HF 4

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

Posted on 04/04/2017 09:26 a.m.

1.1A bill for an act 1.2relating to financing and operating of state and local government; making changes 1.3to individual income, corporate franchise, estate, property, sales and use, excise, 1.4mineral, special, local, and other miscellaneous taxes and tax-related provisions; 1.5modifying local government aids, credits, tax increment financing, and public 1.6finance; providing for new income tax subtractions, additions, and credits; 1.7establishing a first-time home buyer savings account program; modifying the 1.8education credit; providing a credit for donations to fund K-12 scholarships; 1.9modifying residency definitions; providing estate tax conformity; modifying debt 1.10service equalization revenue; providing for and modifying property tax exemptions 1.11and classifications; modifying the Sustainable Forest Incentive Act; changing levy 1.12certification dates; establishing a school building bond agricultural tax credit; 1.13modifying state general levy; modifying certain local government aids; authorizing 1.14assessor accreditation waivers; modifying sales tax definitions and exemptions; 1.15providing sales tax exemptions; authorizing certain tax increment financing 1.16authority; authorizing certain local taxes; authorizing provisions related to taconite 1.17production tax; clarifying Iron Range Resources and Rehabilitation Board approval 1.18authority; making minor policy, technical, and conforming changes; requiring 1.19reports; appropriating money;amending Minnesota Statutes 2016, sections 13.51, 1.20subdivision 2; 15.38, subdivision 7; 40A.18, subdivision 2; 69.021, subdivision 1.215; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; 1.22115A.1314, subdivision 1; 116J.423, subdivision 2; 116J.424; 123B.53, 1.23subdivisions 4, 5; 126C.17, subdivision 6; 127A.45, subdivisions 10, 13; 128C.24; 1.24136A.129, subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 1.252, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; 1.26270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding a subdivision; 1.27270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1, by adding 1.28a subdivision; 270C.171, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 1.29270C.34, subdivision 2; 270C.35, subdivision 3, by adding a subdivision; 270C.38, 1.30subdivision 1; 270C.445, subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a 1.31subdivision; 270C.446, subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by 1.32adding a subdivision; 270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901; 1.33271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10, 86, by adding a subdivision; 1.34272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by 1.35adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115, 1.36subdivisions 1, 2, 3; 273.061, subdivision 7; 273.0755; 273.08; 273.121, by adding 1.37a subdivision; 273.124, subdivisions 13, 13d; 273.125, subdivision 8; 273.13, 1.38subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 273.1392; 273.1393; 273.33, 1.39subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by adding subdivisions; 2.1274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 1; 274.135, 2.2subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.07, 2.3subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2.42; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 279.01, subdivision 2; 2.5282.01, subdivisions 1a, 1d; 282.38, subdivision 1; 287.08; 287.2205; 289A.08, 2.6subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10, 2.7subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, 2.8subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, 2.9subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, 2.10subdivisions 2a, 7; 289A.60, subdivisions 13, 28, by adding a subdivision; 289A.63, 2.11by adding a subdivision; 290.01, subdivision 7; 290.0131, subdivision 10, as 2.12amended, by adding subdivisions; 290.0132, subdivision 21, by adding 2.13subdivisions; 290.0133, subdivision 12, as amended, by adding a subdivision; 2.14290.06, subdivisions 2c, 2d, by adding subdivisions; 290.0671, subdivision 1, as 2.15amended; 290.0672, subdivision 1; 290.0674, by adding a subdivision; 290.068, 2.16subdivision 2, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.0922, 2.17subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivision 2.183; 290A.10; 290A.19; 290C.02, subdivision 6; 290C.03; 290C.07; 290C.10; 2.19291.005, subdivision 1, as amended; 291.016, subdivisions 2, 3; 291.03, 2.20subdivisions 1, 9, 11; 291.075; 295.53, subdivision 1; 295.54, subdivision 2; 2.21295.55, subdivision 6; 296A.01, subdivisions 7, 12, 33, 42, by adding subdivisions; 2.22296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, subdivision 2.232; 296A.15, subdivisions 1, 4; 296A.16, subdivision 2; 296A.17, subdivision 3; 2.24296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 2.253, 4, 34; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67, 2.26subdivisions 2, 4, 5, 6, by adding a subdivision; 297A.68, subdivision 19; 297A.70, 2.27subdivision 14, by adding a subdivision; 297A.71, subdivision 44, by adding 2.28subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivisions 4, 4a; 297D.02; 2.29297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 2.30297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.03, by adding a 2.31subdivision; 297G.09, subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, 2.32subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, subdivision 7, by adding a 2.33subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivisions 2.343, 4, 4c; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11; 298.221; 298.2211, subdivision 2.353; 298.223, subdivisions 1, 2; 298.227; 298.24, subdivision 1; 298.28, subdivisions 2.362, 5, 7a, 9d; 298.292, subdivision 2; 298.296, subdivisions 1, 2, 4; 298.2961, 2.37subdivisions 2, 4; 298.46, subdivision 2; 366.095, subdivision 1; 383B.117, 2.38subdivision 2; 410.32; 412.301; 414.09, subdivision 2; 469.034, subdivision 2; 2.39469.101, subdivision 1; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 2.40469.190, subdivisions 1, 7; 469.319, subdivision 5; 473H.09; 473H.17, subdivision 2.411a; 475.58, subdivision 3b; 475.60, subdivision 2; 477A.011, subdivision 34; 2.42477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 2.43477A.03, subdivisions 2a, 2b; 477A.11, by adding a subdivision; 477A.12, 2.44subdivisions 1, 2; 477A.14, subdivision 3; 477A.17; 477A.19, by adding 2.45subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter 2.46511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter 2.47291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; Laws 2.481996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as amended; 2.49article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, subdivisions 2.503, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 2005, First 2.51Special Session chapter 3, article 5, sections 38, subdivisions 2, as amended, 4, as 2.52amended; 44, subdivisions 3, as amended, 4, 5, as amended; Laws 2008, chapter 2.53154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 2.5420; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2010, chapter 2.55216, section 58, as amended; Laws 2014, chapter 308, article 6, sections 8, 2.56subdivision 1; 9; article 9, section 94; Laws 2016, chapter 187, section 5; proposing 2.57coding for new law in Minnesota Statutes, chapters 116J; 273; 289A; 290; 290B; 2.58290C; 293; 297A; 477A; proposing coding for new law as Minnesota Statutes, 3.1chapter 462D; repealing Minnesota Statutes 2016, sections 270.074, subdivision 3.22; 270C.445, subdivision 1; 270C.447, subdivision 4; 281.22; 289A.10, subdivision 3.31a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 3.4290.9743; 290.9744; 290C.02, subdivisions 5, 9; 290C.06; 291.03, subdivisions 3.58, 9, 10, 11; 298.22, subdivision 8; 298.2213, subdivisions 4, 5, 6; 298.298; 3.6Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3. 3.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.8ARTICLE 1 3.9INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES 3.10    Section 1. new text begin [116J.5491] WORKFORCE HOUSING TAX CREDIT. new text end 3.11     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have new text end 3.12 new text begin the meanings given. new text end 3.13 new text begin (b) "City" means a statutory or home rule charter city. new text end 3.14 new text begin (c) "Developer" means the individual or entity that is responsible for arranging financing new text end 3.15 new text begin for and construction of a qualified workforce housing project. new text end 3.16 new text begin (d) "Eligible project site" means the site for the proposed qualified workforce housing new text end 3.17 new text begin project that must be located in: new text end 3.18 new text begin (1) an area that does not require extension of public infrastructure, other than connections new text end 3.19 new text begin to or access for the site, and that is located outside of the metropolitan area, as defined in new text end 3.20 new text begin section 473.121, subdivision 2; new text end 3.21 new text begin (2) a city with at least 500 jobs, as measured in the QCEW, or within the jurisdiction of new text end 3.22 new text begin an economic development authority, formed under Laws 1988, chapter 516, section 1, as a new text end 3.23 new text begin joint partnership between a city and county and excluding those established by the county new text end 3.24 new text begin only; and new text end 3.25 new text begin (3) an area, consisting of the city in which the site is located and any other city or town new text end 3.26 new text begin located within 15 miles or less of the site, with an average vacancy rate for market rate new text end 3.27 new text begin residential rental properties of four percent or less for any two of the last five years, based new text end 3.28 new text begin on a market housing analysis that supports demand for the proposed qualified workforce new text end 3.29 new text begin housing project. new text end 3.30 new text begin (e) "Market rate residential rental properties" means properties that are rented at market new text end 3.31 new text begin value and excludes properties constructed with: new text end 3.32 new text begin (1) financial assistance requiring the property to be occupied by residents that meet new text end 3.33 new text begin income limits under federal or state law of initial occupancy; and new text end 4.1 new text begin (2) federal, state, or local flood recovery assistance, regardless of whether that assistance new text end 4.2 new text begin imposed income limits as a condition of receiving assistance. new text end 4.3 new text begin (f) "QCEW" means the Quarterly Census of Employment and Wages with the most new text end 4.4 new text begin recent annual data published by the commissioner. new text end 4.5 new text begin (g) "Qualified investment" means a cash investment or the fair market value equivalent new text end 4.6 new text begin for common stock, land, a partnership or membership interest, preferred stock, debt with new text end 4.7 new text begin mandatory conversion to equity, or an equivalent ownership interest as determined by the new text end 4.8 new text begin commissioner that is made in a qualified workforce housing project. new text end 4.9 new text begin (h) "Qualified project investor" means an investor who makes a qualified investment new text end 4.10 new text begin and receives a tax credit certificate from the developer of the project. new text end 4.11 new text begin (i) "Qualified workforce housing project" means a project: new text end 4.12 new text begin (1) for market rate residential rental properties with a minimum of three dwelling units; new text end 4.13 new text begin (2) with an average construction cost per unit, excluding site preparation costs, of no new text end 4.14 new text begin more than $250,000 and no less than $75,000; new text end 4.15 new text begin (3) located on an eligible project site; new text end 4.16 new text begin (4) that has more than 50 percent nonstate funding proposed to fund the project; and new text end 4.17 new text begin (5) that has been designated by the commissioner as a qualified workforce housing new text end 4.18 new text begin project. new text end 4.19 new text begin (j) "Workforce Housing Undersupply Ratio" means the total number of full-time jobs new text end 4.20 new text begin in the area, as defined in paragraph (d), clause (3), in which the proposed project is located, new text end 4.21 new text begin as reported in the QCEW, divided by the total number of persons over the age of 16 who new text end 4.22 new text begin are employed and living in that area, as reported by the United States Census new text end 4.23 new text begin "EMPLOYMENT STATUS" data set or similar United States Census data set. new text end 4.24     new text begin Subd. 2. new text end new text begin Qualified project investor tax credits. new text end new text begin (a) A qualified project investor is new text end 4.25 new text begin allowed a credit against the tax imposed under chapter 290 equal to 40 percent of the qualified new text end 4.26 new text begin investment up to a maximum of $1,000,000. new text end 4.27 new text begin (b) The credit under this subdivision is allowed in the first taxable year in which the new text end 4.28 new text begin qualified workforce housing project has housing units that are certified for occupancy by new text end 4.29 new text begin the Department of Labor and Industry or a city inspector. new text end 4.30 new text begin (c) The commissioner may issue tax credit allocations to qualified workforce housing new text end 4.31 new text begin projects for a taxable year, up to $2,500,000, based on applications made by developers and new text end 4.32 new text begin as provided under paragraph (d). No more than $1,000,000 in tax credit allocations may be new text end 5.1 new text begin issued for a qualified workforce housing project. Any portion of the permitted allocation new text end 5.2 new text begin for a taxable year that is not issued by the commissioner does not cancel and carries forward new text end 5.3 new text begin to the following taxable year. new text end 5.4 new text begin (d) A developer of a qualified workforce housing project may apply to the commissioner new text end 5.5 new text begin for an allocation of tax credits under this section. The application must provide information new text end 5.6 new text begin sufficient for the commissioner to determine: new text end 5.7 new text begin (1) that the project meets the requirements for a qualified workforce housing project new text end 5.8 new text begin under this section; new text end 5.9 new text begin (2) that the developer has sufficient financing to acquire and construct the project; new text end 5.10 new text begin (3) the financial viability of the project; new text end 5.11 new text begin (4) the total amount of credits applied for; new text end 5.12 new text begin (5) each of the project's investors, the amounts each has or will invest in the project, and new text end 5.13 new text begin the amount of tax credits the developer proposes to provide to each; and new text end 5.14 new text begin (6) any other information that the commissioner deems appropriate. new text end 5.15 new text begin The application must be made in the form and manner specified by the commissioner. new text end 5.16 new text begin Applications for tax credits for a taxable year must be made available by the commissioner new text end 5.17 new text begin by November 1 of the prior calendar year. The commissioner must make every effort to new text end 5.18 new text begin provide applications and relevant data to applicants in a simple, concise manner using plain new text end 5.19 new text begin language, and distribute relevant eligibility information on the Department of Employment new text end 5.20 new text begin and Economic Development Web site. In allocating the credits, the commissioner must give new text end 5.21 new text begin preference to projects with the highest Workforce Housing Undersupply Ratio, except where new text end 5.22 new text begin the commissioner determines the investment is circumventing the spirit of the law or where new text end 5.23 new text begin little or no local economic growth would occur as a result of the investment. The new text end 5.24 new text begin commissioner must approve or reject a tax credit request application within 15 days of new text end 5.25 new text begin receiving the application. The commissioner shall provide tax credit certificates to the new text end 5.26 new text begin applicant developer of an approved qualified workforce housing project in the amount of new text end 5.27 new text begin the credits allocated to the project. The developer shall provide the credit certificates to its new text end 5.28 new text begin qualified project investors in return for their investments in the projects and notify the new text end 5.29 new text begin commissioner of the amount provided to each investor within 15 days. If the project does new text end 5.30 new text begin not have units certified for occupancy as provided in paragraph (b) within a two-year period new text end 5.31 new text begin following issuance of the credit certificates to the developer, the tax credit allocation for new text end 5.32 new text begin the project is canceled. The developer must notify the commissioner immediately of the new text end 5.33 new text begin failure to obtain a certificate of occupancy no later than five business days after the expiration new text end 6.1 new text begin of the two-year period. The commissioner must notify the commissioner of revenue of the new text end 6.2 new text begin credit certificates issued under this section and any cancellations of those certificates. new text end 6.3 new text begin (e) The commissioner shall charge an application fee. Application fees are deposited in new text end 6.4 new text begin the workforce housing tax credit administration account in the special revenue fund. Amounts new text end 6.5 new text begin in the account are appropriated to the commissioner for the cost of administering the tax new text end 6.6 new text begin credit under this section. new text end 6.7 new text begin (f) The commissioner of revenue shall prescribe the manner in which the credits are new text end 6.8 new text begin issued and claimed. new text end 6.9     new text begin Subd. 3. new text end new text begin Transfer and revocation of credits. new text end new text begin (a) A qualified project investor who new text end 6.10 new text begin receives a certificate may assign the certificate to another taxpayer, who is then allowed the new text end 6.11 new text begin credit under this section and section 290.06, subdivision 37. An assignment is not valid new text end 6.12 new text begin unless the assignee notifies the commissioner of revenue within 30 days of the date that the new text end 6.13 new text begin assignment is made. The commissioner of revenue shall prescribe the forms necessary to new text end 6.14 new text begin provide notification of the assignment and to claim a credit by assignment. Credits passed new text end 6.15 new text begin through to partners, members, shareholders, or owners under section 290.06, subdivision new text end 6.16 new text begin 37, paragraph (b), are not an assignment of a credit certificate under this subdivision. new text end 6.17 new text begin (b) If the commissioner discovers that a qualified project investor did not meet the new text end 6.18 new text begin eligibility requirements for the tax credits under this section after the credits have been new text end 6.19 new text begin allocated and certificates issued, the commissioner may determine that credit certificate is new text end 6.20 new text begin revoked and must be repaid by the investor. The commissioner must notify the commissioner new text end 6.21 new text begin of revenue of every credit revoked and subject to repayment under this section. new text end 6.22     new text begin Subd. 4. new text end new text begin Reporting. new text end new text begin Beginning in 2019, the commissioner must annually report by new text end 6.23 new text begin March 15 to the chairs and ranking minority members of the committees in the senate and new text end 6.24 new text begin house of representatives with jurisdiction over taxes and economic development, in new text end 6.25 new text begin compliance with sections 3.195 and 3.197, on tax credits issued under this section. The new text end 6.26 new text begin report must include: new text end 6.27 new text begin (1) information about the availability of workforce housing in greater Minnesota; new text end 6.28 new text begin (2) information from employers and communities in greater Minnesota about whether new text end 6.29 new text begin or not workforce housing needs are being met; new text end 6.30 new text begin (3) which projects have been funded by the workforce housing tax credit and whether new text end 6.31 new text begin previously funded projects have created economic growth; new text end new text begin new text end 6.32 new text begin (4) any suggested legislation to accelerate construction of workforce housing; new text end 6.33 new text begin (5) the number and amount of tax credits issued; new text end 7.1 new text begin (6) the number and amount of tax credits revoked under subdivision 3; new text end 7.2 new text begin (7) the location, total cost of, and expected rent to be received as a result of qualified new text end 7.3 new text begin workforce housing projects funded under this section; and new text end 7.4 new text begin (8) any other relevant information needed to evaluate the effect of the workforce housing new text end 7.5 new text begin tax credits. new text end 7.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 7.7 new text begin 31, 2017, and before January 1, 2019. new text end 7.8    Sec. 2. Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read: 7.9    Subd. 3. Program components. (a) An intern must be an eligible student who has been 7.10admitted to a major program that is related to the intern experience as determined by the 7.11eligible institution. 7.12(b) To participate in the program, an eligible institution must: 7.13(1) enter into written agreements with eligible employers to provide internships that are 7.14at least eight weeks long and located in greater Minnesota; and 7.15(2) provide academic credit for the successful completion of the internship or ensure 7.16that it fulfills requirements necessary to complete a vocational technical education program. 7.17(c) To participate in the program, an eligible employer must enter into a written agreement 7.18with an eligible institution specifying that the intern: 7.19(1) would not have been hired without the tax credit described in subdivision 4; 7.20(2) did not work for the employer in the same or a similar job prior to entering the 7.21agreement; 7.22(3) new text begin (2) new text end does not replace an existing employee; 7.23(4) new text begin (3) new text end has not previously participated in the program; 7.24(5) new text begin (4) new text end will be employed at a location in greater Minnesota; 7.25(6) new text begin (5) new text end will be paid at least minimum wage for a minimum of 16 hours per week for a 7.26period of at least eight weeks; and 7.27(7) new text begin (6) new text end will be supervised and evaluated by the employer. 7.28(d) The written agreement between the eligible institution and the eligible employer 7.29must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 8.1dollar amount of credits that an eligible institution certifies to eligible employers in a calendar 8.2year may not exceed the amount of its allocation under subdivision 4. 8.3(e) Participating eligible institutions and eligible employers must report annually to the 8.4office. The report must include at least the following: 8.5(1) the number of interns hired; 8.6(2) the number of hours and weeks worked by interns; and 8.7(3) the compensation paid to interns. 8.8(f) An internship required to complete an academic program does not qualify for the 8.9greater Minnesota internship program under this section. 8.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 8.11 new text begin 31, 2016. new text end 8.12    Sec. 3. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read: 8.13    Subdivision 1. Return required. new text begin (a) new text end In the case of a decedent who has an interest in 8.14property with a situs in Minnesota, the personal representative must submit a Minnesota 8.15estate tax return to the commissioner, on a form prescribed by the commissioner, if: 8.16(1) a federal estate tax return is required to be filed; or 8.17(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 8.18section 2001(b) of the Internal Revenue Code, made within three years of the date of the 8.19decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for 8.20estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; 8.21$1,800,000 for estates of decedents dying in 2017; and $2,000,000 new text begin $2,900,000 new text end for estates 8.22of decedents dying in 2018 and thereafter new text begin ; $3,300,000 for estates of decedents dying in new text end 8.23 new text begin 2019; $3,700,000 for estates of decedents dying in 2020; $4,100,000 for estates of decedents new text end 8.24 new text begin dying in 2021; and $5,000,000 for estates of decedents dying in 2022 new text end . 8.25The return must contain a computation of the Minnesota estate tax due. The return must 8.26be signed by the personal representative new text begin (b) For estates of decedents dying in 2023 and new text end 8.27 new text begin thereafter, in the case of a decedent who has an interest in property with a situs in Minnesota, new text end 8.28 new text begin the personal representative must submit a Minnesota estate tax return to the commissioner, new text end 8.29 new text begin on a form prescribed by the commissioner, if a federal estate tax return is required to be new text end 8.30 new text begin filed new text end . 8.31 new text begin (c) The return must contain a computation of the Minnesota estate tax due. The return new text end 8.32 new text begin must be signed by the personal representative. new text end 9.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 9.2 new text begin December 31, 2017. new text end 9.3    Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read: 9.4    Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, 9.5except that an individual is not a "resident" for the period of time that the individual is a 9.6"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the 9.7qualified individual notifies the county within three months of moving out of the country 9.8that homestead status be revoked for the Minnesota residence of the qualified individual, 9.9and the property is not classified as a homestead while the individual remains a qualified 9.10individual. 9.11(b) "Resident" also means any individual domiciled outside the state who maintains a 9.12place of abode in the state and spends in the aggregate more than one-half of the tax year 9.13in Minnesota, unless: 9.14(1) the individual or the spouse of the individual is in the armed forces of the United 9.15States; or 9.16(2) the individual is covered under the reciprocity provisions in section 290.081. 9.17For purposes of this subdivision, presence within the state for any part of a calendar day 9.18constitutes a day spent in the state. Individuals shall keep adequate records to substantiate 9.19the days spent outside the state. 9.20The term "abode" means a dwelling maintained by an individual, whether or not owned 9.21by the individual and whether or not occupied by the individual, and includes a dwelling 9.22place owned or leased by the individual's spouse. 9.23(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor any 9.24court shall consider new text begin : new text end new text begin new text end 9.25 new text begin (1) new text end charitable contributions made by an new text begin the new text end individual within or without the state in 9.26determining if the individual is domiciled in Minnesota new text begin ; new text end 9.27 new text begin (2) the location of the individual's attorney, certified public accountant, or financial new text end 9.28 new text begin adviser; or new text end 9.29 new text begin (3) the place of business of a financial institution at which the individual applies for any new text end 9.30 new text begin new type of credit or at which the individual opens or maintains any type of account new text end . 9.31 new text begin (d) For purposes of this subdivision, the following terms have the meanings given them: new text end 10.1 new text begin (1) "financial adviser" means: new text end 10.2 new text begin (i) an individual or business entity engaged in business as a certified financial planner, new text end 10.3 new text begin registered investment adviser, licensed insurance producer or agent, or registered securities new text end 10.4 new text begin broker-dealer representative; or new text end 10.5 new text begin (ii) a financial institution providing services related to trust or estate administration, new text end 10.6 new text begin investment management, or financial planning; and new text end 10.7 new text begin (2) "financial institution" means a financial institution as defined in section 47.015, new text end 10.8 new text begin subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer new text end 10.9 new text begin under the Securities and Exchange Act of 1934. new text end 10.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 10.11 new text begin 31, 2016. new text end 10.12    Sec. 5. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws 10.132017, chapter 1, section 4, is amended to read: 10.14    Subd. 10. Section 179 expensing. new text begin For taxable years beginning before January 1, 2018, new text end 10.1580 percent of the amount by which the deduction allowed under the dollar limits of section 10.16179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 10.17Internal Revenue Code, as amended through December 31, 2003, is an addition. 10.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 10.19 new text begin 31, 2017. new text end 10.20    Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 10.21to read: 10.22     new text begin Subd. 14. new text end new text begin Equity and opportunity donations to qualified foundations. new text end new text begin The amount new text end 10.23 new text begin of the deduction under section 170 of the Internal Revenue Code that represents contributions new text end 10.24 new text begin to a qualified foundation under section 290.0693 is an addition. new text end 10.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 10.26 new text begin 31, 2017. new text end 10.27    Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 10.28to read: 10.29     new text begin Subd. 15. new text end new text begin First-time home buyer savings account. new text end new text begin The amount for a first-time home new text end 10.30 new text begin buyer savings account required by section 462D.06, subdivision 2, is an addition. new text end 11.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 11.2 new text begin 31, 2016. new text end 11.3    Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 11.4to read: 11.5     new text begin Subd. 23. new text end new text begin Social Security benefits. new text end new text begin (a) A portion of Social Security benefits, as defined new text end 11.6 new text begin under section 86(d)(1) of the Internal Revenue Code, is allowed as a subtraction, subject to new text end 11.7 new text begin the limits under paragraphs (b), (c), and (d). new text end 11.8 new text begin (b) For married taxpayers filing a joint return, the subtraction equals the lesser of Social new text end 11.9 new text begin Security benefits or $2,500. The subtraction is reduced by two and one-half percent for new text end 11.10 new text begin every $960 of provisional income over $76,900. In no case is the subtraction less than zero. new text end 11.11 new text begin (c) For single or head-of-household taxpayers, the subtraction equals the lesser of Social new text end 11.12 new text begin Security benefits or $1,955. The subtraction is reduced by two and one-half percent for new text end 11.13 new text begin every $750 of provisional income over $60,200. In no case is the subtraction less than zero. new text end 11.14 new text begin (d) For married taxpayers filing separate returns, the subtraction equals the lesser of new text end 11.15 new text begin Social Security benefits or $1,250. The subtraction is reduced by two and one-half percent new text end 11.16 new text begin for every $480 of provisional income over $38,500. In no case is the subtraction less than new text end 11.17 new text begin zero. new text end 11.18 new text begin (e) For purposes of this subdivision, "provisional income" has the meaning given in new text end 11.19 new text begin section 86 of the Internal Revenue Code. new text end 11.20 new text begin (f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the new text end 11.21 new text begin percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue new text end 11.22 new text begin Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016" shall new text end 11.23 new text begin be substituted for the word "1992." For 2018, the commissioner shall then determine the new text end 11.24 new text begin percent change from the 12 months ending on August 31, 2016, to the 12 months ending new text end 11.25 new text begin on August 31, 2017, and in each subsequent year, from the 12 months ending on August new text end 11.26 new text begin 31, 2016, to the 12 months ending on August 31 of the year preceding the taxable year. The new text end 11.27 new text begin determination of the commissioner pursuant to this subdivision must not be considered a new text end 11.28 new text begin rule and is not subject to the Administrative Procedure Act contained in chapter 14. The new text end 11.29 new text begin threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount new text end 11.30 new text begin ends in $5, the amount is rounded up to the nearest $10 amount. new text end 11.31 new text begin EFFECTIVE DATE. new text end new text begin Paragraphs (a) to (e) are effective for taxable years beginning new text end 11.32 new text begin after December 31, 2016. Paragraph (f) is effective for taxable years beginning after new text end 11.33 new text begin December 31, 2017. new text end 12.1    Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 12.2to read: 12.3     new text begin Subd. 24. new text end new text begin First-time home buyer savings account. new text end new text begin (a) The amount for contributions new text end 12.4 new text begin to and earnings on a first-time home buyer savings account allowed by section 462D.06, new text end 12.5 new text begin subdivision 1, is a subtraction. new text end 12.6 new text begin (b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500, new text end 12.7 new text begin or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined new text end 12.8 new text begin in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or new text end 12.9 new text begin $250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of new text end 12.10 new text begin adjusted gross income in excess of that threshold. new text end 12.11 new text begin (c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for new text end 12.12 new text begin inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount new text end 12.13 new text begin of the income thresholds at which the subtraction begins to be reduced under paragraph (b) new text end 12.14 new text begin by the percentage determined under section 1(f) of the Internal Revenue Code, except that new text end 12.15 new text begin in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the new text end 12.16 new text begin commissioner shall then determine the percent change from the 12 months ending on August new text end 12.17 new text begin 31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from new text end 12.18 new text begin the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the new text end 12.19 new text begin year preceding the taxable year. The determination of the commissioner under this new text end 12.20 new text begin subdivision is not a "rule" and is not subject to the Administrative Procedure Act in chapter new text end 12.21 new text begin 14. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the new text end 12.22 new text begin amount ends in $50, the amount is rounded up to the nearest $100 amount. new text end 12.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 12.24 new text begin 31, 2016. new text end 12.25    Sec. 10. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws 12.262017, chapter 1, section 5, is amended to read: 12.27    Subd. 12. Section 179 expensing. new text begin For taxable years beginning before January 1, 2018, new text end 12.2880 percent of the amount by which the deduction allowed under the dollar limits of section 12.29179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 12.30Internal Revenue Code, as amended through December 31, 2003, is an addition. 12.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 12.32 new text begin 31, 2017. new text end 13.1    Sec. 11. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision 13.2to read: 13.3     new text begin Subd. 15. new text end new text begin Equity and opportunity donations to qualified foundations. new text end new text begin The amount new text end 13.4 new text begin of the deduction under section 170 of the Internal Revenue Code that represents contributions new text end 13.5 new text begin to a qualified foundation under section 290.0693 is an addition. new text end 13.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 13.7 new text begin 31, 2017. new text end 13.8    Sec. 12. Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read: 13.9    Subd. 2c. Schedules of rates for individuals, estates, and trusts. new text begin For taxable years new text end 13.10 new text begin beginning after December 21, 2017: new text end 13.11    (a) The income taxes imposed by this chapter upon married individuals filing joint returns 13.12and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be 13.13computed by applying to their taxable net income the following schedule of rates: 13.14    (1) On the first $35,480 new text begin $37,970 new text end , 5.35 new text begin 5.0 new text end percent; 13.15    (2) On all over $35,480 new text begin $37,970 new text end , but not over $140,960 new text begin $134,250 new text end , 7.05 percent; 13.16    (3) On all over $140,960 new text begin $134,250 new text end , but not over $250,000 new text begin $267,550 new text end , 7.85 percent; 13.17(4) On all over $250,000 new text begin $267,550 new text end , 9.85 percent. 13.18    Married individuals filing separate returns, estates, and trusts must compute their income 13.19tax by applying the above rates to their taxable income, except that the income brackets 13.20will be one-half of the above amounts. 13.21    (b) The income taxes imposed by this chapter upon unmarried individuals must be 13.22computed by applying to taxable net income the following schedule of rates: 13.23    (1) On the first $24,270 new text begin $25,970 new text end , 5.35 new text begin 5.0 new text end percent; 13.24    (2) On all over $24,270 new text begin $25,970 new text end , but not over $79,730 new text begin $73,970 new text end , 7.05 percent; 13.25    (3) On all over $79,730 new text begin $73,970 new text end , but not over $150,000 new text begin $160,530 new text end , 7.85 percent; 13.26(4) On all over $150,000 new text begin $160,530 new text end , 9.85 percent. 13.27    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 13.28a head of household as defined in section 2(b) of the Internal Revenue Code must be 13.29computed by applying to taxable net income the following schedule of rates: 13.30    (1) On the first $29,880 new text begin $31,980 new text end , 5.35 new text begin 5.0 new text end percent; 14.1    (2) On all over $29,880 new text begin $31,980 new text end , but not over $120,070 new text begin $114,510 new text end , 7.05 percent; 14.2    (3) On all over $120,070 new text begin $114,510 new text end , but not over $200,000 new text begin $214,040 new text end , 7.85 percent; 14.3(4) On all over $200,000 new text begin $214,040 new text end , 9.85 percent. 14.4    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 14.5of any individual taxpayer whose taxable net income for the taxable year is less than an 14.6amount determined by the commissioner must be computed in accordance with tables 14.7prepared and issued by the commissioner of revenue based on income brackets of not more 14.8than $100. The amount of tax for each bracket shall be computed at the rates set forth in 14.9this subdivision, provided that the commissioner may disregard a fractional part of a dollar 14.10unless it amounts to 50 cents or more, in which case it may be increased to $1. 14.11    (e) An individual who is not a Minnesota resident for the entire year must compute the 14.12individual's Minnesota income tax as provided in this subdivision. After the application of 14.13the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 14.14by a fraction in which: 14.15    (1) the numerator is the individual's Minnesota source federal adjusted gross income as 14.16defined in section 62 of the Internal Revenue Code and increased by the additions required 14.17under section 290.0131, subdivisions 2 and 6 to 11, and reduced by the Minnesota assignable 14.18portion of the subtraction for United States government interest under section 290.0132, 14.19subdivision 2 , and the subtractions under section 290.0132, subdivisions 9, 10, 14, 15, 17, 14.20and 18, after applying the allocation and assignability provisions of section 290.081, clause 14.21(a), or 290.17; and 14.22    (2) the denominator is the individual's federal adjusted gross income as defined in section 14.2362 of the Internal Revenue Code, increased by the amounts specified in section 290.0131, 14.24subdivisions 2 and 6 to 11, and reduced by the amounts specified in section 290.0132, 14.25subdivisions 2, 9, 10, 14, 15, 17, and 18. 14.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 14.27 new text begin 31, 2017. new text end 14.28    Sec. 13. Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read: 14.29    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after 14.30December 31, 2013 new text begin 2018 new text end , the minimum and maximum dollar amounts for each rate bracket 14.31for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage 14.32determined under paragraph (b). For the purpose of making the adjustment as provided in 14.33this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets 15.1as they existed for taxable years beginning after December 31, 2012 new text begin 2017 new text end , and before 15.2January 1, 2014 new text begin 2019 new text end . The rate applicable to any rate bracket must not be changed. The 15.3dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets. 15.4The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket 15.5ends in $5, it must be rounded up to the nearest $10 amount. 15.6(b) The commissioner shall adjust the rate brackets and by the percentage determined 15.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 15.81(f)(3)(B) the word "2012" new text begin "2017" new text end shall be substituted for the word "1992." For 2014 new text begin 2019 new text end , 15.9the commissioner shall then determine the percent change from the 12 months ending on 15.10August 31, 2012 new text begin 2017 new text end , to the 12 months ending on August 31, 2013 new text begin 2018 new text end , and in each 15.11subsequent year, from the 12 months ending on August 31, 2012 new text begin 2017 new text end , to the 12 months 15.12ending on August 31 of the year preceding the taxable year. The determination of the 15.13commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be 15.14subject to the Administrative Procedure Act contained in chapter 14. 15.15No later than December 15 of each year, the commissioner shall announce the specific 15.16percentage that will be used to adjust the tax rate brackets. 15.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 15.18 new text begin 31, 2018. new text end 15.19    Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 15.20read: 15.21     new text begin Subd. 2g. new text end new text begin First-time home buyer savings account. new text end new text begin In addition to the tax computed new text end 15.22 new text begin under subdivision 2c, an additional amount of tax applies equal to the additional tax computed new text end 15.23 new text begin for the taxable year for the account holder of a first-time home buyer account under section new text end 15.24 new text begin 462D.06, subdivision 3. new text end 15.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 15.26 new text begin 31, 2016. new text end 15.27    Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 15.28read: 15.29     new text begin Subd. 2h. new text end new text begin Temporary schedule of rates for individuals, estates, and trusts. new text end new text begin For taxable new text end 15.30 new text begin years beginning after December 31, 2016, and before January 1, 2018: new text end 16.1 new text begin (a) The income taxes imposed by this chapter upon married individuals filing joint returns new text end 16.2 new text begin and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be new text end 16.3 new text begin computed by applying to their taxable net income the following schedule of rates: new text end 16.4 new text begin (1) On the first $37,110, 5.15 percent; new text end 16.5 new text begin (2) On all over $37,110, but not over $138,180, 7.05 percent; new text end 16.6 new text begin (3) On all over $138,180, but not over $261,510, 7.85 percent; new text end 16.7 new text begin (4) On all over $261,510, 9.85 percent. new text end 16.8     new text begin Married individuals filing separate returns, estates, and trusts must compute their income new text end 16.9 new text begin tax by applying the above rates to their taxable income, except that the income brackets new text end 16.10 new text begin will be one-half of the above amounts. new text end 16.11 new text begin (b) The income taxes imposed by this chapter upon unmarried individuals must be new text end 16.12 new text begin computed by applying to taxable net income the following schedule of rates: new text end 16.13 new text begin (1) On the first $25,390, 5.15 percent; new text end 16.14 new text begin (2) On all over $25,390, but not over $77,060, 7.05 percent; new text end 16.15 new text begin (3) On all over $77,060, but not over $156,910, 7.85 percent; new text end 16.16 new text begin (4) On all over $156,910, 9.85 percent. new text end 16.17 new text begin (c) The income taxes imposed by this chapter upon unmarried individuals qualifying as new text end 16.18 new text begin a head of household as defined in section 2(b) of the Internal Revenue Code must be new text end 16.19 new text begin computed by applying to taxable net income the following schedule of rates: new text end 16.20 new text begin (1) On the first $31,260, 5.15 percent; new text end 16.21 new text begin (2) On all over $31,260, but not over $117,790, 7.05 percent; new text end 16.22 new text begin (3) On all over $117,790, but not over $209,210, 7.85 percent; new text end 16.23 new text begin (4) On all over $209,210, 9.85 percent. new text end 16.24 new text begin (d) The provisions of subdivision 2c, paragraphs (d) and (e), apply to this section. new text end 16.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 16.26 new text begin 31, 2016, and before January 1, 2018. new text end 17.1    Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 17.2read: 17.3     new text begin Subd. 37. new text end new text begin Workforce housing credit. new text end new text begin (a) A qualified project investor is allowed a credit new text end 17.4 new text begin against the tax under this chapter equal to the amount certified by the commissioner of new text end 17.5 new text begin employment and economic development under section 116J.5491 to the taxpayer as a new text end 17.6 new text begin qualified project investor for the taxable year. new text end 17.7 new text begin (b) The definitions under section 116J.5491 apply to this subdivision. new text end 17.8 new text begin (c) Credits allowed to a partnership, a limited liability company taxed as a partnership, new text end 17.9 new text begin S corporation, or multiple owners of property are passed through to the partners, members, new text end 17.10 new text begin shareholders, or owners, respectively, pro rata to each based on the partner's, member's, new text end 17.11 new text begin shareholder's, or owner's share of the entity's assets or as specially allocated in the new text end 17.12 new text begin organizational documents or any other executed agreement, as of the last day of the taxable new text end 17.13 new text begin year. new text end 17.14 new text begin (d) Notwithstanding the a tax credit certificate issued by the commissioner of employment new text end 17.15 new text begin and economic development under section 116J.5491, the commissioner may utilize any new text end 17.16 new text begin audit and examination powers under chapter 270C or 289A to the extent necessary to verify new text end 17.17 new text begin that the taxpayer is eligible for the credit and to assess for the amount of any improperly new text end 17.18 new text begin claimed credit. new text end 17.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 17.20 new text begin 31, 2017, and before January 1, 2019. new text end 17.21    Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws 17.222017, chapter 1, section 6, is amended to read: 17.23    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 17.24allowed a credit against the tax imposed by this chapter equal to a percentage of earned 17.25income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 17.26Internal Revenue Code. 17.27(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first 17.28$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or adjusted 17.29gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than 17.30zero. 17.31(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 17.32$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or adjusted 18.1gross income, whichever is greater, in excess of $21,190, but in no case is the credit less 18.2than zero. 18.3(d) For individuals with two or more qualifying children, the credit equals 11 percent 18.4of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 18.5income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case 18.6is the credit less than zero. 18.7(e) For a part-year resident, the credit must be allocated based on the percentage calculated 18.8under section 290.06, subdivision 2c, paragraph (e). 18.9(f) For a person who was a resident for the entire tax year and has earned income not 18.10subject to tax under this chapter, including income excluded under section 290.0132, 18.11subdivision 10 , the credit must be allocated based on the ratio of federal adjusted gross 18.12income reduced by the earned income not subject to tax under this chapter over federal 18.13adjusted gross income. For purposes of this paragraph, the new text begin following clauses are not new text end 18.14 new text begin considered "earned income not subject to tax under this chapter": new text end new text begin new text end 18.15 new text begin (1) the new text end subtractions for military pay under section 290.0132, subdivisions 11 and 12, 18.16are not considered "earned income not subject to tax under this chapter."For the purposes 18.17of this paragraph, new text begin ; new text end 18.18 new text begin (2) new text end the exclusion of combat pay under section 112 of the Internal Revenue Code is not 18.19considered "earned income not subject to tax under this chapter." new text begin ; and new text end 18.20 new text begin (3) income derived from an Indian reservation by an enrolled member of the reservation new text end 18.21 new text begin while living on the reservation. new text end 18.22(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b), the 18.23$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation 18.24under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 18.25For tax years beginning after December 31, 2013, the commissioner shall annually adjust 18.26the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the 18.27Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted 18.28for the word "1992." For 2014, the commissioner shall then determine the percent change 18.29from the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 18.302013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the 18.3112 months ending on August 31 of the year preceding the taxable year. The earned income 18.32thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends 18.33in $5, the amount is rounded up to the nearest $10. The determination of the commissioner 18.34under this subdivision is not a rule under the Administrative Procedure Act. 19.1(h) The commissioner shall construct tables showing the amount of the credit at various 19.2income levels and make them available to taxpayers. The tables shall follow the schedule 19.3contained in this subdivision, except that the commissioner may graduate the transition 19.4between income brackets. 19.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 19.6 new text begin 31, 2016. new text end 19.7    Sec. 18. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 19.8to read: 19.9     new text begin Subd. 6. new text end new text begin Inflation adjustment. new text end new text begin The credit amount and the income threshold at which new text end 19.10 new text begin the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation. new text end 19.11 new text begin The commissioner shall adjust the credit amount and income threshold by the percentage new text end 19.12 new text begin determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except new text end 19.13 new text begin that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992." For new text end 19.14 new text begin 2019, the commissioner shall then determine the percent change from the 12 months ending new text end 19.15 new text begin on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent new text end 19.16 new text begin year, from the 12 months ending August 31, 2017, to the 12 months ending on August 31 new text end 19.17 new text begin of the year preceding the taxable year. The credit amount and income threshold as adjusted new text end 19.18 new text begin for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount new text end 19.19 new text begin is rounded up to the nearest $10 amount. The determination of the commissioner under this new text end 19.20 new text begin subdivision is not a rule subject to the Administrative Procedure Act in chapter 14, including new text end 19.21 new text begin section 14.386. new text end 19.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 19.23 new text begin 31, 2018. new text end 19.24    Sec. 19. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read: 19.25    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 19.26given. 19.27    (a) "Qualified research expenses" means (i) qualified research expenses and basic research 19.28payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 19.29not include expenses incurred for qualified research or basic research conducted outside 19.30the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 19.31(ii) contributions to a nonprofit corporation established and operated pursuant to the 19.32provisions of chapter 317A for the purpose of promoting the establishment and expansion 19.33of business in this state, provided the contributions are invested by the nonprofit corporation 20.1for the purpose of providing funds for small, technologically innovative enterprises in 20.2Minnesota during the early stages of their development. 20.3    (b) "Qualified research" means qualified research as defined in section 41(d) of the 20.4Internal Revenue Code, except that the term does not include qualified research conducted 20.5outside the state of Minnesota. 20.6    (c) "Base amount" means new text begin : new text end 20.7     new text begin (1) for taxpayers not subject to clause (2), the new text end base amount as defined in section 41(c) 20.8of the Internal Revenue Code, except that the average annual gross receipts must be calculated 20.9using Minnesota sales or receipts under section 290.191 and the definitions contained in 20.10clauses new text begin paragraphs new text end (a) and (b) shall apply new text begin ; or new text end 20.11     new text begin (2) for a taxpayer with an alternative simplified credit election in place under subdivision new text end 20.12 new text begin 2a for the taxable year, 50 percent of the average qualified research expenses for the three new text end 20.13 new text begin taxable years preceding the taxable year for which the credit is being determined new text end . 20.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 20.15 new text begin 31, 2017. new text end 20.16    Sec. 20. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision 20.17to read: 20.18     new text begin Subd. 2a. new text end new text begin Alternative simplified credit election. new text end new text begin (a) A corporation, partnership, or other new text end 20.19 new text begin taxpayer qualifying for a credit under this section may elect on an original return, including new text end 20.20 new text begin all extensions, to calculate its base amount under subdivision 2, paragraph (c), clause (2), new text end 20.21 new text begin for the taxable year. A taxpayer may revoke the election without approval of the new text end 20.22 new text begin commissioner. new text end 20.23 new text begin (b) For a partnership, the election must be made by the partnership on the partnership new text end 20.24 new text begin return or other form, as required by the commissioner, and applies to all of its partners. new text end 20.