 381.18overstatement of the net amount refundable with respect to a claim for property tax relief 381.19provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination 381.20of whether or not there is an overstatement of a claim must be made without regard to 381.21administrative or judicial action involving the claimant. 381.22(f) For purposes of this section, the term "tax refund or return preparer" means an 381.23individual who prepares for compensation, or who employs one or more individuals to 381.24prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of 381.25a substantial part of a return or claim for refund is treated as if it were the preparation of 381.26the entire return or claim for refund. An individual is not considered a tax return preparer 381.27merely because the individual: 381.28(1) gives typing, reproducing, or other mechanical assistance; 381.29(2) prepares a return or claim for refund of the employer, or an officer or employee of 381.30the employer, by whom the individual is regularly and continuously employed; 381.31(3) prepares a return or claim for refund of any person as a fiduciary for that person; or 382.1(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the 382.2taxpayer. "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision 382.32, paragraph (h). 382.4EFFECTIVE DATE.This section is effective for claims and returns filed after December 382.531, 2017. 382.6 Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read: 382.7 Subd. 28. Preparer identification number. Any Minnesota individual income tax return 382.8or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 382.913, paragraph (f), shall bear the identification number the preparer is required to use federally 382.10under section 6109(a)(4) of the Internal Revenue Code. (a) Each of the following that is 382.11prepared by a tax preparer must include the tax preparer's tax identification number: 382.12(1) a tax return required to be filed under this chapter; 382.13(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and 382.14(3) a claim for refund of an overpayment. 382.15(b) A tax preparer is not required to include their preparer tax identification number on 382.16a filing if the number is not required in the forms or filing requirements provided by the 382.17commissioner. 382.18 (c) A tax refund or return preparer who prepares a Minnesota individual income tax 382.19return or claim for refund and fails to include the required preparer tax identification number 382.20on the return or claim as required by this section is subject to a penalty of $50 for each 382.21failure. 382.22(d) A tax preparer who fails to include the preparer tax identification number as required 382.23by this section, and who is required to have a valid preparer tax identification number issued 382.24under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to 382.25a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is 382.26not subject to the penalty in paragraph (c). 382.27(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section 382.28270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means 382.29the number the tax preparer is required to use federally under section 6109(a)(4) of the 382.30Internal Revenue Code. 382.31EFFECTIVE DATE.This section is effective for claims and returns filed after December 382.3231, 2017. 383.1 Sec. 21. REVISOR'S INSTRUCTION. 383.2(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in 383.3column A to the references listed in column B. 383.4 Column AColumn B 383.5 270C.445, subdivision 3a270C.4451, subdivision 1 383.6 270C.445, subdivision 4270C.4451, subdivision 2 383.7 270C.445, subdivision 4a270C.4451, subdivision 3 383.8 270C.445, subdivision 4b270C.4451, subdivision 4 383.9 270C.445, subdivision 5b270C.4451, subdivision 5

383.10(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and 383.11Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445, 383.12subdivisions 3a, 4, 4a, 4b, and 5b. 383.13(c) The revisor shall publish the statutory derivations of the laws renumbered in this act 383.14in Laws of Minnesota and report the derivations in Minnesota Statutes. 383.15(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further 383.16amended in the 2017 legislative session, the revisor shall codify the amendments in a manner 383.17consistent with this act. The revisor may make necessary changes to sentence structure to 383.18preserve the meaning of the text. 383.19EFFECTIVE DATE.This section is effective the day following final enactment. 383.20 Sec. 22. REPEALER. 383.21Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision 383.224, are repealed. 383.23EFFECTIVE DATE.This section is effective for claims and returns filed after December 383.2431, 2017." 