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 20.26 new text begin 31, 2017. new text end 20.27    Sec. 21. new text begin [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN new text end 20.28 new text begin TEACHER'S LICENSURE FIELD. new text end 20.29     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have new text end 20.30 new text begin the meanings given them. new text end 21.1 new text begin (b) "Master's degree program" means a graduate-level program at an accredited university new text end 21.2 new text begin leading to a master of arts or science degree in a core content area directly related to a new text end 21.3 new text begin qualified teacher's licensure field. The master's degree program may not include pedagogy new text end 21.4 new text begin or a pedagogy component. To be eligible under this credit, a licensed elementary school new text end 21.5 new text begin teacher must pursue and complete a master's degree program in a core content area in which new text end 21.6 new text begin the teacher provides direct classroom instruction. new text end 21.7 new text begin (c) "Qualified teacher" means a person who: new text end 21.8 new text begin (1) holds a teaching license issued by the licensing division in the Department of new text end 21.9 new text begin Education on behalf of the Minnesota Board of Teaching both when the teacher begins the new text end 21.10 new text begin master's degree program and when the teacher completes the master's degree program; new text end 21.11 new text begin (2) began a master's degree program after June 30, 2017; and new text end 21.12 new text begin (3) completes the master's degree program during the taxable year. new text end 21.13 new text begin (d) "Core content area" means the academic subject of reading, English or language arts, new text end 21.14 new text begin mathematics, science, foreign languages, civics and government, economics, arts, history, new text end 21.15 new text begin or geography. new text end 21.16     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An individual who is a qualified teacher is allowed a credit new text end 21.17 new text begin against the tax imposed under this chapter. The credit equals $2,500. new text end 21.18 new text begin (b) For a nonresident or a part-year resident, the credit under this subdivision must be new text end 21.19 new text begin allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph new text end 21.20 new text begin (e). new text end 21.21 new text begin (c) A qualified teacher may claim the credit in this section only one time for each master's new text end 21.22 new text begin degree program completed in a core content area. new text end 21.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 21.24 new text begin 31, 2016. new text end 21.25    Sec. 22. new text begin [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT. new text end 21.26     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have new text end 21.27 new text begin the meanings given. new text end 21.28 new text begin (b) "Eligible student" means a student who: new text end 21.29 new text begin (1) resides in Minnesota; new text end 21.30 new text begin (2) is a member of a household that has total annual income during the year prior to new text end 21.31 new text begin initial receipt of a qualified scholarship or qualified transportation scholarship, without new text end 22.1 new text begin consideration of the benefits under this program, that does not exceed an amount equal to new text end 22.2 new text begin two times the income standard used to qualify for a reduced-price meal under the National new text end 22.3 new text begin School Lunch Program; and new text end 22.4 new text begin (3) meets one of the following criteria: new text end 22.5 new text begin (i) attended a school, as defined in section 120A.22, subdivision 4, in the semester new text end 22.6 new text begin preceding initial receipt of a qualified scholarship or qualified transportation scholarship; new text end 22.7 new text begin (ii) is younger than age seven and not enrolled in kindergarten or first grade in the new text end 22.8 new text begin semester preceding initial receipt of a qualified scholarship; new text end 22.9 new text begin (iii) previously received a qualified scholarship or qualified transportation scholarship new text end 22.10 new text begin under this section; or new text end 22.11 new text begin (iv) lived in Minnesota for less than a year prior to initial receipt of a qualified new text end 22.12 new text begin scholarship. new text end 22.13 new text begin (c) "Equity and opportunity in education donation" means a donation to a qualified new text end 22.14 new text begin foundation that awards qualified scholarships or qualified transportation scholarships. new text end 22.15 new text begin (d) "Household" means household as used to determine eligibility under the National new text end 22.16 new text begin School Lunch Program. new text end 22.17 new text begin (e) "National School Lunch Program" means the program in United States Code, title new text end 22.18 new text begin 42, section 1758. new text end 22.19 new text begin (f) "Qualified school" means a school operated in Minnesota that is a nonpublic new text end 22.20 new text begin elementary or secondary school in Minnesota wherein a resident may legally fulfill the new text end 22.21 new text begin state's compulsory attendance laws that is not operated for profit, and that adheres to the new text end 22.22 new text begin provisions of United States Code, title 42, section 1981, chapter 121A, sections 121A.03 new text end 22.23 new text begin to 121A.0311, and chapter 363A. new text end 22.24 new text begin (g) "Qualified foundation" means a nonprofit organization granted an exemption from new text end 22.25 new text begin the federal income tax under section 501(c)(3) of the Internal Revenue Code that has been new text end 22.26 new text begin approved as a qualified foundation by the commissioner of revenue under subdivision 5. new text end 22.27 new text begin (h) "Qualified scholarship" means a payment from a qualified foundation to or on behalf new text end 22.28 new text begin of the parent or guardian of an eligible student for payment of tuition for enrollment in new text end 22.29 new text begin grades kindergarten through 12 at a qualified school. A qualified scholarship must not new text end 22.30 new text begin exceed an amount greater than 70 percent of the state average general education revenue new text end 22.31 new text begin under section 126C.10, subdivision 1, per pupil unit. new text end 23.1 new text begin (i) "Total annual income" means the income measure used to determine eligibility under new text end 23.2 new text begin the National School Lunch Program in United States Code, title 42, section 1758. new text end 23.3 new text begin (j) "Qualified transportation scholarship" means a payment from a qualified foundation new text end 23.4 new text begin to or on behalf of a parent or guardian of an eligible student for payment of transportation new text end 23.5 new text begin to a school, as defined in section 120A.22, subdivision 4. A qualified transportation new text end 23.6 new text begin scholarship must not exceed an amount greater than 70 percent of the state average general new text end 23.7 new text begin education revenue under section 126C.10, subdivision 1, per pupil unit. new text end 23.8     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An individual or corporate taxpayer who has been issued new text end 23.9 new text begin a credit certificate under subdivision 3 is allowed a credit against the tax due under this new text end 23.10 new text begin chapter equal to 70 percent of the amount donated during the taxable year to the qualified new text end 23.11 new text begin foundation designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer new text end 23.12 new text begin designates a specific child as the beneficiary of the contribution. No credit is allowed to a new text end 23.13 new text begin taxpayer for an equity and opportunity in education donation made before the taxpayer was new text end 23.14 new text begin issued a credit certificate as provided in subdivision 3. new text end 23.15 new text begin (b) The maximum annual credit allowed is: new text end 23.16 new text begin (1) $21,000 for married joint filers for a one-year donation of $30,000; new text end 23.17 new text begin (2) $10,500 for other individual filers for a one-year donation of $15,000; and new text end 23.18 new text begin (3) $105,000 for corporate filers for a one-year donation of $150,000. new text end 23.19 new text begin (c) A taxpayer must provide a copy of the receipt provided by the qualified foundation new text end 23.20 new text begin when claiming the credit for the donation if requested by the commissioner. new text end 23.21 new text begin (d) The credit is limited to the liability for tax under this chapter, including the tax new text end 23.22 new text begin imposed by sections 290.0921 and 290.0922. new text end 23.23 new text begin (e) If the amount of the credit under this subdivision for any taxable year exceeds the new text end 23.24 new text begin limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding new text end 23.25 new text begin taxable years. The entire amount of the excess unused credit for the taxable year must be new text end 23.26 new text begin carried first to the earliest of the taxable years to which the credit may be carried. The new text end 23.27 new text begin amount of the unused credit that may be added under this paragraph may not exceed the new text end 23.28 new text begin taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to new text end 23.29 new text begin a taxable year more than five years after the taxable year in which the credit was earned. new text end 23.30     new text begin Subd. 3. new text end new text begin Application for credit certificate. new text end new text begin (a) The commissioner must make applications new text end 23.31 new text begin for tax credits for 2018 available on the department's Web site by January 1, 2018. new text end 23.32 new text begin Applications for subsequent years must be made available by January 1 of the taxable year. new text end 24.1 new text begin (b) A taxpayer must apply to the commissioner for an equity and opportunity in education new text end 24.2 new text begin tax credit certificate. The application must be in the form and manner specified by the new text end 24.3 new text begin commissioner and must designate the qualified foundation to which the taxpayer intends new text end 24.4 new text begin to make a donation. The commissioner must begin accepting applications for a taxable year new text end 24.5 new text begin on January 1. The commissioner must issue tax credit certificates under this section on a new text end 24.6 new text begin first-come, first-served basis until the maximum statewide credit amount has been reached. new text end 24.7 new text begin The certificates must list the qualified foundation the taxpayer designated on the application. new text end 24.8 new text begin The maximum statewide credit amount is $35,000,000 per taxable year for taxable years new text end 24.9 new text begin beginning after December 31, 2017. new text end 24.10 new text begin (c) The commissioner must not issue a tax credit certificate for an amount greater than new text end 24.11 new text begin the limits in subdivision 2. new text end 24.12 new text begin (d) The commissioner must not issue a credit certificate for an application that designates new text end 24.13 new text begin a qualified foundation that the commissioner has barred from participation as provided in new text end 24.14 new text begin subdivision 5. new text end 24.15     new text begin Subd. 4. new text end new text begin Responsibilities of qualified foundations. new text end new text begin (a) A qualified foundation must: new text end 24.16 new text begin (1) award qualified scholarships and qualified transportation scholarships to eligible new text end 24.17 new text begin students; new text end 24.18 new text begin (2) not restrict the availability of scholarships to students of one qualified school; new text end 24.19 new text begin (3) not charge a fee of any kind for a child to be considered for a scholarship; and new text end 24.20 new text begin (4) require a qualified school receiving payment of tuition through a scholarship funded new text end 24.21 new text begin by contributions qualifying for the tax credit under this section to sign an agreement that it new text end 24.22 new text begin will not use different admissions standards for a student with a qualified scholarship or new text end 24.23 new text begin qualified transportation scholarship. new text end 24.24 new text begin (b) An entity that is eligible to be a qualified foundation must apply to the commissioner new text end 24.25 new text begin by September 15 of the year preceding the year in which it will first receive equity and new text end 24.26 new text begin opportunity in education donations. The application must be in the form and manner new text end 24.27 new text begin prescribed by the commissioner. The application must: new text end 24.28 new text begin (1) demonstrate to the commissioner that the entity, if it is a nonprofit organization, has new text end 24.29 new text begin been granted an exemption from the federal income tax as an organization described in new text end 24.30 new text begin section 501(c)(3) of the Internal Revenue Code; and new text end 24.31 new text begin (2) demonstrate the entity's financial accountability by submitting its most recent audited new text end 24.32 new text begin financial statement prepared by a certified public accountant firm licensed under chapter new text end 25.1 new text begin 326A using the Statements on Auditing Standards issued by the Audit Standards Board of new text end 25.2 new text begin the American Institute of Certified Public Accountants. new text end 25.3 new text begin (c) A qualified foundation must provide to taxpayers who make donations or new text end 25.4 new text begin commitments to donate a receipt or verification on a form approved by the commissioner. new text end 25.5 new text begin (d) A qualified foundation in each year it awards qualified scholarships or qualified new text end 25.6 new text begin transportation scholarships to eligible students to enroll in a qualified school must obtain new text end 25.7 new text begin from the qualified school documentation that the school: new text end 25.8 new text begin (i) complies with all health and safety laws or codes that apply to nonpublic schools; new text end 25.9 new text begin (ii) holds a valid occupancy permit if required by its municipality; new text end 25.10 new text begin (iii) certifies that it adheres to the provisions of chapter 363A and United States Code, new text end 25.11 new text begin title 42, section 1981; and new text end 25.12 new text begin (iv) provides academic accountability to parents of students in the program by regularly new text end 25.13 new text begin reporting to the parents on the student's progress. new text end 25.14 new text begin A qualified foundation must make the documentation available to the commissioner on new text end 25.15 new text begin request. new text end 25.16 new text begin (e) A qualified foundation must, by June 1 of each year following a year in which it new text end 25.17 new text begin receives donations and awards scholarships, provide the following information to the new text end 25.18 new text begin commissioner: new text end 25.19 new text begin (1) financial information that demonstrates the financial viability of the qualified new text end 25.20 new text begin foundation, if it is to receive donations of $150,000 or more during the year; new text end 25.21 new text begin (2) documentation that it has conducted criminal background checks on all of its new text end 25.22 new text begin employees and board members and has excluded from employment or governance any new text end 25.23 new text begin individuals who might reasonably pose a risk to the appropriate use of contributed funds; new text end 25.24 new text begin (3) consistent with paragraph (f), document that it has used amounts received as donations new text end 25.25 new text begin to provide qualified scholarships within one calendar year of the calendar year in which it new text end 25.26 new text begin received the donation; new text end 25.27 new text begin (4) a listing of qualified schools that enrolled eligible students to whom the qualified new text end 25.28 new text begin foundation awarded qualified scholarships; and new text end 25.29 new text begin (5) the following information prepared by a certified public accountant regarding new text end 25.30 new text begin donations received and scholarships awarded in the previous calendar year: new text end 25.31 new text begin (i) the total number and total dollar amount of donations received from taxpayers; new text end 26.1 new text begin (ii) the total number and total dollar amount of qualified scholarships and qualified new text end 26.2 new text begin transportation scholarships awarded; and new text end 26.3 new text begin (iii) the dollar amount of donations used for administrative expenses, as allowed by new text end 26.4 new text begin paragraph (f). new text end 26.5 new text begin (f) The foundation may use up to five percent of the amounts received as donations for new text end 26.6 new text begin reasonable administrative expenses, including but not limited to fund-raising, scholarship new text end 26.7 new text begin tracking, and reporting requirements. new text end 26.8     new text begin Subd. 5. new text end new text begin Responsibilities of commissioner. new text end new text begin (a) The commissioner must make new text end 26.9 new text begin applications for an entity to be approved as a qualified foundation for a taxable year available new text end 26.10 new text begin on the department's Web site by August 1 of the year preceding the taxable year. The new text end 26.11 new text begin commissioner must approve an application that provides the documentation required in new text end 26.12 new text begin subdivision 4, paragraph (b), clauses (1) and (2), within 60 days of receiving the application. new text end 26.13 new text begin The commissioner must notify a foundation that provides incomplete documentation and new text end 26.14 new text begin the foundation may resubmit its application within 30 days. new text end 26.15 new text begin (b) By November 15 of each year, the commissioner must post on the department's Web new text end 26.16 new text begin site the names and addresses of qualified foundations for the next taxable year. The new text end 26.17 new text begin commissioner must regularly update the names and addresses of any qualified foundations new text end 26.18 new text begin that have been barred from participating in the program. new text end 26.19 new text begin (c) The commissioner must prescribe a standardized format for a receipt to be issued by new text end 26.20 new text begin a qualified foundation to a taxpayer to indicate the value of a donation received and of a new text end 26.21 new text begin commitment to make a donation. new text end 26.22 new text begin (d) The commissioner must prescribe a standardized format for qualified foundations new text end 26.23 new text begin to report the information required under subdivision 4, paragraph (e). new text end 26.24 new text begin (e) The commissioner may conduct either a financial review or audit of a qualified new text end 26.25 new text begin foundation upon finding evidence of fraud or intentional misreporting. If the commissioner new text end 26.26 new text begin determines that the qualified foundation committed fraud or intentionally misreported new text end 26.27 new text begin information, the qualified foundation is barred from further program participation. new text end 26.28 new text begin (f) If a qualified foundation fails to submit the documentation required under subdivision new text end 26.29 new text begin 4, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July new text end 26.30 new text begin 1. A qualified foundation that fails to submit the required information by August 1 is barred new text end 26.31 new text begin from participation for the next taxable year. new text end 26.32 new text begin (g) If a qualified foundation fails to comply with the requirements of subdivision 4, new text end 26.33 new text begin paragraph (e), the commissioner must by September 1 notify the qualified foundation that new text end 27.1 new text begin it has until November 1 to document that it has remedied its noncompliance. A qualified new text end 27.2 new text begin foundation that fails to document that it has remedied its noncompliance by November 1 is new text end 27.3 new text begin barred from participation for the next taxable year. new text end new text begin new text end 27.4 new text begin (h) A qualified foundation barred under paragraph (f) or (g) may become eligible to new text end 27.5 new text begin participate by submitting the required information in future years. new text end 27.6     new text begin Subd. 6. new text end new text begin Mandatory inclusion for people with disabilities. new text end new text begin No otherwise qualified new text end 27.7 new text begin individual with a disability, as defined in Minnesota Statutes, shall, solely by reason of the new text end 27.8 new text begin individual's disability, be excluded from the participation in, be denied the benefits of, or new text end 27.9 new text begin be subjected to discrimination under any program or activity receiving funding from tax new text end 27.10 new text begin credits defined within this section. new text end 27.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 27.12 new text begin donations made and credits allowed in taxable years beginning after December 31, 2017. new text end 27.13    Sec. 23. Minnesota Statutes 2016, section 290.081, is amended to read: 27.14290.081 INCOME OF NONRESIDENTS, RECIPROCITY. 27.15(a) The compensation received for the performance of personal or professional services 27.16within this state by an individual whose residence, place of abode, and place customarily 27.17returned to at least once a month is in another state, shall be excluded from gross income 27.18to the extent such compensation is subject to an income tax imposed by the state of residence; 27.19provided that such state allows a similar exclusion of compensation received by residents 27.20of Minnesota for services performed therein. 27.21(b) When it is deemed to be in the best interests of the people of this state, the 27.22commissioner may determine that the provisions of paragraph (a) shall not apply. As long 27.23as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions 27.24of paragraph (a) shall apply to any individual who is domiciled in Wisconsin. 27.25(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents 27.26which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax 27.27on Wisconsin residents which would have been paid Minnesota without paragraph (a), or 27.28vice versa, then the state with the net revenue loss resulting from new text begin calculated under new text end paragraph 27.29(a) new text begin (e) new text end shall receive from the other state the amount of such loss. This provision shall be 27.30effective for all years beginning after December 31, 1972. The data used for computing the 27.31loss to either state shall be determined on or before September 30 of the year following the 27.32close of the previous calendar year. 28.1(d) (1) Interest is payable on all amounts calculated under paragraph (c) relating to 28.2taxable years beginning after December 31, 2000. Interest accrues from July 1 of the taxable 28.3year new text begin Payments for amounts calculated under paragraph (c) must equal one-quarter of the new text end 28.4 new text begin estimated annual amount and must be paid at the midpoint of each quarter, on February 15, new text end 28.5 new text begin May 15, August 15, and November 15 new text end . 28.6(2) new text begin (e)(1) new text end The commissioner of revenue is authorized to enter into agreements with the 28.7state of Wisconsin specifying the reciprocity payment due dates, conditions constituting 28.8delinquency, interest rates, and a method for computing interest due. 28.9(3) new text begin (2) new text end For agreements entered into before October 1, 2014 new text begin 2017 new text end , the annual compensation 28.10required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 new text begin up new text end 28.11 new text begin to $3,000,000 new text end per fiscal year. 28.12(4) For agreements entered into after September 30, 2014, the annual compensation 28.13required under paragraph (c) must equal the net revenue loss per fiscal year. 28.14(5) new text begin (3) new text end For the purposes of clauses (3) and (4) new text begin this section new text end , "net revenue loss" means the 28.15difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing 28.16Wisconsin residents on income subject to reciprocity and the credit Minnesota would have 28.17been required to give under section 290.06, subdivision 22, to Minnesota residents working 28.18in Wisconsin had there not been reciprocity. 28.19 new text begin (4) All agreements must include provisions: new text end 28.20 new text begin (i) providing for a suspension of the agreement if one party to the agreement does not new text end 28.21 new text begin pay in full by a time proscribed in the agreement; new text end 28.22 new text begin (ii) setting the interest rate that will be applied, and that interest shall run from the date new text end 28.23 new text begin the payment is due until the day the payment is made, except that interest from the new text end 28.24 new text begin reconciliation payments runs from July 1 of the tax year until paid; new text end 28.25 new text begin (iii) stating a time for annual reconciliation must be completed by October 31 of the new text end 28.26 new text begin year following the tax year, and the time for payment of any amounts to be completed by new text end 28.27 new text begin no later than December 1 of the year following the tax year; new text end 28.28 new text begin (iv) requiring the parties to jointly conduct updated benchmark studies every five years new text end 28.29 new text begin beginning tax year 2018; new text end 28.30 new text begin (v) requiring each party to the agreement to require taxpayers who request exemption new text end 28.31 new text begin from withholding in the state where they work to make an annual application and that a list new text end 28.32 new text begin of participants will be exchanged annually; and new text end 29.1 new text begin (vi) the sum of the amount of the quarterly payments must be a reasonable estimate of new text end 29.2 new text begin the revenue loss as defined in item (iii). new text end 29.3(e) new text begin (f) new text end If an agreement cannot be reached as to the amount of the loss, the commissioner 29.4of revenue and the taxing official of the state of Wisconsin shall each appoint a member of 29.5a board of arbitration and these members shall appoint the third member of the board. The 29.6board shall select one of its members as chair. Such board may administer oaths, take 29.7testimony, subpoena witnesses, and require their attendance, require the production of books, 29.8papers and documents, and hold hearings at such places as are deemed necessary. The board 29.9shall then make a determination as to the amount to be paid the other state which 29.10determination shall be final and conclusive. 29.11(f) new text begin (g) new text end The commissioner may furnish copies of returns, reports, or other information to 29.12the taxing official of the state of Wisconsin, a member of the board of arbitration, or a 29.13consultant under joint contract with the states of Minnesota and Wisconsin for the purpose 29.14of making a determination as to the amount to be paid the other state under the provisions 29.15of this section. Prior to the release of any information under the provisions of this section, 29.16the person to whom the information is to be released shall sign an agreement which provides 29.17that the person will protect the confidentiality of the returns and information revealed thereby 29.18to the extent that it is protected under the laws of the state of Minnesota. 29.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 29.20 new text begin 31, 2017. new text end 29.21    Sec. 24. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read: 29.22    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 29.23terms have the meanings given: 29.24    (a) "Alternative minimum taxable income" means the sum of the following for the taxable 29.25year: 29.26    (1) the taxpayer's federal alternative minimum taxable income as defined in section 29.2755(b)(2) of the Internal Revenue Code; 29.28    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 29.29taxable income, but excluding: 29.30    (i) the charitable contribution deduction under section 170 of the Internal Revenue Code; 29.31    (ii) the medical expense deduction; 29.32    (iii) the casualty, theft, and disaster loss deduction; and 30.1    (iv) the impairment-related work expenses of a disabled person; 30.2    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue 30.3Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 30.4to the extent not included in federal alternative minimum taxable income, the excess of the 30.5deduction for depletion allowable under section 611 of the Internal Revenue Code for the 30.6taxable year over the adjusted basis of the property at the end of the taxable year (determined 30.7without regard to the depletion deduction for the taxable year); 30.8    (4) to the extent not included in federal alternative minimum taxable income, the amount 30.9of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 30.10Code determined without regard to subparagraph (E); 30.11    (5) to the extent not included in federal alternative minimum taxable income, the amount 30.12of interest income as provided by section 290.0131, subdivision 2; and 30.13    (6) the amount of addition required by section 290.0131, subdivisions 9 to 11; 30.14    less the sum of the amounts determined under the following: 30.15    (1) interest income as defined in section 290.0132, subdivision 2; 30.16    (2) an overpayment of state income tax as provided by section 290.0132, subdivision 3, 30.17to the extent included in federal alternative minimum taxable income; 30.18    (3) the amount of investment interest paid or accrued within the taxable year on 30.19indebtedness to the extent that the amount does not exceed net investment income, as defined 30.20in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 30.21in computing federal adjusted gross income; 30.22    (4) amounts subtracted from federal taxable income as provided by section 290.0132, 30.23subdivisions 7 , 9 to 15, 17, and 21 new text begin , 23, and 24 new text end ; and 30.24(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, 30.25paragraph (c). 30.26    In the case of an estate or trust, alternative minimum taxable income must be computed 30.27as provided in section 59(c) of the Internal Revenue Code. 30.28    (b) "Investment interest" means investment interest as defined in section 163(d)(3) of 30.29the Internal Revenue Code. 30.30    (c) "Net minimum tax" means the minimum tax imposed by this section. 31.1    (d) "Regular tax" means the tax that would be imposed under this chapter (without regard 31.2to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 31.3under this chapter. 31.4    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 31.5after subtracting the exemption amount determined under subdivision 3. 31.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 31.7 new text begin 31, 2016. new text end 31.8    Sec. 25. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws 31.92017, chapter 1, section 8, is amended to read: 31.10    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms 31.11used in this chapter shall have the following meanings: 31.12    (1) "Commissioner" means the commissioner of revenue or any person to whom the 31.13commissioner has delegated functions under this chapter. 31.14    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 31.15and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 31.16increased by the value of any property in which the decedent had a qualifying income interest 31.17for life and for which an election was made under section 291.03, subdivision 1d, for 31.18Minnesota estate tax purposes, but was not made for federal estate tax purposes. 31.19    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 31.20as amended through December 16, 2016. 31.21    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 31.22excluding therefrom any property included in the estate which has its situs outside Minnesota, 31.23and (b) including any property omitted from the federal gross estate which is includable in 31.24the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities. 31.25    (5) "Nonresident decedent" means an individual whose domicile at the time of death 31.26was not in Minnesota. 31.27    (6) "Personal representative" means the executor, administrator or other person appointed 31.28by the court to administer and dispose of the property of the decedent. If there is no executor, 31.29administrator or other person appointed, qualified, and acting within this state, then any 31.30person in actual or constructive possession of any property having a situs in this state which 31.31is included in the federal gross estate of the decedent shall be deemed to be a personal 32.1representative to the extent of the property and the Minnesota estate tax due with respect 32.2to the property. 32.3    (7) "Resident decedent" means an individual whose domicile at the time of death was 32.4in Minnesota new text begin . The provisions of section 290.01, subdivision 7, paragraph (c), apply to new text end 32.5 new text begin determinations of domicile under this chapter new text end . 32.6    (8) "Situs of property" means, with respect to: 32.7    (i) real property, the state or country in which it is located; 32.8    (ii) tangible personal property, the state or country in which it was normally kept or 32.9located at the time of the decedent's death or for a gift of tangible personal property within 32.10three years of death, the state or country in which it was normally kept or located when the 32.11gift was executed; 32.12    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 32.13Code, owned by a nonresident decedent and that is normally kept or located in this state 32.14because it is on loan to an organization, qualifying as exempt from taxation under section 32.15501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 32.16deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and 32.17    (iv) intangible personal property, the state or country in which the decedent was domiciled 32.18at death or for a gift of intangible personal property within three years of death, the state or 32.19country in which the decedent was domiciled when the gift was executed. 32.20    For a nonresident decedent with an ownership interest in a pass-through entity with 32.21assets that include real or tangible personal property, situs of the real or tangible personal 32.22property, including qualified works of art, is determined as if the pass-through entity does 32.23not exist and the real or tangible personal property is personally owned by the decedent. If 32.24the pass-through entity is owned by a person or persons in addition to the decedent, ownership 32.25of the property is attributed to the decedent in proportion to the decedent's capital ownership 32.26share of the pass-through entity. 32.27(9) "Pass-through entity" includes the following: 32.28(i) an entity electing S corporation status under section 1362 of the Internal Revenue 32.29Code; 32.30(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; 33.1(iii) a single-member limited liability company or similar entity, regardless of whether 33.2it is taxed as an association or is disregarded for federal income tax purposes under Code 33.3of Federal Regulations, title 26, section 301.7701-3; or 33.4(iv) a trust to the extent the property is includible in the decedent's federal gross estate; 33.5but excludes 33.6    (v) an entity whose ownership interest securities are traded on an exchange regulated 33.7by the Securities and Exchange Commission as a national securities exchange under section 33.86 of the Securities Exchange Act, United States Code, title 15, section 78f. 33.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 33.10 new text begin dying after December 31, 2016. new text end 33.11    Sec. 26. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read: 33.12    Subd. 3. Subtraction. new text begin (a) For estates of decedents dying in 2017, the value of qualified new text end 33.13 new text begin small business property under section new text end new text begin 291.03, subdivision 9 new text end new text begin , and the value of qualified farm new text end 33.14 new text begin property under section new text end new text begin 291.03, subdivision 10 new text end new text begin , or the result of $5,000,000 minus $1,800,000, new text end 33.15 new text begin whichever is less, may be subtracted in computing the Minnesota taxable estate but must new text end 33.16 new text begin not reduce the Minnesota taxable estate to less than zero. new text end 33.17 new text begin (b) For estates of decedents dying after December 31, 2017, and before January 1, 2022, new text end 33.18 new text begin the subtraction equals the sum of the applicable amount for the year of death under paragraphs new text end 33.19 new text begin (c) and (d). new text end 33.20 new text begin (c) new text end The value of qualified small business property under section 291.03, subdivision 9, 33.21and the value of qualified farm property under section 291.03, subdivision 10, or the result 33.22of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5), whichever 33.23is less, new text begin up to the amounts listed in clauses (1) to (4), new text end may be subtracted new text begin included new text end in computing 33.24the Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than 33.25zero: 33.26(1) $1,200,000 for estates of decedents dying in 2014; 33.27(2) $1,400,000 new text begin $2,100,000 new text end for estates of decedents dying in 2015 new text begin 2018 new text end ; 33.28(3) $1,600,000 new text begin (2) $1,700,000 new text end for estates of decedents dying in 2016 new text begin 2019 new text end ; 33.29(4) $1,800,000 new text begin (3) $1,300,000 new text end for estates of decedents dying in 2017; and new text begin 2020 new text end 33.30(5) $2,000,000 new text begin (4) $900,000 new text end for estates of decedents dying in 2018 and thereafter new text begin 2021 new text end . 34.1 new text begin (d) In addition to the amounts under paragraph (b), the following amount for the year new text end 34.2 new text begin of death listed in clauses (1) to (4) may be included in computing the Minnesota taxable new text end 34.3 new text begin estate: new text end 34.4 new text begin (1) $2,900,000 for estates of decedents dying in 2018; new text end 34.5 new text begin (2) $3,300,000 for estates of decedents dying in 2019; new text end 34.6 new text begin (3) $3,700,000 for estates of decedents dying in 2020; and new text end 34.7 new text begin (4) $4,100,000 for estates of decedents dying in 2021. new text end 34.8 new text begin (e) For estates of decedents dying in 2022, the subtraction equals $5,000,000. new text end 34.9 new text begin (f) For estates of decedents dying in 2023 and thereafter, the subtraction equals the new text end 34.10 new text begin decedent's applicable federal exclusion amount under section 2010(c)(2) of the Internal new text end 34.11 new text begin Revenue Code, but must not reduce the Minnesota taxable estate to less than zero. new text end 34.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 34.13 new text begin dying after December 31, 2016. new text end 34.14    Sec. 27. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read: 34.15    Subdivision 1. Tax amount. The tax imposed must be computed by applying to the 34.16Minnesota taxable estate the following schedule of rates and then the resulting amount 34.17multiplied by a fraction, not greater than one, the numerator of which is the value of the 34.18Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause 34.19(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus 34.20the value of gifts under section 291.016, subdivision 2, clause (3): 34.21    (a) For estates of decedents dying in 2014: 34.22 Amount of Minnesota Taxable Estate Rate of Tax 34.23 Not over $1,200,000 None 34.24 Over $1,200,000 but not over $1,400,000 nine percent of the excess over $1,200,000 34.25 34.26 Over $1,400,000 but not over $3,600,000 $18,000 plus ten percent of the excess over $1,400,000 34.27 34.28 Over $3,600,000 but not over $4,100,000 $238,000 plus 10.4 percent of the excess over $3,600,000 34.29 34.30 Over $4,100,000 but not over $5,100,000 $290,000 plus 11.2 percent of the excess over $4,100,000 34.31 34.32 Over $5,100,000 but not over $6,100,000 $402,000 plus 12 percent of the excess over $5,100,000 34.33 34.34 Over $6,100,000 but not over $7,100,000 $522,000 plus 12.8 percent of the excess over $6,100,000 34.35 34.36 Over $7,100,000 but not over $8,100,000 $650,000 plus 13.6 percent of the excess over $7,100,000 35.1 35.2 Over $8,100,000 but not over $9,100,000 $786,000 plus 14.4 percent of the excess over $8,100,000 35.3 35.4 Over $9,100,000 but not over $10,100,000 $930,000 plus 15.2 percent of the excess over $9,100,000 35.5 35.6 Over $10,100,000 $1,082,000 plus 16 percent of the excess over $10,100,000 35.7(b) For estates of decedents dying in 2015: 35.8 Amount of Minnesota Taxable Estate Rate of Tax 35.9 Not over $1,400,000 None 35.10 Over $1,400,000 but not over $3,600,000 ten percent of the excess over $1,400,000 35.11 35.12 Over $3,600,000 but not over $6,100,000 $220,000 plus 12 percent of the excess over $3,600,000 35.13 35.14 Over $6,100,000 but not over $7,100,000 $520,000 plus 12.8 percent of the excess over $6,100,000 35.15 35.16 Over $7,100,000 but not over $8,100,000 $648,000 plus 13.6 percent of the excess over $7,100,000 35.17 35.18 Over $8,100,000 but not over $9,100,000 $784,000 plus 14.4 percent of the excess over $8,100,000 35.19 35.20 Over $9,100,000 but not over $10,100,000 $928,000 plus 15.2 percent of the excess over $9,100,000 35.21 35.22 Over $10,100,000 $1,080,000 plus 16 percent of the excess over $10,100,000 35.23(c) For estates of decedents dying in 2016: 35.24 Amount of Minnesota Taxable Estate Rate of Tax 35.25 Not over $1,600,000 None 35.26 Over $1,600,000 but not over $2,600,000 ten percent of the excess over $1,600,000 35.27 35.28 Over $2,600,000 but not over $6,100,000 $100,000 plus 12 percent of the excess over $2,600,000 35.29 35.30 Over $6,100,000 but not over $7,100,000 $520,000 plus 12.8 percent of the excess over $6,100,000 35.31 35.32 Over $7,100,000 but not over $8,100,000 $648,000 plus 13.6 percent of the excess over $7,100,000 35.33 35.34 Over $8,100,000 but not over $9,100,000 $784,000 plus 14.4 percent of the excess over $8,100,000 35.35 35.36 Over $9,100,000 but not over $10,100,000 $928,000 plus 15.2 percent of the excess over $9,100,000 35.37 35.38 Over $10,100,000 $1,080,000 plus 16 percent of the excess over $10,100,000 35.39(d) new text begin (a) new text end For estates of decedents dying in 2017: 35.40 Amount of Minnesota Taxable Estate Rate of Tax 35.41 Not over $1,800,000 None 35.42 Over $1,800,000 but not over $2,100,000 ten percent of the excess over $1,800,000 35.43 35.44 Over $2,100,000 but not over $5,100,000 $30,000 plus 12 percent of the excess over $2,100,000 35.45 35.46 Over $5,100,000 but not over $7,100,000 $390,000 plus 12.8 percent of the excess over $5,100,000 36.1 36.2 Over $7,100,000 but not over $8,100,000 $646,000 plus 13.6 percent of the excess over $7,100,000 36.3 36.4 Over $8,100,000 but not over $9,100,000 $782,000 plus 14.4 percent of the excess over $8,100,000 36.5 36.6 Over $9,100,000 but not over $10,100,000 $926,000 plus 15.2 percent of the excess over $9,100,000 36.7 36.8 Over $10,100,000 $1,078,000 plus 16 percent of the excess over $10,100,000 36.9(e) new text begin (b) new text end For estates of decedents dying in 2018 and thereafter: 36.10 Amount of Minnesota Taxable Estate Rate of Tax 36.11 Not over $2,000,000 new text begin $7,100,000 new text end None new text begin 13 percent new text end 36.12 Over $2,000,000 but not over $2,600,000 ten percent of the excess over $2,000,000 36.13 36.14 Over $2,600,000 but not over $7,100,000 $60,000 plus 13 percent of the excess over $2,600,000 36.15 36.16 Over $7,100,000 but not over $8,100,000 $645,000 new text begin $923,000 new text end plus 13.6 percent of the excess over $7,100,000 36.17 36.18 Over $8,100,000 but not over $9,100,000 $781,000 new text begin $1,059,000 new text end plus 14.4 percent of the excess over $8,100,000 36.19 36.20 Over $9,100,000 but not over $10,100,000 $925,000 new text begin $1,203,000 new text end plus 15.2 percent of the excess over $9,100,000 36.21 36.22 Over $10,100,000 $1,077,000 new text begin $1,355,000 new text end plus 16 percent of the excess over $10,100,000 36.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 36.24 new text begin dying after December 31, 2016. new text end 36.25    Sec. 28. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read: 36.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before 36.27the death of the qualified heir, the qualified heir disposes of any interest in the qualified 36.28property, other than by a disposition to a family member, or a family member ceases to 36.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 36.30tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 36.31qualified small business property excluded under subdivision 9 with similar property, then 36.32the qualified heir will not be treated as having disposed of an interest in the qualified property. 36.33(b) The amount of the additional tax equals the amount of the exclusion claimed by the 36.34estate under subdivision 8, paragraph (d), multiplied by 16 percent. 36.35(c) The additional tax under this subdivision is due on the day which is six months after 36.36the date of the disposition or cessation in paragraph (a). 36.37 new text begin (d) The tax under this subdivision does not apply to the following: acquisition of title new text end 36.38 new text begin or possession of the qualified property by a federal, state, or local government unit, or any new text end 37.1 new text begin other entity with the power of eminent domain for a public purpose, as defined in section new text end 37.2 new text begin 117.025, subdivision 11, within the three-year holding period. new text end 37.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 37.4 new text begin dying after June 30, 2011. new text end 37.5    Sec. 29. new text begin [462D.01] CITATION. new text end 37.6 new text begin This chapter may be cited as the "First-Time Home Buyer Savings Account Act." new text end 37.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 37.8    Sec. 30. new text begin [462D.02] DEFINITIONS. new text end 37.9     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this chapter, the following terms have the new text end 37.10 new text begin meanings given. new text end 37.11     new text begin Subd. 2. new text end new text begin Account holder. new text end new text begin "Account holder" means an individual who establishes, new text end 37.12 new text begin individually or jointly with one or more other individuals, a first-time home buyer savings new text end 37.13 new text begin account. new text end 37.14     new text begin Subd. 3. new text end new text begin Allowable closing costs. new text end new text begin "Allowable closing costs" means a disbursement listed new text end 37.15 new text begin on a settlement statement for the purchase of a single-family residence in Minnesota by a new text end 37.16 new text begin qualified beneficiary. new text end 37.17     new text begin Subd. 4. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of revenue. new text end 37.18     new text begin Subd. 5. new text end new text begin Eligible costs. new text end new text begin "Eligible costs" means the down payment and allowable closing new text end 37.19 new text begin costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary. new text end 37.20 new text begin Eligible costs include paying for the cost of construction of or financing the construction new text end 37.21 new text begin of a single-family residence. new text end 37.22     new text begin Subd. 6. new text end new text begin Financial institution. new text end new text begin "Financial institution" means a bank, bank and trust, new text end 37.23 new text begin trust company with banking powers, savings bank, savings association, or credit union, new text end 37.24 new text begin organized under the laws of this state, any other state, or the United States; an industrial new text end 37.25 new text begin loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits; new text end 37.26 new text begin or a money market mutual fund registered under the federal Investment Company Act of new text end 37.27 new text begin 1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission new text end 37.28 new text begin under that act. new text end 37.29     new text begin Subd. 7. new text end new text begin First-time home buyer. new text end new text begin "First-time home buyer" means an individual, and if new text end 37.30 new text begin married, the individual's spouse, who has no present ownership interest in a principal new text end 37.31 new text begin residence during the three-year period ending on the earlier of: new text end 38.1 new text begin (1) the date of the purchase of the single-family residence funded, in part, with proceeds new text end 38.2 new text begin from the first-time home buyer savings account; or new text end 38.3 new text begin (2) the close of the taxable year for which a subtraction is claimed under sections new text end 38.4 new text begin 290.0132 and 462D.06. new text end 38.5     new text begin Subd. 8. new text end new text begin First-time home buyer savings account. new text end new text begin "First-time home buyer savings new text end 38.6 new text begin account" or "account" means an account with a financial institution that an account holder new text end 38.7 new text begin designates as a first-time home buyer savings account, as provided in section 462D.03, to new text end 38.8 new text begin pay or reimburse eligible costs for the purchase of a single-family residence by a qualified new text end 38.9 new text begin beneficiary. new text end new text begin new text end 38.10     new text begin Subd. 9. new text end new text begin Internal Revenue Code. new text end new text begin "Internal Revenue Code" has the meaning given in new text end 38.11 new text begin section 290.01. new text end 38.12     new text begin Subd. 10. new text end new text begin Principal residence. new text end new text begin "Principal residence" has the meaning given in section new text end 38.13 new text begin 121 of the Internal Revenue Code. new text end 38.14     new text begin Subd. 11. new text end new text begin Qualified beneficiary. new text end new text begin "Qualified beneficiary" means a first-time home buyer new text end 38.15 new text begin who is a Minnesota resident and is designated as the qualified beneficiary of a first-time new text end 38.16 new text begin home buyer savings account by the account holder. new text end 38.17     new text begin Subd. 12. new text end new text begin Single-family residence. new text end new text begin "Single-family residence" means a single-family new text end 38.18 new text begin residence located in this state and owned and occupied by or to be occupied by a qualified new text end 38.19 new text begin beneficiary as the qualified beneficiary's principal residence, which may include a new text end 38.20 new text begin manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative. new text end 38.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 38.22    Sec. 31. new text begin [462D.03] ESTABLISHMENT OF ACCOUNTS. new text end 38.23     new text begin Subdivision 1. new text end new text begin Accounts established. new text end new text begin An individual may open an account with a financial new text end 38.24 new text begin institution and designate the account as a first-time home buyer savings account to be used new text end 38.25 new text begin to pay or reimburse the designated qualified beneficiary's eligible costs. new text end 38.26     new text begin Subd. 2. new text end new text begin Designation of qualified beneficiary. new text end new text begin (a) The account holder must designate new text end 38.27 new text begin a first-time home buyer as the qualified beneficiary of the account by April 15 of the year new text end 38.28 new text begin following the taxable year in which the account was established. The account holder may new text end 38.29 new text begin be the qualified beneficiary. The account holder may change the designated qualified new text end 38.30 new text begin beneficiary at any time, but no more than one qualified beneficiary may be designated for new text end 38.31 new text begin an account at any one time. For purposes of the one beneficiary restriction, a married couple new text end 39.1 new text begin qualifies as one beneficiary. Changing the designated qualified beneficiary of an account new text end 39.2 new text begin does not affect computation of the ten-year period under section 462D.06, subdivision 2. new text end 39.3 new text begin (b) The commissioner shall establish a process for account holders to notify the state new text end 39.4 new text begin that permits recording of the account, the account holder or holders, any transfers under new text end 39.5 new text begin section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. new text end 39.6 new text begin This may be done upon filing the account holder's income tax return or in any other way new text end 39.7 new text begin the commissioner determines to be appropriate. new text end 39.8     new text begin Subd. 3. new text end new text begin Joint account holders. new text end new text begin An individual may jointly own a first-time home buyer new text end 39.9 new text begin account with another person if the joint account holders file a married joint income tax new text end 39.10 new text begin return. new text end 39.11     new text begin Subd. 4. new text end new text begin Multiple accounts. new text end new text begin (a) An individual may be the account holder of more than new text end 39.12 new text begin one first-time home buyer savings account, but must not hold or own multiple accounts that new text end 39.13 new text begin designate the same qualified beneficiary. new text end 39.14 new text begin (b) An individual may be designated as the qualified beneficiary on more than one new text end 39.15 new text begin first-time home buyer savings account. new text end 39.16     new text begin Subd. 5. new text end new text begin Contributions. new text end new text begin Only cash may be contributed to a first-time home buyer savings new text end 39.17 new text begin account. Individuals other than the account holder may contribute to an account. No limitation new text end 39.18 new text begin applies to the amount of contributions that may be made to or retained in a first-time home new text end 39.19 new text begin buyer savings account. new text end 39.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.21    Sec. 32. new text begin [462D.04] ACCOUNT HOLDER RESPONSIBILITIES. new text end 39.22     new text begin Subdivision 1. new text end new text begin Expenses; reporting. new text end new text begin The account holder must: new text end 39.23 new text begin (1) not use funds in a first-time home buyer savings account to pay expenses of new text end 39.24 new text begin administering the account, except that a service fee may be deducted from the account by new text end 39.25 new text begin the financial institution in which the account is held; and new text end 39.26 new text begin (2) submit to the commissioner, in the form and manner required by the commissioner: new text end 39.27 new text begin (i) detailed information regarding the first-time home buyer savings account, including new text end 39.28 new text begin a list of transactions for the account during the taxable year and the Form 1099 issued by new text end 39.29 new text begin the financial institution for the account for the taxable year; and new text end 39.30 new text begin (ii) upon withdrawal of funds from the account, a detailed account of the eligible costs new text end 39.31 new text begin for which the account funds were expended and a statement of the amount of funds remaining new text end 39.32 new text begin in the account, if any. new text end 40.1     new text begin Subd. 2. new text end new text begin Transfers. new text end new text begin An account holder may withdraw funds, in whole or part, from a new text end 40.2 new text begin first-time home buyer savings account and deposit the funds in another first-time home new text end 40.3 new text begin buyer savings account held by a different financial institution or the same financial institution. new text end 40.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.5    Sec. 33. new text begin [462D.05] FINANCIAL INSTITUTIONS. new text end 40.6 new text begin (a) A financial institution is not required to take any action to ensure compliance with new text end 40.7 new text begin this chapter, including to: new text end 40.8 new text begin (1) designate an account, designate qualified beneficiaries, or modify the financial new text end 40.9 new text begin institution's account contracts or systems in any way; new text end 40.10 new text begin (2) track the use of money withdrawn from a first-time home buyer savings account; new text end 40.11 new text begin (3) allocate funds in a first-time home buyer savings account among joint account holders new text end 40.12 new text begin or multiple qualified beneficiaries; or new text end 40.13 new text begin (4) report any information to the commissioner or any other government that is not new text end 40.14 new text begin otherwise required by law. new text end 40.15 new text begin (b) A financial institution is not responsible or liable for: new text end 40.16 new text begin (1) determining or ensuring that an account satisfies the requirements of this chapter or new text end 40.17 new text begin that its funds are used for eligible costs; or new text end 40.18 new text begin (2) reporting or remitting taxes or penalties related to the use of a first-time home buyer new text end 40.19 new text begin savings account. new text end 40.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.21    Sec. 34. new text begin [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX. new text end 40.22     new text begin Subdivision 1. new text end new text begin Subtraction. new text end new text begin (a) An account holder is allowed a subtraction from federal new text end 40.23 new text begin taxable income equal to the sum of: new text end 40.24 new text begin (1) the amount the individual contributed to a first-time home buyer savings account new text end 40.25 new text begin during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint new text end 40.26 new text begin return; and new text end 40.27 new text begin (2) interest or dividends earned on the first-time home buyer savings account during the new text end 40.28 new text begin taxable year. new text end 40.29 new text begin (b) The subtraction under paragraph (a) is allowed each year in which a contribution is new text end 40.30 new text begin made for the ten taxable years including and following the taxable year in which the account new text end 41.1 new text begin was established. The total subtraction for all taxable years and for all first-time home buyer new text end 41.2 new text begin accounts established by the individual for a qualified beneficiary is limited to $50,000. No new text end 41.3 new text begin person other than the account holder who deposits funds in a first-time home buyer savings new text end 41.4 new text begin account is allowed a subtraction under this section. new text end 41.5     new text begin Subd. 2. new text end new text begin Addition. new text end new text begin (a) An account holder must add to federal taxable income the sum new text end 41.6 new text begin of the following amounts: new text end 41.7 new text begin (1) any amount withdrawn from a first-time home buyer savings account during the new text end 41.8 new text begin taxable year and used neither to pay eligible costs nor for a transfer permitted under section new text end 41.9 new text begin 462D.04, subdivision 2; and new text end 41.10 new text begin (2) any amount remaining in the first-time home buyer savings account at the close of new text end 41.11 new text begin the tenth taxable year after the taxable year in which the account was established. new text end 41.12 new text begin (b) For an account that received a transfer under section 462D.04, subdivision 2, the new text end 41.13 new text begin ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year new text end 41.14 new text begin that applies to either account under that clause. new text end 41.15     new text begin Subd. 3. new text end new text begin Additional tax. new text end new text begin The account holder is liable for an additional tax equal to ten new text end 41.16 new text begin percent of the addition under subdivision 2 for the taxable year. This amount must be added new text end 41.17 new text begin to the amount due under section 290.06. The tax under this subdivision does not apply to: new text end 41.18 new text begin (1) a withdrawal because of the account holder's or designated qualified beneficiary's new text end 41.19 new text begin death or disability; and new text end 41.20 new text begin (2) a disbursement of assets of the account under federal bankruptcy law. new text end 41.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 41.22 new text begin 31, 2016. new text end 41.23    Sec. 35. new text begin INCOME TAX RECIPROCITY BENCHMARK STUDY. new text end 41.24 new text begin (a) The Department of Revenue, in conjunction with the Wisconsin Department of new text end 41.25 new text begin Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to new text end 41.26 new text begin determine at least the following: new text end 41.27 new text begin (1) the number of residents of each state who earn income from personal services in the new text end 41.28 new text begin other state; new text end 41.29 new text begin (2) the total amount of income earned by residents of each state who earn income from new text end 41.30 new text begin personal services in the other state; and new text end 42.1 new text begin (3) the change in tax revenue in each state if an income tax reciprocity arrangement were new text end 42.2 new text begin resumed between the two states under which the taxpayers were required to pay income new text end 42.3 new text begin taxes on the income only in their state of residence. new text end 42.4 new text begin (b) The study must use information obtained from each state's income tax returns for new text end 42.5 new text begin tax year 2017, and from any other source of information the departments determine is new text end 42.6 new text begin necessary to complete the study. new text end 42.7 new text begin (c) No later than March 1, 2019, the Department of Revenue must submit a report new text end 42.8 new text begin containing the results of the study to the governor and to the chairs and ranking minority new text end 42.9 new text begin members of the legislative committees having jurisdiction over taxes, in compliance with new text end 42.10 new text begin Minnesota Statutes, sections 3.195 and 3.197. new text end 42.11 new text begin (d) The department shall conduct the study only if the commissioner of revenue receives new text end 42.12 new text begin notice from the secretary of revenue that the Wisconsin Department of Revenue will fully new text end 42.13 new text begin participate in the study. new text end 42.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.15    Sec. 36. new text begin PENSION INCOME REPORT. new text end 42.16 new text begin By March 15, 2018, the commissioner of revenue, in conjunction with the Legislative new text end 42.17 new text begin Commission on Pensions and Retirement, shall provide a report to the senate and house of new text end 42.18 new text begin representatives committees with jurisdiction over taxes and the Legislative Commission on new text end 42.19 new text begin Pensions and Retirement that includes the following information: new text end 42.20 new text begin (1) the number of Minnesota recipients, including survivors, of a basic member pension new text end 42.21 new text begin plan governed by Minnesota Statutes, chapter 3A, 352B, 353, 354, or 354A, that is based new text end 42.22 new text begin on service for which the member or survivor is not also receiving Social Security benefits; new text end 42.23 new text begin (2) the number of Minnesota recipients, including survivors, of any retirement system new text end 42.24 new text begin administered by the federal government for which the recipient or survivor is not also new text end 42.25 new text begin receiving Social Security benefits; new text end 42.26 new text begin (3) the number of Minnesota recipients, including survivors, of an annuity or benefit new text end 42.27 new text begin from a public retirement system of or created by another state or any of its political new text end 42.28 new text begin subdivisions, where the income tax laws of the other state permit a reciprocal deduction or new text end 42.29 new text begin exemption of retirement or pension benefits received from a public retirement system; new text end 42.30 new text begin (4) the average and median amount of pension or retirement benefit income received by new text end 42.31 new text begin the individuals in each of clauses (1) to (3); and new text end 43.1 new text begin (5) an estimate of the amount of a subtraction for annuities or benefits received by the new text end 43.2 new text begin individuals in each of clauses (1) to (3) that would be proportionate to the subtraction for new text end 43.3 new text begin Social Security benefits under section 8. new text end 43.4    Sec. 37. new text begin REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL INCOME new text end 43.5 new text begin TAX RETURNS. new text end 43.6 new text begin (a) By March 16, 2018, the commissioner of revenue must provide a written report to new text end 43.7 new text begin the chairs and ranking minority members of the legislative committees with jurisdiction new text end 43.8 new text begin over taxes regarding free electronic filing options for individual income tax filing, including new text end 43.9 new text begin a vendor-based solution. The report must include responses from a commissioner's request new text end 43.10 new text begin for information to consumer-based tax filing software vendors. The request for information new text end 43.11 new text begin may include, but is not limited to, seeking information on the following aspects of a free new text end 43.12 new text begin electronic filing solution: new text end 43.13 new text begin (1) costs, on a per return basis, that would be charged to the state of Minnesota to provide new text end 43.14 new text begin an electronic individual income tax return preparation, submission, and payment remittance new text end 43.15 new text begin process; new text end 43.16 new text begin (2) vendor capability to provide customer service and issue resolution to taxpayers using new text end 43.17 new text begin the software; new text end 43.18 new text begin (3) vendor capability to provide and maintain an appropriate link between the Department new text end 43.19 new text begin of Revenue and the Internal Revenue Service Modernized Electronic Filing Program; new text end 43.20 new text begin (4) vendor security capabilities to ensure that taxpayer return information is maintained new text end 43.21 new text begin and protected as required by Minnesota Statutes, chapters 13 and 270B, Internal Revenue new text end 43.22 new text begin Service Publication 1075, and any other applicable requirements; new text end 43.23 new text begin (5) products for the free filing and submitting of both Minnesota and federal returns new text end 43.24 new text begin offered to customers and the thresholds for using those products; and new text end 43.25 new text begin (6) add-on products offered to customers and their costs. new text end 43.26 new text begin (b) The report required under paragraph (a) must comply with Minnesota Statutes, new text end 43.27 new text begin sections 3.195 and 3.197. new text end 43.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 43.29    Sec. 38. new text begin STUDENT LOAN CREDIT. new text end 43.30     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have new text end 43.31 new text begin the meanings given. new text end 44.1 new text begin (b) "Adjusted gross income" means federal adjusted gross income as defined in section new text end 44.2 new text begin 62 of the Internal Revenue Code. In the case of a married couple filing jointly, adjusted new text end 44.3 new text begin gross income means the adjusted gross income of the taxpayer and spouse. new text end 44.4 new text begin (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue new text end 44.5 new text begin Code, except that earned income includes combat pay excluded from federal taxable income new text end 44.6 new text begin under section 112 of the Internal Revenue Code. new text end 44.7 new text begin (d) "Education profession" means: new text end 44.8 new text begin (1) a full-time job in public education; early childhood education, including licensed or new text end 44.9 new text begin regulated child care, Head Start, and state-funded prekindergarten; school-based library new text end 44.10 new text begin sciences; and other school-based services; or new text end 44.11 new text begin (2) a full-time job as a faculty member at a tribal college or university as defined in new text end 44.12 new text begin section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs new text end 44.13 new text begin subject areas or areas of shortage, including nursing faculty, foreign language faculty, and new text end 44.14 new text begin part-time faculty at community colleges, as determined by the United States Secretary of new text end 44.15 new text begin Education. new text end 44.16 new text begin (e) "Eligible individual" means an individual who has one or more qualified education new text end 44.17 new text begin loans related to an undergraduate or graduate degree program at a postsecondary educational new text end 44.18 new text begin institution. new text end 44.19 new text begin (f) "Eligible loan payments" means the amount the eligible individual paid in principal new text end 44.20 new text begin and interest on qualified education loans during the taxable year. new text end 44.21 new text begin (g) "Postsecondary educational institution" means a postsecondary institution eligible new text end 44.22 new text begin for state student aid under Minnesota Statutes, section 136A.103 or, if the institution is not new text end 44.23 new text begin located in this state, a postsecondary institution participating in the federal Pell Grant program new text end 44.24 new text begin under title IV of the Higher Education Act of 1965, Public Law 89-329, as amended. new text end 44.25 new text begin (h) "Public service job" means a full-time job in emergency management; government, new text end 44.26 new text begin excluding time served as a member of Congress; military service; public safety; law new text end 44.27 new text begin enforcement; public health, including nurses, nurse practitioners, nurses in a clinical setting, new text end 44.28 new text begin and full-time professionals engaged in health care practitioner occupations and health care new text end 44.29 new text begin support occupations, as such terms are defined by the Bureau of Labor Statistics; social new text end 44.30 new text begin work in a public child or family services agency; public interest law services including new text end 44.31 new text begin prosecution or public defense or legal advocacy on behalf of low-income communities at new text end 44.32 new text begin a nonprofit organization; public service for individuals with disabilities or public service new text end 44.33 new text begin for the elderly; public library sciences; or at an organization that is described in section new text end 45.1 new text begin 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of new text end 45.2 new text begin the Internal Revenue Code. new text end 45.3 new text begin (i) "Qualified education loan" has the meaning given in section 221 of the Internal new text end 45.4 new text begin Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual. new text end 45.5     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An eligible individual is allowed a credit against the tax new text end 45.6 new text begin due under Minnesota Statutes, chapter 290. The credit equals a percentage of eligible loan new text end 45.7 new text begin payments in excess of ten percent of adjusted gross income, up to $700, as follows: new text end 45.8 new text begin (1) for eligible individuals, 50 percent; new text end 45.9 new text begin (2) for eligible individuals in a public service job, 65 percent; and new text end 45.10 new text begin (3) for eligible individuals in an education profession, 75 percent. new text end 45.11 new text begin (b) The credit must not exceed the eligible individual's earned income for the taxable new text end 45.12 new text begin year. new text end 45.13 new text begin (c) In the case of a married couple filing a joint return, each spouse is eligible for the new text end 45.14 new text begin credit in this section. new text end 45.15 new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the new text end 45.16 new text begin percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph new text end 45.17 new text begin (e). new text end 45.18 new text begin (e) An eligible individual may receive the credit under this section without regard to the new text end 45.19 new text begin individual's eligibility for the public service loan forgiveness program under United States new text end 45.20 new text begin Code, title 20, section 1087e(m). new text end 45.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 45.22 new text begin 31, 2016, and before January 1, 2019. new text end 45.23    Sec. 39. new text begin TAXPAYER ASSISTANCE GRANTS APPROPRIATION. new text end 45.24 new text begin (a) $200,000 in fiscal year 2018 only and $200,000 in fiscal year 2019 only are new text end 45.25 new text begin appropriated from the general fund to the commissioner of revenue for the provision of new text end 45.26 new text begin taxpayer assistance grants under Minnesota Statutes, section 270C.21. Of the amounts new text end 45.27 new text begin appropriated under this paragraph, up to five percent may be used for the administration of new text end 45.28 new text begin the taxpayer assistance grants program. The unencumbered balance in the first year does new text end 45.29 new text begin not cancel but is available for the second year. new text end 45.30 new text begin (b) For purposes of this section, "taxpayer assistance services" means accounting and new text end 45.31 new text begin tax preparation services provided by volunteers to low-income, elderly, and disadvantaged new text end 46.1 new text begin Minnesota residents to help them file federal and state income tax returns and Minnesota new text end 46.2 new text begin property tax refund claims and to provide personal representation before the Department new text end 46.3 new text begin of Revenue and the Internal Revenue Service. new text end 46.4    Sec. 40. new text begin REPEALER. new text end 46.5 new text begin Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 18; new text end 46.6 new text begin 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10, and new text end 46.7 new text begin 11, new text end new text begin are repealed. new text end 46.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 46.9 new text begin December 31, 2021. new text end 46.10ARTICLE 2 46.11PROPERTY TAX 46.12    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read: 46.13    Subd. 2. Allowed commercial and industrial operations. new text begin (a) new text end Commercial and industrial 46.14operations are not allowed on land within an agricultural preserve except: 46.15(1) small on-farm commercial or industrial operations normally associated with and 46.16important to farming in the agricultural preserve area; 46.17(2) storage use of existing farm buildings that does not disrupt the integrity of the 46.18agricultural preserve; and 46.19(3) small commercial use of existing farm buildings for trades not disruptive to the 46.20integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 46.21and similar activities that a farm operator might conduct new text begin ; and new text end 46.22 new text begin (4) wireless communication installments and related equipment and structure capable new text end 46.23 new text begin of providing technology potentially beneficial to farming activities new text end . 46.24     new text begin (b) For purposes of paragraph (a), clauses (2) and (3), new text end "existing" in clauses (2) and (3) 46.25means existing on August 1, 1989. 46.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following enactment. new text end 46.27    Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read: 46.28138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS. 47.1    The governing body of any home rule charter or statutory city or town may annually 47.2appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 47.3market value, derived from ad valorem taxes on property or other revenues, to be paid to 47.4the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of 47.5historical work and to aid in defraying the expenses of carrying on the historical work in 47.6the county. No city or town may appropriate any funds for the benefit of any historical 47.7society unless the society is affiliated with and approved by the Minnesota Historical Society. 47.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 47.9    Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read: 47.10270C.9901 ASSESSOR ACCREDITATION new text begin ; WAIVER new text end . 47.11     new text begin Subdivision 1. new text end new text begin Accreditation. new text end Every individual who appraises or physically inspects 47.12real property for the purpose of determining its valuation or classification for property tax 47.13purposes must obtain licensure as an accredited Minnesota assessor from the State Board 47.14of Assessors by July 1, 2019 new text begin 2022 new text end , or within four new text begin five new text end years of that person having become 47.15licensed as a certified Minnesota assessor, whichever is later. 47.16     new text begin Subd. 2. new text end new text begin Waiver. new text end new text begin (a) An individual may apply to the State Board of Assessors for a new text end 47.17 new text begin waiver from licensure as an accredited Minnesota assessor as required by subdivision 1 if new text end 47.18 new text begin the individual: new text end 47.19 new text begin (1) was first licensed as a certified Minnesota assessor before July 1, 2004; new text end 47.20 new text begin (2) has maintained an assessor license in good standing since July 1, 2004; new text end 47.21 new text begin (3) has successfully passed a comprehensive examination substantially equivalent to the new text end 47.22 new text begin requirements by the State Board of Assessors for the accredited Minnesota assessor license new text end 47.23 new text begin designation before May 1, 2020; and new text end 47.24     new text begin (4) submits an application to the State Board of Assessors no later than July 1, 2022. new text end 47.25 new text begin The examination can only be taken once to fulfill the requirements of the waiver. new text end 47.26 new text begin (b) The commissioner of revenue, in consultation with the State Board of Assessors and new text end 47.27 new text begin the Minnesota Association of Assessing Officers, must determine the contents of the waiver new text end 47.28 new text begin application and the comprehensive examination. new text end 47.29 new text begin (c) A county assessor in any jurisdiction assessed by an applicant may submit additional new text end 47.30 new text begin information to the State Board of Assessors to be considered as part of the waiver review new text end 47.31 new text begin proceedings. new text end 48.1 new text begin (d) The State Board of Assessors must not grant a waiver unless the applicant has met new text end 48.2 new text begin the requirements in paragraph (a) and has the ability to perform the duties of assessment new text end 48.3 new text begin required in each jurisdiction in which the applicant appraises or physically inspects real new text end 48.4 new text begin property for the purposes of determining its valuation or classification for property tax new text end 48.5 new text begin purposes. new text end 48.6 new text begin (e) An individual granted a waiver under this subdivision is allowed to continue new text end 48.7 new text begin assessment duties at the individual's licensure level, provided the individual maintains new text end 48.8 new text begin licensure in good standing and complies with the continuing education requirements for the new text end 48.9 new text begin accredited Minnesota assessor designation as prescribed by the State Board of Assessors. new text end 48.10 new text begin (f) An individual granted a waiver under this section: new text end 48.11 new text begin (1) is not considered to have achieved the designation as an accredited Minnesota assessor new text end 48.12 new text begin and may not represent himself or herself as an accredited Minnesota assessor; and new text end 48.13 new text begin (2) is not authorized to value income-producing property as defined in section 273.11, new text end 48.14 new text begin subdivision 13, unless the individual meets the requirements of that section. new text end 48.15 new text begin (g) A waiver granted by the State Board of Assessors under this section remains in effect new text end 48.16 new text begin unless the individual's licensure lapses or is revoked. If the individual's licensure lapses or new text end 48.17 new text begin is revoked, the waiver is void and the individual is subject to the requirements of subdivision new text end 48.18 new text begin 1. new text end 48.19 new text begin (h) A decision of the State Board of Assessors to grant or deny a waiver under this new text end 48.20 new text begin subdivision is final and is not subject to appeal. new text end 48.21 new text begin (i) Waivers granted under this subdivision expire on June 30, 2032. new text end 48.22 new text begin (j) This subdivision expires July 1, 2032. new text end 48.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.24    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read: 48.25    Subd. 86. Apprenticeship training facilities. All or a portion of a building used 48.26exclusively for a state-approved apprenticeship program through the Department of Labor 48.27and Industry is exempt if: 48.28(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit 48.29organization or a nonprofit trust; 48.30(2) the program participants receive no compensation; and 48.31(3) it is located: 49.1(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined 49.2by the 2000 federal census; 49.3(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area 49.4that has a population of 7,400 or greater according to the most recent federal census; or 49.5(iii) in a township that has a population greater than 2,000 new text begin 1,400 new text end but less than 3,000 49.6determined by the 2000 federal census and the building was previously used by a school 49.7and was exempt for taxes payable in 2010. 49.8Use of the property for advanced skills training of incumbent workers does not disqualify 49.9the property for the exemption under this subdivision. This exemption includes up to five 49.10acres of the land on which the building is located and associated parking areas on that land, 49.11except that if the building meets the requirements of clause (3), item (iii), then the exemption 49.12includes up to ten acres of land on which the building is located and associated parking 49.13areas on that land. If a parking area associated with the facility is used for the purposes of 49.14the facility and for other purposes, a portion of the parking area shall be exempt in proportion 49.15to the square footage of the facility used for purposes of apprenticeship training. 49.16    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 49.17read: 49.18     new text begin Subd. 100. new text end new text begin Certain property owned by an Indian tribe. new text end new text begin (a) Property is exempt that: new text end 49.19 new text begin (1) is located in a city of the first class with a population less than 100,000 as of the new text end 49.20 new text begin 2010 federal census; new text end 49.21 new text begin (2) was on January 1, 2016, and is for the current assessment, owned by a federally new text end 49.22 new text begin recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; new text end 49.23 new text begin and new text end 49.24 new text begin (3) is used exclusively as a medical clinic. new text end 49.25 new text begin (b) Property that qualifies for the exemption under this subdivision is limited to no more new text end 49.26 new text begin than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000 new text end 49.27 new text begin square feet. Property acquired for single-family housing, market-rate apartments, agriculture, new text end 49.28 new text begin or forestry does not qualify for this exemption. The exemption created by this subdivision new text end 49.29 new text begin expires with taxes payable in 2028. new text end 49.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2017. new text end 50.1    Sec. 6. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 50.2    Subd. 2. Definitions. (a) For the purposes of this section, the term: 50.3(1) "wind energy conversion system" has the meaning given in section 216C.06, 50.4subdivision 19 , and also includes a substation that is used and owned by one or more wind 50.5energy conversion facilities; 50.6(2) "large scale wind energy conversion system" means a wind energy conversion system 50.7of more than 12 megawatts, as measured by the nameplate capacity of the system or as 50.8combined with other systems as provided in paragraph (b); 50.9(3) "medium scale wind energy conversion system" means a wind energy conversion 50.10system of over two and not more than 12 megawatts, as measured by the nameplate capacity 50.11of the system or as combined with other systems as provided in paragraph (b); and 50.12(4) "small scale wind energy conversion system" means a wind energy conversion system 50.13of two megawatts and under, as measured by the nameplate capacity of the system or as 50.14combined with other systems as provided in paragraph (b). 50.15(b) For systems installed and contracted for after January 1, 2002, the total size of a 50.16wind energy conversion system under this subdivision shall be determined according to this 50.17paragraph. Unless the systems are interconnected with different distribution systems, the 50.18nameplate capacity of one wind energy conversion system shall be combined with the 50.19nameplate capacity of any other wind energy conversion system that is: 50.20(1) located within five miles of the wind energy conversion system; 50.21(2) constructed within the same calendar year as the wind energy conversion system; 50.22and 50.23(3) under common ownership. 50.24In the case of a dispute, the commissioner of commerce shall determine the total size of 50.25the system, and shall draw all reasonable inferences in favor of combining the systems. 50.26(c) In making a determination under paragraph (b), the commissioner of commerce may 50.27determine that two wind energy conversion systems are under common ownership when 50.28the underlying ownership structure contains similar new text begin the same new text end persons or entities, even if the 50.29ownership shares differ between the two systems. Wind energy conversion systems are not 50.30under common ownership solely because the same person or entity provided equity financing 50.31for the systems new text begin . Wind energy conversion systems that were determined by the commissioner new text end 50.32 new text begin of commerce to be eligible for a renewable energy production incentive under section new text end 51.1 new text begin 216C.41 are not under common ownership unless a change in the qualifying owner was new text end 51.2 new text begin made to an owner of another wind energy conversion system subsequent to the determination new text end 51.3 new text begin by the commissioner of commerce new text end . 51.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 51.5    Sec. 7. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read: 51.6    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured 51.7home" means a structure transportable in one or more sections, which is built on a permanent 51.8chassis, and designed to be used as a dwelling with or without a permanent foundation when 51.9connected to the required utilities, and contains the plumbing, heating, air conditioning, and 51.10electrical systems in it. Manufactured home includes any accessory structure that is an 51.11addition or supplement to the manufactured home and, when installed, becomes a part of 51.12the manufactured home. 51.13    (b) Except as provided in paragraph (c), a manufactured home that meets each of the 51.14following criteria must be valued and assessed as an improvement to real property, the 51.15appropriate real property classification applies, and the valuation is subject to review and 51.16the taxes payable in the manner provided for real property: 51.17    (1) the owner of the unit holds title to the land on which it is situated; 51.18    (2) the unit is affixed to the land by a permanent foundation or is installed at its location 51.19in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, 51.20and rules adopted under those sections, or is affixed to the land like other real property in 51.21the taxing district; and 51.22    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 51.23by water and sewer facilities comparable to other real property in the taxing district. 51.24    (c) A manufactured home that meets each of the following criteria must be assessed at 51.25the rate provided by the appropriate real property classification but must be treated as 51.26personal property, and the valuation is subject to review and the taxes payable in the manner 51.27provided in this section: 51.28    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is 51.29located in a manufactured home park but is not the homestead of the park owner; 51.30    (2) the unit is affixed to the land by a permanent foundation or is installed at its location 51.31in accordance with the Manufactured Home Building Code contained in sections 327.31 to 52.1327.34 , and the rules adopted under those sections, or is affixed to the land like other real 52.2property in the taxing district; and 52.3    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 52.4by water and sewer facilities comparable to other real property in the taxing district. 52.5    (d) Sectional structures must be valued and assessed as an improvement to real property 52.6if the owner of the structure holds title to the land on which it is located or is a qualifying 52.7lessee of the land under section 273.19. In this paragraph "sectional structure" means a 52.8building or structural unit that has been in whole or substantial part manufactured or 52.9constructed at an off-site location to be wholly or partially assembled on site alone or with 52.10other units and attached to a permanent foundation. 52.11    (e) The commissioner of revenue may adopt rules under the Administrative Procedure 52.12Act to establish additional criteria for the classification of manufactured homes and sectional 52.13structures under this subdivision. 52.14    (f) A storage shed, deck, or similar improvement constructed on property that is leased 52.15or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer 52.16is taxable as provided in this section. In the case of property that is leased or rented as a site 52.17for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered 52.18personal property under this paragraph is taxable only if its total estimated market value is 52.19over $1,000 new text begin $10,000 new text end . The property is taxable as personal property to the lessee of the site 52.20if it is not owned by the owner of the site. The property is taxable as real estate if it is owned 52.21by the owner of the site. As a condition of permitting the owner of the manufactured home, 52.22sectional structure, park trailer, or travel trailer to construct improvements on the leased or 52.23rented site, the owner of the site must obtain the permanent home address of the lessee or 52.24user of the site. The site owner must provide the name and address to the assessor upon 52.25request. 52.26    Sec. 8. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read: 52.27    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land 52.28that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 52.292a land under the same ownership. The market value of the house and garage and immediately 52.30surrounding one acre of land has the same classification rates as class 1a or 1b property 52.31under subdivision 22. The value of the remaining land including improvements up to the 52.32first tier valuation limit of agricultural homestead property has a classification rate of 0.5 52.33percent of market value. The remaining property over the first tier has a classification rate 52.34of one percent of market value. For purposes of this subdivision, the "first tier valuation 53.1limit of agricultural homestead property" and "first tier" means the limit certified under 53.2section 273.11, subdivision 23. 53.3    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 53.4are agricultural land and buildings. Class 2a property has a classification rate of one percent 53.5of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 53.6property must also include any property that would otherwise be classified as 2b, but is 53.7interspersed with class 2a property, including but not limited to sloughs, wooded wind 53.8shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 53.9and other similar land that is impractical for the assessor to value separately from the rest 53.10of the property or that is unlikely to be able to be sold separately from the rest of the property. 53.11    An assessor may classify the part of a parcel described in this subdivision that is used 53.12for agricultural purposes as class 2a and the remainder in the class appropriate to its use. 53.13    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 53.14are unplatted real estate, rural in character and not used for agricultural purposes, including 53.15land used for growing trees for timber, lumber, and wood and wood products, that is not 53.16improved with a structure. The presence of a minor, ancillary nonresidential structure as 53.17defined by the commissioner of revenue does not disqualify the property from classification 53.18under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 53.19a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 53.20assigned to the split parcel containing the structure. Class 2b property has a classification 53.21rate of one percent of market value unless it is part of an agricultural homestead under 53.22paragraph (a), or qualifies as class 2c under paragraph (d). 53.23    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 53.24acres statewide per taxpayer that is being managed under a forest management plan that 53.25meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 53.26management incentive program. It has a classification rate of .65 percent, provided that the 53.27owner of the property must apply to the assessor in order for the property to initially qualify 53.28for the reduced rate and provide the information required by the assessor to verify that the 53.29property qualifies for the reduced rate. If the assessor receives the application and information 53.30before May 1 in an assessment year, the property qualifies beginning with that assessment 53.31year. If the assessor receives the application and information after April 30 in an assessment 53.32year, the property may not qualify until the next assessment year. The commissioner of 53.33natural resources must concur that the land is qualified. The commissioner of natural 53.34resources shall annually provide county assessors verification information on a timely basis. 54.1The presence of a minor, ancillary nonresidential structure as defined by the commissioner 54.2of revenue does not disqualify the property from classification under this paragraph. 54.3    (e) Agricultural land as used in this section means: 54.4    (1) contiguous acreage of ten acres or more, used during the preceding year for 54.5agricultural purposes; or 54.6    (2) contiguous acreage used during the preceding year for an intensive livestock or 54.7poultry confinement operation, provided that land used only for pasturing or grazing does 54.8not qualify under this clause. 54.9    "Agricultural purposes" as used in this section means the raising, cultivation, drying, or 54.10storage of agricultural products for sale, or the storage of machinery or equipment used in 54.11support of agricultural production by the same farm entity. For a property to be classified 54.12as agricultural based only on the drying or storage of agricultural products, the products 54.13being dried or stored must have been produced by the same farm entity as the entity operating 54.14the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest 54.15in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation 54.16Reserve Program as contained in Public Law 99-198 or a similar new text begin local, new text end state new text begin , new text end or federal 54.17conservation program if the property was classified as agricultural (i) under this subdivision 54.18for taxes payable in 2003 because of its enrollment in a qualifying program and the land 54.19remains enrolled or (ii) in the year prior to its enrollment new text begin . For purposes of this section, a new text end 54.20 new text begin local conservation program means a program administered by a town, statutory or home new text end 54.21 new text begin rule charter city, or county, including a watershed district, water management organization, new text end 54.22 new text begin or soil and water conservation district, in which landowners voluntarily enroll land and new text end 54.23 new text begin receive incentive payments in exchange for use or other restrictions placed on the land new text end . 54.24Agricultural classification shall not be based upon the market value of any residential 54.25structures on the parcel or contiguous parcels under the same ownership. 54.26    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 54.27portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 54.28of, a set of contiguous tax parcels under that section that are owned by the same person. 54.29    (f) Agricultural land under this section also includes: 54.30    (1) contiguous acreage that is less than ten acres in size and exclusively used in the 54.31preceding year for raising or cultivating agricultural products; or 55.1    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 55.2contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 55.3used in the preceding year for one or more of the following three uses: 55.4    (i) for an intensive grain drying or storage operation, or for intensive machinery or 55.5equipment storage activities used to support agricultural activities on other parcels of property 55.6operated by the same farming entity; 55.7    (ii) as a nursery, provided that only those acres used intensively to produce nursery stock 55.8are considered agricultural land; or 55.9    (iii) for intensive market farming; for purposes of this paragraph, "market farming" 55.10means the cultivation of one or more fruits or vegetables or production of animal or other 55.11agricultural products for sale to local markets by the farmer or an organization with which 55.12the farmer is affiliated. 55.13    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 55.14described in section 272.193, or all of a set of contiguous tax parcels under that section that 55.15are owned by the same person. 55.16    (g) Land shall be classified as agricultural even if all or a portion of the agricultural use 55.17of that property is the leasing to, or use by another person for agricultural purposes. 55.18    Classification under this subdivision is not determinative for qualifying under section 55.19273.111 . 55.20    (h) The property classification under this section supersedes, for property tax purposes 55.21only, any locally administered agricultural policies or land use restrictions that define 55.22minimum or maximum farm acreage. 55.23    (i) The term "agricultural products" as used in this subdivision includes production for 55.24sale of: 55.25    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 55.26animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 55.27and apiary products by the owner; 55.28    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for 55.29agricultural use; 55.30    (3) the commercial boarding of horses, which may include related horse training and 55.31riding instruction, if the boarding is done on property that is also used for raising pasture 55.32to graze horses or raising or cultivating other agricultural products as defined in clause (1); 56.1    (4) property which is owned and operated by nonprofit organizations used for equestrian 56.2activities, excluding racing; 56.3    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 56.497A.105 , provided that the annual licensing report to the Department of Natural Resources, 56.5which must be submitted annually by March 30 to the assessor, indicates that at least 500 56.6birds were raised or used for breeding stock on the property during the preceding year and 56.7that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 56.8shooting preserve licensed under section 97A.115; 56.9    (6) insects primarily bred to be used as food for animals; 56.10    (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 56.11for timber, lumber, wood, or wood products; and 56.12    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 56.13Department of Agriculture under chapter 28A as a food processor. 56.14    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 56.15purposes, including but not limited to: 56.16    (1) wholesale and retail sales; 56.17    (2) processing of raw agricultural products or other goods; 56.18    (3) warehousing or storage of processed goods; and 56.19    (4) office facilities for the support of the activities enumerated in clauses (1), (2), and 56.20(3), 56.21the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 56.222a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 56.23The grading, sorting, and packaging of raw agricultural products for first sale is considered 56.24an agricultural purpose. A greenhouse or other building where horticultural or nursery 56.25products are grown that is also used for the conduct of retail sales must be classified as 56.26agricultural if it is primarily used for the growing of horticultural or nursery products from 56.27seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 56.28Use of a greenhouse or building only for the display of already grown horticultural or nursery 56.29products does not qualify as an agricultural purpose. 56.30    (k) The assessor shall determine and list separately on the records the market value of 56.31the homestead dwelling and the one acre of land on which that dwelling is located. If any 57.1farm buildings or structures are located on this homesteaded acre of land, their market value 57.2shall not be included in this separate determination. 57.3    (l) Class 2d airport landing area consists of a landing area or public access area of a 57.4privately owned public use airport. It has a classification rate of one percent of market value. 57.5To qualify for classification under this paragraph, a privately owned public use airport must 57.6be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 57.7area" means that part of a privately owned public use airport properly cleared, regularly 57.8maintained, and made available to the public for use by aircraft and includes runways, 57.9taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 57.10area also includes land underlying both the primary surface and the approach surfaces that 57.11comply with all of the following: 57.12    (i) the land is properly cleared and regularly maintained for the primary purposes of the 57.13landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 57.14for servicing, repair, or maintenance of aircraft is not included as a landing area; 57.15    (ii) the land is part of the airport property; and 57.16    (iii) the land is not used for commercial or residential purposes. 57.17The land contained in a landing area under this paragraph must be described and certified 57.18by the commissioner of transportation. The certification is effective until it is modified, or 57.19until the airport or landing area no longer meets the requirements of this paragraph. For 57.20purposes of this paragraph, "public access area" means property used as an aircraft parking 57.21ramp, apron, or storage hangar, or an arrival and departure building in connection with the 57.22airport. 57.23    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 57.24being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 57.25located in a county that has elected to opt-out of the aggregate preservation program as 57.26provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 57.27market value. To qualify for classification under this paragraph, the property must be at 57.28least ten contiguous acres in size and the owner of the property must record with the county 57.29recorder of the county in which the property is located an affidavit containing: 57.30    (1) a legal description of the property; 57.31    (2) a disclosure that the property contains a commercial aggregate deposit that is not 57.32actively being mined but is present on the entire parcel enrolled; 58.1    (3) documentation that the conditional use under the county or local zoning ordinance 58.2of this property is for mining; and 58.3    (4) documentation that a permit has been issued by the local unit of government or the 58.4mining activity is allowed under local ordinance. The disclosure must include a statement 58.5from a registered professional geologist, engineer, or soil scientist delineating the deposit 58.6and certifying that it is a commercial aggregate deposit. 58.7    For purposes of this section and section 273.1115, "commercial aggregate deposit" 58.8means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 58.9a construction aggregate; and "actively mined" means the removal of top soil and overburden 58.10in preparation for excavation or excavation of a commercial deposit. 58.11    (n) When any portion of the property under this subdivision or subdivision 22 begins to 58.12be actively mined, the owner must file a supplemental affidavit within 60 days from the 58.13day any aggregate is removed stating the number of acres of the property that is actively 58.14being mined. The acres actively being mined must be (1) valued and classified under 58.15subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 58.16resource preservation property tax program under section 273.1115, if the land was enrolled 58.17in that program. Copies of the original affidavit and all supplemental affidavits must be 58.18filed with the county assessor, the local zoning administrator, and the Department of Natural 58.19Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 58.20time a subsequent portion of the property is actively mined, provided that the minimum 58.21acreage change is five acres, even if the actual mining activity constitutes less than five 58.22acres. 58.23    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 58.24rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 58.25section 14.386 concerning exempt rules do not apply. 58.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2017. new text end 58.27    Sec. 9. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read: 58.28    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units 58.29and used or held for use by the owner or by the tenants or lessees of the owner as a residence 58.30for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 58.31also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 58.32under section 272.02, and contiguous property used for hospital purposes, without regard 59.1to whether the property has been platted or subdivided. The market value of class 4a property 59.2has a classification rate of 1.25 percent. 59.3    (b) Class 4b includes: 59.4    (1) residential real estate containing less than four units that does not qualify as class 59.54bb, other than seasonal residential recreational property; 59.6    (2) manufactured homes not classified under any other provision; 59.7    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 59.8classified under subdivision 23, paragraph (b) containing two or three units; and 59.9    (4) unimproved property that is classified residential as determined under subdivision 59.1033. 59.11    The market value of class 4b property has a classification rate of 1.25 percent. 59.12    (c) Class 4bb includes nonhomestead residential real estate containing one unit, other 59.13than seasonal residential recreational property, and a single family dwelling, garage, and 59.14surrounding one acre of property on a nonhomestead farm classified under subdivision 23, 59.15paragraph (b). 59.16    Class 4bb property has the same classification rates as class 1a property under subdivision 59.1722. 59.18    Property that has been classified as seasonal residential recreational property at any time 59.19during which it has been owned by the current owner or spouse of the current owner does 59.20not qualify for class 4bb. 59.21    (d) Class 4c property includes: 59.22    (1) except as provided in subdivision 22, paragraph (c), real and personal property 59.23devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 59.24for not more than 250 days in the year preceding the year of assessment. For purposes of 59.25this clause, property is devoted to a commercial purpose on a specific day if any portion of 59.26the property is used for residential occupancy, and a fee is charged for residential occupancy. 59.27Class 4c property under this clause must contain three or more rental units. A "rental unit" 59.28is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 59.29equipped with water and electrical hookups for recreational vehicles. A camping pad offered 59.30for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 59.31under this clause regardless of the term of the rental agreement, as long as the use of the 59.32camping pad does not exceed 250 days. In order for a property to be classified under this 60.1clause, either (i) the business located on the property must provide recreational activities, 60.2at least 40 percent of the annual gross lodging receipts related to the property must be from 60.3business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 60.4bookings by lodging guests during the year must be for periods of at least two consecutive 60.5nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 60.6providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 60.7and must be located in a township or a city with a population of 2,500 or less located outside 60.8the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 60.9of a state trail administered by the Department of Natural Resources. For purposes of item 60.10(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 60.11property also includes commercial use real property used exclusively for recreational 60.12purposes in conjunction with other class 4c property classified under this clause and devoted 60.13to temporary and seasonal residential occupancy for recreational purposes, up to a total of 60.14two acres, provided the property is not devoted to commercial recreational use for more 60.15than 250 days in the year preceding the year of assessment and is located within two miles 60.16of the class 4c property with which it is used. In order for a property to qualify for 60.17classification under this clause, the owner must submit a declaration to the assessor 60.18designating the cabins or units occupied for 250 days or less in the year preceding the year 60.19of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 60.20share of the land on which they are located must be designated class 4c under this clause 60.21as otherwise provided. The remainder of the cabins or units and a proportionate share of 60.22the land on which they are located will be designated as class 3a. The owner of property 60.23desiring designation as class 4c property under this clause must provide guest registers or 60.24other records demonstrating that the units for which class 4c designation is sought were not 60.25occupied for more than 250 days in the year preceding the assessment if so requested. The 60.26portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 60.27or meeting room, and (5) other nonresidential facility operated on a commercial basis not 60.28directly related to temporary and seasonal residential occupancy for recreation purposes 60.29does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 60.30means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 60.31ski equipment; providing marina services, launch services, or guide services; or selling bait 60.32and fishing tackle; 60.33    (2) qualified property used as a golf course if: 60.34    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 60.35but a membership fee may not be required in order to use the property for golfing, and its 61.1green fees for golfing must be comparable to green fees typically charged by municipal 61.2courses; and 61.3    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 61.4    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 61.5the golf course is classified as class 3a property; 61.6    (3) real property up to a maximum of three acres of land owned and used by a nonprofit 61.7community service oriented organization and not used for residential purposes on either a 61.8temporary or permanent basis, provided that: 61.9    (i) the property is not used for a revenue-producing activity for more than six days in 61.10the calendar year preceding the year of assessment; or 61.11    (ii) the organization makes annual charitable contributions and donations at least equal 61.12to the property's previous year's property taxes and the property is allowed to be used for 61.13public and community meetings or events for no charge, as appropriate to the size of the 61.14facility. 61.15    For purposes of this clause: 61.16    (A) "charitable contributions and donations" has the same meaning as lawful gambling 61.17purposes under section 349.12, subdivision 25, excluding those purposes relating to the 61.18payment of taxes, assessments, fees, auditing costs, and utility payments; 61.19    (B) "property taxes" excludes the state general tax; 61.20    (C) a "nonprofit community service oriented organization" means any corporation, 61.21society, association, foundation, or institution organized and operated exclusively for 61.22charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 61.23federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 61.24Revenue Code; and 61.25    (D) "revenue-producing activities" shall include but not be limited to property or that 61.26portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 61.27liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 61.28alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 61.29insurance business, or office or other space leased or rented to a lessee who conducts a 61.30for-profit enterprise on the premises. 61.31    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 61.32use of the property for social events open exclusively to members and their guests for periods 62.1of less than 24 hours, when an admission is not charged nor any revenues are received by 62.2the organization shall not be considered a revenue-producing activity. 