383.25Delete the title and insert: 383.26"A bill for an act 383.27relating to financing and operation of state and local government; making changes 383.28to individual income, corporate franchise, estate, property, sales and use, excise, 383.29mineral, tobacco, special, local, and other miscellaneous taxes and tax-related 383.30provisions; providing for new income tax subtractions, additions, and credits; 383.31providing for a Social Security subtraction; providing section 179 expensing 383.32conformity; providing a student loan credit; modifying the research and 383.33development credit; establishing a first-time home buyer savings account program; 383.34modifying the education credit and subtraction; providing a credit for donations 383.35to fund K-12 scholarships; modifying the child and dependent care credit; modifying 383.36residency definitions; providing estate tax conformity and modifying exemption 384.1amount and rates; modifying debt service equalization revenue; establishing and 384.2modifying property tax exemptions and classifications; establishing school building 384.3bond agricultural credit; modifying state general levy; modifying certain local 384.4government aids; providing exemption from certain property taxes for a Major 384.5League Soccer stadium; authorizing assessor accreditation waivers; modifying 384.6provisions related to tax-forfeited land; modifying sales tax definitions and 384.7exemptions; providing sales tax exemptions; clarifying the appropriation for certain 384.8sales tax refunds; establishing sales tax collection duties for marketplace providers 384.9and certain retailers; dedicating certain sales and use tax revenues from the sale 384.10of fireworks; providing an exemption from sales and use taxes for a Major League 384.11Soccer stadium; providing sales tax exemptions for certain construction projects; 384.12modifying the exemption for Super Bowl admission, events, and parking; providing 384.13exemptions for suite licenses and stadium builder's licenses; authorizing certain 384.14tax increment financing authority; prohibiting municipalities from taxing paper or 384.15plastic bags; authorizing and modifying certain local sales and use taxes; restricting 384.16rail project expenditures; modifying provisions related to taconite; modifying taxes 384.17on tobacco products and cigarettes; providing for a private letter ruling program; 384.18modifying tax administration procedures; making minor policy, technical, and 384.19conforming changes; requiring reports; appropriating money;amending Minnesota 384.20Statutes 2016, sections 13.51, subdivision 2; 40A.18, subdivision 2; 69.021, 384.21subdivision 5; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 384.2212; 116J.8737, subdivisions 5, 12; 116J.8738, subdivisions 3, 4; 123B.53, 384.23subdivisions 4, 5; 126C.17, subdivision 9; 127A.45, subdivision 10; 128C.24; 384.24174.03, subdivision 1b; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 384.25270.072, subdivisions 2, 3, by adding a subdivision; 270.074, subdivision 1; 384.26270.078, subdivision 1; 270.12, by adding a subdivision; 270.82, subdivision 1; 384.27270A.03, subdivision 5; 270B.14, subdivision 1, by adding subdivisions; 270C.13, 384.28subdivision 1; 270C.171, subdivision 1; 270C.30; 270C.31, by adding a subdivision; 384.29270C.33, subdivisions 5, 8, by adding subdivisions; 270C.34, subdivisions 1, 2; 384.30270C.35, subdivisions 3, 4, by adding a subdivision; 270C.38, subdivision 1; 384.31270C.445, subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding subdivisions; 384.32270C.446, subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by adding a 384.33subdivision; 270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901; 271.06, 384.34subdivisions 2, 2a, 6, 7; 271.08, subdivision 1; 271.18; 272.02, subdivisions 9, 10, 384.3523, 86, by adding subdivisions; 272.0211, subdivision 1; 272.0213; 272.025, 384.36subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295, 384.37subdivision 4, by adding a subdivision; 272.115, subdivisions 1, as amended, 2, 384.383; 272.162; 273.061, subdivision 7; 273.0755; 273.08; 273.121, by adding a 384.39subdivision; 273.124, subdivisions 13, 13d, 14, 21; 273.125, subdivision 8; 273.13, 384.40subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 273.1392; 273.1393; 273.33, 384.41subdivisions 1, 2; 273.371; 273.372, subdivisions 2, 4, by adding subdivisions; 384.42274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 1; 274.135, 384.43subdivision 3; 275.025, subdivisions 1, 2, 4, by adding a subdivision; 275.065, 384.44subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.62, 384.45subdivision 2; 276.017, subdivision 3; 276.04, subdivision 2; 278.01, subdivision 384.461; 279.01, subdivisions 1, 2, 3; 279.37, by adding a subdivision; 281.17; 281.173, 384.47subdivision 2; 281.174, subdivision 3; 282.01, subdivisions 1a, 1d, 4, by adding 384.48a subdivision; 282.016; 282.018, subdivision 1; 282.02; 282.04, subdivision 2; 384.49282.241, subdivision 1; 282.322; 287.08; 287.2205; 289A.08, subdivisions 11, 16, 384.50by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10, subdivision 1; 384.51289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, subdivision 1, by 384.52adding a subdivision; 289A.20, subdivision 2; 289A.31, subdivision 1; 289A.35; 384.53289A.37, subdivision 2; 289A.38, subdivision 6; 289A.40, subdivision 1; 289A.50, 