62.3    The organization shall maintain records of its charitable contributions and donations 62.4and of public meetings and events held on the property and make them available upon 62.5request any time to the assessor to ensure eligibility. An organization meeting the requirement 62.6under item (ii) must file an application by May 1 with the assessor for eligibility for the 62.7current year's assessment. The commissioner shall prescribe a uniform application form 62.8and instructions; 62.9    (4) postsecondary student housing of not more than one acre of land that is owned by a 62.10nonprofit corporation organized under chapter 317A and is used exclusively by a student 62.11cooperative, sorority, or fraternity for on-campus housing or housing located within two 62.12miles of the border of a college campus; 62.13    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 62.14manufactured home parks described in section 273.124, subdivision 3a new text begin items (ii) and (iii) new text end , 62.15and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are 62.16described in section 273.124, subdivision 3a new text begin , and (iii) class I manufactured home parks as new text end 62.17 new text begin defined in section 327C.01, subdivision 13 new text end ; 62.18    (6) real property that is actively and exclusively devoted to indoor fitness, health, social, 62.19recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 62.20located within the metropolitan area as defined in section 473.121, subdivision 2; 62.21    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 62.22section 272.01, subdivision 2, and the land on which it is located, provided that: 62.23    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 62.24Airports Commission, or group thereof; and 62.25    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 62.26premise, prohibits commercial activity performed at the hangar. 62.27    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 62.28filed by the new owner with the assessor of the county where the property is located within 62.2960 days of the sale; 62.30    (8) a privately owned noncommercial aircraft storage hangar not exempt under section 62.31272.01, subdivision 2 , and the land on which it is located, provided that: 62.32    (i) the land abuts a public airport; and 63.1    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 63.2restricting the use of the premises, prohibiting commercial use or activity performed at the 63.3hangar; and 63.4    (9) residential real estate, a portion of which is used by the owner for homestead purposes, 63.5and that is also a place of lodging, if all of the following criteria are met: 63.6    (i) rooms are provided for rent to transient guests that generally stay for periods of 14 63.7or fewer days; 63.8    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 63.9the basic room rate; 63.10    (iii) meals are not provided to the general public except for special events on fewer than 63.11seven days in the calendar year preceding the year of the assessment; and 63.12    (iv) the owner is the operator of the property. 63.13    The market value subject to the 4c classification under this clause is limited to five rental 63.14units. Any rental units on the property in excess of five, must be valued and assessed as 63.15class 3a. The portion of the property used for purposes of a homestead by the owner must 63.16be classified as class 1a property under subdivision 22; 63.17    (10) real property up to a maximum of three acres and operated as a restaurant as defined 63.18under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 63.19section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 63.20commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 63.21of its annual gross receipts from business conducted during four consecutive months. Gross 63.22receipts from the sale of alcoholic beverages must be included in determining the property's 63.23qualification under item (ii). The property's primary business must be as a restaurant and 63.24not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 63.25Owners of real property desiring 4c classification under this clause must submit an annual 63.26declaration to the assessor by February 1 of the current assessment year, based on the 63.27property's relevant information for the preceding assessment year; 63.28(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 63.29a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 63.30and devoted to recreational use for marina services. The marina owner must annually provide 63.31evidence to the assessor that it provides services, including lake or river access to the public 63.32by means of an access ramp or other facility that is either located on the property of the 63.33marina or at a publicly owned site that abuts the property of the marina. No more than 800 64.1feet of lakeshore may be included in this classification. Buildings used in conjunction with 64.2a marina for marina services, including but not limited to buildings used to provide food 64.3and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 64.4as class 3a property; and 64.5(12) real and personal property devoted to noncommercial temporary and seasonal 64.6residential occupancy for recreation purposes. 64.7    Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 64.8each parcel of noncommercial seasonal residential recreational property under clause (12) 64.9has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 64.10under clause (5), item (i), have the same classification rate as class 4b property, and the 64.11market value of manufactured home parks assessed under clause (5), item (ii), has new text begin have new text end a 64.12classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied 64.13by shareholders in the cooperative corporation or association and a classification rate of 64.14one percent if 50 percent or less of the lots are so occupied, new text begin and class I manufactured home new text end 64.15 new text begin parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, new text end 64.16(iii) commercial-use seasonal residential recreational property and marina recreational land 64.17as described in clause (11), has a classification rate of one percent for the first $500,000 of 64.18market value, and 1.25 percent for the remaining market value, (iv) the market value of 64.19property described in clause (4) has a classification rate of one percent, (v) the market value 64.20of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 64.21and (vi) that portion of the market value of property in clause (9) qualifying for class 4c 64.22property has a classification rate of 1.25 percent. 64.23    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 64.24by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 64.25the units in the building qualify as low-income rental housing units as certified under section 64.26273.128, subdivision 3 , only the proportion of qualifying units to the total number of units 64.27in the building qualify for class 4d. The remaining portion of the building shall be classified 64.28by the assessor based upon its use. Class 4d also includes the same proportion of land as 64.29the qualifying low-income rental housing units are to the total units in the building. For all 64.30properties qualifying as class 4d, the market value determined by the assessor must be based 64.31on the normal approach to value using normal unrestricted rents. 64.32    (f) The first tier of market value of class 4d property has a classification rate of 0.75 64.33percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 64.34For the purposes of this paragraph, the "first tier of market value of class 4d property" means 64.35the market value of each housing unit up to the first tier limit. For the purposes of this 65.1paragraph, all class 4d property value must be assigned to individual housing units. The 65.2first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 65.3adjusted each year by the average statewide change in estimated market value of property 65.4classified as class 4a and 4d under this section for the previous assessment year, excluding 65.5valuation change due to new construction, rounded to the nearest $1,000, provided, however, 65.6that the limit may never be less than $100,000. Beginning with assessment year 2015, the 65.7commissioner of revenue must certify the limit for each assessment year by November 1 65.8of the previous year. 65.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 65.10    Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read: 65.11    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of 65.12the market value of property owned by a veteran and serving as the veteran's homestead 65.13under this section is excluded in determining the property's taxable market value if the 65.14veteran has a service-connected disability of 70 percent or more as certified by the United 65.15States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 65.16veteran must have been honorably discharged from the United States armed forces, as 65.17indicated by United States Government Form DD214 or other official military discharge 65.18papers. 65.19    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 65.20except as provided in clause (2); and 65.21    (2) for a total (100 percent) and permanent new text begin 100 percent new text end disability new text begin rating new text end , $300,000 of 65.22market value is excluded. 65.23    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 65.24(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 65.25the legal or beneficial title to the homestead and permanently resides there, the exclusion 65.26shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 65.27for eight additional taxes payable years or until such time as the spouse remarries, or sells, 65.28transfers, or otherwise disposes of the property, whichever comes first. Qualification under 65.29this paragraph requires an annual application under paragraph (h). 65.30(d) If the spouse of a member of any branch or unit of the United States armed forces 65.31who dies due to a service-connected cause while serving honorably in active service, as 65.32indicated on United States Government Form DD1300 or DD2064, holds the legal or 65.33beneficial title to a homestead and permanently resides there, the spouse is entitled to the 66.1benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 66.2time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 66.3whichever comes first. 66.4(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 66.5classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 66.6family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 66.7for under paragraph (b). 66.8    (f) In the case of an agricultural homestead, only the portion of the property consisting 66.9of the house and garage and immediately surrounding one acre of land qualifies for the 66.10valuation exclusion under this subdivision. 66.11    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible 66.12for the market value exclusion under subdivision 35, or classification under subdivision 22, 66.13paragraph (b). 66.14    (h) To qualify for a valuation exclusion under this subdivision a property owner must 66.15apply to the assessor by July 1 of each assessment year, except that an annual reapplication 66.16is not required once a property has been accepted for a valuation exclusion under paragraph 66.17(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 66.18continues to qualify until there is a change in ownership. For an application received after 66.19July 1 of any calendar year, the exclusion shall become effective for the following assessment 66.20year. 66.21(i) A first-time application by a qualifying spouse for the market value exclusion under 66.22paragraph (d) must be made any time within two years of the death of the service member. 66.23(j) For purposes of this subdivision: 66.24(1) "active service" has the meaning given in section 190.05; 66.25(2) "own" means that the person's name is present as an owner on the property deed; 66.26(3) "primary family caregiver" means a person who is approved by the secretary of the 66.27United States Department of Veterans Affairs for assistance as the primary provider of 66.28personal care services for an eligible veteran under the Program of Comprehensive Assistance 66.29for Family Caregivers, codified as United States Code, title 38, section 1720G; and 66.30(4) "veteran" has the meaning given the term in section 197.447. 67.1(k) new text begin If a veteran did not apply for or receive the exclusion under paragraph (b), clause new text end 67.2 new text begin (2), before dying, the veteran's spouse is entitled to the benefit under paragraph (b), clause new text end 67.3 new text begin (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property if: new text end 67.4 new text begin (1) the spouse files a first-time application within two years of the death of the service new text end 67.5 new text begin member or by June 1, 2019, whichever is later; new text end 67.6 new text begin (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the new text end 67.7 new text begin homestead and permanently resides there; new text end 67.8 new text begin (3) the veteran met the honorable discharge requirements of paragraph (a); new text end 67.9 new text begin (4) the spouse complies with the annual application requirement under paragraph (h); new text end 67.10 new text begin and new text end 67.11 new text begin (5) the United States Department of Veterans Affairs certifies that: new text end 67.12 new text begin (i) the veteran met the total (100 percent) and permanent disability requirement under new text end 67.13 new text begin paragraph (b), clause (2); or new text end 67.14 new text begin (ii) the spouse has been awarded dependency and indemnity compensation. new text end 67.15 new text begin (l) new text end The purpose of this provision of law providing a level of homestead property tax 67.16relief for gravely disabled veterans, their primary family caregivers, and their surviving 67.17spouses is to help ease the burdens of war for those among our state's citizens who bear 67.18those burdens most heavily. 67.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 67.20    Sec. 11. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read: 67.21    Subdivision 1. Levy amount. The state general levy is levied against 67.22commercial-industrial property and seasonal residential recreational property, as defined 67.23in this section. The state general levy base amount new text begin for commercial-industrial property new text end is 67.24$592,000,000 new text begin $784,594,000 new text end for taxes payable in 2002 new text begin 2018 and thereafter new text end . For taxes payable 67.25in subsequent years, the levy base amount is increased each year by multiplying the levy 67.26base amount for the prior year by the sum of one plus the rate of increase, if any, in the 67.27implicit price deflator for government consumption expenditures and gross investment for 67.28state and local governments prepared by the Bureau of Economic Analysts of the United 67.29States Department of Commerce for the 12-month period ending March 31 of the year prior 67.30to the year the taxes are payable new text begin The state general levy base amount for seasonal new text end 67.31 new text begin residential-recreational property is $44,190,000 for taxes payable in 2018 and thereafter new text end . 68.1The tax under this section is not treated as a local tax rate under section 469.177 and is not 68.2the levy of a governmental unit under chapters 276A and 473F. 68.3The commissioner shall increase or decrease the preliminary or final rate new text begin rates new text end for a year 68.4as necessary to account for errors and tax base changes that affected a preliminary or final 68.5rate for either of the two preceding years. Adjustments are allowed to the extent that the 68.6necessary information is available to the commissioner at the time the rates for a year must 68.7be certified, and for the following reasons: 68.8(1) an erroneous report of taxable value by a local official; 68.9(2) an erroneous calculation by the commissioner; and 68.10(3) an increase or decrease in taxable value for commercial-industrial or seasonal 68.11residential recreational property reported on the abstracts of tax lists submitted under section 68.12275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 68.13for the same year. 68.14The commissioner may, but need not, make adjustments if the total difference in the tax 68.15levied for the year would be less than $100,000. 68.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 68.17    Sec. 12. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read: 68.18    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, 68.19"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 68.20as class 3 or class 5(1) under section 273.13, except for new text begin excluding: (1) the first $100,000 of new text end 68.21 new text begin market value of each parcel of commercial-industrial net tax capacity as defined under new text end 68.22 new text begin section 273.13, subdivision 24, clauses (1) and (2); (2) new text end electric generation attached machinery 68.23under class 3 new text begin ; new text end and new text begin (3) new text end property described in section 473.625. County commercial-industrial 68.24tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment 68.25financing district under section 469.177, subdivision 2, the net tax capacity of transmission 68.26lines deducted from a local government's total net tax capacity under section 273.425, or 68.27fiscal disparities contribution and distribution net tax capacities under chapter 276A or 473F new text begin . new text end 68.28 new text begin For purposes of this subdivision, the procedures for determining eligibility for tier 1under new text end 68.29 new text begin section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the portion new text end 68.30 new text begin of a property eligible to be considered within the first $100,000 of market value new text end . 68.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 69.1    Sec. 13. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read: 69.2    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The 69.3state general tax must be levied by applying a uniform rate to all commercial-industrial tax 69.4capacity and five percent of the state general tax must be levied by applying a uniform rate 69.5to all seasonal residential recreational tax capacity. On or before October 1 each year, the 69.6commissioner of revenue shall certify the preliminary state general levy rates to each county 69.7auditor that must be used to prepare the notices of proposed property taxes for taxes payable 69.8in the following year. By January 1 of each year, the commissioner shall certify the final 69.9state general levy rate new text begin rates new text end to each county auditor that shall be used in spreading taxes. 69.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 69.11    Sec. 14. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read: 69.12    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 69.13on or before September 30, each county and each new text begin , new text end home rule charter or statutory city new text begin , town, new text end 69.14 new text begin and special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito new text end 69.15 new text begin Control Commission, new text end shall certify to the county auditor the proposed property tax levy for 69.16taxes payable in the following year new text begin . For towns, the final certified levy shall also be considered new text end 69.17 new text begin the proposed levy new text end . 69.18    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each 69.19town and each special taxing district new text begin the Metropolitan Council and the Metropolitan Mosquito new text end 69.20 new text begin Control Commission new text end shall adopt and certify to the county auditor a proposed property tax 69.21levy for taxes payable in the following year. For towns, the final certified levy shall also be 69.22considered the proposed levy. 69.23    (c) On or before September 30, each school district that has not mutually agreed with 69.24its home county to extend this date shall certify to the county auditor the proposed property 69.25tax levy for taxes payable in the following year. Each school district that has agreed with 69.26its home county to delay the certification of its proposed property tax levy must certify its 69.27proposed property tax levy for the following year no later than October 7. The school district 69.28shall certify the proposed levy as: 69.29    (1) a specific dollar amount by school district fund, broken down between voter-approved 69.30and non-voter-approved levies and between referendum market value and tax capacity 69.31levies; or 69.32    (2) the maximum levy limitation certified by the commissioner of education according 69.33to section 126C.48, subdivision 1. 70.1    (d) If the board of estimate and taxation or any similar board that establishes maximum 70.2tax levies for taxing jurisdictions within a first class city certifies the maximum property 70.3tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 70.4in paragraph (a), the city shall be deemed to have certified its levies for those taxing 70.5jurisdictions. 70.6    (e) For purposes of this section, "special taxing district" means a special taxing district 70.7as defined in section 275.066. Intermediate school districts that levy a tax under chapter 70.8124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 70.9Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 70.10taxing districts for purposes of this section. 70.11(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 70.12tax levy under this subdivision, the taxing authority shall announce the time and place of 70.13its subsequent regularly scheduled meetings at which the budget and levy will be discussed 70.14and at which the public will be allowed to speak. The time and place of those meetings must 70.15be included in the proceedings or summary of proceedings published in the official newspaper 70.16of the taxing authority under section 123B.09, 375.12, or 412.191. 70.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with proposed levy new text end 70.18 new text begin certifications for taxes payable in 2018. new text end 70.19    Sec. 15. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read: 70.20    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the 70.21taxes voted by cities, counties, school districts, and special districts shall be certified by the 70.22proper authorities to the county auditor on or before five working days after December 20 70.23in each year. A town must certify the levy adopted by the town board to the county auditor 70.24by September 15 new text begin 30 new text end each year. If the town board modifies the levy at a special town meeting 70.25after September 15 new text begin 30 new text end , the town board must recertify its levy to the county auditor on or 70.26before five working days after December 20. If a city, town, county, school district, or 70.27special district fails to certify its levy by that date, its levy shall be the amount levied by it 70.28for the preceding year. 70.29(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251 70.30shall be separately certified by the county to the county auditor on or before five working 70.31days after December 20 in each year. The taxes certified shall not be reduced by the county 70.32auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify 70.33its levy by that date, its levy shall be the amount levied by it for the preceding year. 71.1(ii) For purposes of the proposed property tax notice under section 275.065 and the 71.2property tax statement under section 276.04, for the first year in which the county implements 71.3the provisions of this paragraph, the county auditor shall reduce the county's levy for the 71.4preceding year to reflect any amount levied for water management purposes under clause 71.5(i) included in the county's levy. 71.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with proposed levy new text end 71.7 new text begin certifications for taxes payable in 2018. new text end 71.8    Sec. 16. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read: 71.9    Subd. 2. Abatement of penalty. new text begin (a) new text end The county board may, with the concurrence of the 71.10county treasurer, delegate to the county treasurer the power to abate the penalty provided 71.11for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 71.12board so elects, the county treasurer may abate the penalty on finding that the imposition 71.13of the penalty would be unjust and unreasonable. 71.14 new text begin (b) The county treasurer shall abate the penalty provided for late payment of taxes in new text end 71.15 new text begin the current year if the property tax payment is delivered by mail to the county treasurer and new text end 71.16 new text begin the envelope containing the payment is postmarked by the United States Postal Service new text end 71.17 new text begin within one business day of the due date prescribed under this section, but only if the property new text end 71.18 new text begin owner requesting the abatement has not previously received an abatement of penalty for new text end 71.19 new text begin late payment of tax under this paragraph. new text end 71.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2018 and new text end 71.21 new text begin thereafter. new text end 71.22    Sec. 17. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read: 71.23    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 contiguous 71.24acres for which the owner has implemented a forest management plan that was prepared or 71.25updated within the past ten years by an approved plan writer. For purposes of this subdivision, 71.26acres are considered to be contiguous even if they are separated by a road, waterway, railroad 71.27track, or other similar intervening property. At least 50 percent of the contiguous acreage 71.28must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of 71.29sections 290C.01 to new text begin 290C.13 new text end , forest land does not include (i) land used for 71.30residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program, 71.31a state or federal conservation reserve or easement reserve program under sections 103F.501 71.32to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land 71.33subject to agricultural land preservation controls or restrictions as defined in section 40A.02 72.1or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land exceeding 72.260,000 acres that is subject to a single conservation easement funded under section 97A.056 72.3or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv) 72.4any land that becomes subject to a conservation easement funded under section 97A.056 72.5or a comparable permanent easement conveyed to a governmental or nonprofit entity after 72.6May 30, 2013; or (v) land improved with a structure, new text begin ; new text end pavement, new text begin other than a paved trail new text end 72.7 new text begin under easement, lease, or terminable license to the state of Minnesota or a political new text end 72.8 new text begin subdivision; new text end sewer, new text begin ; new text end campsite, new text begin ; new text end or any road, other than a township road, used for purposes 72.9not prescribed in the forest management plan. 72.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 72.11    Sec. 18. Minnesota Statutes 2016, section 290C.07, is amended to read: 72.12290C.07 CALCULATION OF INCENTIVE PAYMENT. 72.13    An approved claimant under the sustainable forest incentive program is eligible to receive 72.14an annual payment new text begin for each acre of enrolled land, excluding any acre improved with a paved new text end 72.15 new text begin trail under easement, lease, or terminable license to the state of Minnesota or a political new text end 72.16 new text begin subdivision new text end . The payment shall equal $7 per acre for each acre enrolled in the sustainable 72.17forest incentive program. 72.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 72.19    Sec. 19. Minnesota Statutes 2016, section 290C.10, is amended to read: 72.20290C.10 WITHDRAWAL PROCEDURES. 72.21 new text begin (a) new text end An approved claimant under the sustainable forest incentive program for a minimum 72.22of four years may notify the commissioner of the intent to terminate enrollment. Within 90 72.23days of receipt of notice to terminate enrollment, the commissioner shall inform the claimant 72.24in writing, acknowledging receipt of this notice and indicating the effective date of 72.25termination from the sustainable forest incentive program. Termination of enrollment in 72.26the sustainable forest incentive program occurs on January 1 of the fifth calendar year that 72.27begins after receipt by the commissioner of the termination notice. After the commissioner 72.28issues an effective date of termination, a claimant wishing to continue the land's enrollment 72.29in the sustainable forest incentive program beyond the termination date must apply for 72.30enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land 72.31from this program may not reenroll the parcel for a period of three years. Within 90 days 72.32after the termination date, the commissioner shall execute and acknowledge a document 73.1releasing the land from the covenant required under this chapter. The document must be 73.2mailed to the claimant and is entitled to be recorded. 73.3 new text begin (b) Notwithstanding paragraph (a), new text end the commissioner may allow early withdrawal from 73.4the Sustainable Forest Incentive Act without penalty when the state of Minnesota, any local 73.5government unit, or any other entity which has the power of eminent domain acquires title 73.6or possession to the land for a public purpose notwithstanding the provisions of this section. 73.7In the case of such new text begin an eligible new text end acquisition new text begin under this paragraph new text end , the commissioner shall 73.8execute and acknowledge a document releasing the land acquired by the state, local 73.9government unit, or other entity from the covenant. All other enrolled land must remain in 73.10the program. 73.11 new text begin (c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall new text end 73.12 new text begin allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land new text end 73.13 new text begin that is subject to fee or easement acquisition or lease to the state of Minnesota or a political new text end 73.14 new text begin subdivision of the state for the public purpose of a paved trail. The commissioner of natural new text end 73.15 new text begin resources must notify the commissioner of lands acquired under this paragraph that are new text end 73.16 new text begin eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under new text end 73.17 new text begin this paragraph, the commissioner shall execute and acknowledge a document releasing the new text end 73.18 new text begin land subject to fee or easement acquisition or lease by the state or political subdivision of new text end 73.19 new text begin the state. new text end 73.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 73.21    Sec. 20. Minnesota Statutes 2016, section 473H.09, is amended to read: 73.22473H.09 EARLY TERMINATION. 73.23     new text begin Subdivision 1. new text end new text begin Public emergency. new text end Termination of an agricultural preserve earlier than 73.24a date derived through application of section 473H.08 may be permitted only in the event 73.25of a public emergency upon petition from the owner or authority to the governor. The 73.26determination of a public emergency shall be by the governor through executive order 73.27pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 73.28the reasons requiring the action and the date of termination. 73.29     new text begin Subd. 2. new text end new text begin Death of owner. new text end new text begin (a) Within 365 days of the death of an owner, an owner's new text end 73.30 new text begin spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural new text end 73.31 new text begin preserve and the covenant allowing the land to be enrolled as an agricultural preserve by new text end 73.32 new text begin notifying the authority on a form provided by the commissioner of agriculture. Termination new text end 74.1 new text begin of a covenant under this subdivision must be executed and acknowledged in the manner new text end 74.2 new text begin required by law to execute and acknowledge a deed. new text end 74.3 new text begin (b) For purposes of this subdivision, the following definitions apply: new text end 74.4 new text begin (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent new text end 74.5 new text begin was the settlor or a beneficiary of, or member of an entity permitted to own agricultural new text end 74.6 new text begin land and engage in farming under section 500.24 that owned the agricultural preserve; and new text end new text begin new text end 74.7 new text begin (2) "surviving owner" includes the executor of the estate of the decedent, trustee for a new text end 74.8 new text begin trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm new text end 74.9 new text begin land under section 500.24 of which the decedent was a partner, shareholder, or member. new text end 74.10 new text begin (c) When an agricultural preserve is terminated under this subdivision, the property is new text end 74.11 new text begin subject to additional taxes in an amount equal to 50 percent of the taxes actually levied new text end 74.12 new text begin against the property for the current taxes payable year. The additional taxes are extended new text end 74.13 new text begin against the property on the tax list for taxes payable in the current year. The additional taxes new text end 74.14 new text begin must be distributed among the jurisdictions levying taxes on the property in proportion to new text end 74.15 new text begin the current year's taxes. new text end 74.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 74.17    Sec. 21. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read: 74.18    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial 74.19operations are not allowed on land within an agricultural preserve except: 74.20(1) small on-farm commercial or industrial operations normally associated with and 74.21important to farming in the agricultural preserve area; 74.22(2) storage use of existing farm buildings that does not disrupt the integrity of the 74.23agricultural preserve; and 74.24(3) small commercial use of existing farm buildings for trades not disruptive to the 74.25integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 74.26and similar activities that a farm operator might conduct. new text begin ; and new text end 74.27 new text begin (4) wireless communication installments and related equipment and structure capable new text end 74.28 new text begin of providing technology potentially beneficial to farming activities. new text end 74.29(b) new text begin For purposes of paragraph (a), clauses (2) and (3), new text end "existing" in paragraph (a), clauses 74.30(2) and (3), means existing on August 1, 1987. 74.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following enactment. new text end 75.1    Sec. 22. Laws 1996, chapter 471, article 3, section 51, is amended to read: 75.2    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY. 75.3    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton 75.4county board of commissioners may levy in and for the unorganized township of Sawyer 75.5an amount up to $1,500 new text begin $2,000 new text end annually for recreational purposes, beginning with taxes 75.6payable in 1997 and ending with taxes payable in 2006. 75.7    Subd. 2. Effective date. This section is effective June 1, 1996, without local approval. 75.8 new text begin EFFECTIVE DATE. new text end new text begin This section applies to taxes payable in 2018 and thereafter, and new text end 75.9 new text begin is effective the day after the Carlton County Board of Commissioners and its chief clerical new text end 75.10 new text begin officer timely complete their compliance with section 645.021, subdivisions 2 and 3. new text end 75.11    Sec. 23. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL new text end 75.12 new text begin ASSESSMENT. new text end 75.13 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied by new text end 75.14 new text begin the city of St. Paul for the primary purpose of providing a stadium for a Major League new text end 75.15 new text begin Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for new text end 75.16 new text begin public, governmental, and municipal purposes, and is exempt from ad valorem taxation by new text end 75.17 new text begin the state or any political subdivision of the state, provided that the properties are subject to new text end 75.18 new text begin special assessments levied by a political subdivision for a local improvement in amounts new text end 75.19 new text begin proportionate to and not exceeding the special benefit received by the properties from the new text end 75.20 new text begin improvement. In determining the special benefit received by the properties, no possible use new text end 75.21 new text begin of any of the properties in any manner different from their intended use for providing a new text end 75.22 new text begin Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota new text end 75.23 new text begin Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a new text end 75.24 new text begin lease or use agreement between the city and another person for uses related to the purposes new text end 75.25 new text begin of the operation of the stadium and related parking facilities is exempt from taxation new text end 75.26 new text begin regardless of the length of the lease or use agreement. This section, insofar as it provides new text end 75.27 new text begin an exemption or special treatment, does not apply to any real property that is leased for new text end 75.28 new text begin residential, business, or commercial development or other purposes different from those new text end 75.29 new text begin necessary to the provision and operation of the stadium. new text end 75.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the St. Paul City new text end 75.31 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 76.1ARTICLE 3 76.2SALES AND USE 76.3    Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read: 76.4128C.24 LEAGUE FUNDS TRANSFER. 76.5 new text begin (a) new text end Beginning July 1, 2007, the Minnesota State High School League shall annually 76.6determine the sales tax savings attributable to section 297A.70, subdivision 11 new text begin 11a new text end , and 76.7annually transfer that amount to a nonprofit charitable foundation created for the purpose 76.8of promoting high school extracurricular activities. The funds must be used by the foundation 76.9to make grants to fund, assist, recognize, or promote high school students' participation in 76.10extracurricular activities. The first priority for funding will be grants for scholarships to 76.11individuals to offset athletic fees. The foundation must equitably award grants based on 76.12considerations of gender balance, school size, and geographic location, to the extent feasible. 76.13 new text begin (b) By February 1 of each year, the Minnesota State High School League must report new text end 76.14 new text begin to the chairs and ranking minority members of the legislative committees and divisions with new text end 76.15 new text begin jurisdiction over E-12 education on activities funded by the transfer under this section. The new text end 76.16 new text begin report must include the following information for the previous fiscal year beginning July new text end 76.17 new text begin 1: new text end 76.18 new text begin (1) the number of high schools receiving grants; new text end 76.19 new text begin (2) the amount of grants made to high schools; new text end 76.20 new text begin (3) the number of students benefiting from financial assistance to offset athletic fees; new text end 76.21 new text begin (4) the regional breakdown of grants by school; and new text end 76.22 new text begin (5) any other information helpful in assessing the success of the program. new text end 76.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 76.24 new text begin 30, 2017, and before July 1, 2027. new text end 76.25    Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read: 76.26    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 76.27each of the transactions listed in this subdivision. In applying the provisions of this chapter, 76.28the terms "tangible personal property" and "retail sale" include the taxable services listed 76.29in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 76.30services, unless specifically provided otherwise. Services performed by an employee for 76.31an employer are not taxable. Services performed by a partnership or association for another 77.1partnership or association are not taxable if one of the entities owns or controls more than 77.280 percent of the voting power of the equity interest in the other entity. Services performed 77.3between members of an affiliated group of corporations are not taxable. For purposes of 77.4the preceding sentence, "affiliated group of corporations" means those entities that would 77.5be classified as members of an affiliated group as defined under United States Code, title 77.626, section 1504, disregarding the exclusions in section 1504(b). 77.7    (b) Sale and purchase include: 77.8    (1) any transfer of title or possession, or both, of tangible personal property, whether 77.9absolutely or conditionally, for a consideration in money or by exchange or barter; and 77.10    (2) the leasing of or the granting of a license to use or consume, for a consideration in 77.11money or by exchange or barter, tangible personal property, other than a manufactured 77.12home used for residential purposes for a continuous period of 30 days or more. 77.13    (c) Sale and purchase include the production, fabrication, printing, or processing of 77.14tangible personal property for a consideration for consumers who furnish either directly or 77.15indirectly the materials used in the production, fabrication, printing, or processing. 77.16    (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 77.17section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following: 77.18    (1) prepared food sold by the retailer; 77.19    (2) soft drinks; 77.20    (3) candy; new text begin and new text end 77.21    (4) dietary supplements; and new text begin . new text end 77.22    (5) all food sold through vending machines. 77.23    (e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 77.24water, or steam for use or consumption within this state. 77.25    (f) A sale and a purchase includes the transfer for a consideration of prewritten computer 77.26software whether delivered electronically, by load and leave, or otherwise. 77.27    (g) A sale and a purchase includes the furnishing for a consideration of the following 77.28services: 77.29    (1) the privilege of admission to places of amusement, recreational areas, or athletic 77.30events, and the making available of amusement devices, tanning facilities, reducing salons, 77.31steam baths, health clubs, and spas or athletic facilities; 78.1    (2) lodging and related services by a hotel, rooming house, resort, campground, motel, 78.2or trailer camp, including furnishing the guest of the facility with access to telecommunication 78.3services, and the granting of any similar license to use real property in a specific facility, 78.4other than the renting or leasing of it for a continuous period of 30 days or more under an 78.5enforceable written agreement that may not be terminated without prior notice and including 78.6accommodations intermediary services provided in connection with other services provided 78.7under this clause; 78.8    (3) nonresidential parking services, whether on a contractual, hourly, or other periodic 78.9basis, except for parking at a meter; 78.10    (4) the granting of membership in a club, association, or other organization if: 78.11    (i) the club, association, or other organization makes available for the use of its members 78.12sports and athletic facilities, without regard to whether a separate charge is assessed for use 78.13of the facilities; and 78.14    (ii) use of the sports and athletic facility is not made available to the general public on 78.15the same basis as it is made available to members. 78.16Granting of membership means both onetime initiation fees and periodic membership dues. 78.17Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 78.18courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 78.19pools; and other similar athletic or sports facilities; 78.20    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate 78.21material used in road construction; and delivery of concrete block by a third party if the 78.22delivery would be subject to the sales tax if provided by the seller of the concrete block. 78.23For purposes of this clause, "road construction" means construction of: 78.24    (i) public roads; 78.25    (ii) cartways; and 78.26    (iii) private roads in townships located outside of the seven-county metropolitan area 78.27up to the point of the emergency response location sign; and 78.28    (6) services as provided in this clause: 78.29    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 78.30and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 78.31drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 78.32include services provided by coin operated facilities operated by the customer; 79.1    (ii) motor vehicle washing, waxing, and cleaning services, including services provided 79.2by coin operated facilities operated by the customer, and rustproofing, undercoating, and 79.3towing of motor vehicles; 79.4    (iii) building and residential cleaning, maintenance, and disinfecting services and pest 79.5control and exterminating services; 79.6    (iv) detective, security, burglar, fire alarm, and armored car services; but not including 79.7services performed within the jurisdiction they serve by off-duty licensed peace officers as 79.8defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 79.9or any organization at the direction of a county for monitoring and electronic surveillance 79.10of persons placed on in-home detention pursuant to court order or under the direction of the 79.11Minnesota Department of Corrections; 79.12    (v) pet grooming services; 79.13    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 79.14and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 79.15care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 79.16contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 79.17lines. Services performed under a construction contract for the installation of shrubbery, 79.18plants, sod, trees, bushes, and similar items are not taxable; 79.19    (vii) massages, except when provided by a licensed health care facility or professional 79.20or upon written referral from a licensed health care facility or professional for treatment of 79.21illness, injury, or disease; and 79.22    (viii) the furnishing of lodging, board, and care services for animals in kennels and other 79.23similar arrangements, but excluding veterinary and horse boarding services. 79.24    (h) A sale and a purchase includes the furnishing for a consideration of tangible personal 79.25property or taxable services by the United States or any of its agencies or instrumentalities, 79.26or the state of Minnesota, its agencies, instrumentalities, or political subdivisions. 79.27    (i) A sale and a purchase includes the furnishing for a consideration of 79.28telecommunications services, ancillary services associated with telecommunication services, 79.29and pay television services. Telecommunication services include, but are not limited to, the 79.30following services, as defined in section 297A.669: air-to-ground radiotelephone service, 79.31mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 79.32wireless calling service, and private communication services. The services in this paragraph 79.33are taxed to the extent allowed under federal law. 80.1    (j) A sale and a purchase includes the furnishing for a consideration of installation if the 80.2installation charges would be subject to the sales tax if the installation were provided by 80.3the seller of the item being installed. 80.4    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 80.5customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 80.6vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 80.7subdivision 11. 80.8    (l) A sale and a purchase includes furnishing for a consideration of specified digital 80.9products or other digital products or granting the right for a consideration to use specified 80.10digital products or other digital products on a temporary or permanent basis and regardless 80.11of whether the purchaser is required to make continued payments for such right. Wherever 80.12the term "tangible personal property" is used in this chapter, other than in subdivisions 10 80.13and 38, the provisions also apply to specified digital products, or other digital products, 80.14unless specifically provided otherwise or the context indicates otherwise. 80.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 80.16 new text begin 30, 2017. new text end 80.17    Sec. 3. Minnesota Statutes 2016, section 297A.61, subdivision 4, is amended to read: 80.18    Subd. 4. Retail sale. (a) A "retail sale" means: 80.19    (1) any sale, lease, or rental of tangible personal property for any purpose, other than 80.20resale, sublease, or subrent of items by the purchaser in the normal course of business as 80.21defined in subdivision 21; and 80.22    (2) any sale of a service enumerated in subdivision 3, for any purpose other than resale 80.23by the purchaser in the normal course of business as defined in subdivision 21. 80.24    (b) A sale of property used by the owner only by leasing it to others or by holding it in 80.25an effort to lease it, and put to no use by the owner other than resale after the lease or effort 80.26to lease, is a sale of property for resale. 80.27    (c) A sale of master computer software that is purchased and used to make copies for 80.28sale or lease is a sale of property for resale. 80.29    (d) A sale of building materials, supplies, and equipment to owners, contractors, 80.30subcontractors, or builders for the erection of buildings or the alteration, repair, or 80.31improvement of real property is a retail sale in whatever quantity sold, whether the sale is 80.32for purposes of resale in the form of real property or otherwise. 81.1    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for 81.2installation of the floor covering is a retail sale and not a sale for resale since a sale of floor 81.3covering which includes installation is a contract for the improvement of real property. 81.4    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 81.5for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, 81.6plants, sod, trees, and similar items that includes installation is a contract for the improvement 81.7of real property. 81.8    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and is 81.9not considered a sale of property for resale. 81.10    (h) A sale of tangible personal property utilized or employed in the furnishing or 81.11providing of services under subdivision 3, paragraph (g), clause (1), including, but not 81.12limited to, property given as promotional items, is a retail sale and is not considered a sale 81.13of property for resale. 81.14    (i) A sale of tangible personal property used in conducting lawful gambling under chapter 81.15349 or the State Lottery under chapter 349A, including, but not limited to, property given 81.16as promotional items, is a retail sale and is not considered a sale of property for resale. 81.17    (j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense 81.18goods or services, including, but not limited to, coin-operated devices, is a retail sale and 81.19is not considered a sale of property for resale. 81.20    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 81.21payment becomes due under the terms of the agreement or the trade practices of the lessor 81.22or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 81.2311 , but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 81.2410,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is 81.25executed. 81.26    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 81.27title or possession of the tangible personal property. 81.28    (m) A sale of a bundled transaction in which one or more of the products included in 81.29the bundle is a taxable product is a retail sale, except that if one of the products is a 81.30telecommunication service, ancillary service, Internet access, or audio or video programming 81.31service, and the seller has maintained books and records identifying through reasonable and 81.32verifiable standards the portions of the price that are attributable to the distinct and separately 82.1identifiable products, then the products are not considered part of a bundled transaction. 82.2For purposes of this paragraph: 82.3    (1) the books and records maintained by the seller must be maintained in the regular 82.4course of business, and do not include books and records created and maintained by the 82.5seller primarily for tax purposes; 82.6    (2) books and records maintained in the regular course of business include, but are not 82.7limited to, financial statements, general ledgers, invoicing and billing systems and reports, 82.8and reports for regulatory tariffs and other regulatory matters; and 82.9    (3) books and records are maintained primarily for tax purposes when the books and 82.10records identify taxable and nontaxable portions of the price, but the seller maintains other 82.11books and records that identify different prices attributable to the distinct products included 82.12in the same bundled transaction. 82.13    (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body 82.14shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail 82.15sale of the paint and materials. The motor vehicle repair or body shop that purchases motor 82.16vehicle repair paint and motor vehicle repair materials for resale must either: 82.17    (1) separately state each item of paint and each item of materials, and the sales price of 82.18each, on the invoice to the purchaser; or 82.19    (2) in order to calculate the sales price of the paint and materials, use a method which 82.20estimates the amount and monetary value of the paint and materials used in the repair of 82.21the motor vehicle by multiplying the number of labor hours by a rate of consideration for 82.22the paint and materials used in the repair of the motor vehicle following industry standard 82.23practices that fairly calculate the gross receipts from the retail sale of the motor vehicle 82.24repair paint and motor vehicle repair materials. An industry standard practice fairly calculates 82.25the gross receipts if the sales price of the paint and materials used or consumed in the repair 82.26of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or 82.27body shop business. Under this clause, the invoice must either separately state the "paint 82.28and materials" as a single taxable item, or separately state "paint" as a taxable item and 82.29"materials" as a taxable item. This clause does not apply to wholesale transactions at an 82.30auto auction facility. 82.31    (o) A sale of specified digital products or other digital products to an end user with or 82.32without rights of permanent use and regardless of whether rights of use are conditioned 82.33upon payment by the purchaser is a retail sale. When a digital code has been purchased that 82.34relates to specified digital products or other digital products, the subsequent receipt of or 83.1access to the related specified digital products or other digital products is not a retail sale. new text begin new text end 83.2 new text begin For purposes of this paragraph, "end user" does not include a person, including the owner new text end 83.3 new text begin or operator of a jukebox or similar device that charges customers for access to specified new text end 83.4 new text begin digital products or other digital products, who receives by contract a product transferred new text end 83.5 new text begin electronically for further commercial broadcast, rebroadcast, transmission, retransmission, new text end 83.6 new text begin licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or new text end 83.7 new text begin in part, to another person or persons. new text end 83.8    (p) A payment made to a cooperative electric association or public utility as a contribution 83.9in aid of construction is a contract for improvement to real property and is not a retail sale. 83.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 83.11 new text begin 30, 2017. new text end 83.12    Sec. 4. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read: 83.13    Subd. 34. new text begin Taxable new text end food sold through vending machines. " new text begin Taxable new text end food sold through 83.14vending machines" means food new text begin prepared food, soft drinks, or candy new text end dispensed from a 83.15machine or other device that accepts payment including honor payments. 83.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 83.17 new text begin 30, 2017. new text end 83.18    Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read: 83.19    Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution 83.20and the laws of the United States, "retailer maintaining a place of business in this state," or 83.21a similar term, means a retailer: 83.22(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 83.23office, place of distribution, sales or sample room or place, new text begin storage, new text end warehouse, or other 83.24place of business new text begin , including the employment of a resident of this state who works from a new text end 83.25 new text begin home office in this state new text end ; or 83.26(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 83.27canvasser, or new text begin marketplace provider, new text end solicitor new text begin , or other third party new text end operating in this state 83.28under the authority of the retailer or its subsidiary, for any purpose, including the repairing, 83.29selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting of orders for 83.30the retailer's goods or services, or the leasing of tangible personal property located in this 83.31state, whether the place of business or agent, representative, affiliate, salesperson, canvasser, 83.32or solicitor is located in the state permanently or temporarily, or whether or not the retailer, 84.1subsidiary, or affiliate is authorized to do business in this state new text begin . A retailer is represented by new text end 84.2 new text begin a marketplace provider in this state if the retailer makes sales in this state facilitated by a new text end 84.3 new text begin marketplace provider that maintains a place of business in this state new text end . 84.4(b) "Destination of a sale" means the location to which the retailer makes delivery of 84.5the property sold, or causes the property to be delivered, to the purchaser of the property, 84.6or to the agent or designee of the purchaser. The delivery may be made by any means, 84.7including the United States Postal Service or a for-hire carrier. 84.8 new text begin (c) "Marketplace provider" means any person who facilitates a retail sale by a retailer new text end 84.9 new text begin by: new text end 84.10 new text begin (1) listing or advertising for sale by the retailer in any forum tangible personal property, new text end 84.11 new text begin services, or digital goods that are subject to tax under this chapter; and new text end 84.12 new text begin (2) either directly or indirectly through agreements or arrangements with third parties new text end 84.13 new text begin collecting payment from the customer and transmitting that payment to the retailer regardless new text end 84.14 new text begin of whether the marketplace provider receives compensation or other consideration in new text end 84.15 new text begin exchange for its services. new text end 84.16 new text begin (d) "Total taxable retail sales" means the gross receipts from the sale of all tangible new text end 84.17 new text begin goods, services, and digital goods subject to sales and use tax under this chapter. new text end 84.18    Sec. 6. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read: 84.19    Subd. 2. Retailer maintaining place of business in this state. new text begin (a) Except as provided new text end 84.20 new text begin in paragraph (b), new text end a retailer maintaining a place of business in this state who makes retail 84.21sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and 84.22remit them to the commissioner under section 297A.77. 84.23 new text begin (b) A retailer with total taxable retail sales to customers in this state of less than $10,000 new text end 84.24 new text begin in the 12-month period ending on the last day of the most recently completed calendar new text end 84.25 new text begin quarter is not required to collect and remit sales tax if it is determined to be a retailer new text end 84.26 new text begin maintaining a place of business in the state solely because it made sales through one or more new text end 84.27 new text begin marketplace providers. The provisions of this paragraph do not apply to a retailer that is or new text end 84.28 new text begin was registered to collect sales and use tax in this state. new text end 84.29    Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read: 84.30    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 84.31subdivision 1, paragraph (a), if new text begin the entity new text end : 85.1(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate 85.2the establishment or maintenance of a market for sales of items by the retailer to purchasers 85.3in this state or for the provision of services to the retailer's purchasers in this state, such as 85.4accepting returns of purchases for the retailer, providing assistance in resolving customer 85.5complaints of the retailer, or providing other services; and 85.6(2) the retailer and the entity are related parties new text begin has the same or a similar business name new text end 85.7 new text begin to the retailer and sells, from a location or locations in this state, tangible personal property, new text end 85.8 new text begin digital goods, or services, taxable under this chapter, that are similar to that sold by the new text end 85.9 new text begin retailer; new text end 85.10 new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or new text end 85.11 new text begin other similar place of business in this state to facilitate the delivery of tangible personal new text end 85.12 new text begin property, digital goods, or services sold by the retailer to its customers in this state; new text end 85.13 new text begin (4) maintains a place of business in this state and uses trademarks, service marks, or new text end 85.14 new text begin trade names in this state that are the same or substantially similar to those used by the retailer, new text end 85.15 new text begin and that use is done with the express or implied consent of the holder of the marks or names; new text end 85.16 new text begin (5) delivers, installs, or assembles tangible personal property in this state, or performs new text end 85.17 new text begin maintenance or repair services on tangible personal property in this state, for tangible new text end 85.18 new text begin personal property sold by the retailer; new text end 85.19 new text begin (6) facilitates the delivery of tangible personal property to customers of the retailer by new text end 85.20 new text begin allowing the customers to pick up tangible personal property sold by the retailer at a place new text end 85.21 new text begin of business the entity maintains in this state; or new text end 85.22 new text begin (7) shares management, business systems, business practices, or employees with the new text end 85.23 new text begin retailer, or engages in intercompany transactions with the retailer related to the activities new text end 85.24 new text begin that establish or maintain the market in this state of the retailer new text end . 85.25(b) Two entities are related parties under this section if one of the entities meets at least 85.26one of the following tests with respect to the other entity: 85.27(1) one or both entities is a corporation, and one entity and any party related to that entity 85.28in a manner that would require an attribution of stock from the corporation to the party or 85.29from the party to the corporation under the attribution rules of section 318 of the Internal 85.30Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent 85.31of the value of the corporation's outstanding stock; 85.32(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 85.33and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 86.1beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 86.2stock, or value of the other entity or both entities; or 86.3(3) an individual stockholder and the members of the stockholder's family (as defined 86.4in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or 86.5constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding 86.6stock new text begin ; new text end 86.7 new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section 267 new text end 86.8 new text begin or 707(b)(1) of the Internal Revenue Code; or new text end 86.9 new text begin (5) the entities have one or more ownership relationships and the relationships were new text end 86.10 new text begin designed with a principal purpose of avoiding the application of this section new text end . 86.11(c) An entity is an affiliate under the provisions of this subdivision if the requirements 86.12of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first 86.13day of the month before the month in which the sale was made. 86.14    Sec. 8. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to 86.15read: 86.16     new text begin Subd. 4b. new text end new text begin Collection and remittance requirements for marketplace providers and new text end 86.17 new text begin marketplace retailers. new text end new text begin (a) A marketplace provider shall collect sales and use taxes and new text end 86.18 new text begin remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, new text end 86.19 new text begin and is subject to audit on the retail sales it facilitates unless either: new text end 86.20 new text begin (1) the retailer provides a copy of the retailer's registration to collect sales and use tax new text end 86.21 new text begin in this state to the marketplace provider before the marketplace provider facilitates a sale; new text end 86.22 new text begin or new text end 86.23 new text begin (2) upon inquiry by the marketplace provider or its agent, the commissioner discloses new text end 86.24 new text begin that the retailer is registered to collect sales and use taxes in this state. new text end 86.25 new text begin (b) Nothing in this subdivision shall be construed to interfere with the ability of a new text end 86.26 new text begin marketplace provider and a retailer to enter into an agreement regarding fulfillment of the new text end 86.27 new text begin requirements of this chapter. new text end 86.28 new text begin (c) A marketplace provider is not liable under this subdivision for failure to file and new text end 86.29 new text begin collect and remit sales and use taxes if the marketplace provider demonstrates that the error new text end 86.30 new text begin was due to incorrect or insufficient information given to the marketplace provider by the new text end 86.31 new text begin retailer. This paragraph does not apply if the marketplace provider and the marketplace new text end 86.32 new text begin retailer are related as defined in subdivision 4, paragraph (b). new text end 87.1    Sec. 9. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read: 87.2    Subd. 2. Food and food ingredients. Except as otherwise provided in this subdivision, 87.3food and food ingredients are exempt. For purposes of this subdivision, "food" and "food 87.4ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or 87.5dehydrated form, that are sold for ingestion or chewing by humans and are consumed for 87.6their taste or nutritional value. Food and food ingredients exempt under this subdivision do 87.7not include candy, soft drinks, food sold through vending machines, dietary supplements, 87.8and prepared foods. Food and food ingredients do not include alcoholic beverages and 87.9tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that are 87.10suitable for human consumption and contain one-half of one percent or more of alcohol by 87.11volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing or 87.12pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision, 87.13"dietary supplements" means any product, other than tobacco, intended to supplement the 87.14diet that: 87.15(1) contains one or more of the following dietary ingredients: 87.16(i) a vitamin; 87.17(ii) a mineral; 87.18(iii) an herb or other botanical; 87.19(iv) an amino acid; 87.20(v) a dietary substance for use by humans to supplement the diet by increasing the total 87.21dietary intake; and 87.22(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient 87.23described in items (i) to (v); 87.24(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, 87.25or if not intended for ingestion in such form, is not represented as conventional food and is 87.26not represented for use as a sole item of a meal or of the diet; and 87.27(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts 87.28box found on the label and as required pursuant to Code of Federal Regulations, title 21, 87.29section 101.36. 87.30    Sec. 10. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read: 87.31    Subd. 4. Exempt meals at residential facilities. Prepared food, candy, and soft drinks 87.32served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, 88.1senior citizen homes, and correctional, detention, and detoxification facilities are exempt. 88.2 new text begin Taxable new text end food sold through vending machines is not exempt. 88.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 88.4 new text begin 30, 2017. new text end 88.5    Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read: 88.6    Subd. 5. Exempt meals at schools. Prepared food, candy, and soft drinks served at 88.7public and private elementary, middle, or secondary schools as defined in section 120A.05 88.8are exempt. Prepared food, candy, and soft drinks served to students at a college, university, 88.9or private career school under a board contract are exempt. new text begin Taxable new text end food sold through 88.10vending machines is not exempt. 88.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 88.12 new text begin 30, 2017. new text end 88.13    Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read: 88.14    Subd. 6. Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 88.15and served exclusively to individuals who are 60 years of age or over and their spouses or 88.16to disabled persons and their spouses by governmental agencies, nonprofit organizations, 88.17or churches, or pursuant to any program funded in whole or in part through United States 88.18Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are 88.19exempt. new text begin Taxable new text end food sold through vending machines is not exempt. 88.20(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 88.21who are less than 14 years of age or disabled children who are less than 16 years of age and 88.22who are attending a child care or early childhood education program, are exempt if they 88.23are: 88.24(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 88.25subdivision 4 , and that primarily serves families with income of 250 percent or less of 88.26federal poverty guidelines; and 88.27(2) prepared at the site of the child care facility. 88.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 88.29 new text begin 30, 2017. new text end 89.1    Sec. 13. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 89.2to read: 89.3     new text begin Subd. 34. new text end new text begin Precious metal bullion and bullion coin. new text end new text begin (a) Precious metal bullion and new text end 89.4 new text begin bullion coin is exempt. For purposes of this subdivision, "precious metal bullion" means new text end 89.5 new text begin bars or rounds that consist of 99.9 percent or more by weight of either gold, silver platinum, new text end 89.6 new text begin or palladium and are marked with weight, purity, and content. For purposes of this new text end 89.7 new text begin subdivision, "bullion coin" means only the following coins: new text end 89.8 new text begin (1) gold, silver, or platinum American eagle; new text end 89.9 new text begin (2) gold American buffalo; new text end 89.10 new text begin (3) silver Australian koala; new text end 89.11 new text begin (4) silver Australian kookaburra; new text end 89.12 new text begin (5) gold or silver Austrian philharmonic; new text end 89.13 new text begin (6) gold or silver British britannia; new text end 89.14 new text begin (7) gold British sovereign; new text end 89.15 new text begin (8) gold, silver, platinum, or palladium Canadian maple leaf; new text end 89.16 new text begin (9) palladium Isle of Man noble; new text end 89.17 new text begin (10) gold or silver Chinese panda; new text end 89.18 new text begin (11) gold or silver Mexican libertad or peso; new text end 89.19 new text begin (12) gold South African krugerrand; new text end 89.20 new text begin (13) gold French, Swiss, or Belgian 20 francs; and new text end 89.21 new text begin (14) junk United States silver coins issued before 1965 that are at least 90 percent silver. new text end 89.22 new text begin (b) The intent of this subdivision is to eliminate the difference in tax treatment between new text end 89.23 new text begin the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other new text end 89.24 new text begin investment instruments. new text end 89.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 89.26 new text begin 30, 2017. new text end 90.1    Sec. 14. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 90.2to read: 90.3     new text begin Subd. 11a. new text end new text begin Minnesota State High School League tickets and admissions. new text end new text begin Tickets and new text end 90.4 new text begin admissions to games, events, and activities sponsored by the Minnesota State High School new text end 90.5 new text begin League under chapter 128C are exempt. new text end 90.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 90.7 new text begin 30, 2017, and before July 1, 2027. new text end 90.8    Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read: 90.9    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 90.10personal property or services at, and admission charges for fund-raising events sponsored 90.11by, a nonprofit organization are exempt if: 90.12(1) all gross receipts are recorded as such, in accordance with generally accepted 90.13accounting practices, on the books of the nonprofit organization; and 90.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely 90.15and exclusively for charitable, religious, or educational purposes. Exempt sales include the 90.16sale of prepared food, candy, and soft drinks at the fund-raising event. 90.17(b) This exemption is limited in the following manner: 90.18(1) it does not apply to admission charges for events involving bingo or other gambling 90.19activities or to charges for use of amusement devices involving bingo or other gambling 90.20activities; 90.21(2) all gross receipts are taxable if the profits are not used solely and exclusively for 90.22charitable, religious, or educational purposes; 90.23(3) it does not apply unless the organization keeps a separate accounting record, including 90.24receipts and disbursements from each fund-raising event that documents all deductions from 90.25gross receipts with receipts and other records; 90.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 90.27the active or passive agent of a person that is not a nonprofit corporation; 90.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; new text begin and new text end 90.29(6) it does not apply to fund-raising events conducted on premises leased for more than 90.30five days but less than 30 days; and 91.1(7) it does not apply if the risk of the event is not borne by the nonprofit organization 91.2and the benefit to the nonprofit organization is less than the total amount of the state and 91.3local tax revenues forgone by this exemption. 91.4(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 91.5government, corporation, society, association, foundation, or institution organized and 91.6operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' 91.7purposes, no part of the net earnings of which inures to the benefit of a private individual. 91.8(d) For purposes of this subdivision, "fund-raising events" means activities of limited 91.9duration, not regularly carried out in the normal course of business, that attract patrons for 91.10community, social, and entertainment purposes, such as auctions, bake sales, ice cream 91.11socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, 91.12bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, 91.13galas, special event workshops, sporting activities such as marathons and tournaments, and 91.14similar events. Fund-raising events do not include the operation of a regular place of business 91.15in which services are provided or sales are made during regular hours such as bookstores, 91.16thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or 91.17other activities carried out in the normal course of business. 91.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 91.19 new text begin 30, 2017. new text end 91.20    Sec. 16. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read: 91.21    Subd. 44. Building materials, capital projects. new text begin (a) new text end Materials and supplies used or 91.22consumed in and equipment incorporated into the construction or improvement of a capital 91.23project funded partially or wholly under section 297A.9905 are exempt, provided that the 91.24project has a total construction cost of at least $40,000,000 within a 24-month period. 91.25 new text begin (b) Materials and supplies used or consumed in and equipment incorporated into the new text end 91.26 new text begin construction, remodeling, expansion, or improvement of an ice arena or other buildings or new text end 91.27 new text begin facilities owned and operated by the city of Plymouth are exempt. For purposes of this new text end 91.28 new text begin subdivision, "facilities" include municipal streets and facilities associated with streets new text end 91.29 new text begin including but not limited to lighting, curbs and gutters, and sidewalks. The total amount of new text end 91.30 new text begin refund on all building materials, supplies, and equipment that the city may apply for under new text end 91.31 new text begin this paragraph is $2,500,000. new text end 92.1 new text begin (c) new text end The tax on purchases exempt under this provision must be imposed and collected as 92.2if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner 92.3provided in section 297A.75. 92.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 92.5 new text begin made after January 1, 2015. new text end new text begin new text end 92.6    Sec. 17. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.7to read: 92.8     new text begin Subd. 49. new text end new text begin Properties destroyed by fire. new text end new text begin Building materials and supplies used in, and new text end 92.9 new text begin equipment incorporated into, the construction or replacement of real property that is located new text end 92.10 new text begin in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed new text end 92.11 new text begin and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded new text end 92.12 new text begin in the manner provided in section 297A.75. new text end new text begin new text end 92.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 92.14 new text begin made after December 31, 2015, and before July 1, 2018. new text end 92.15    Sec. 18. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.16to read: 92.17     new text begin Subd. 50. new text end new text begin Properties destroyed by fire. new text end new text begin (a) Building materials and supplies used in, new text end 92.18 new text begin and equipment incorporated into, the construction or replacement of real property that is new text end 92.19 new text begin located in Melrose affected by the fire on September 8, 2016, are exempt. new text end 92.20 new text begin (b) For sales and purchases made after September 30, 2016, and before July 1, 2017, new text end 92.21 new text begin the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, new text end 92.22 new text begin applied and then refunded in the manner provided in section 297A.75. new text end 92.23 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective retroactively for sales and purchases new text end 92.24 new text begin made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective for new text end 92.25 new text begin sales and purchases made after September 30, 2016, and before July 1, 2017. new text end 92.26    Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.27to read: 92.28     new text begin Subd. 51. new text end new text begin Building materials; Major League Soccer stadium. new text end new text begin Materials and supplies new text end 92.29 new text begin used or consumed in, and equipment incorporated into, the construction of a Major League new text end 92.30 new text begin Soccer stadium and related infrastructure constructed in the city of St. Paul are exempt. new text end 93.1 new text begin This subdivision expires one year after the date that the first Major League Soccer game is new text end 93.2 new text begin played in the stadium. new text end 93.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after the new text end 93.4 new text begin day following final enactment. new text end 93.5    Sec. 20. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read: 93.6    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following 93.7exempt items must be imposed and collected as if the sale were taxable and the rate under 93.8section 297A.62, subdivision 1, applied. The exempt items include: 93.9    (1) building materials for an agricultural processing facility exempt under section 93.10297A.71, subdivision 13 ; 93.11    (2) building materials for mineral production facilities exempt under section 297A.71, 93.12subdivision 14 ; 93.13    (3) building materials for correctional facilities under section 297A.71, subdivision 3; 93.14    (4) building materials used in a residence for disabled veterans exempt under section 93.15297A.71, subdivision 11 ; 93.16    (5) elevators and building materials exempt under section 297A.71, subdivision 12; 93.17    (6) materials and supplies for qualified low-income housing under section 297A.71, 93.18subdivision 23 ; 93.19    (7) materials, supplies, and equipment for municipal electric utility facilities under 93.20section 297A.71, subdivision 35; 93.21    (8) equipment and materials used for the generation, transmission, and distribution of 93.22electrical energy and an aerial camera package exempt under section 297A.68, subdivision 93.2337; 93.24    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 93.25(a), clause (10); 93.26    (10) materials, supplies, and equipment for construction or improvement of projects and 93.27facilities under section 297A.71, subdivision 40; 93.28(11) materials, supplies, and equipment for construction, improvement, or expansion 93.29of: 93.30(i) an aerospace defense manufacturing facility exempt under section 297A.71, 93.31subdivision 42 ; 94.1(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 94.245 ; 94.3(iii) a research and development facility exempt under section 297A.71, subdivision 46; 94.4and 94.5(iv) an industrial measurement manufacturing and controls facility exempt under section 94.6297A.71, subdivision 47 ; 94.7(12) enterprise information technology equipment and computer software for use in a 94.8qualified data center exempt under section 297A.68, subdivision 42; 94.9(13) materials, supplies, and equipment for qualifying capital projects under section 94.10297A.71, subdivision 44 ; 94.11(14) items purchased for use in providing critical access dental services exempt under 94.12section 297A.70, subdivision 7, paragraph (c); and 94.13(15) items and services purchased under a business subsidy agreement for use or 94.14consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 94.1544 new text begin ; new text end 94.16 new text begin (16) building materials, equipment, and supplies for constructing or replacing real new text end 94.17 new text begin property exempt under section 297A.71, subdivision 49; and new text end 94.18 new text begin (17) building materials, equipment, and supplies for constructing or replacing real new text end 94.19 new text begin property exempt under section 297A.71, subdivision 50 new text end . 94.20 new text begin EFFECTIVE DATE. new text end new text begin (a) Clause (16) is effective retroactively for sales and purchases new text end 94.21 new text begin made after December 31, 2015. new text end 94.22 new text begin (b) Clause (17) is effective retroactively for sales and purchases made after September new text end 94.23 new text begin 30, 2016. new text end 94.24    Sec. 21. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read: 94.25    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 94.26commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 94.27be paid to the applicant. Only the following persons may apply for the refund: 94.28    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser; 94.29    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; 94.30    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 94.31provided in United States Code, title 38, chapter 21; 95.1    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 95.2property; 95.3    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project; 95.4    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 95.5joint venture of municipal electric utilities; 95.6    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 95.7business; and 95.8    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental 95.9entity that owns or contracts for the project or facility new text begin ; new text end 95.10     new text begin (9) for subdivision 1, clause (16), the applicant must be the owner or developer of the new text end 95.11 new text begin building or project; and new text end 95.12     new text begin (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the new text end 95.13 new text begin building or project. new text end . 95.14 new text begin EFFECTIVE DATE. new text end new text begin (a) Clause (9) is effective retroactively for sales and purchases new text end 95.15 new text begin made after December 31, 2015. new text end 95.16 new text begin (b) Clause (10) is effective retroactively for sales and purchases made after September new text end 95.17 new text begin 30, 2016. new text end 95.18    Sec. 22. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read: 95.19    Subd. 3. Application. (a) The application must include sufficient information to permit 95.20the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 95.21or builder, under subdivision 1, clauses (3) to (13), or (15), new text begin (16), and (17), new text end the contractor, 95.22subcontractor, or builder must furnish to the refund applicant a statement including the cost 95.23of the exempt items and the taxes paid on the items unless otherwise specifically provided 95.24by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 95.25this section. 95.26    (b) An applicant may not file more than two applications per calendar year for refunds 95.27for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 95.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 96.1    Sec. 23. new text begin EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS. new text end 96.2 new text begin (a) Notwithstanding the seven-year certification period under Minnesota Statutes, section new text end 96.3 new text begin 116J.8738, subdivision 3, the certification period for an eligible wholesale electronic new text end 96.4 new text begin component distribution center investing a minimum of $200,000,000 and constructing a new text end 96.5 new text begin facility at least 700,000 square feet in size is effective for the ten-year period beginning on new text end 96.6 new text begin the first day of the calendar month immediately following the date that the commissioner new text end 96.7 new text begin informs the business of the award of the benefit. new text end 96.8 new text begin (b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section new text end 96.9 new text begin 116J.8738, subdivision 4, the sales tax exemption for an eligible electronic wholesale new text end 96.10 new text begin component distribution center investing a minimum of $200,000,000 and constructing a new text end 96.11 new text begin facility at least 700,000 square feet in size may be authorized up to $5,000,000 annually new text end 96.12 new text begin and up to $40,000,000 during the total period of the agreement. new text end 96.13    Sec. 24. new text begin SEVERABILITY. new text end 96.14 new text begin If any provision of sections 5 to 8 or the application thereof is held invalid, such invalidity new text end 96.15 new text begin shall not affect the provisions or applications of the sections that can be given effect without new text end 96.16 new text begin the invalid provisions or applications. new text end 96.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 96.18    Sec. 25. new text begin EFFECTIVE DATE. new text end 96.19 new text begin (a) The provisions of sections 5 to 8 are effective at the earlier of: new text end 96.20 new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill Corp. new text end 96.21 new text begin v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical new text end 96.22 new text begin presence in the state to collect and remit sales tax; or new text end 96.23 new text begin (2) July 1, 2018. new text end 96.24 new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 5 to 8, if a federal law new text end 96.25 new text begin is enacted authorizing a state to impose a requirement to collect and remit sales tax on new text end 96.26 new text begin retailers without a physical presence in the state, the commissioner must enforce the new text end 96.27 new text begin provisions of this section and sections 5 to 8 to the extent allowed under federal law. new text end 96.28 new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of the new text end 96.29 new text begin provisions in paragraph (a) or (b) apply. new text end 97.1ARTICLE 4 97.2PROPERTY TAX: AIDS AND CREDITS 97.3    Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read: 97.4    Subd. 4. Debt service equalization revenue. (a) The debt service equalization revenue 97.5of a district equals the sum of the first tier debt service equalization revenue and the second 97.6tier debt service equalization revenue. 97.7    (b) The first tier debt service equalization revenue of a district equals the greater of zero 97.8or the eligible debt service revenue minus the amount raised by a levy of percent new text begin the new text end 97.9 new text begin first tier initial effort rate new text end times the adjusted net tax capacity of the district minus the second 97.10tier debt service equalization revenue of the district. 97.11    (c) The second tier debt service equalization revenue of a district equals the greater of 97.12zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24 percent 97.13times the adjusted net tax capacity of the district. 97.14 new text begin (d) The first tier initial effort rate for taxes payable in 2018 is ten percent. The initial new text end 97.15 new text begin effort rate for taxes payable in 2019 and later is 15.74 percent. new text end 97.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 97.17    Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read: 97.18    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a district 97.19equals the sum of the first tier equalized debt service levy and the second tier equalized debt 97.20service levy. 97.21(b) A district's first tier equalized debt service levy equals the district's first tier debt 97.22service equalization revenue times the lesser of one or the ratio of: 97.23(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 97.24year before the year the levy is certified by the adjusted pupil units in the district for the 97.25school year ending in the year prior to the year the levy is certified; to 97.26(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or 97.2755.33 percent of the initial equalizing factor in fiscal year 2018 and later new text begin , 75 percent of the new text end 97.28 new text begin initial equalizing factor in fiscal year 2019, and 55.33 percent of the initial equalizing factor new text end 97.29 new text begin in fiscal year 2020 and later new text end . 97.30(c) A district's second tier equalized debt service levy equals the district's second tier 97.31debt service equalization revenue times the lesser of one or the ratio of: 98.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 98.2year before the year the levy is certified by the adjusted pupil units in the district for the 98.3school year ending in the year prior to the year the levy is certified; to 98.4(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of 98.5the initial equalizing factor in fiscal year 2018 and later. 98.6(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient 98.7derived by dividing the total adjusted net tax capacity of all school districts in the state for 98.8the year before the year the levy is certified by the total number of adjusted pupil units in 98.9all school districts in the state in the year before the year the levy is certified. 98.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 98.11    Sec. 3. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read: 98.12    Subd. 6. Referendum equalization levy. (a) A district's referendum equalization levy 98.13equals the sum of the first tier referendum equalization levy, the second tier referendum 98.14equalization levy, and the third tier referendum equalization levy. 98.15(b) A district's first tier referendum equalization levy equals the district's first tier 98.16referendum equalization revenue times the lesser of one or the ratio of the district's 98.17referendum market value per resident pupil unit to $880,000 new text begin $950,000 new text end . 98.18(c) A district's second tier referendum equalization levy equals the district's second tier 98.19referendum equalization revenue times the lesser of one or the ratio of the district's 98.20referendum market value per resident pupil unit to $510,000 new text begin $611,000 new text end . 98.21(d) A district's third tier referendum equalization levy equals the district's third tier 98.22referendum equalization revenue times the lesser of one or the ratio of the district's 98.23referendum market value per resident pupil unit to $290,000. 98.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and later. new text end 98.25    Sec. 4. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read: 98.26    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund 98.27payments for a district nonoperating fund must be made at the current year aid payment 98.28percentage of the estimated entitlement during the fiscal year of the entitlement. This amount 98.29shall be paid in 12 new text begin six new text end equal monthly installments new text begin beginning in July new text end . The amount of the 98.30actual entitlement, after adjustment for actual data, minus the payments made during the 98.31fiscal year of the entitlement must be paid prior to October 31 of the following school year. 99.1The commissioner may make advance payments of debt service equalization aid and 99.2state-paid tax credits for a district's debt service fund earlier than would occur under the 99.3preceding schedule if the district submits evidence showing a serious cash flow problem in 99.4the fund. The commissioner may make earlier payments during the year and, if necessary, 99.5increase the percent of the entitlement paid to reduce the cash flow problem. 99.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with fiscal year 2019. new text end 99.7    Sec. 5. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read: 99.8    Subd. 13. Aid payment percentage. Except as provided in subdivisions new text begin 10, new text end 11, 12, 12a, 99.9and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 99.10120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392, 99.11shall be paid at the current year aid payment percentage of the estimated entitlement during 99.12the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 99.13entitlement for special education aid under section 125A.76 for fiscal year 2014 and later 99.14equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment 99.15payment, according to subdivision 9, must be the amount of the actual entitlement, after 99.16adjustment for actual data, minus the payments made during the fiscal year of the entitlement. 99.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with fiscal year 2019. new text end 99.18    Sec. 6. new text begin [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT. new text end 99.19     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin All class 2a, 2b, and 2c property under section 273.13, new text end 99.20 new text begin subdivision 23, other than property consisting of the house, garage, and immediately new text end 99.21 new text begin surrounding one acre of land of an agricultural homestead, is eligible to receive the credit new text end 99.22 new text begin under this section. new text end 99.23     new text begin Subd. 2. new text end new text begin Credit amount. new text end new text begin For each qualifying property, the school building bond new text end 99.24 new text begin agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied new text end 99.25 new text begin by the school debt tax rate determined under section 275.08, subdivision 1b. new text end 99.26     new text begin Subd. 3. new text end new text begin Credit reimbursements. new text end new text begin The county auditor shall determine the tax reductions new text end 99.27 new text begin allowed under this section within the county for each taxes payable year and shall certify new text end 99.28 new text begin that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted new text end 99.29 new text begin under section 275.29. Any prior year adjustments shall also be certified on the abstracts of new text end 99.30 new text begin tax lists. The commissioner shall review the certifications for accuracy, and may make such new text end 99.31 new text begin changes as are deemed necessary, or return the certification to the county auditor for new text end 100.1 new text begin correction. The credit under this section must be used to reduce the school district net tax new text end 100.2 new text begin capacity-based property tax as provided in section new text end new text begin . new text end 100.3     new text begin Subd. 4. new text end new text begin Payment. new text end new text begin The commissioner of revenue shall certify the total of the tax new text end 100.4 new text begin reductions granted under this section for each taxes payable year within each school district new text end 100.5 new text begin to the commissioner of education who shall pay the reimbursement amounts to each school new text end 100.6 new text begin district as provided in section new text end new text begin . new text end 100.7     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to make the payments required by this new text end 100.8 new text begin section is annually appropriated from the general fund to the commissioner of education. new text end 100.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 100.10    Sec. 7. Minnesota Statutes 2016, section 273.1392, is amended to read: 100.11273.1392 PAYMENT; SCHOOL DISTRICTS. 100.12The amounts of bovine tuberculosis credit reimbursements under section 273.113; 100.13conservation tax credits under section 273.119; disaster or emergency reimbursement under 100.14sections 273.1231 to 273.1235; homestead and agricultural credits under section new text begin sections new text end 100.15273.1384 new text begin and 273.1387 new text end ; aids and credits under section 273.1398; enterprise zone property 100.16credit payments under section 469.171; and metropolitan agricultural preserve reduction 100.17under section 473H.10 for school districts, shall be certified to the Department of Education 100.18by the Department of Revenue. The amounts so certified shall be paid according to section 100.19127A.45 , subdivisions 9 new text begin , 10, new text end and 13. 100.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 100.21    Sec. 8. Minnesota Statutes 2016, section 273.1393, is amended to read: 100.22273.1393 COMPUTATION OF NET PROPERTY TAXES. 100.23    Notwithstanding any other provisions to the contrary, "net" property taxes are determined 100.24by subtracting the credits in the order listed from the gross tax: 100.25    (1) disaster credit as provided in sections 273.1231 to 273.1235; 100.26    (2) powerline credit as provided in section 273.42; 100.27    (3) agricultural preserves credit as provided in section 473H.10; 100.28    (4) enterprise zone credit as provided in section 469.171; 100.29    (5) disparity reduction credit; 100.30    (6) conservation tax credit as provided in section 273.119; 101.1    (7) new text begin the school bond credit as provided in section 273.1387; new text end 101.2     new text begin (8) new text end agricultural credit as provided in section 273.1384; 101.3    (8) new text begin (9) new text end taconite homestead credit as provided in section 273.135; 101.4    (9) new text begin (10) new text end supplemental homestead credit as provided in section 273.1391; and 101.5    (10) new text begin (11) new text end the bovine tuberculosis zone credit, as provided in section 273.113. 101.6    The combination of all property tax credits must not exceed the gross tax amount. 101.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 101.8    Sec. 9. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read: 101.9    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and 101.10the county treasurer shall deliver after November 10 and on or before November 24 each 101.11year, by first class mail to each taxpayer at the address listed on the county's current year's 101.12assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 101.13the treasurer may send the notice in electronic form or by electronic mail instead of on paper 101.14or by ordinary mail. 101.15    (b) The commissioner of revenue shall prescribe the form of the notice. 101.16    (c) The notice must inform taxpayers that it contains the amount of property taxes each 101.17taxing authority proposes to collect for taxes payable the following year. In the case of a 101.18town, or in the case of the state general tax, the final tax amount will be its proposed tax. 101.19The notice must clearly state for each city that has a population over 500, county, school 101.20district, regional library authority established under section 134.201, and metropolitan taxing 101.21districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 101.22in which the budget and levy will be discussed and public input allowed, prior to the final 101.23budget and levy determination. The taxing authorities must provide the county auditor with 101.24the information to be included in the notice on or before the time it certifies its proposed 101.25levy under subdivision 1. The public must be allowed to speak at that meeting, which must 101.26occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 101.27number for the taxing authority that taxpayers may call if they have questions related to the 101.28notice and an address where comments will be received by mail, except that no notice 101.29required under this section shall be interpreted as requiring the printing of a personal 101.30telephone number or address as the contact information for a taxing authority. If a taxing 101.31authority does not maintain public offices where telephone calls can be received by the 102.1authority, the authority may inform the county of the lack of a public telephone number and 102.2the county shall not list a telephone number for that taxing authority. 102.3    (d) The notice must state for each parcel: 102.4    (1) the market value of the property as determined under section 273.11, and used for 102.5computing property taxes payable in the following year and for taxes payable in the current 102.6year as each appears in the records of the county assessor on November 1 of the current 102.7year; and, in the case of residential property, whether the property is classified as homestead 102.8or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 102.9values apply and that the values are final values; 102.10    (2) the items listed below, shown separately by county, city or town, and state general 102.11tax, agricultural homestead credit under section 273.1384, new text begin school building bond agricultural new text end 102.12 new text begin credit under section 273.1387, new text end voter approved school levy, other local school levy, and the 102.13sum of the special taxing districts, and as a total of all taxing authorities: 102.14    (i) the actual tax for taxes payable in the current year; and 102.15    (ii) the proposed tax amount. 102.16    If the county levy under clause (2) includes an amount for a lake improvement district 102.17as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 102.18must be separately stated from the remaining county levy amount. 102.19    In the case of a town or the state general tax, the final tax shall also be its proposed tax 102.20unless the town changes its levy at a special town meeting under section 365.52. If a school 102.21district has certified under section 126C.17, subdivision 9, that a referendum will be held 102.22in the school district at the November general election, the county auditor must note next 102.23to the school district's proposed amount that a referendum is pending and that, if approved 102.24by the voters, the tax amount may be higher than shown on the notice. In the case of the 102.25city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 102.26from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 102.27the St. Paul Library Agency must be listed separately from the remaining amount of the 102.28city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 102.29listed separately from the remaining amount of the county's levy. In the case of a parcel 102.30where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 102.31applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 102.32capacity subject to the areawide tax must each be stated separately and not included in the 102.33sum of the special taxing districts; and 103.1    (3) the increase or decrease between the total taxes payable in the current year and the 103.2total proposed taxes, expressed as a percentage. 103.3    For purposes of this section, the amount of the tax on homesteads qualifying under the 103.4senior citizens' property tax deferral program under chapter 290B is the total amount of 103.5property tax before subtraction of the deferred property tax amount. 103.6    (e) The notice must clearly state that the proposed or final taxes do not include the 103.7following: 103.8    (1) special assessments; 103.9    (2) levies approved by the voters after the date the proposed taxes are certified, including 103.10bond referenda and school district levy referenda; 103.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 103.12in November of the levy year as provided under section 275.73; 103.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 103.14after the date the proposed taxes are certified; 103.15    (5) amounts necessary to pay tort judgments against the taxing authority that become 103.16final after the date the proposed taxes are certified; and 103.17    (6) the contamination tax imposed on properties which received market value reductions 103.18for contamination. 103.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 103.20county treasurer to deliver the notice as required in this section does not invalidate the 103.21proposed or final tax levy or the taxes payable pursuant to the tax levy. 103.22    (g) If the notice the taxpayer receives under this section lists the property as 103.23nonhomestead, and satisfactory documentation is provided to the county assessor by the 103.24applicable deadline, and the property qualifies for the homestead classification in that 103.25assessment year, the assessor shall reclassify the property to homestead for taxes payable 103.26in the following year. 103.27    (h) In the case of class 4 residential property used as a residence for lease or rental 103.28periods of 30 days or more, the taxpayer must either: 103.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 103.30or lessee; or 103.31    (2) post a copy of the notice in a conspicuous place on the premises of the property. 104.1    The notice must be mailed or posted by the taxpayer by November 27 or within three 104.2days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 104.3of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 104.4notice must be mailed in order to fulfill the requirements of this paragraph. 104.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 104.6districts" means the following taxing districts in the seven-county metropolitan area that 104.7levy a property tax for any of the specified purposes listed below: 104.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 104.9473.521 , 473.547, or 473.834; 104.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and 104.11    (3) Metropolitan Mosquito Control Commission under section 473.711. 104.12    For purposes of this section, any levies made by the regional rail authorities in the county 104.13of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 104.14shall be included with the appropriate county's levy. 104.15    (j) The governing body of a county, city, or school district may, with the consent of the 104.16county board, include supplemental information with the statement of proposed property 104.17taxes about the impact of state aid increases or decreases on property tax increases or 104.18decreases and on the level of services provided in the affected jurisdiction. This supplemental 104.19information may include information for the following year, the current year, and for as 104.20many consecutive preceding years as deemed appropriate by the governing body of the 104.21county, city, or school district. It may include only information regarding: 104.22    (1) the impact of inflation as measured by the implicit price deflator for state and local 104.23government purchases; 104.24    (2) population growth and decline; 104.25    (3) state or federal government action; and 104.26    (4) other financial factors that affect the level of property taxation and local services 104.27that the governing body of the county, city, or school district may deem appropriate to 104.28include. 104.29    The information may be presented using tables, written narrative, and graphic 104.30representations and may contain instruction toward further sources of information or 104.31opportunity for comment. 104.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 105.1    Sec. 10. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read: 105.2    Subd. 2. School district in more than one county new text begin levies; special requirements new text end . new text begin (a) new text end In 105.3school districts lying in more than one county, the clerk shall certify the tax levied to the 105.4auditor of the county in which the administrative offices of the school district are located. 105.5 new text begin (b) The district must identify the portion of the school district levy that is levied for debt new text end 105.6 new text begin service at the time the levy is certified under this section. For the purposes of this paragraph, new text end 105.7 new text begin "levied for debt service" means levies authorized under sections 123B.53, 123B.535, and new text end 105.8 new text begin 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions new text end 105.9 new text begin under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment new text end 105.10 new text begin of other postemployment benefits under section 475.52, subdivision 6. new text end 105.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 105.12    Sec. 11. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read: 105.13    Subd. 1b. Computation of tax rates. new text begin (a) new text end The amounts certified to be levied against net 105.14tax capacity under section 275.07 by an individual local government unit shall be divided 105.15by the total net tax capacity of all taxable properties within the local government unit's 105.16taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 105.17each property's net tax capacity shall be each property's net tax capacity tax for that local 105.18government unit before reduction by any credits. 105.19 new text begin (b) The auditor must also determine the school debt tax rate for each school district equal new text end 105.20 new text begin to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by new text end 105.21 new text begin (2) the total net tax capacity of all taxable property within the district. new text end 105.22 new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall 105.23be divided by the total referendum market value of all taxable properties within the taxing 105.24district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 105.25property's referendum market value shall be each property's new referendum tax before 105.26reduction by any credits. For the purposes of this subdivision, "referendum market value" 105.27means the market value as defined in section 126C.01, subdivision 3. 105.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 105.29    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read: 105.30    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of 105.31the tax statements. The commissioner of revenue shall prescribe the form of the property 105.32tax statement and its contents. The tax statement must not state or imply that property tax 106.1credits are paid by the state of Minnesota. The statement must contain a tabulated statement 106.2of the dollar amount due to each taxing authority and the amount of the state tax from the 106.3parcel of real property for which a particular tax statement is prepared. The dollar amounts 106.4attributable to the county, the state tax, the voter approved school tax, the other local school 106.5tax, the township or municipality, and the total of the metropolitan special taxing districts 106.6as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 106.7amounts due all other special taxing districts, if any, may be aggregated except that any 106.8levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 106.9Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 106.10under the appropriate county's levy. If the county levy under this paragraph includes an 106.11amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 106.12the amount attributable for that purpose must be separately stated from the remaining county 106.13levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 106.14an amount for public library service under section 134.07, the amount attributable for that 106.15purpose may be separated from the remaining county levy amount. The amount of the tax 106.16on homesteads qualifying under the senior citizens' property tax deferral program under 106.17chapter 290B is the total amount of property tax before subtraction of the deferred property 106.18tax amount. The amount of the tax on contamination value imposed under sections 270.91 106.19to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 106.20amount of any special assessments, may be rounded to the nearest even whole dollar. For 106.21purposes of this section whole odd-numbered dollars may be adjusted to the next higher 106.22even-numbered dollar. The amount of market value excluded under section 273.11, 106.23subdivision 16 , if any, must also be listed on the tax statement. 106.24    (b) The property tax statements for manufactured homes and sectional structures taxed 106.25as personal property shall contain the same information that is required on the tax statements 106.26for real property. 106.27    (c) Real and personal property tax statements must contain the following information 106.28in the order given in this paragraph. The information must contain the current year tax 106.29information in the right column with the corresponding information for the previous year 106.30in a column on the left: 106.31    (1) the property's estimated market value under section 273.11, subdivision 1; 106.32    (2) the property's homestead market value exclusion under section 273.13, subdivision 106.3335; 106.34    (3) the property's taxable market value under section 272.03, subdivision 15; 107.1    (4) the property's gross tax, before credits; 107.2    (5) for homestead agricultural properties, the credit new text begin credits new text end under section new text begin sections new text end 107.3273.1384 new text begin and 273.1387 new text end ; 107.4    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 107.5273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 107.6received under section 273.135 must be separately stated and identified as "taconite tax 107.7relief"; and 107.8    (7) the net tax payable in the manner required in paragraph (a). 