384.54subdivisions 2a, 7; 289A.60, subdivisions 1, 13, 28, by adding a subdivision; 384.55289A.63, by adding a subdivision; 290.01, subdivision 7; 290.0131, subdivision 384.5610, as amended, by adding subdivisions; 290.0132, subdivisions 4, 21, by adding 384.57subdivisions; 290.0133, subdivision 12, as amended, by adding a subdivision; 384.58290.06, subdivision 22, by adding subdivisions; 290.067, subdivisions 1, 2b; 385.1290.0671, subdivision 1, as amended; 290.0672, subdivision 1; 290.0674, 385.2subdivisions 1, 2, by adding a subdivision; 290.068, subdivisions 1, 2, by adding 385.3a subdivision; 290.0692, by adding a subdivision; 290.081; 290.091, subdivision 385.42; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, 385.5subdivision 3; 290A.10; 290A.19; 290C.03; 291.005, subdivision 1, as amended; 385.6291.016, subdivisions 2, 3; 291.03, subdivision 1; 291.075; 295.54, subdivision 385.72; 295.55, subdivision 6; 296A.01, subdivisions 7, 12, 33, 42, by adding 385.8subdivisions; 296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 385.9296A.08, subdivision 2; 296A.15, subdivisions 1, 4; 296A.17, subdivision 3; 385.10296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 385.113, 34; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivisions 385.122, 4, 5, 6, by adding subdivisions; 297A.68, subdivisions 5, 9, 19, 35a, by adding 385.13a subdivision; 297A.70, subdivisions 4, 12, 14, by adding subdivisions; 297A.71, 385.14subdivision 44, by adding subdivisions; 297A.75, subdivisions 1, 2, 3, 5; 297A.82, 385.15subdivisions 4, 4a; 297A.94; 297A.9905; 297B.07; 297D.02; 297E.02, subdivisions 385.163, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 385.17297F.01, subdivision 13a; 297F.05, subdivisions 1, 3a, 4a; 297F.09, subdivision 385.181; 297F.23; 297G.03, by adding a subdivision; 297G.09, subdivision 1; 297G.22; 385.19297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, 385.20subdivision 7, by adding a subdivision; 297I.60, subdivision 2; 298.01, subdivisions 385.213, 4, 4c; 298.225, subdivision 1; 298.227; 298.24, subdivision 1; 298.28, 385.22subdivisions 2, 3, 5; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 385.23412.301; 414.09, subdivision 2; 469.034, subdivision 2; 469.101, subdivision 1; 385.24469.169, by adding a subdivision; 469.174, subdivision 12; 469.175, subdivision 385.253; 469.176, subdivision 4c; 469.1761, by adding a subdivision; 469.1763, 385.26subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, subdivision 5; 473.39, by 385.27adding subdivisions; 473H.09; 473H.17, subdivision 1a; 475.58, subdivision 3b; 385.28475.60, subdivision 2; 477A.011, subdivisions 34, 45; 477A.0124, subdivision 2; 385.29477A.013, subdivisions 1, 8, 9, 13, by adding a subdivision; 477A.03, subdivisions 385.302a, 2b; 477A.12, subdivision 1; 477A.17; 477A.19, by adding subdivisions; 385.31504B.285, subdivision 1; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 385.321980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 385.331991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 385.345; Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as 385.35amended; article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, 385.36subdivisions 3, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 385.372005, First Special Session chapter 3, article 5, sections 38, subdivisions 2, as 385.38amended, 4, as amended; 44, subdivisions 3, as amended, 4, 5, as amended; Laws 385.392008, chapter 154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, 385.40article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; 385.41Laws 2010, chapter 216, sections 12, as amended; 58, as amended; Laws 2014, 385.42chapter 308, article 6, sections 8, subdivision 1; 9; article 9, section 94; Laws 2016, 385.43chapter 187, section 5; proposing coding for new law in Minnesota Statutes, 385.44chapters 16A; 16B; 41B; 88; 117; 222; 270C; 273; 281; 289A; 290; 290B; 290C; 385.45293; 297A; 416; 459; 471; 473; 477A; proposing coding for new law as Minnesota 385.46Statutes, chapter 462D; repealing Minnesota Statutes 2016, sections 136A.129; 385.47270.074, subdivision 2; 270C.445, subdivision 1; 270C.447, subdivision 4; 281.22; 385.48289A.10, subdivision 1a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 385.49289A.20, subdivision 3a; 290.06, subdivision 36; 290.067, subdivision 2; 290.9743; 385.50290.9744; 290C.02, subdivisions 5, 9; 290C.06; 291.03, subdivisions 8, 9, 10, 11; 385.51297F.05, subdivision 1a; 477A.085; 477A.20; Minnesota Rules, parts 8092.1400; 385.528092.2000; 8100.0700; 8125.1300, subpart 3." 386.1 We request the adoption of this report and repassage of the bill. 386.2 House Conferees: 386.3 ..... ..... 386.4 Greg Davids Steve Drazkowski 386.5 ..... ..... 386.6 Joe McDonald Jerry Hertaus 386.7 ..... 386.8 Paul Marquart 386.9 Senate Conferees: 386.10 ..... ..... 386.11 Roger C. Chamberlain Gary H. Dahms 386.12 ..... ..... 386.13 Jeremy R. Miller David H. Senjem 386.14 ..... 386.15 Ann H. Rest

Office of the Revisor of Statutes

HF 4

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