107.9    (d) If the county uses envelopes for mailing property tax statements and if the county 107.10agrees, a taxing district may include a notice with the property tax statement notifying 107.11taxpayers when the taxing district will begin its budget deliberations for the current year, 107.12and encouraging taxpayers to attend the hearings. If the county allows notices to be included 107.13in the envelope containing the property tax statement, and if more than one taxing district 107.14relative to a given property decides to include a notice with the tax statement, the county 107.15treasurer or auditor must coordinate the process and may combine the information on a 107.16single announcement. 107.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 107.18    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read: 107.19    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than 107.2010,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing 107.21percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus 107.22(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664. 107.23    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 107.24revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing 107.25percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population 107.26decline. 107.27    (c) For a city with a population less than 2,500, "city revenue need" is the sum of 410 107.28plus 0.367 times the city's population over 100. The city revenue need under this paragraph 107.29shall not exceed 630. 107.30    (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 107.31need" equals (1) the transition factor times the city's revenue need calculated in paragraph 107.32(b); plus (2) 630 times the difference between one and the transition factor. For a city with 108.1a population of at least 10,000 but less than 10,500 new text begin 11,000 new text end , the "city revenue need" equals 108.2(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2) 108.3the city's revenue need calculated under the formula in paragraph (b) times the difference 108.4between one and the transition factor. For purposes of new text begin the first sentence of new text end this paragraph new text begin , new text end 108.5"transition factor" is 0.2 percent times the amount that the city's population exceeds the 108.6minimum threshold in either of the first two sentences. new text begin For purposes of the second sentence new text end 108.7 new text begin of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population new text end 108.8 new text begin exceeds the minimum threshold. new text end 108.9    (e) The city revenue need cannot be less than zero. 108.10    (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as 108.11determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 108.12deflator for government consumption expenditures and gross investment for state and local 108.13governments as prepared by the United States Department of Commerce, for the most 108.14recently available year to the 2013 implicit price deflator for state and local government 108.15purchases. 108.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 108.17 new text begin and thereafter. new text end 108.18    Sec. 14. new text begin [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR new text end 108.19 new text begin CERTAIN OUT-OF-HOME PLACEMENT. new text end 108.20     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin For purposes of this section, "out-of-home placement" means new text end 108.21 new text begin 24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21, new text end 108.22 new text begin placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's new text end 108.23 new text begin parent or guardian and for whom the county social services agency or county correctional new text end 108.24 new text begin agency has been assigned responsibility for the child's placement and care, which includes new text end 108.25 new text begin placement in foster care under section 260C.007, subdivision 18, and a correctional facility new text end 108.26 new text begin pursuant to a court order. new text end 108.27     new text begin Subd. 2. new text end new text begin Determination of nonfederal share of costs. new text end new text begin (a) By July 1, 2017, each county new text end 108.28 new text begin shall report the following information to the commissioners of human services and new text end 108.29 new text begin corrections: (1) the separate amounts paid out of the county's social service agency and its new text end 108.30 new text begin corrections budget for out-of-home placement of children under the ICWA in calendar years new text end 108.31 new text begin 2013, 2014, and 2015; and (2) the number of case days associated with the expenditures new text end 108.32 new text begin from each budget. The commissioner of human services shall prescribe the format of the new text end 108.33 new text begin report. By July 15, 2017, the commissioner of human services, in consultation with the new text end 108.34 new text begin commissioner of corrections, shall certify to the commissioner of revenue and to the new text end 109.1 new text begin legislative committees with jurisdiction over local government aids and out-of-home new text end 109.2 new text begin placement funding whether the data reported under this subdivision accurately reflect total new text end 109.3 new text begin expenditures by counties for out-of-home placement costs of children under the ICWA. new text end 109.4 new text begin (b) By January 1, 2018, and each January 1 thereafter, each county shall report to the new text end 109.5 new text begin commissioners of human services and corrections the separate amounts paid out of the new text end 109.6 new text begin county's social service agency and its corrections budget for out-of-home placement of new text end 109.7 new text begin children under the ICWA in the calendar years two years before the current calendar year new text end 109.8 new text begin along with the number of case days associated with the expenditures from each budget. The new text end 109.9 new text begin commissioner of human services shall prescribe the format of the report. new text end 109.10 new text begin (c) Until the commissioner of human services develops another mechanism for collecting new text end 109.11 new text begin and verifying data on out-of-home placements of children under the ICWA, and the new text end 109.12 new text begin legislature authorizes the use of that data, the data collected under this subdivision must be new text end 109.13 new text begin used to calculate payments under subdivision 3. The commissioner of human services shall new text end 109.14 new text begin certify the nonfederal out-of-home placement costs for the three prior calendar years for new text end 109.15 new text begin each county and the amount of any federal reimbursement received by a tribe under the new text end 109.16 new text begin ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the new text end 109.17 new text begin year before the aid payment. new text end 109.18     new text begin Subd. 3. new text end new text begin Aid for counties. new text end new text begin For aids payable in calendar year 2018 and thereafter, the new text end 109.19 new text begin amount of reimbursement to each county is a county's proportionate share of the appropriation new text end 109.20 new text begin in subdivision 6 that remains after the aid for tribes has been paid. Each county's new text end 109.21 new text begin proportionate share is based on the county's average nonfederal share of the cost for new text end 109.22 new text begin out-of-home placement of children under the ICWA for the three calendar years that were new text end 109.23 new text begin certified by the commissioner of human services by June 1 of the prior year, provided that new text end 109.24 new text begin the commissioner of human services, in consultation with the commissioner of corrections, new text end 109.25 new text begin certifies to the commissioner of revenue that accurate data are available to make the aid new text end 109.26 new text begin determination under this section. For aids payable in calendar year 2018, each county's new text end 109.27 new text begin proportionate share is based on the county's nonfederal share of the cost for out-of-home new text end 109.28 new text begin placement of children under the ICWA that was certified by the commissioner of human new text end 109.29 new text begin services by July 15, 2017. new text end 109.30     new text begin Subd. 4. new text end new text begin Aid for tribes. new text end new text begin For aids payable in 2018 and thereafter, the amount of new text end 109.31 new text begin reimbursement to each tribe shall be the greater of (1) five percent of the average new text end 109.32 new text begin reimbursement amount received from the federal government for out-of-home placement new text end 109.33 new text begin costs for the three calendar years that were certified by June 1 of the prior year, or (2) new text end 109.34 new text begin $200,000. new text end 110.1     new text begin Subd. 5. new text end new text begin Payments. new text end new text begin The commissioner of revenue must compute the amount of the new text end 110.2 new text begin reimbursement aid payable to each county and tribe under this section. On or before August new text end 110.3 new text begin 1 of each year, the commissioner shall certify the amount to be paid to each county and new text end 110.4 new text begin tribe in the following year. The commissioner shall pay reimbursement aid annually at the new text end 110.5 new text begin times provided in section 477A.015. new text end 110.6     new text begin Subd. 6. new text end new text begin Appropriation. new text end new text begin $2,000,000 is annually appropriated to the commissioner of new text end 110.7 new text begin revenue from the general fund to pay aid under this section. new text end 110.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2018. new text end 110.9    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read: 110.10    Subd. 8. City formula aid. (a) For aids payable in 2015 new text begin 2018 new text end and thereafter, the formula 110.11aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 110.12of (i) new text begin (1) new text end the difference between its unmet need and its formula new text begin certified new text end aid in the previous 110.13year new text begin and before any aid adjustment under subdivision 13 new text end , and (ii) new text begin (2) new text end the aid gap percentage. 110.14    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 110.15year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 110.16its formula aid is adjusted to equal its unmet need. 110.17    (c) No city may have a formula aid amount less than zero. The aid gap percentage must 110.18be the same for all cities subject to paragraph (a). 110.19    (d) new text begin (b) new text end The applicable aid gap percentage must be calculated by the Department of 110.20Revenue so that the total of the aid under subdivision 9 equals the total amount available 110.21for aid under section 477A.03. new text begin The aid gap percentage must be the same for all cities subject new text end 110.22 new text begin to paragraph (a). new text end Data used in calculating aids to cities under sections 477A.011 to 477A.013 110.23shall be the most recently available data as of January 1 in the year in which the aid is 110.24calculated. 110.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 110.26 new text begin and thereafter. new text end 110.27    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read: 110.28    Subd. 9. City aid distribution. (a) In calendar year 2014 new text begin 2018 new text end and thereafter, each city new text begin new text end 110.29 new text begin if a city's certified aid before any aid adjustment under subdivision 13 for the previous year new text end 110.30 new text begin is less than its current unmet need, the city new text end shall receive an aid distribution equal to the sum 110.31of (1) new text begin its certified aid in the previous year before any aid adjustment under subdivision 13, new text end 111.1 new text begin (2) new text end the city formula aid under subdivision 8, and (2) new text begin (3) new text end its aid adjustment under subdivision 111.213. 111.3    (b) For aids payable in 2015 new text begin 2018 new text end and thereafter, new text begin if a city's certified aid before any aid new text end 111.4 new text begin adjustment under subdivision 13 for the previous year is equal to or greater than its current new text end 111.5 new text begin unmet need, new text end the total aid for a city must not be less than new text begin is equal to the greater of (1) its new text end 111.6 new text begin unmet need plus any aid adjustment under subdivision 13, or (2) new text end the amount it was certified 111.7to receive in the previous year minus the lesser of $10 multiplied by its population, or five 111.8percent of its net levy in the year prior to the aid distribution. new text begin No city may have a total aid new text end 111.9 new text begin amount less than $0. new text end 111.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 111.11 new text begin and thereafter. new text end 111.12    Sec. 17. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read: 111.13    Subd. 2a. Cities. The total aid paid under section 477A.013, subdivision 9, is 111.14$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter new text begin 2017 new text end , the 111.15total aid paid under section 477A.013, subdivision 9, is $519,398,012 new text begin . For aids payable in new text end 111.16 new text begin 2018, the total aid paid under section 477A.013, subdivision 9, is $531,398,012. For aids new text end 111.17 new text begin payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision 9, is new text end 111.18 new text begin $519,398,012 new text end . 111.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 111.20 new text begin and thereafter. new text end 111.21    Sec. 18. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read: 111.22    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter new text begin through 2017 new text end , the total 111.23aid payable under section 477A.0124, subdivision 3, is $100,795,000. new text begin For aids payable in new text end 111.24 new text begin 2018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000, of new text end 111.25 new text begin which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, new text end 111.26 new text begin section 6. For aids payable in 2019 through 2024, the total aid payable under section new text end 111.27 new text begin 477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as required new text end 111.28 new text begin under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, new text end 111.29 new text begin the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. new text end Each calendar 111.30year, $500,000 of this appropriation shall be retained by the commissioner of revenue to 111.31make reimbursements to the commissioner of management and budget for payments made 111.32under section 611.27. The reimbursements shall be to defray the additional costs associated 111.33with court-ordered counsel under section 611.27. Any retained amounts not used for 112.1reimbursement in a year shall be included in the next distribution of county need aid that 112.2is certified to the county auditors for the purpose of property tax reduction for the next taxes 112.3payable year. 112.4    (b) For aids payable in 2014 and thereafter new text begin 2017 new text end , the total aid under section 477A.0124, 112.5subdivision 4 , is $104,909,575. new text begin For aids payable in 2018, the total aid payable under section new text end 112.6 new text begin 477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter, the new text end 112.7 new text begin total aid payable under section 477A.0124, subdivision 4, is $104,909,575. new text end The commissioner 112.8of revenue shall transfer to the commissioner of management and budget $207,000 annually 112.9for the cost of preparation of local impact notes as required by section 3.987, and other local 112.10government activities. The commissioner of revenue shall transfer to the commissioner of 112.11education $7,000 annually for the cost of preparation of local impact notes for school districts 112.12as required by section 3.987. The commissioner of revenue shall deduct the amounts 112.13transferred under this paragraph from the appropriation under this paragraph. The amounts 112.14transferred are appropriated to the commissioner of management and budget and the 112.15commissioner of education respectively. 112.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 112.17    Sec. 19. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 112.18to read: 112.19     new text begin Subd. 5a. new text end new text begin Large forest easement value reduction. new text end new text begin "Large forest easement value new text end 112.20 new text begin reduction" means the market value reduction due to a single forest for the future easement new text end 112.21 new text begin on land exceeding 60,000 acres that was acquired as provided in section 84.66. new text end 112.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for assessment year 2011 new text end 112.23 new text begin and thereafter. new text end 112.24    Sec. 20. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read: 112.25    Subdivision 1. Types of land; payments. The following amounts are annually 112.26appropriated to the commissioner of natural resources from the general fund for transfer to 112.27the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 112.28to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 112.29as of July 1 of each year prior to the payment year, are: 112.30(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 112.31at the county's option three-fourths of one percent of the appraised value of all acquired 112.32natural resources land in the county, whichever is greater; 113.1(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 113.2county's option, three-fourths of one percent of the appraised value of all transportation 113.3wetland in the county, whichever is greater; 113.4(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 113.5the county's option, three-fourths of one percent of the appraised value of all wildlife 113.6management land in the county, whichever is greater; 113.7 new text begin (4) $5.133, multiplied by the total number of acres of large forest easement land, or, at new text end 113.8 new text begin the county's option, three-fourths of one percent of the large forest easement value reduction new text end 113.9 new text begin in the county, whichever is greater; new text end 113.10(4) new text begin (5) new text end 50 percent of the dollar amount as determined under clause (1), multiplied by 113.11the number of acres of military refuge land in the county; 113.12(5) new text begin (6) new text end $1.50 new text begin $2 new text end , multiplied by the number of acres of county-administered other natural 113.13resources land in the county; 113.14(6) new text begin (7) new text end $5.133, multiplied by the total number of acres of land utilization project land in 113.15the county; 113.16(7) new text begin (8) new text end $1.50 new text begin $2 new text end , multiplied by the number of acres of commissioner-administered other 113.17natural resources land in the county; and 113.18    (8) new text begin (9) new text end without regard to acreage, and notwithstanding the rules adopted under section 113.1984A.55 , $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 113.20divided and distributed to the counties containing state-owned lands within a conservation 113.21area in proportion to each county's percentage of the total annual ditch assessments. 113.22 new text begin EFFECTIVE DATE. new text end new text begin Clause (4) is effective retroactively for assessment year 2011 new text end 113.23 new text begin and thereafter. Clauses (6) and (8) are effective for payments made in calendar year 2018 new text end 113.24 new text begin and thereafter. new text end 113.25    Sec. 21. Minnesota Statutes 2016, section 477A.12, subdivision 2, is amended to read: 113.26    Subd. 2. Procedure. (a) Each county auditor shall certify to the Department of Natural 113.27Resources during July of each year prior to the payment year new text begin : (1) new text end the number of acres of 113.28county-administered other natural resources land within the county new text begin ; and (2) the assessed new text end 113.29 new text begin value of large forest easement value reduction in the county new text end . The Department of Natural 113.30resources may, in addition to the certification of acreage, require descriptive lists of land 113.31so certified. The commissioner of natural resources shall determine and certify to the 113.32commissioner of revenue by March 1 of the payment year: 114.1(1) the number of acres and most recent appraised value of acquired natural resources 114.2land, wildlife management land, and military refuge land within each county; 114.3(2) the number of acres of commissioner-administered natural resources land within 114.4each county; 114.5(3) the number of acres of county-administered other natural resources land within each 114.6county, based on the reports filed by each county auditor with the commissioner of natural 114.7resources; and 114.8(4) the number of acres of land utilization project land within each county. 114.9(b) The commissioner of transportation shall determine and certify to the commissioner 114.10of revenue by March 1 of the payment year the number of acres of transportation wetland 114.11and the appraised value of the land, but only if it exceeds 500 acres in a county. 114.12(c) Each auditor of a county that contains state-owned lands within a conservation area 114.13shall determine and certify to the commissioner of natural resources by May 31 of the 114.14payment year, the county's ditch assessments for state-owned lands subject to section 84A.55, 114.15subdivision 9 . A joint certification for two or more counties may be submitted to the 114.16commissioner of natural resources through the Consolidated Conservation Counties Joint 114.17Powers Board. The commissioner of natural resources shall certify the ditch assessments 114.18to the commissioner of revenue by June 15 of the payment year. 114.19(d) The commissioner of revenue shall determine the distributions provided for in this 114.20section using: (1) the number of acres and appraised values certified by the commissioner 114.21of natural resources and the commissioner of transportation by March 1 of the payment 114.22year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year new text begin ; and new text end 114.23 new text begin (3) the assessed value of large forest easement value reduction certified by the county auditor new text end . 114.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for assessment year 2011 new text end 114.25 new text begin and thereafter. new text end 114.26    Sec. 22. Minnesota Statutes 2016, section 477A.14, subdivision 3, is amended to read: 114.27    Subd. 3. Distribution for wildlife management lands and military refuge lands. (a) 114.28The county treasurer shall allocate the payment for wildlife management land new text begin , large forest new text end 114.29 new text begin easement value reduction, new text end and military game refuge land among the county, towns, and 114.30school districts on the same basis as if the payments were taxes on the land received in the 114.31year. Payment of a town's or a school district's allocation must be made by the county 114.32treasurer to the town or school district within 30 days of receipt of the payment to the county. 114.33The county's share of the payment shall be deposited in the county general revenue fund. 115.1(b) The county treasurer of a county with a population over 39,000, but less than 42,000, 115.2in the 1950 federal census shall allocate the payment only among the towns and school 115.3districts on the same basis as if the payments were taxes on the lands received in the current 115.4year. 115.5(c) If a town received a payment in calendar year 2006 or thereafter under this subdivision, 115.6and subsequently incorporated as a city, the city shall continue to receive any future year's 115.7allocations of wildlife land payments that would have been made to the town had it not 115.8incorporated, provided that the payments shall terminate if the governing body of the city 115.9passes an ordinance that prohibits hunting within the boundaries of the city. 115.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for assessment year 2011 new text end 115.11 new text begin and thereafter. new text end 115.12    Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read: 115.13477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 115.14ANNUAL PAYMENTS. 115.15    (a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause 115.16(1), the county shall receive an annual payment for state-owned land within the boundary 115.17of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012, 115.18subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land. 115.19    (b) For the purposes of this section, the appraised value of the land acquired for Lake 115.20Vermilion-Soudan Underground Mine State Park for the first five years after acquisition 115.21shall be the purchase price of the land, plus the value of any portion of the land that is 115.22acquired by donation. Thereafter, the appraised value of the state-owned land shall be as 115.23determined under section 477A.12, subdivision 3 new text begin , except that the appraised value of the new text end 115.24 new text begin state-owned land within the park shall not be reduced below the 2010 appraised value of new text end 115.25 new text begin the land new text end . 115.26    (c) The annual payments under this section shall be distributed to the taxing jurisdictions 115.27containing the property as follows: one-third to the school districts; one-third to the town; 115.28and one-third to the county. The payment to school districts is not a county apportionment 115.29under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 115.30may use the payments for their general purposes. 115.31    (d) Except as provided in this section, the payments shall be made as provided in sections 115.32477A.11 to 477A.13. 115.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2017. new text end 116.1    Sec. 24. new text begin 2014 AID PENALTY FORGIVENESS. new text end 116.2 new text begin (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of new text end 116.3 new text begin Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment new text end 116.4 new text begin that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that new text end 116.5 new text begin the state auditor certifies to the commissioner of revenue that the city complied with all new text end 116.6 new text begin reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for new text end 116.7 new text begin calendar years 2013 and 2014 by June 1, 2015. new text end 116.8 new text begin (b) The commissioner of revenue shall make payment to each city no later than July 20, new text end 116.9 new text begin 2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the new text end 116.10 new text begin commissioner of revenue to make the payments under this section. new text end 116.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 116.12    Sec. 25. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY. new text end 116.13 new text begin For a city that incorporated on October 13, 2015, and first qualifies for aid under new text end 116.14 new text begin Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's formula aid new text end 116.15 new text begin for 2016, used in calculating aid payable in 2017, shall be deemed to equal $115 multiplied new text end 116.16 new text begin by its population. new text end 116.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2017. The 2017 aid new text end 116.18 new text begin payment under section 477A.013, subdivision 9, for a city that qualifies under this section new text end 116.19 new text begin shall be recalculated based on this section. The increase shall be treated as an aid correction new text end 116.20 new text begin under Minnesota Statutes, section 477A.014, subdivision 3. new text end 116.21    Sec. 26. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO. new text end 116.22 new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo new text end 116.23 new text begin shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, new text end 116.24 new text begin section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision new text end 116.25 new text begin 3, provided that the state auditor certifies to the commissioner of revenue that it received new text end 116.26 new text begin audited financial statements from the city for calendar year 2012 by December 31, 2013. new text end 116.27 new text begin The commissioner of revenue shall make a payment of $37,473.50 with the first payment new text end 116.28 new text begin of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the new text end 116.29 new text begin general fund to the commissioner of revenue in fiscal year 2018 to make this payment. new text end 116.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 117.1    Sec. 27. new text begin APPROPRIATION; DEBT SERVICE EQUALIZATION AID. new text end 117.2 new text begin For fiscal year 2019 only, $14,182,000 is appropriated from the general fund to the new text end 117.3 new text begin Department of Education for debt service aid under Minnesota Statutes, section 123B.53. new text end 117.4 new text begin This amount is in addition to other appropriations for the same purpose. new text end 117.5    Sec. 28. new text begin APPROPRIATION; FIRE REMEDIATION GRANTS. new text end 117.6 new text begin $1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner new text end 117.7 new text begin of public safety for grants to remediate the effects of fires in the city of Melrose on September new text end 117.8 new text begin 8, 2016. The commissioner must allocate the grants as follows: new text end 117.9 new text begin (1) $1,296,458 to the city of Melrose; and new text end 117.10 new text begin (2) $95,800 to Stearns County. new text end 117.11 new text begin A grant recipient must use the money appropriated under this section for remediation new text end 117.12 new text begin costs, including disaster recovery, infrastructure, reimbursement for emergency personnel new text end 117.13 new text begin costs, reimbursement for equipment costs, and reimbursements for property tax abatements, new text end 117.14 new text begin incurred by public or private entities as a result of the fires. This is a onetime appropriation new text end 117.15 new text begin and is available until June 30, 2018. new text end 117.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 117.17    Sec. 29. new text begin APPROPRIATION. new text end 117.18 new text begin For fiscal year 2019, $28,827,000 is appropriated from the general fund to the new text end 117.19 new text begin commissioner of education for additional referendum equalization aid under Minnesota new text end 117.20 new text begin Statutes, section 126C.17, subdivision 7. This amount is in addition to other appropriations new text end 117.21 new text begin for the same purpose. new text end 117.22    Sec. 30. new text begin AID REDUCTIONS. new text end 117.23 new text begin (a) Notwithstanding any law to the contrary, for aids payable in 2018 and thereafter, new text end 117.24 new text begin under Minnesota Statutes, section 477A.013, the total aid payable to the city of Minneapolis new text end 117.25 new text begin shall be $50,000,000. new text end 117.26 new text begin (b) The total appropriation under section 477A.03, subdivision 2a, shall be reduced by new text end 117.27 new text begin $28,827,000 for aids payable in 2018 and thereafter. new text end 117.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 118.1ARTICLE 5 118.2LOCAL OPTION SALES AND SPECIAL TAXES 118.3    Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 118.4chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 118.5First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 118.6section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read: 118.7    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 118.8ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 118.9impose an additional sales tax of up to one and three-quarter percent on sales transactions 118.10which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 118.11The imposition of this tax shall not be subject to voter referendum under either state law or 118.12city charter provisions. When the city council determines that the taxes imposed under this 118.13paragraph at a rate of three-quarters of one percent and other sources of revenue produce 118.14revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 118.15issuance and discount costs, issued for capital improvements at the Duluth Entertainment 118.16and Convention Center, which include a new arena, the rate of tax under this subdivision 118.17must be reduced by three-quarters of one percent. 118.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 118.19477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 118.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 118.21on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 118.22subdivision 3, clause (c). This tax expires when the city council determines that the tax 118.23imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 118.24has produced revenues sufficient to pay the debt service on bonds in a principal amount of 118.25no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 118.26to public facilities to support tourism and recreational activities in that portion of the city 118.27west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline Parkway new text end . 118.28(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 118.29under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 118.30issuance and any premiums. The proceeds may be used to finance capital improvements to 118.31public facilities that support tourism and recreational activities in the portion of the city 118.32west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline Parkway new text end , as 118.33described in paragraph (b). The issuance of the bonds is subject to the provisions of 118.34Minnesota Statutes, chapter 475, except no election shall be required unless required by the 119.1city charter. The bonds shall not be included in computing net debt. The revenues from the 119.2taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 119.3(b), may be pledged to pay principal of and interest on such bonds. 119.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 119.5 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 119.6 new text begin subdivisions 2 and 3. new text end 119.7    Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 119.88, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 119.92014, chapter 308, article 3, section 22, is amended to read: 119.10    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS. 119.11    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 119.12or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 119.13additional tax of one percent upon the gross receipts from the sale of lodging for periods of 119.14less than 30 days in hotels and motels located in the city. The tax shall be collected in the 119.15same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 119.16The imposition of this tax shall not be subject to voter referendum under either state law or 119.17city charter provisions. 119.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 119.19477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 119.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 119.21on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 119.22motels located in the city. This tax expires when the city council first determines that the 119.23tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 119.24(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 119.25of no more than $18,000,000, plus issuance and discount costs, to finance capital 119.26improvements to public facilities to support tourism and recreational activities in that portion 119.27of the city west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline new text end 119.28 new text begin Parkway new text end . 119.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 119.30 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 119.31 new text begin subdivisions 2 and 3. new text end 120.1    Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 120.21998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 120.3Laws 2009, chapter 88, article 4, section 14, is amended to read: 120.4    Subd. 3. Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by subdivisions 120.51 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 120.6portion of the expenses of constructing and improving facilities as part of an urban 120.7revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 120.8include, but are not limited to, acquiring property and paying relocation expenses related 120.9to the development of Riverfront 2000 and related facilities, and securing or paying debt 120.10service on bonds or other obligations issued to finance the construction of Riverfront 2000 120.11and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 120.12means a civic-convention center, an arena, a riverfront park, a technology center and related 120.13educational facilities, and all publicly owned real or personal property that the governing 120.14body of the city determines will be necessary to facilitate the use of these facilities, including 120.15but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 120.16includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 120.17Center, for use by Minnesota State University, Mankato. 120.18     new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved new text end 120.19 new text begin by voters at the November 4, 2016, general election, the city may by ordinance also use new text end 120.20 new text begin revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, new text end 120.21 new text begin plus associated bond costs, to pay all or a portion of the expenses of the following capital new text end 120.22 new text begin projects: new text end 120.23     new text begin (1) construction and improvements to regional recreational facilities including existing new text end 120.24 new text begin hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal new text end 120.25 new text begin swimming pool including improvements to make the pool compliant with the Americans new text end 120.26 new text begin with Disabilities Act, and indoor regional athletic facilities; new text end new text begin new text end 120.27     new text begin (2) improvements to flood control and the levee system; new text end 120.28 new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties; new text end new text begin new text end 120.29 new text begin (4) expansion of the regional transit building and related multimodal transit new text end 120.30 new text begin improvements; new text end 120.31 new text begin (5) regional public safety and emergency communications improvements and equipment; new text end 120.32 new text begin and new text end 121.1 new text begin (6) matching funds for improvements to publicly owned regional facilities including a new text end 121.2 new text begin historic museum, supportive housing, and a senior center. new text end 121.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 121.4 new text begin city of Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 121.5 new text begin 645.021, subdivisions 2 and 3. new text end 121.6    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 121.72005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 121.8article 7, section 10, is amended to read: 121.9    Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 121.10granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 121.11expire on new text begin at the earlier of when revenues are sufficient to pay off the bonds, including new text end 121.12 new text begin interest and all other associated bond costs authorized under subdivision 5, or new text end December 121.1331, 2022 new text begin 2038 new text end . 121.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 121.15 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 121.16    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read: 121.17    Subd. 5. Bonds. new text begin (a) new text end The city of Mankato may issue general obligation bonds of the city 121.18in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 121.19election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 121.20a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 121.21facilities shall not be included in computing any debt limitations applicable to the city of 121.22Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 121.23on the bonds shall not be subject to any levy limitation or be included in computing or 121.24applying any levy limitation applicable to the city. 121.25     new text begin (b) The city of Mankato may issue general obligation bonds of the city in an amount not new text end 121.26 new text begin to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without new text end 121.27 new text begin election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or new text end 121.28 new text begin a tax to pay them. The debt represented by bonds under this paragraph shall not be included new text end 121.29 new text begin in computing any debt limitations applicable to the city of Mankato, and the levy of taxes new text end 121.30 new text begin required by Minnesota Statutes, section new text end new text begin 475.61, new text end new text begin to pay principal of and interest on the bonds, new text end 121.31 new text begin and shall not be subject to any levy limitation or be included in computing or applying any new text end 121.32 new text begin levy limitation applicable to the city. The city may use tax revenue in excess of one year's new text end 122.1 new text begin principal interest reserve for intended annual bond payments to pay all or a portion of the new text end 122.2 new text begin cost of capital improvements authorized in subdivision 3. new text end 122.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 122.4 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 122.5    Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 122.62006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 122.7article 4, section 4, is amended to read: 122.8    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 122.9477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 122.10Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 122.11sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 122.12the city. The proceeds of the tax imposed under this section must be used to meet the costs 122.13of: 122.14    (1) extending a sewer interceptor line; 122.15    (2) construction of a booster pump station, reservoirs, and related improvements to the 122.16water system; and 122.17    (3) construction of a building containing a police and fire station and an administrative 122.18services facility. 122.19(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 122.20it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 122.21is approved by the voters at a general election held before December 31, 2012. 122.22 new text begin (c) As approved by the voters at the November 8, 2016, general election, the proceeds new text end 122.23 new text begin under this section may also be used to meet the costs of debt service payments for new text end 122.24 new text begin construction of the Hermantown Wellness Center. new text end 122.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 122.26 new text begin city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section new text end 122.27 new text begin 645.021, subdivisions 2 and 3. new text end 122.28    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 122.292006, chapter 259, article 3, section 4, is amended to read: 122.30    Subd. 4. Termination. The tax authorized under this section terminates on March 31, 122.312026 new text begin at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council new text end 123.1 new text begin first determines that sufficient funds have been received from the tax to fund the costs, new text end 123.2 new text begin including bonds and associated bond costs for the uses specified in subdivision 1 new text end . Any funds 123.3remaining after completion of the improvements and retirement or redemption of the bonds 123.4may be placed in the general fund of the city. 123.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 123.6 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 123.7    Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read: 123.8    Subd. 3. Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by subdivisions 123.91 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 123.10construction and improvement of a civic and community center and recreational facilities 123.11to serve all ages, including seniors and youth. Authorized expenses include, but are not 123.12limited to, acquiring property, paying construction and operating expenses related to the 123.13development of an authorized facility, funding facilities replacement reserves, and paying 123.14debt service on bonds or other obligations issued to finance the construction or expansion 123.15of an authorized facility. The capital expenses for all projects authorized under this 123.16subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount 123.17equal to the costs related to issuance of the bonds and funding facilities replacement reserves. 123.18     new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved new text end 123.19 new text begin by the voters at the November 8, 2016, general election, the city of New Ulm may by new text end 123.20 new text begin ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a new text end 123.21 new text begin maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses new text end 123.22 new text begin of the following capital projects: new text end 123.23     new text begin (1) constructing an indoor water park and making safety improvements to the existing new text end 123.24 new text begin recreational center pool; new text end 123.25     new text begin (2) constructing an indoor playground, a wellness center, and a gymnastics facility; new text end 123.26     new text begin (3) constructing a winter multipurpose dome; new text end 123.27     new text begin (4) making improvements to Johnson Park Grandstand; and new text end 123.28     new text begin (5) making improvements to the entrance road and parking at Hermann Heights Park. new text end 123.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 123.30 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 123.31 new text begin 645.021, subdivisions 2 and 3. new text end 124.1    Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision 124.2to read: 124.3     new text begin Subd. 4a. new text end new text begin Bonding authority; additional use and extension of tax. new text end new text begin As approved by new text end 124.4 new text begin the voters at the November 8, 2016, general election, and in addition to the bonds issued new text end 124.5 new text begin under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in new text end 124.6 new text begin an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b). new text end 124.7 new text begin The debt represented by bonds under this subdivision shall not be included in computing new text end 124.8 new text begin any debt limitations applicable to the city of New Ulm, and the levy of taxes required by new text end 124.9 new text begin Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall new text end 124.10 new text begin not be subject to any levy limitation or be included in computing or applying any levy new text end 124.11 new text begin limitation applicable to the city. new text end 124.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 124.13 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 124.14 new text begin 645.021, subdivisions 2 and 3. new text end 124.15    Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read: 124.16    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 124.17when the city council determines that sufficient funds have been received from the taxes to 124.18finance the capital and administrative costs for the acquisition, construction, and improvement 124.19of facilities described in subdivision 3 new text begin , including the additional use of revenues under new text end 124.20 new text begin subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general new text end 124.21 new text begin election new text end , and to prepay or retire at maturity the principal, interest, and premium due on any 124.22bonds issued for the facilities under subdivision 4 new text begin subdivisions 4 and 4a new text end . Any funds remaining 124.23after completion of the project and retirement or redemption of the bonds may be placed in 124.24the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at 124.25an earlier time if the city so determines by ordinance. 124.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 124.27 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 124.28 new text begin 645.021, subdivisions 2 and 3. new text end 124.29    Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 124.302008, chapter 366, article 7, section 12, is amended to read: 124.31    Subdivision 1. Sales and use tax. new text begin (a) new text end Notwithstanding Minnesota Statutes, section 124.32477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city 124.33voters at the first municipal general election held after the date of final enactment of this 125.1act or at a special election held November 2, 1999, the city of Proctor may impose by 125.2ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 125.3subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 125.4administration, collection, and enforcement of the tax authorized under this subdivision. 125.5 new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of new text end 125.6 new text begin law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional new text end 125.7 new text begin sales and use tax of up to one-half of one percent, as approved by the voters at the November new text end 125.8 new text begin 4 election. The revenues received from the additional tax must be used for the purposes new text end 125.9 new text begin specified in subdivision 3, paragraph (b). new text end 125.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 125.11 new text begin city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 125.12 new text begin subdivisions 2 and 3. new text end 125.13    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2, 125.14as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read: 125.15    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be 125.16used to pay for lake new text begin water quality new text end improvement projects as detailed in the Shell Rock River 125.17watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding 125.18any provision of statute, other law, or city charter to the contrary, the city shall transfer all 125.19revenues from the tax imposed under subdivision 1, as soon as they are received, to the 125.20Shell Rock River Watershed District. The city is not required to review the intended uses 125.21of the revenues by the watershed district, nor is the watershed district required to submit to 125.22the city proposed budgets, statements, or invoices explaining the intended uses of the 125.23revenues as a prerequisite for the transfer of the revenues new text begin . The Shell Rock River Watershed new text end 125.24 new text begin District shall appear before the city of Albert Lea City Council on a biannual basis to present new text end 125.25 new text begin a report of its activities, expenditures, and intended uses of the city sales tax revenue new text end . 125.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the chief clerical officer new text end 125.27 new text begin and the governing body of the city of Albert Lea comply with Minnesota Statutes, section new text end 125.28 new text begin 645.021, subdivisions 2 and 3. new text end 125.29    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, 125.30as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read: 125.31    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier 125.32of (1) 15 new text begin 30 new text end years after the taxes are first imposed, or (2) when the city council first 125.33determines that the amount of revenues raised to pay for the projects under subdivision 2, 126.1shall meet or exceed the sum of $15,000,000 new text begin $30,000,000 new text end . Any funds remaining after 126.2completion of the projects may be placed in the general fund of the city. 126.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the chief clerical officer new text end 126.4 new text begin and the governing body of the city of Albert Lea comply with Minnesota Statutes, section new text end 126.5 new text begin 645.021, subdivisions 2 and 3. new text end 126.6    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3, 126.7as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read: 126.8    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 126.91 and 2 must be used by the city new text begin (1) new text end to pay the cost of collecting and administering the taxes 126.10and new text begin ; (2) new text end to pay for the costs of a community center complex and new text begin ; (3) new text end to make renovations 126.11to the Memorial Auditorium new text begin ; and (4) to construct public athletic facilities, provided that new text end 126.12 new text begin this use of the tax is subject to the same restrictions that apply to the issuance of debt provided new text end 126.13 new text begin in subdivision 4, paragraph (c) new text end . Authorized expenses include, but are not limited to, acquiring 126.14property and paying construction expenses related to these improvements, and paying debt 126.15service on bonds or other obligations issued to finance acquisition and construction of these 126.16improvements. 126.17    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the 126.18city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 5, 126.19paragraph (b), the city must use any amounts in excess of the amounts necessary to meet 126.20the obligations under paragraph (a) to pay the city's share of debt service on bonds issued 126.21under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 126.22System Project. 126.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 126.24 new text begin city of Worthington and its chief clerical officer comply with Minnesota Statutes, section new text end 126.25 new text begin 645.021, subdivisions 2 and 3. new text end 126.26    Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4, 126.27is amended to read: 126.28    Subd. 4. Bonding authority. (a) If the tax authorized under subdivision 1 is approved 126.29by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to pay capital 126.30and administrative expenses for the improvements described in subdivision 3 in an amount 126.31that does not exceed $6,000,000. An election to approve the bonds under Minnesota Statutes, 126.32section 475.58, is not required. 127.1    (b) The debt represented by the bonds is not included in computing any debt limitation 127.2applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 127.3pay principal of and interest on the bonds is not subject to any levy limitation. 127.4     new text begin (c) If the Worthington City Council intends to issue debt after June 30, 2017, for the new text end 127.5 new text begin purposes of this subdivision, it must pass a resolution stating the intent to issue debt and new text end 127.6 new text begin proposing a public hearing. The resolution must be published for two successive weeks in new text end 127.7 new text begin the official newspaper of the city together with a notice setting a date for the public hearing. new text end 127.8 new text begin The hearing must be held at least two weeks, but not more than four weeks, after the first new text end 127.9 new text begin publication after passage of the resolution. Following the public hearing, if the city adopts new text end 127.10 new text begin a resolution confirming its intention to issue additional debt, that resolution must also be new text end 127.11 new text begin published in the official newspaper of the city, but the resolution is not effective for 30 days. new text end 127.12 new text begin If within 30 days after publication of the resolution confirming the city's intention to issue new text end 127.13 new text begin additional debt a petition signed by voters equal in number to ten percent of the votes cast new text end 127.14 new text begin in the city in the last general election requesting a vote on the proposed resolution is filed new text end 127.15 new text begin with the county auditor, the resolution is not effective until it has been submitted to the new text end 127.16 new text begin voters in a general or special election and a majority of the votes cast on the question of new text end 127.17 new text begin approving the resolution are in the affirmative. The commissioner of revenue shall prepare new text end 127.18 new text begin a suggested form of question to be presented at the election. new text end 127.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 127.20 new text begin city of Worthington and its chief clerical officer comply with Minnesota Statutes, section new text end 127.21 new text begin 645.021, subdivisions 2 and 3. new text end 127.22    Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5, 127.23as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read: 127.24    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 127.25at the earlier of (1) ten years, or (2) when the city council determines that the amount of 127.26revenue received from the taxes new text begin is sufficient new text end to pay for the projects under subdivision 3 127.27equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to 127.28issuance of bonds under subdivision 4, including interest on the bonds. Any funds remaining 127.29after completion of the project and retirement or redemption of the bonds shall be placed 127.30in a capital project fund of the city. The taxes imposed under subdivisions 1 and 2 may 127.31expire at an earlier time if the city so determines by ordinance. 127.32    (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the taxes 127.33imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional 127.34revenues that exceed those necessary to fund the projects and associated financing costs 128.1listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds issued 128.2under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 128.3System Project. 128.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 128.5 new text begin city of Worthington and its chief clerical officer comply with Minnesota Statutes, section new text end 128.6 new text begin 645.021, subdivisions 2 and 3. new text end 128.7    Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read: 128.8    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED. 128.9    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 128.10section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 128.11approval of the voters on November 7, 2006, the city of North Mankato may impose by 128.12ordinance a sales and use tax of one-half of one percent for the purposes specified in 128.13subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 128.14administration, collection, and enforcement of the taxes authorized under this subdivision. 128.15    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 128.16must be used to pay all or part of the capital costs of the following projects: 128.17    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 128.18project; 128.19    (2) development of regional parks and hiking and biking trails new text begin , including construction new text end 128.20 new text begin of regional athletic facilities new text end ; 128.21    (3) expansion of the North Mankato Taylor Library; 128.22    (4) riverfront redevelopment; and 128.23    (5) lake improvement projects. 128.24    The total amount of revenues from the tax in subdivision 1 that may be used to fund 128.25these projects is $6,000,000 new text begin $21,000,000 new text end plus any associated bond costs. 128.26     new text begin Subd. 2a. new text end new text begin Authorization to extend the tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 128.27 new text begin 297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend the new text end 128.28 new text begin tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus new text end 128.29 new text begin associated bond costs, to fund the projects in subdivision 2 as approved by the voters at the new text end 128.30 new text begin November 8, 2016, general election. new text end 129.1    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 129.2at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 129.3may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 129.4expenses for the projects described in subdivision 2, in an amount that does not exceed 129.5$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 129.6475.58 , is not required. 129.7    (b) new text begin The city of North Mankato, pursuant to approval of the voters at the November 8, new text end 129.8 new text begin 2016, referendum extending the tax fee to provide additional revenue to be spent for the new text end 129.9 new text begin projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter new text end 129.10 new text begin 475, to pay capital and administrative expenses for those projects in an amount that does new text end 129.11 new text begin not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes, new text end 129.12 new text begin section new text end new text begin , is not required. new text end 129.13     new text begin (c) new text end The debt represented by the bonds is not included in computing any debt limitation 129.14applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 129.15pay principal and interest on the bonds is not subject to any levy limitation. 129.16    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the 129.17city council determines that the amount of revenues received from the taxes to pay for the 129.18projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 129.19needed to pay the costs related to issuance of bonds under subdivision 3, including interest 129.20on the bonds new text begin at the earlier of December 31, 2038, or when revenues from the taxes first new text end 129.21 new text begin equal or exceed $21,000,000 plus the additional amount needed to pay costs related to new text end 129.22 new text begin issuance of bonds under subdivision 3, including interest new text end . Any funds remaining after 129.23completion of the projects and retirement or redemption of the bonds shall be placed in a 129.24capital facilities and equipment replacement fund of the city. The tax imposed under 129.25subdivision 1 may expire at an earlier time if the city so determines by ordinance. 129.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 129.27 new text begin city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 129.28 new text begin 645.021, subdivisions 2 and 3. new text end 129.29    Sec. 18. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED. new text end 129.30     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 129.31 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 129.32 new text begin charter, and as approved by the voters at a special election on March 7, 2016, the city of new text end 129.33 new text begin East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for new text end 129.34 new text begin the purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 130.1 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 130.2 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 130.3     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 130.4 new text begin under subdivision 1 must be used by the city of East Grand Forks to pay the costs of new text end 130.5 new text begin collecting and administering the tax and to finance the capital and administrative costs of new text end 130.6 new text begin improvement to the city public swimming pool. Authorized expenses include, but are not new text end 130.7 new text begin limited to, paying construction expenses related to the renovation and the development of new text end 130.8 new text begin these facilities and improvements, and securing and paying debt service on bonds issued new text end 130.9 new text begin under subdivision 3 or other obligations issued to finance improvement of the public new text end 130.10 new text begin swimming pool in the city of East Grand Forks. new text end 130.11     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of East Grand Forks may issue bonds under new text end 130.12 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities new text end 130.13 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 130.14 new text begin subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of new text end 130.15 new text begin the costs of issuing the bonds. The bonds may be paid from or secured by any funds available new text end 130.16 new text begin to the city of East Grand Forks, including the tax authorized under subdivision 1. The new text end 130.17 new text begin issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 new text end 130.18 new text begin and 275.61. new text end 130.19 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 130.20 new text begin of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to new text end 130.21 new text begin pay principal and interest on the bonds is not subject to any levy limitation. A separate new text end 130.22 new text begin election to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 130.23     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the later new text end 130.24 new text begin of: (1) five years after the tax is first imposed; or (2) when the city council determines that new text end 130.25 new text begin $2,820,000 has been received from the tax to pay for the cost of the projects authorized new text end 130.26 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the new text end 130.27 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 130.28 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 130.29 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 130.30 new text begin time if the city so determines by ordinance. new text end 130.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 130.32 new text begin body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions new text end 130.33 new text begin 2 and 3. new text end 131.1    Sec. 19. new text begin CITY OF EXCELSIOR; TAXES AUTHORIZED. new text end 131.2     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 131.3 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 131.4 new text begin charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half new text end 131.5 new text begin of one percent for the purposes specified in subdivision 2, as approved by the voters at the new text end 131.6 new text begin November 4, 2014, general election. Except as otherwise provided in this section, the new text end 131.7 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 131.8 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 131.9     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 131.10 new text begin under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and new text end 131.11 new text begin administering the tax and to finance the capital and administrative costs of improvements new text end 131.12 new text begin to the commons as indicated in the November 2016 findings of the commons master planning new text end 131.13 new text begin work group. Authorized expenses include, but are not limited to, improvements for new text end 131.14 new text begin walkability and accessibility, enhancement of beach area and facilities, prevention and new text end 131.15 new text begin management of shoreline erosion, redesign of the port and bandshell, improvement of new text end 131.16 new text begin playground equipment, and securing and paying debt service on bonds issued under new text end 131.17 new text begin subdivision 3 or other obligations issued to the improvements listed in this subdivision in new text end 131.18 new text begin the city of Excelsior. new text end 131.19     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Excelsior may issue bonds under Minnesota new text end 131.20 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in new text end 131.21 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 131.22 new text begin not exceed $7,000,000, plus an amount to be applied to the payment of the costs of issuing new text end 131.23 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 131.24 new text begin Excelsior, including the tax authorized under subdivision 1. The issuance of bonds under new text end 131.25 new text begin this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 131.26 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 131.27 new text begin of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 131.28 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 131.29 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 131.30     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the later new text end 131.31 new text begin of: (1) 25 years after the tax is first imposed; or (2) when the city council determines that new text end 131.32 new text begin $7,000,000 has been received from the tax to pay for the cost of the projects authorized new text end 131.33 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the new text end 131.34 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 132.1 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 132.2 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 132.3 new text begin time if the city so determines by ordinance. new text end 132.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 132.5 new text begin body of the city of Excelsior with Minnesota Statutes, section 645.021, subdivisions 2 and new text end 132.6 new text begin 3. new text end 132.7    Sec. 20. new text begin CITY OF FAIRMONT; LOCAL TAX AUTHORIZED. new text end 132.8     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 132.9 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 132.10 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 132.11 new text begin of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for new text end 132.12 new text begin the purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 132.13 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 132.14 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 132.15     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 132.16 new text begin under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and new text end 132.17 new text begin administering the tax and to finance the capital and administrative costs of constructing and new text end 132.18 new text begin funding recreational amenities, trails, and a community center. The total that may be raised new text end 132.19 new text begin from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the new text end 132.20 new text begin issuance and paying debt service on bonds for these projects. new text end 132.21     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Fairmont may issue bonds under Minnesota new text end 132.22 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in new text end 132.23 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 132.24 new text begin not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing new text end 132.25 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 132.26 new text begin Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under new text end 132.27 new text begin this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 132.28 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 132.29 new text begin of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 132.30 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 132.31 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 132.32     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 132.33 new text begin earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines new text end 133.1 new text begin that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds new text end 133.2 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 133.3 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 133.4 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 133.5 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 133.6 new text begin time if the city so determines by ordinance. new text end 133.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 133.8 new text begin body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions 2 and new text end 133.9 new text begin 3. new text end 133.10    Sec. 21. new text begin CITY OF FERGUS FALLS; TAXES AUTHORIZED. new text end 133.11     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 133.12 new text begin section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city new text end 133.13 new text begin charter, and as approved by the voters at the November 8, 2016, general election, the city new text end 133.14 new text begin of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one new text end 133.15 new text begin percent for the purposes specified in subdivision 2. Except as otherwise provided in this new text end 133.16 new text begin section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, new text end 133.17 new text begin administration, collection, and enforcement of the tax authorized under this subdivision. new text end 133.18     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues from the tax authorized under new text end 133.19 new text begin subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and new text end 133.20 new text begin administering the tax and securing and paying debt service on bonds issued to finance all new text end 133.21 new text begin or part of the costs of the expansion and betterment of the Fergus Falls Public Library located new text end 133.22 new text begin at 205 East Hampden Avenue in the city of Fergus Falls. new text end 133.23     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Fergus Falls may issue bonds under new text end 133.24 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project new text end 133.25 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 133.26 new text begin subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of new text end 133.27 new text begin issuing the bonds. The bonds may be paid from or secured by any funds available to the new text end 133.28 new text begin city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds new text end 133.29 new text begin under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61. new text end 133.30 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city, new text end 133.31 new text begin and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and new text end 133.32 new text begin interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 133.33 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 134.1     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 134.2 new text begin earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines new text end 134.3 new text begin that $9,800,000 has been received from the tax to pay for the cost of the project authorized new text end 134.4 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the new text end 134.5 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 134.6 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 134.7 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at any new text end 134.8 new text begin earlier time if the city so determines by ordinance. new text end 134.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 134.10 new text begin body of the city of Fergus Falls with Minnesota Statutes, section 645.021, subdivisions 2 new text end 134.11 new text begin and 3. new text end 134.12    Sec. 22. new text begin CITY OF MOOSE LAKE; TAXES AUTHORIZED. new text end 134.13     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 134.14 new text begin section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, new text end 134.15 new text begin as approved by the voters at the November 6, 2012, general election, the city of Moose Lake new text end 134.16 new text begin may impose, by ordinance, a sales and use tax of up to one-half of one percent for the new text end 134.17 new text begin purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 134.18 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 134.19 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 134.20     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 134.21 new text begin under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting new text end 134.22 new text begin and administering the tax and to finance the costs of: (1) improvements to the city's park new text end 134.23 new text begin system; (2) street and related infrastructure improvements; and (3) municipal arena new text end 134.24 new text begin improvements. Authorized costs include construction and engineering costs and associated new text end 134.25 new text begin bond costs. new text end 134.26     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin The city of Moose Lake may issue bonds under Minnesota new text end 134.27 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in new text end 134.28 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 134.29 new text begin not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing new text end 134.30 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 134.31 new text begin Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under new text end 134.32 new text begin this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 134.33 new text begin The bonds are not included in computing any debt limitation applicable to the city of new text end 134.34 new text begin Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 135.1 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 135.2 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 135.3     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 135.4 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines new text end 135.5 new text begin that $3,000,000 has been received from the tax to pay for the cost of the projects authorized new text end 135.6 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the new text end 135.7 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 135.8 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 135.9 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 135.10 new text begin time if the city so determines by ordinance. new text end 135.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 135.12 new text begin body of the city of Moose Lake with Minnesota Statutes, section 645.021, subdivisions 2 new text end 135.13 new text begin and 3. new text end 135.14    Sec. 23. new text begin CITY OF NEW LONDON; TAX AUTHORIZED. new text end 135.15     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 135.16 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 135.17 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 135.18 new text begin of New London may impose, by ordinance, a sales and use tax of one-half of one percent new text end 135.19 new text begin for the purposes specified in subdivision 2. Except as otherwise provided in this section, new text end 135.20 new text begin the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 135.21 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 135.22     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 135.23 new text begin under subdivision 1 must be used by the city of New London to pay the costs of collecting new text end 135.24 new text begin and administering the tax and to finance the capital and administrative costs of the following new text end 135.25 new text begin projects: new text end new text begin new text end 135.26 new text begin (1) construction and equipping of a new library and community room; new text end 135.27 new text begin (2) construction of an ambulance bay at the fire hall; and new text end 135.28 new text begin (3) improvements to the New London Senior Citizen Center. new text end 135.29 new text begin The total that may be raised from the tax to pay for these projects is limited to $872,000 new text end 135.30 new text begin plus the costs related to the issuance and paying debt service on bonds for these projects. new text end 135.31     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of New London may issue bonds under new text end 135.32 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities new text end 136.1 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 136.2 new text begin subdivision may not exceed $872,000, plus an amount to be applied to the payment of the new text end 136.3 new text begin costs of issuing the bonds. The bonds may be paid from or secured by any funds available new text end 136.4 new text begin to the city of New London, including the tax authorized under subdivision 1. The issuance new text end 136.5 new text begin of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and new text end 136.6 new text begin 275.61. new text end 136.7 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 136.8 new text begin of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay new text end 136.9 new text begin principal and interest on the bonds is not subject to any levy limitation. A separate election new text end 136.10 new text begin to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 136.11     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 136.12 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines new text end 136.13 new text begin that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds new text end 136.14 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 136.15 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 136.16 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 136.17 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 136.18 new text begin time if the city so determines by ordinance. new text end 136.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 136.20 new text begin body of the city of New London with Minnesota Statutes, section 645.021, subdivisions 2 new text end 136.21 new text begin and 3. new text end 136.22    Sec. 24. new text begin CITY OF NORTH MANKATO; FOOD AND BEVERAGE TAX new text end 136.23 new text begin AUTHORIZED. new text end 136.24     new text begin Subdivision 1. new text end new text begin Food and beverage tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 136.25 new text begin section new text end new text begin , or any ordinance, city charter, or other provision of law, the city of North new text end 136.26 new text begin Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts new text end 136.27 new text begin on all sales of food and beverages by a restaurant or place of refreshment, as defined by new text end 136.28 new text begin resolution of the city, that are located within the city. For purposes of this section, "food new text end 136.29 new text begin and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages. new text end 136.30     new text begin Subd. 2. new text end new text begin Use of proceeds from tax. new text end new text begin The proceeds of any tax imposed under subdivision new text end 136.31 new text begin 1 shall be used by the city to pay all or a portion of the expenses of: new text end 136.32 new text begin (1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting new text end 136.33 new text begin Complex; and new text end 137.1 new text begin (2) for costs related to regional tourism events. new text end 137.2 new text begin Authorized capital expenses include securing or paying debt service on bonds or other new text end 137.3 new text begin obligations issued to finance the construction of the Caswell Park Regional Sporting Complex new text end 137.4 new text begin facilities. new text end 137.5     new text begin Subd. 3. new text end new text begin Collection, administration, and enforcement. new text end new text begin If the city desires, it may enter new text end 137.6 new text begin into an agreement with the commissioner of revenue to administer, collect, and enforce the new text end 137.7 new text begin taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax, new text end 137.8 new text begin the provisions of Minnesota Statutes, section new text end new text begin , related to collection, administration, new text end 137.9 new text begin and enforcement apply. new text end 137.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 137.11 new text begin city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 137.12 new text begin 645.021, subdivisions 2 and 3. new text end 137.13    Sec. 25. new text begin CITY OF SLEEPY EYE; LODGING TAX. new text end 137.14 new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, new text end 137.15 new text begin ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by new text end 137.16 new text begin ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under new text end 137.17 new text begin Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under new text end 137.18 new text begin Minnesota Statutes, section 469.190, and the total tax imposed under that section and this new text end 137.19 new text begin provision must not exceed five percent. Revenue from the tax imposed under this section new text end 137.20 new text begin may only be used for the same purposes as a tax imposed under Minnesota Statutes, section new text end 137.21 new text begin 469.190. new text end 137.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 137.23 new text begin body of the city of Sleepy Eye with Minnesota Statutes, section 645.021, subdivisions 2 new text end 137.24 new text begin and 3. new text end 137.25    Sec. 26. new text begin CITY OF SPICER; TAX AUTHORIZED. new text end 137.26     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 137.27 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 137.28 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 137.29 new text begin of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the new text end 137.30 new text begin purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 137.31 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 137.32 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 138.1     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 138.2 new text begin under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and new text end 138.3 new text begin administering the tax and to finance the capital and administrative costs of the following new text end 138.4 new text begin projects: new text end new text begin new text end 138.5 new text begin (1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk new text end 138.6 new text begin signals at marked Trunk Highway 23; new text end 138.7 new text begin (2) park and trail capital improvements including signage for bicycle share the road new text end 138.8 new text begin improvements and replacement of playground and related facilities; and new text end 138.9 new text begin (3) capital improvements to regional community facilities such as the Dethelfs roof and new text end 138.10 new text begin window replacement and the Pioneerland branch library roof replacement. new text end 138.11     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Spicer may issue bonds under Minnesota new text end 138.12 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in new text end 138.13 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 138.14 new text begin not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing new text end 138.15 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 138.16 new text begin Spicer, including the tax authorized under subdivision 1. The issuance of bonds under this new text end 138.17 new text begin subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 138.18 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 138.19 new text begin of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 138.20 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 138.21 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 138.22     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 138.23 new text begin earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or (3) when new text end 138.24 new text begin the city council determines that $800,000, plus an amount sufficient to pay the costs related new text end 138.25 new text begin to issuing the bonds authorized under subdivision 3, including interest on the bonds, has new text end 138.26 new text begin been received from the tax to pay for the cost of the projects authorized under subdivision new text end 138.27 new text begin 2. All funds not used to pay collection and administration costs of the tax must be used for new text end 138.28 new text begin projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier new text end 138.29 new text begin time if the city so determines by ordinance. new text end 138.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 138.31 new text begin body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 139.1    Sec. 27. new text begin CLAY COUNTY; TAX AUTHORIZED. new text end 139.2     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 139.3 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as new text end 139.4 new text begin approved by the voters at the November 8, 2016, general election, Clay County may impose, new text end 139.5 new text begin by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified new text end 139.6 new text begin in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota new text end 139.7 new text begin Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement new text end 139.8 new text begin of the tax authorized under this subdivision. new text end 139.9     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 139.10 new text begin under subdivision 1 must be used by Clay County to pay the costs of collecting and new text end 139.11 new text begin administering the tax and to finance the capital costs of constructing and equipping a new new text end 139.12 new text begin correctional facility, law enforcement center, and related parking facility. Authorized new text end 139.13 new text begin expenses include but are not limited to paying design, development, and construction costs new text end 139.14 new text begin related to these facilities and improvements, and securing and paying debt service on bonds new text end 139.15 new text begin issued under subdivision 3 or other obligations issued to finance the facilities listed in this new text end 139.16 new text begin subdivision. new text end 139.17     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin Clay County may issue bonds under Minnesota Statutes, new text end 139.18 new text begin chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision new text end 139.19 new text begin 2. The aggregate principal amount of bonds issued under this subdivision may not exceed new text end 139.20 new text begin $52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds. new text end 139.21 new text begin The bonds may be paid from or secured by any funds available to Clay County, including new text end 139.22 new text begin the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not new text end 139.23 new text begin subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 139.24     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 139.25 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines new text end 139.26 new text begin that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds new text end 139.27 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 139.28 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 139.29 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 139.30 new text begin in the general fund of the county. The tax imposed under subdivision 1 may expire at an new text end 139.31 new text begin earlier time if the county so determines by ordinance. new text end 139.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the governing new text end 139.33 new text begin body of Clay County with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 140.1    Sec. 28. new text begin WOODBURY LODGING TAX. new text end 140.2 new text begin Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a new text end 140.3 new text begin tax authorized in Minnesota Statutes, section 469.190, the city of Woodbury may impose new text end 140.4 new text begin by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under new text end 140.5 new text begin Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under new text end 140.6 new text begin Minnesota Statutes, section 469.190, and the total tax imposed by the city under this section new text end 140.7 new text begin and Minnesota Statutes, section 469.190, must not exceed five percent. Revenue from the new text end 140.8 new text begin tax imposed under this section may only be used for the same purposes as a tax imposed new text end 140.9 new text begin under Minnesota Statutes, section 469.190. new text end 140.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 140.11 new text begin city of Woodbury and its chief clerical officer timely complete their compliance with new text end 140.12 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 140.13    Sec. 29. new text begin EFFECTIVE DATE; VALIDATION OF PRIOR ACT. new text end 140.14 new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of new text end 140.15 new text begin Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter new text end 140.16 new text begin 389, article 5, sections 1 and 2, and file its approval with the secretary of state by January new text end 140.17 new text begin 1, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the new text end 140.18 new text begin approval of the voters on November 2, 2010, and otherwise in accordance with those laws new text end 140.19 new text begin are validated. new text end 140.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, without new text end 140.21 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph new text end 140.22 new text begin (a). new text end 140.23ARTICLE 6 140.24TAX INCREMENT FINANCING 140.25    Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read: 140.26    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 140.27the meanings given. 140.28(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 140.29correction, removal of hazardous waste or pollution, installation of utilities, construction 140.30of public or private improvements, and other similar activities, but only to the extent that 140.31tax increment revenues may be spent for such purposes under other law. 141.1(c) "Third party" means an entity other than (1) the person receiving the benefit of 141.2assistance financed with tax increments, or (2) the municipality or the development authority 141.3or other person substantially under the control of the municipality. 141.4(d) "Revenues derived from tax increments paid by properties in the district" means only 141.5tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 141.6tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) new text begin to (5) new text end . 141.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 141.8    Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read: 141.9    Subd. 2. Expenditures outside district. (a) For each tax increment financing district, 141.10an amount equal to at least 75 percent of the total revenue derived from tax increments paid 141.11by properties in the district must be expended on activities in the district or to pay bonds, 141.12to the extent that the proceeds of the bonds were used to finance activities in the district or 141.13to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 141.14than redevelopment districts for which the request for certification was made after June 30, 141.151995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 141.16more than 25 percent of the total revenue derived from tax increments paid by properties 141.17in the district may be expended, through a development fund or otherwise, on activities 141.18outside of the district but within the defined geographic area of the project except to pay, 141.19or secure payment of, debt service on credit enhanced bonds. For districts, other than 141.20redevelopment districts for which the request for certification was made after June 30, 1995, 141.21the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue new text begin new text end 141.22 new text begin revenues new text end derived from tax increments for new text begin paid by properties in new text end the district that are expended 141.23on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 141.24calculating the percentages that must be expended within and without the district. 141.25    (b) In the case of a housing district, a housing project, as defined in section 469.174, 141.26subdivision 11 , is an activity in the district. 141.27    (c) All administrative expenses are for activities outside of the district, except that if the 141.28only expenses for activities outside of the district under this subdivision are for the purposes 141.29described in paragraph (d), administrative expenses will be considered as expenditures for 141.30activities in the district. 141.31    (d) The authority may elect, in the tax increment financing plan for the district, to increase 141.32by up to ten percentage points the permitted amount of expenditures for activities located 141.33outside the geographic area of the district under paragraph (a). As permitted by section 142.1469.176, subdivision 4k , the expenditures, including the permitted expenditures under 142.2paragraph (a), need not be made within the geographic area of the project. Expenditures 142.3that meet the requirements of this paragraph are legally permitted expenditures of the district, 142.4notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 142.5under this paragraph, the expenditures must: 142.6    (1) be used exclusively to assist housing that meets the requirement for a qualified 142.7low-income building, as that term is used in section 42 of the Internal Revenue Code; and 142.8    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 142.9Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 142.10Revenue Code; and 142.11    (3) be used to: 142.12    (i) acquire and prepare the site of the housing; 142.13    (ii) acquire, construct, or rehabilitate the housing; or 142.14    (iii) make public improvements directly related to the housing; or 142.15(4) be used to develop housing: 142.16(i) if the market value of the housing does not exceed the lesser of: 142.17(A) 150 percent of the average market value of single-family homes in that municipality; 142.18or 142.19(B) $200,000 for municipalities located in the metropolitan area, as defined in section 142.20473.121 , or $125,000 for all other municipalities; and 142.21(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 142.22of existing structures, site preparation, and pollution abatement on one or more parcels, if 142.23the parcel contains a residence containing one to four family dwelling units that has been 142.24vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 142.257 , but without regard to whether the residence is the owner's principal residence, and only 142.26after the redemption period has expired. 142.27(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 142.28Increments may continue to be expended under this authority after that date, if they are used 142.29to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 142.30December 31, 2016, is considered to be the last date of the five-year period after certification 142.31under that provision. 142.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 143.1    Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read: 143.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments new text begin paid by properties new text end 143.3 new text begin in the district new text end are considered to have been expended on an activity within the district under 143.4subdivision 2 only if one of the following occurs: 143.5(1) before or within five years after certification of the district, the revenues are actually 143.6paid to a third party with respect to the activity; 143.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and 143.8sold to a third party before or within five years after certification, the revenues are spent to 143.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 143.10expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 143.11temporary period within the meaning of the use of that term under section 148(c)(1) of the 143.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 143.13fund; 143.14(3) binding contracts with a third party are entered into for performance of the activity 143.15before or within five years after certification of the district and the revenues are spent under 143.16the contractual obligation; 143.17(4) costs with respect to the activity are paid before or within five years after certification 143.18of the district and the revenues are spent to reimburse a party for payment of the costs, 143.19including interest on unreimbursed costs; or 143.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 143.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 143.222, paragraph (e). 143.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 143.24original refunded bonds meet the requirements of paragraph (a), clause (2). 143.25(c) For a redevelopment district or a renewal and renovation district certified after June 143.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 143.27extended to ten years after certification of the district. For a redevelopment district certified 143.28after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 143.29(a) are extended to eight years after certification of the district. This extension is provided 143.30primarily to accommodate delays in development activities due to unanticipated economic 143.31circumstances. 143.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 144.1    Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read: 144.2    Subd. 7. Interfund loans. new text begin (a) new text end The authority or municipality may advance or loan money 144.3to finance expenditures under section 469.176, subdivision 4, from its general fund or any 144.4other fund under which it has legal authority to do so. 144.5     new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is new text end 144.6 new text begin earliest, new text end the loan or advance must be authorized, by resolution of the governing body or of 144.7the authority, whichever has jurisdiction over the fund from which the advance or loan is 144.8authorized, before money is transferred, advanced, or spent, whichever is earliest. 144.9     new text begin (c) new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power to 144.10make interfund loans under one or more tax increment financing plans or for one or more 144.11districts. new text begin The resolution may be adopted before or after the adoption of the tax increment new text end 144.12 new text begin financing plan or the creation of the tax increment financing district from which the advance new text end 144.13 new text begin or loan is to be repaid. new text end 144.14     new text begin (d) new text end The terms and conditions for repayment of the loan must be provided in writing and new text begin . new text end 144.15 new text begin The written terms and conditions may be in any form, but must new text end include, at a minimum, the 144.16principal amount, the interest rate, and maximum term. new text begin Written terms may be modified or new text end 144.17 new text begin amended in writing by the municipality or the authority before the latest decertification of new text end 144.18 new text begin any tax increment financing district from which the interfund loan is to be repaid. new text end The 144.19maximum rate of interest permitted to be charged is limited to the greater of the rates 144.20specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 144.21unless the written agreement states that the maximum interest rate will fluctuate as the 144.22interest rates specified under section 270C.40 or 549.09 are from time to time adjusted. new text begin new text end 144.23 new text begin Loans or advances may be structured as draw-down or line-of-credit obligations of the new text end 144.24 new text begin lending fund. new text end 144.25     new text begin (e) The authority shall report in the annual report submitted pursuant to section 469.175, new text end 144.26 new text begin subdivision 6: new text end 144.27     new text begin (1) the amount of any interfund loan or advance made in a calendar year; and new text end 144.28     new text begin (2) any amendment of an interfund loan or advance made in a calendar year. new text end 144.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 144.30 new text begin applies to all districts, regardless of when the request for certification was made. new text end 145.1    Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read: 145.2    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 145.3financing plan for a district, the rules under this section apply to a redevelopment district, 145.4renewal and renovation district, new text begin economic development district, new text end soil condition district, or 145.5a soil deficiency district established by the city or a development authority of the city in the 145.6project area. 145.7    (b) Prior to or upon the adoption of the first tax increment plan subject to the special 145.8rules under this subdivision, the city must find by resolution that parcels consisting of at 145.9least 80 percent of the acreage of the project area (excluding street and railroad right of 145.10way) are characterized by one or more of the following conditions: 145.11    (1) peat or other soils with geotechnical deficiencies that impair development of 145.12residential or commercial buildings or infrastructure; 145.13    (2) soils or terrain that requires substantial filling in order to permit the development of 145.14commercial or residential buildings or infrastructure; 145.15    (3) landfills, dumps, or similar deposits of municipal or private waste; 145.16    (4) quarries or similar resource extraction sites; 145.17    (5) floodway; and 145.18    (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 145.19subdivision 10 . 145.20    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 145.21characterized by the relevant condition if at least 70 percent of the area of the parcel contains 145.22the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 145.23be characterized by substandard buildings if the buildings occupy at least 30 percent of the 145.24area of the parcel. 145.25    (d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is new text end 145.26 new text begin extended to nine years for any district. new text end The five-year rule under Minnesota Statutes, section 145.27469.1763, subdivision 3 , is extended to ten years for any district, and section 469.1763, 145.28subdivision 4 , does not apply to any district. 145.29    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 145.30(a), not more than 80 percent of the total revenue derived from tax increments paid by 145.31properties in any district (measured over the life of the district) may be expended on activities 145.32outside the district but within the project area. 146.1    (f) For a soil deficiency district: 146.2    (1) increments may be collected through 20 years after the receipt by the authority of 146.3the first increment from the district; and 146.4    (2) except as otherwise provided in this subdivision, increments may be used only to: 146.5    (i) acquire parcels on which the improvements described in item (ii) will occur; 146.6    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 146.7cost of installing public improvements directly caused by the deficiencies; and 146.8    (iii) pay for the administrative expenses of the authority allocable to the district. 146.9    (g) Increments spent for any infrastructure costs, whether inside a district or outside a 146.10district but within the project area, are deemed to satisfy the requirements of paragraph (f) 146.11and Minnesota Statutes, section 469.176, subdivisions 4b new text begin , 4c, new text end and 4j. 146.12    (h) Increments from any district may not be used to pay the costs of landfill closure or 146.13public infrastructure located on the following parcels within the plat known as Burnsville 146.14Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. 146.15    (i) The authority to approve tax increment financing plans to establish tax increment 146.16financing districts under this section expires on December 31, 2018 new text begin 2020 new text end . 146.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 146.18 new text begin of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section new text end 146.19 new text begin 645.021. new text end 146.20    Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 146.21382, section 84, is amended to read: 146.22    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 146.23FINANCING DISTRICT; SPECIAL RULES. 146.24(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 146.25the governing body of the city of Duluth approves the plan for the tax increment financing 146.26district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 146.27010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 146.28010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140; new text end 010-2730-00160; 146.29010-2730-00180; 010-2730-00200; 010-2730-00300; new text begin 010-02730-00320; new text end 010-2746-01250; 146.30010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 146.31010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 146.32010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 147.1010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 147.2010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 147.3Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 147.4period from the date of certification of the tax increment financing district, must be 147.5considered to be met if the activities are undertaken within five years after the date all 147.6qualifying parcels are delisted from the Federal Superfund list. 147.7(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 147.8in the sixth year following certification of the district requirement, will begin in the sixth 147.9year following the date all qualifying parcels are delisted from the Federal Superfund list. 147.10(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 147.11satisfied if the action is commenced within four years after the date all qualifying parcels 147.12are delisted from the Federal Superfund list and evidence of the action required is submitted 147.13to the county auditor by February 1 of the fifth year following the year in which all qualifying 147.14parcels are delisted from the Federal Superfund list. 147.15(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 147.16listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 147.17USS new text begin St. Louis River-U.S. Steel Superfund new text end Site (USEPA OU 02) that are included in the 147.18tax increment financing district. 147.19(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 147.20subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels 147.21listed in paragraph (a) and shown as part of the USS new text begin St. Louis River-U.S. Steel Superfund new text end 147.22Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted 147.23status, and if delisted, the delisting date. 147.24 new text begin (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other new text end 147.25 new text begin law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan new text end 147.26 new text begin program before approval of the tax increment financing plan for or the establishment of the new text end 147.27 new text begin district authorized by this section. The authority may make loans under this program. The new text end 147.28 new text begin proceeds of the loans may be used for any permitted use of increments under this law or new text end 147.29 new text begin Minnesota Statutes, section 469.176, for the district and may be repaid with increments new text end 147.30 new text begin from the district established under this section. This paragraph applies to any action new text end 147.31 new text begin authorized by the Seaway Port Authority of Duluth on or after March 25, 2010. new text end 147.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 147.33 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 147.34 new text begin subdivision 3. new text end 148.1    Sec. 7. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read: 148.2    Subdivision 1. Authority to create districts. (a) The governing body of the city of 148.3Edina or its development authority may establish one or more tax increment financing 148.4housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 148.5exist on March 31, 2014. 148.6(b) The authority to request certification of districts under this section expires on June 148.730, 2017 new text begin December 31, 2019 new text end . 148.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing body new text end 148.9 new text begin of the city of Edina with the requirements of Minnesota Statutes, section 645.021, new text end 148.10 new text begin subdivisions 2 and 3. new text end 148.11    Sec. 8. Laws 2014, chapter 308, article 6, section 9, is amended to read: 148.12    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT. 148.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 148.14the meanings given them. 148.15(b) "City" means the city of Maple Grove. 148.16(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point 148.17130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 148.1823, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 148.19line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 148.20Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 148.21thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 148.22Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 148.23East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 148.24of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 148.25North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 148.26of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 148.27line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 148.28degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 148.2924; thence West along said south line to the east right-of-way line of Zachary Lane; thence 148.30North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 148.31Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 148.32Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 148.33South along the east line of said Outlot A and its southerly extension to the south right-of-way 149.1line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 149.2line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 149.3Section 24; thence South along said east line to the north line of the South Half of the 149.4Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 149.5line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 149.6Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 149.7right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 149.8A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 149.9Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 149.10line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 149.11line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 149.12Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 149.13westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 149.14Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 149.15line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 149.16Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 149.17westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 149.18and there terminating, provided that the project area includes the rights-of-way for all present 149.19and future highway interchanges abutting the area described in this paragraph new text begin , and may new text end 149.20 new text begin include any additional property necessary to cause the property included in the tax increment new text end 149.21 new text begin financing district to consist of complete parcels new text end . 149.22(d) "Soil deficiency district" means a type of tax increment financing district consisting 149.23of a portion of the project area in which the city finds by resolution that the following 149.24conditions exist: 149.25(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 149.26the district require substantial filling, grading, or other physical preparation for use; and 149.27(2) the estimated cost of the physical preparation under clause (1), but excluding costs 149.28directly related to roads as defined in Minnesota Statutes, section 160.01, and local 149.29improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 149.30(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 149.31completion of the preparation. 149.32    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 149.33financing plan for a district, the rules under this section apply to a redevelopment district, 149.34renewal and renovation district, soil condition district, or soil deficiency district established 149.35by the city or a development authority of the city in the project area. 150.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special 150.2rules under this subdivision, the city must find by resolution that parcels consisting of at 150.3least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 150.4are characterized by one or more of the following conditions: 150.5(1) peat or other soils with geotechnical deficiencies that impair development of 150.6commercial buildings or infrastructure; 150.7(2) soils or terrain that require substantial filling in order to permit the development of 150.8commercial buildings or infrastructure; 150.9(3) landfills, dumps, or similar deposits of municipal or private waste; 150.10(4) quarries or similar resource extraction sites; 150.11(5) floodway; and 150.12(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 150.13subdivision 10 . 150.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 150.15relevant condition if at least 70 percent of the area of the parcel contains the relevant 150.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 150.17substandard buildings if substandard buildings occupy at least 30 percent of the area of the 150.18parcel. 150.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 150.20extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 150.214 , does not apply to any district. 150.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 150.23subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax 150.24increments paid by properties in any district, measured over the life of the district, may be 150.25expended on activities outside the district but within the project area. 150.26(f) For a soil deficiency district: 150.27(1) increments may be collected through 20 years after the receipt by the authority of 150.28the first increment from the district; 150.29(2) increments may be used only to: 150.30(i) acquire parcels on which the improvements described in item (ii) will occur; 151.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 151.2cost of installing public improvements directly caused by the deficiencies; and 151.3(iii) pay for the administrative expenses of the authority allocable to the district; and 151.4(3) any parcel acquired with increments from the district must be sold at no less than 151.5their fair market value. 151.6(g) Increments spent for any infrastructure costs, whether inside a district or outside a 151.7district but within the project area, are deemed to satisfy the requirements of Minnesota 151.8Statutes, section 469.176, subdivision 4j. 151.9(h) The authority to approve tax increment financing plans to establish tax increment 151.10financing districts under this section expires June 30, 2020. 151.11 new text begin (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use new text end 151.12 new text begin increments from a soil deficiency district to acquire parcels and for other infrastructure costs new text end 151.13 new text begin either inside or outside of the district, but within the project area, if the acquisition or new text end 151.14 new text begin infrastructure is for a qualified development. For purposes of this paragraph, a development new text end 151.15 new text begin is a qualified development only if all of the following requirements are satisfied: new text end 151.16 new text begin (1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken new text end 151.17 new text begin primarily to serve the development; new text end 151.18 new text begin (2) the city has a binding, written commitment and adequate financial assurances from new text end 151.19 new text begin the developer that the development will be constructed; and new text end 151.20 new text begin (3) the development does not consist of retail trade or housing improvements. new text end 151.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 151.22 new text begin of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes, new text end 151.23 new text begin section 645.021. new text end 151.24    Sec. 9. new text begin CITY OF ANOKA; TAX INCREMENT FINANCING; FIVE-YEAR RULE new text end 151.25 new text begin EXTENSION. new text end 151.26 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the new text end 151.27 new text begin city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed new text end 151.28 new text begin to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and new text end 151.29 new text begin the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if new text end 151.30 new text begin the district were certified on that date. new text end 152.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 152.2 new text begin of the city of Anoka and upon compliance by the city with Minnesota Statutes, section new text end 152.3 new text begin 645.021, subdivisions 2 and 3. new text end 152.4    Sec. 10. new text begin CITY OF COON RAPIDS; TAX INCREMENT FINANCING; EXTENSION new text end 152.5 new text begin OF DISTRICT. new text end 152.6 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, new text end 152.7 new text begin or any other law to the contrary, the city of Coon Rapids may collect tax increment from new text end 152.8 new text begin District 6-1 Port Riverwalk through December 31, 2038. new text end 152.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing bodies new text end 152.10 new text begin of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with new text end 152.11 new text begin the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end 152.12 new text begin subdivision 3. new text end 152.13    Sec. 11. new text begin CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING; new text end 152.14 new text begin FIVE-YEAR RULE EXTENSION. new text end 152.15 new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities new text end 152.16 new text begin must be undertaken within a five-year period from the date of certification of a tax increment new text end 152.17 new text begin financing district, is considered to be met for Tax Increment Financing District No. 1-12 new text end 152.18 new text begin (Gateway North), administered by the Cottage Grove Economic Development Authority, new text end 152.19 new text begin if the activities are undertaken prior to January 1, 2017. new text end 152.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the chief clerical new text end 152.21 new text begin officer of the governing body of the city of Cottage Grove with the requirements of Minnesota new text end 152.22 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 152.23    Sec. 12. new text begin CITY OF EDINA; TAX INCREMENT FINANCING; APPROVAL OF 2014 new text end 152.24 new text begin SPECIAL LAW. new text end 152.25 new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, new text end 152.26 new text begin the chief clerical officer of the city of Edina must file with the secretary of state certificate new text end 152.27 new text begin of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if new text end 152.28 new text begin the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, new text end 152.29 new text begin subdivision 3, are otherwise complied with, the special law is deemed approved, and all new text end 152.30 new text begin actions taken by the city before the effective date of this section in reliance on Laws 2014, new text end 152.31 new text begin chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article new text end 152.32 new text begin 6, section 8, and this act. new text end 153.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 153.2 new text begin local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6, new text end 153.3 new text begin section 8. new text end 153.4    Sec. 13. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING; FIVE-YEAR new text end 153.5 new text begin RULE EXTENSION. new text end 153.6 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the new text end 153.7 new text begin city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment TIF district is new text end 153.8 new text begin deemed to be certified on June 29, 2012, rather than its actual certification date of July 12, new text end 153.9 new text begin 2012, and Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if the district new text end 153.10 new text begin were certified on that date. new text end 153.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 153.12 new text begin of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section new text end 153.13 new text begin 645.021, subdivisions 2 and 3. new text end 153.14    Sec. 14. new text begin CITY OF RICHFIELD; TAX INCREMENT FINANCING; EXTENSION new text end 153.15 new text begin OF DISTRICT. new text end 153.16 new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law new text end 153.17 new text begin to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and new text end 153.18 new text begin for the city of Richfield may elect to extend the duration limit of the redevelopment tax new text end 153.19 new text begin increment financing district known as the Cedar Avenue Tax Increment Financing District new text end 153.20 new text begin established by Laws 2005, chapter 152, article 2, section 25, by ten years. new text end 153.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the city of Richfield, new text end 153.22 new text begin Hennepin County, and Independent School District No. 280 with the requirements of new text end 153.23 new text begin Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and 3. new text end 153.24    Sec. 15. new text begin CITY OF RICHFIELD; TAX INCREMENT FINANCING; FIVE-YEAR new text end 153.25 new text begin RULE EXTENSION. new text end 153.26 new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities new text end 153.27 new text begin must be undertaken within a five-year period from the date of certification of a tax increment new text end 153.28 new text begin financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing new text end 153.29 new text begin District established by the city of Richfield and the housing and redevelopment authority new text end 153.30 new text begin in and for the city of Richfield if the activities are undertaken within seven years from the new text end 153.31 new text begin date of certification. new text end 154.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon the city of Richfield's compliance new text end 154.2 new text begin with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end 154.3 new text begin subdivisions 2 and 3. new text end 154.4    Sec. 16. new text begin CITY OF ST. LOUIS PARK; TAX INCREMENT FINANCING; POOLING new text end 154.5 new text begin PERCENTAGE INCREASE. new text end 154.6 new text begin For purposes of the Elmwood Village Tax Increment Financing District in the city of new text end 154.7 new text begin St. Louis Park, including the duration extension authorized by Laws 2009, chapter 88, article new text end 154.8 new text begin 5, section 19, the permitted percentage of increments that may be expended on activities new text end 154.9 new text begin outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is increased new text end 154.10 new text begin to 30 percent for the district. new text end 154.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing body new text end 154.12 new text begin of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021, new text end 154.13 new text begin subdivision 3. new text end 154.14    Sec. 17. new text begin CITY OF ST. PAUL; TAX INCREMENT FINANCING; FORD SITE new text end 154.15 new text begin REDEVELOPMENT. new text end 154.16 new text begin (a) For purposes of computing the duration limits under Minnesota Statutes, section new text end 154.17 new text begin 469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul new text end 154.18 new text begin may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing new text end 154.19 new text begin District. This authority is limited to the first four years of increment or increments derived new text end 154.20 new text begin from taxes payable in 2023, whichever occurs first. new text end 154.21 new text begin (b) If the city elects to waive receipt of increment under paragraph (a), for purposes of new text end 154.22 new text begin applying any limits based on when the district was certified under Minnesota Statutes, new text end 154.23 new text begin section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed new text end 154.24 new text begin to be January 2 of the property tax assessment year for which increment is first received new text end 154.25 new text begin under the waiver. new text end 154.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, without local approval new text end 154.27 new text begin under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 154.28    Sec. 18. new text begin WASHINGTON COUNTY; TAX INCREMENT FINANCING; SPECIAL new text end 154.29 new text begin RULES AUTHORIZATION. new text end 154.30 new text begin (a) If Washington County elects, upon the adoption of a tax increment financing plan new text end 154.31 new text begin for a district, the rules under this section apply to one or more tax increment financing new text end 155.1 new text begin districts established by the county or the community development agency of the county. new text end 155.2 new text begin The area within which the tax increment districts may be created is located in the city of new text end 155.3 new text begin Newport and is south of marked Interstate Highway 494, north of 15th Street extended to new text end 155.4 new text begin the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway new text end 155.5 new text begin 61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing new text end 155.6 new text begin Project Area" or "project area." new text end 155.7 new text begin (b) The requirements for qualifying a redevelopment district under Minnesota Statutes, new text end 155.8 new text begin section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification new text end 155.9 new text begin numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, new text end 155.10 new text begin 2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, new text end 155.11 new text begin 260282244024, and 2602822440023, which are deemed substandard for the purpose of new text end 155.12 new text begin qualifying the district as a redevelopment district. new text end 155.13 new text begin (c) Increments spent outside a district shall only be spent within the project area and on new text end 155.14 new text begin costs described in Minnesota Statutes, section 469.176, subdivision 4j. new text end 155.15 new text begin (d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763, new text end 155.16 new text begin subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived from tax new text end 155.17 new text begin increments paid by properties in any district, measured over the life of the district, may be new text end 155.18 new text begin expended on activities outside the district but within the project area. The five-year rule new text end 155.19 new text begin under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine new text end 155.20 new text begin years. new text end 155.21 new text begin (e) The authority to approve a tax increment financing plan and to establish a tax new text end 155.22 new text begin increment financing district under this section expires December 31, 2027. new text end 155.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective and shall retroactively include the new text end 155.24 new text begin redevelopment district in the project area approved by Washington County on November new text end 155.25 new text begin 8, 2016, upon approval by the governing body of the city of Newport and Washington new text end 155.26 new text begin County and upon compliance by the county with Minnesota Statutes, section 645.021, new text end 155.27 new text begin subdivision 3. new text end 155.28ARTICLE 7 155.29PUBLIC FINANCE 155.30    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read: 155.31    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of 155.32indebtedness within the debt limits for a town purpose otherwise authorized by law. The 155.33certificates shall be payable in not more than ten years and be issued on the terms and in 156.1the manner as the board may determine new text begin , provided that notes issued for projects that eliminate new text end 156.2 new text begin R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more new text end 156.3 new text begin than 20 years new text end . If the amount of the certificates to be issued exceeds 0.25 percent of the 156.4estimated market value of the town, they shall not be issued for at least ten days after 156.5publication in a newspaper of general circulation in the town of the board's resolution 156.6determining to issue them. If within that time, a petition asking for an election on the 156.7proposition signed by voters equal to ten percent of the number of voters at the last regular 156.8town election is filed with the clerk, the certificates shall not be issued until their issuance 156.9has been approved by a majority of the votes cast on the question at a regular or special 156.10election. A tax levy shall be made to pay the principal and interest on the certificates as in 156.11the case of bonds. 156.12    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read: 156.13    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 156.14without public referendum, issue capital notes within existing debt limits for the purpose 156.15of purchasing ambulance and other medical equipment, road construction or maintenance 156.16equipment, public safety equipment and other capital equipment having an expected useful 156.17life at least equal to the term of the notes issued. The notes shall be payable in not more 156.18than ten years and shall be issued on terms and in a manner as the board determines new text begin , provided new text end 156.19 new text begin that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph new text end 156.20 new text begin (b), clause (2), must be payable in not more than 20 years new text end . The total principal amount of 156.21the notes issued for any fiscal year shall not exceed one percent of the total annual budget 156.22for that year and shall be issued solely for the purchases authorized in this subdivision. A 156.23tax levy shall be made for the payment of the principal and interest on such notes as in the 156.24case of bonds. For purposes of this subdivision, "equipment" includes computer hardware 156.25and software, whether bundled with machinery or equipment or unbundled. For purposes 156.26of this subdivision, the term "medical equipment" includes computer hardware and software 156.27and other intellectual property for use in medical diagnosis, medical procedures, research, 156.28record keeping, billing, and other hospital applications, together with application development 156.29services and training related to the use of the computer hardware and software and other 156.30intellectual property, all without regard to their useful life. For purposes of determining the 156.31amount of capital notes which the county may issue in any year, the budget of the county 156.32and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this 156.33subdivision shall be in addition to obligations issuable under section 373.01, subdivision 156.343 . 157.1    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read: 157.2410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 157.3    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter 157.4city may, by resolution and without public referendum, issue capital notes subject to the 157.5city debt limit to purchase capital equipment. 157.6    (b) For purposes of this section, "capital equipment" means: 157.7    (1) public safety equipment, ambulance and other medical equipment, road construction 157.8and maintenance equipment, and other capital equipment; and 157.9    (2) computer hardware and software, whether bundled with machinery or equipment or 157.10unbundled, together with application development services and training related to the use 157.11of the computer hardware and software. 157.12    (c) The equipment or software must have an expected useful life at least as long as the 157.13term of the notes. 157.14    (d) The notes shall be payable in not more than ten years and be issued on terms and in 157.15the manner the city determines new text begin , provided that notes issued for projects that eliminate R-22, new text end 157.16 new text begin as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than new text end 157.17 new text begin 20 years new text end . The total principal amount of the capital notes issued in a fiscal year shall not 157.18exceed 0.03 percent of the estimated market value of taxable property in the city for that 157.19year. 157.20    (e) A tax levy shall be made for the payment of the principal and interest on the notes, 157.21in accordance with section 475.61, as in the case of bonds. 157.22    (f) Notes issued under this section shall require an affirmative vote of two-thirds of the 157.23governing body of the city. 157.24    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 157.25city may also issue capital notes subject to its debt limit in the manner and subject to the 157.26limitations applicable to statutory cities pursuant to section 412.301. 157.27    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read: 157.28412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 157.29    (a) The council may issue certificates of indebtedness or capital notes subject to the city 157.30debt limits to purchase capital equipment. 157.31    (b) For purposes of this section, "capital equipment" means: 158.1    (1) public safety equipment, ambulance and other medical equipment, road construction 158.2and maintenance equipment, and other capital equipment; and 158.3    (2) computer hardware and software, whether bundled with machinery or equipment or 158.4unbundled, together with application development services and training related to the use 158.5of the computer hardware or software. 158.6    (c) The equipment or software must have an expected useful life at least as long as the 158.7terms of the certificates or notes. 158.8    (d) Such certificates or notes shall be payable in not more than ten years and shall be 158.9issued on such terms and in such manner as the council may determine new text begin , provided, however, new text end 158.10 new text begin that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph new text end 158.11 new text begin (b), clause (2), must be payable in not more than 20 years new text end . 158.12    (e) If the amount of the certificates or notes to be issued to finance any such purchase 158.13exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 158.14not be issued for at least ten days after publication in the official newspaper of a council 158.15resolution determining to issue them; and if before the end of that time, a petition asking 158.16for an election on the proposition signed by voters equal to ten percent of the number of 158.17voters at the last regular municipal election is filed with the clerk, such certificates or notes 158.18shall not be issued until the proposition of their issuance has been approved by a majority 158.19of the votes cast on the question at a regular or special election. 158.20    (f) A tax levy shall be made for the payment of the principal and interest on such 158.21certificates or notes, in accordance with section 475.61, as in the case of bonds. 158.22    Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read: 158.23    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general 158.24obligation of the general jurisdiction governmental unit as additional security for bonds 158.25payable from income or revenues of the project or the authority. The authority must find 158.26that the pledged revenues will equal or exceed 110 percent of the principal and interest due 158.27on the bonds for each year. The proceeds of the bonds must be used for a qualified housing 158.28development project or projects. The obligations must be issued and sold in the manner and 158.29following the procedures provided by chapter 475, except the obligations are not subject to 158.30approval by the electors, and the maturities may extend to not more than 35 years for 158.31obligations sold to finance housing for the elderly and 40 years for other obligations issued 158.32under this subdivision. The authority is the municipality for purposes of chapter 475. 159.1    (b) The principal amount of the issue must be approved by the governing body of the 159.2general jurisdiction governmental unit whose general obligation is pledged. Public hearings 159.3must be held on issuance of the obligations by both the authority and the general jurisdiction 159.4governmental unit. The hearings must be held at least 15 days, but not more than 120 days, 159.5before the sale of the obligations. 159.6    (c) The maximum amount of general obligation bonds that may be issued and outstanding 159.7under this section equals the greater of (1) one-half of one percent of the estimated market 159.8value of the general jurisdiction governmental unit whose general obligation is pledged, or 159.9(2) $3,000,000 new text begin $5,000,000 new text end . In the case of county or multicounty general obligation bonds, 159.10the outstanding general obligation bonds of all cities in the county or counties issued under 159.11this subdivision must be added in calculating the limit under clause (1). 159.12    (d) "General jurisdiction governmental unit" means the city in which the housing 159.13development project is located. In the case of a county or multicounty authority, the county 159.14or counties may act as the general jurisdiction governmental unit. In the case of a multicounty 159.15authority, the pledge of the general obligation is a pledge of a tax on the taxable property 159.16in each of the counties. 159.17    (e) "Qualified housing development project" means a housing development project 159.18providing housing either for the elderly or for individuals and families with incomes not 159.19greater than 80 percent of the median family income as estimated by the United States 159.20Department of Housing and Urban Development for the standard metropolitan statistical 159.21area or the nonmetropolitan county in which the project is located. The project must be 159.22owned for the term of the bonds either by the authority or by a limited partnership or other 159.23entity in which the authority or another entity under the sole control of the authority is the 159.24sole general partner and the partnership or other entity must receive (1) an allocation from 159.25the Department of Management and Budget or an entitlement issuer of tax-exempt bonding 159.26authority for the project and a preliminary determination by the Minnesota Housing Finance 159.27Agency or the applicable suballocator of tax credits that the project will qualify for four 159.28percent low-income housing tax credits or (2) a reservation of nine percent low-income 159.29housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax 159.30credits for the project. A qualified housing development project may admit nonelderly 159.31individuals and families with higher incomes if: 159.32    (1) three years have passed since initial occupancy; 160.1    (2) the authority finds the project is experiencing unanticipated vacancies resulting in 160.2insufficient revenues, because of changes in population or other unforeseen circumstances 160.3that occurred after the initial finding of adequate revenues; and 160.4    (3) the authority finds a tax levy or payment from general assets of the general jurisdiction 160.5governmental unit will be necessary to pay debt service on the bonds if higher income 160.6individuals or families are not admitted. 160.7    (f) The authority may issue bonds to refund bonds issued under this subdivision in 160.8accordance with section 475.67. The finding of the adequacy of pledged revenues required 160.9by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 160.10issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after 160.11July 1, 1992. 160.12    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read: 160.13    Subdivision 1. Establishment. An economic development authority may create and 160.14define the boundaries of economic development districts at any place or places within the 160.15city, except that the district boundaries must be contiguous, and may use the powers granted 160.16in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a 160.17public hearing on the matter. At least ten days before the hearing, the authority shall publish 160.18notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 160.19shall find that an economic development district is proper and desirable to establish and 160.20develop within the city. 160.21    Sec. 7. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read: 160.22    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, 160.23without regard to the election requirement under subdivision 1, issue and sell obligations 160.24for street reconstruction or bituminous overlays, if the following conditions are met: 160.25    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 160.26that describes the street reconstruction or overlay to be financed, the estimated costs, and 160.27any planned reconstruction or overlay of other streets in the municipality over the next five 160.28years, and the plan and issuance of the obligations has been approved by a vote of all new text begin a new text end 160.29 new text begin majority new text end of the members of the governing body present at the meeting following a public 160.30hearing for which notice has been published in the official newspaper at least ten days but 160.31not more than 28 days prior to the hearing; and 161.1    (2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 161.2of the votes cast in the last municipal general election and is filed with the municipal clerk 161.3within 30 days of the public hearing, the municipality may issue the bonds only after 161.4obtaining the approval of a majority of the voters voting on the question of the issuance of 161.5the obligations. If the municipality elects not to submit the question to the voters, the 161.6municipality shall not propose the issuance of bonds under this section for the same purpose 161.7and in the same amount for a period of 365 days from the date of receipt of the petition. If 161.8the question of issuing the bonds is submitted and not approved by the voters, the provisions 161.9of section 475.58, subdivision 1a, shall apply. 161.10    (b) Obligations issued under this subdivision are subject to the debt limit of the 161.11municipality and are not excluded from net debt under section 475.51, subdivision 4. 161.12    (c) For purposes of this subdivision, street reconstruction and bituminous overlays 161.13includes utility replacement and relocation and other activities incidental to the street 161.14reconstruction, turn lanes and other improvements having a substantial public safety function, 161.15realignments, other modifications to intersect with state and county roads, and the local 161.16share of state and county road projects. For purposes of this subdivision, "street 161.17reconstruction" includes expenditures for street reconstruction that have been incurred by 161.18a municipality before approval of a street reconstruction plan, if such expenditures are 161.19included in a street reconstruction plan approved on or before the date of the public hearing 161.20under paragraph (a), clause (1), regarding issuance of bonds for such expenditures. 161.21    (d) Except in the case of turn lanes, safety improvements, realignments, intersection 161.22modifications, and the local share of state and county road projects, street reconstruction 161.23and bituminous overlays does not include the portion of project cost allocable to widening 161.24a street or adding curbs and gutters where none previously existed. 161.25    Sec. 8. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read: 161.26    Subd. 2. Requirements waived. The requirements as to public sale shall not apply: 161.27(1) to obligations issued under the provisions of a home rule charter or of a law 161.28specifically authorizing a different method of sale, or authorizing them to be issued in such 161.29manner or on such terms and conditions as the governing body may determine; 161.30(2) to obligations sold by an issuer in an amount not exceeding the total sum of 161.31$1,200,000 in any 12-month period; 162.1(3) to obligations issued by a governing body other than a school board in anticipation 162.2of the collection of taxes or other revenues appropriated for expenditure in a single year, if 162.3sold in accordance with the most favorable of two or more proposals solicited privately; 162.4(4) to obligations sold to any board, department, or agency of the United States of 162.5America or of the state of Minnesota, in accordance with rules or regulations promulgated 162.6by such board, department, or agency; 162.7(5) to obligations issued to fund pension and retirement fund liabilities under section 162.8475.52, subdivision 6 , obligations issued with tender options under section 475.54, 162.9subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision 162.1013 , and any issue of obligations comprised in whole or in part of obligations bearing interest 162.11at a rate or rates which vary periodically referred to in section 475.56; 162.12(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 162.13authorized by law, if the governing body of the municipality, on the advice of bond counsel 162.14or special tax counsel, determines that interest on the obligations cannot be represented to 162.15be excluded from gross income for purposes of federal income taxation; 162.16(7) to obligations issued in the form of an installment purchase contract, lease purchase 162.17agreement, or other similar agreement; 162.18(8) to obligations sold under a bond reinvestment program; and 162.19(9) if the municipality has retained an independent financial advisor new text begin municipal adviser new text end , 162.20obligations which the governing body determines shall be sold by private negotiation. 162.21ARTICLE 8 162.22MISCELLANEOUS 162.23    Section 1. Minnesota Statutes 2016, section 287.08, is amended to read: 162.24287.08 TAX, HOW PAYABLE; RECEIPTS. 162.25    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 162.26county in this state in which the real property or some part is located at or before the time 162.27of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 162.28the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 162.29any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 162.30be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 162.31taxation the endorsement shall, in substance, be "exempt from registration tax." In either 162.32case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 163.1whether a claim of exemption should be allowed, the tax must be paid as in the case of a 163.2taxable mortgage. For documents submitted electronically, the endorsements and tax amount 163.3shall be affixed electronically and no signature by the treasurer will be required. The actual 163.4payment method must be arranged in advance between the submitter and the receiving 163.5county. 163.6    (b) The county treasurer may refund in whole or in part any mortgage registry tax 163.7overpayment if a written application by the taxpayer is submitted to the county treasurer 163.8within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 163.9of the application, the taxpayer may bring an action in Tax Court in the county in which 163.10the tax was paid at any time after the expiration of six months from the time that the 163.11application was submitted. A denial of refund may be appealed within 60 days from the 163.12date of the denial by bringing an action in Tax Court in the county in which the tax was 163.13paid. The action is commenced by the serving of a petition for relief on the county treasurer, 163.14and by filing a copy with the court. The county attorney shall defend the action. The county 163.15treasurer shall notify the treasurer of each county that has or would receive a portion of the 163.16tax as paid. 163.17    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered 163.18by the court, the county treasurer of each county that actually received a portion of the tax 163.19shall immediately pay a proportionate share of three percent of the refund using any available 163.20county funds. The county treasurer of each county that received, or would have received, 163.21a portion of the tax shall also pay their county's proportionate share of the remaining 97 163.22percent of the court-ordered refund on or before the 20th day of the following month using 163.23solely the mortgage registry tax funds that would be paid to the commissioner of revenue 163.24on that date under section 287.12. If the funds on hand under this procedure are insufficient 163.25to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 163.26which the action was brought shall file a claim with the commissioner of revenue under 163.27section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 163.28remaining portion upon receipt of a warrant from the state issued pursuant to the claim. 163.29    (d) When any mortgage covers real property located in more than one county in this 163.30state the total tax must be paid to the treasurer of the county where the mortgage is first 163.31presented for recording, and the payment must be receipted as provided in paragraph (a). 163.32If the principal debt or obligation secured by such a multiple county mortgage exceeds 163.33$10,000,000, new text begin the tax collected shall be forwarded by the county treasurer receiving it to the new text end 163.34 new text begin commissioner of revenue and new text end the nonstate portion of the tax must be divided and paid over 163.35by the county treasurer receiving it new text begin commissioner of revenue new text end , on or before the 20th day of 164.1each month after receipt, to the county or counties entitled in the ratio that the estimated 164.2market value of the real property covered by the mortgage in each county bears to the 164.3estimated market value of all the real property in this state described in the mortgage. In 164.4making the division and payment the county treasurer new text begin commissioner of revenue new text end shall send 164.5a statement giving the description of the real property described in the mortgage and the 164.6estimated market value of the part located in each county. For this purpose, the treasurer of 164.7any county new text begin commissioner of revenue new text end may require the treasurer of any other county to certify 164.8to the former the estimated market value of any tract of real property in any mortgage new text begin in new text end 164.9 new text begin the county new text end . 164.10    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 164.11may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 164.12collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 164.13has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 164.14collected for that purpose and the mortgagor is relieved of any further obligation to pay the 164.15tax as to the amount collected by the mortgagee for this purpose. 164.16    Sec. 2. Minnesota Statutes 2016, section 295.53, subdivision 1, is amended to read: 164.17    Subdivision 1. Exemptions. (a) The following payments are excluded from the gross 164.18revenues subject to the hospital, surgical center, or health care provider taxes under sections 164.19295.50 to 295.59: 164.20(1) payments received for services provided under the Medicare program, including 164.21payments received from the government, and organizations governed by sections 1833 and 164.221876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 164.231395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 164.24enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 164.253 , clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 164.26Payments for services not covered by Medicare are taxable; 164.27(2) payments received for home health care services; 164.28(3) payments received from hospitals or surgical centers for goods and services on which 164.29liability for tax is imposed under section 295.52 or the source of funds for the payment is 164.30exempt under clause (1), (7), (10), or (14); 164.31(4) payments received from health care providers for goods and services on which 164.32liability for tax is imposed under this chapter or the source of funds for the payment is 164.33exempt under clause (1), (7), (10), or (14); 165.1(5) amounts paid for legend drugs, other than nutritional products and blood and blood 165.2components, to a wholesale drug distributor who is subject to tax under section 295.52, 165.3subdivision 3 , reduced by reimbursements received for legend drugs otherwise exempt 165.4under this chapter; 165.5(6) payments received by a health care provider or the wholly owned subsidiary of a 165.6health care provider for care provided outside Minnesota; 165.7(7) payments received from the chemical dependency fund under chapter 254B; 165.8(8) payments received in the nature of charitable donations that are not designated for 165.9providing patient services to a specific individual or group; 165.10(9) payments received for providing patient services incurred through a formal program 165.11of health care research conducted in conformity with federal regulations governing research 165.12on human subjects. Payments received from patients or from other persons paying on behalf 165.13of the patients are subject to tax; 165.14(10) payments received from any governmental agency for services benefiting the public, 165.15not including payments made by the government in its capacity as an employer or insurer 165.16or payments made by the government for services provided under general assistance medical 165.17care, the MinnesotaCare program, or the medical assistance program governed by title XIX 165.18of the federal Social Security Act, United States Code, title 42, sections 1396 to 1396v; 165.19(11) government payments received by the commissioner of human services for 165.20state-operated services; 165.21(12) payments received by a health care provider for hearing aids and related equipment 165.22or prescription eyewear delivered outside of Minnesota; 165.23(13) payments received by an educational institution from student tuition, student activity 165.24fees, health care service fees, government appropriations, donations, or grants, and for 165.25services identified in and provided under an individualized education program as defined 165.26in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 165.27for service payments and payments for extended coverage are taxable; 165.28(14) payments received under the federal Employees Health Benefits Act, United States 165.29Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 165.30Enrollee deductibles, coinsurance, and co-payments are subject to tax; and 165.31(15) payments received under the federal Tricare program, Code of Federal Regulations, 165.32title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 165.33to tax. 166.1(b) Payments received by wholesale drug distributors for legend drugs sold directly to 166.2veterinarians or veterinary bulk purchasing organizations are excluded from the gross 166.3revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59. 166.4 new text begin (c) Supplemental or enhanced payments authorized under section 256B.19, subdivision new text end 166.5 new text begin 1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections new text end 166.6 new text begin 295.50 to 295.59. new text end 166.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for gross revenues received new text end 166.8 new text begin on or after July 1, 2016. new text end 166.9    Sec. 3. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read: 166.10    Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of 166.11use for the purpose of producing or generating new text begin used to produce or generate new text end power for 166.12propelling internal combustion engine aircraft, that meets the specifications in ASTM 166.13specification D910-11, and that either new text begin . new text end 166.14     new text begin Aviation gasoline includes any gasoline new text end : 166.15    (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor 166.16or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation 166.17gasoline" new text begin that meets specifications in ASTM specification D910-16 or any other ASTM new text end 166.18 new text begin specification as gasoline appropriate for use in producing or generating power for propelling new text end 166.19 new text begin internal combustion engine aircraft new text end ; or 166.20    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, 166.21or withdrawn from storage by any person, to be used for the purpose of producing or 166.22generating power for propelling internal combustion engine aircraft new text begin sold to a dealer of new text end 166.23 new text begin aviation gasoline for dispensing directly into the fuel tank of an aircraft new text end . 166.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment except new text end 166.25 new text begin that the change to clause (2) is effective for sales and purchases made after June 30, 2017. new text end 166.26    Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read: 166.27    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 166.28means natural gas, primarily methane, condensed under high pressure and stored in specially 166.29designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes 166.30of this chapter, the energy content of CNG is considered to be 1,000 new text begin 900 new text end BTUs per cubic 166.31foot. 167.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 167.2 new text begin 30, 2017. new text end 167.3    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 167.4read: 167.5     new text begin Subd. 13a. new text end new text begin Dealer of aviation gasoline. new text end new text begin "Dealer of aviation gasoline" means any person new text end 167.6 new text begin who sells gasoline on the premises of an airport as defined under section 360.013, subdivision new text end 167.7 new text begin 39, to be dispensed directly into the fuel tank of an aircraft. new text end 167.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 167.9 new text begin 30, 2017. new text end 167.10    Sec. 6. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read: 167.11    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or 167.12denatured ethanol purchased by: 167.13    (1) a transit system or transit provider receiving financial assistance or reimbursement 167.14under section 174.24, 256B.0625, subdivision 17, or 473.384; 167.15    (2) providers of transportation to recipients of medical assistance home and 167.16community-based services waivers enrolled in day programs, including adult day care, 167.17family adult day care, day treatment and habilitation, prevocational services, and structured 167.18day services; 167.19(3) an ambulance service licensed under chapter 144E; 167.20(4) providers of medical or dental services by a federally qualified health center, as 167.21defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 167.22Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile 167.23medical unit; or 167.24    (5) a licensed distributor to be delivered to a terminal for use in blending new text begin ; or new text end 167.25     new text begin (6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended to new text end 167.26 new text begin be dispensed directly into the fuel tank of an aircraft new text end . 167.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 167.28 new text begin 30, 2017. new text end 167.29    Sec. 7. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read: 167.30    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates: 168.1    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon. 168.2    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon. 168.3    (c) Compressed natural gas is taxed at the rate of $2.174 new text begin $1.974 new text end per thousand cubic feet; 168.4or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," 168.5as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural 168.6gas new text begin or 126.67 cubic feet new text end . 168.7    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified 168.8in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed 168.9by the commissioner. 168.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 168.11 new text begin 30, 2017. new text end 168.12    Sec. 8. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read: 168.13    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided 168.14in paragraph (e), on or before the 23rd day of each month, every person who is required to 168.15pay a gasoline tax shall file with the commissioner a report, in the form and manner 168.16prescribed by the commissioner, showing the number of gallons of petroleum products 168.17received by the reporter during the preceding calendar month, and other information the 168.18commissioner may require. A written report is deemed to have been filed as required in this 168.19subdivision if postmarked on or before the 23rd day of the month in which the tax is payable. 168.20(b) The number of gallons of gasoline must be reported in United States standard liquid 168.21gallons, 231 cubic inches, except that the commissioner may upon written application and 168.22for cause shown permit the distributor to report the number of gallons of gasoline as corrected 168.23to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered 168.24in the application and allowed by the commissioner must continue to be reported by the 168.25distributor on the adjusted basis for a period of one year from the date of the granting of 168.26the application. The number of gallons of petroleum products other than gasoline must be 168.27reported as originally invoiced. Each report must show separately the number of gallons of 168.28aviation gasoline received by the reporter during each calendar month new text begin and the number of new text end 168.29 new text begin gallons of gasoline sold to a dealer of aviation gasoline during each calendar month new text end . 168.30(c) Each report must also include the amount of gasoline tax on gasoline received by 168.31the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 168.32of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 169.1At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 169.22.5 percent deduction has been credited or paid to dealers on quantities sold to them. 169.3(d) Each report shall contain a confession of judgment for the amount of the tax shown 169.4due to the extent not timely paid. 169.5(e) Under certain circumstances and with the approval of the commissioner, taxpayers 169.6may be allowed to file reports annually. 169.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 169.8 new text begin 30, 2017. new text end 169.9    Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read: 169.10    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person 169.11who buys aviation gasoline new text begin , including from a dealer of aviation gasoline, new text end or special fuel for 169.12aircraft use new text begin , new text end and who has paid the excise taxes due directly or indirectly through the amount 169.13of the tax being included in the price, or otherwise, and uses said gasoline or special fuel 169.14in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or 169.15before the 23rd day of the month following that in which such gasoline or special fuel was 169.16so used or sold, report the fact of the use or sale to the commissioner in the form and manner 169.17prescribed by the commissioner. 169.18(b) Any person who buys gasoline other than aviation gasoline and who has paid the 169.19motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 169.20included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to 169.21any person to be used for the purpose of producing or generating power for propelling 169.22aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that 169.23purpose, shall, on or before the 23rd day of the month following that in which such gasoline 169.24was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or 169.25withdrawal from storage to the commissioner in the form and manner prescribed by the 169.26commissioner. 169.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 169.28 new text begin 30, 2017. new text end 169.29    Sec. 10. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read: 169.30    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and uses 169.31gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as 169.32provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than 170.1use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount 170.2of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be 170.3reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim 170.4for refund in the form and manner prescribed by the commissioner, and containing the 170.5information the commissioner shall require. By signing any such claim which is false or 170.6fraudulent, the applicant shall be subject to the penalties provided in this chapter for 170.7knowingly making a false claim. The claim shall set forth the total amount of the gasoline 170.8so purchased and used by the applicant other than in motor vehicles, or special fuel purchased 170.9and used by the applicant other than in licensed motor vehicles, and shall state when and 170.10for what purpose it was used. When a claim contains an error in computation or preparation, 170.11the commissioner is authorized to adjust the claim in accordance with the evidence shown 170.12on the claim or other information available to the commissioner. The commissioner, on 170.13being satisfied that the claimant is entitled to the payments, shall approve the claim and 170.14transmit it to the commissioner of management and budget. The words "gasoline" or "special 170.15fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft. 170.16Gasoline or special fuel bought and used for a "qualifying purpose" means: 170.17    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 170.18situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have 170.19the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code 170.20as defined in section 289A.02, subdivision 7. 170.21    (2) Gasoline or special fuel used for off-highway business use. 170.22    (i) "Off-highway business use" means any use off the public highway by a person in 170.23that person's trade, business, or activity for the production of income. 170.24    (ii) Off-highway business use includes use of a passenger snowmobile off the public 170.25highways as part of the operations of a resort as defined in section 157.15, subdivision 11; 170.26and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not 170.27including fuel consumed during idling time. 170.28    (iii) Off-highway business use does not include use as a fuel in a motor vehicle which, 170.29at the time of use, is registered or is required to be registered for highway use under the 170.30laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of 170.31a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 170.32this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel 170.33tank of a licensed motor vehicle and must be stored in a separate supply tank. 171.1    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured 171.2in Minnesota, and shipped by interstate carrier to destinations in other states or foreign 171.3countries. 171.4     new text begin (4) Special fuel used in one of the following: new text end 171.5     new text begin (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the new text end 171.6 new text begin unit has an engine separate from the one used to propel the vehicle and the fuel is used new text end 171.7 new text begin exclusively for the unit; new text end 171.8     new text begin (ii) to power an unlicensed motor vehicle that is used solely or primarily to move new text end 171.9 new text begin semitrailers within a cargo yard, warehouse facility, or intermodal facility; or new text end 171.10     new text begin (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle, new text end 171.11 new text begin whether or not the unit or engine is fueled from the same or a different fuel tank as that new text end 171.12 new text begin from which the motor vehicle is fueled. new text end 171.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 171.14 new text begin 30, 2017. new text end 171.15    Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read: 171.16    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid 171.17the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter 171.18and new text begin has either paid new text end the airflight property tax under section 270.072 new text begin or is an aerial applicator new text end 171.19 new text begin with a category B, general aerial license, under section 18B.33, new text end shall, as to all such aviation 171.20gasoline and special fuel received, stored, or withdrawn from storage by the person in this 171.21state in any calendar year and not sold or otherwise disposed of to others, or intended for 171.22sale or other disposition to others, on which such tax has been so paid, be entitled to the 171.23following graduated reductions in such tax for that calendar year, to be obtained by means 171.24of the following refunds: 171.25(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but 171.26five cents per gallon; 171.27(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 171.28not more than 150,000 gallons, all but two cents per gallon; 171.29(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and 171.30not more than 200,000 gallons, all but one cent per gallon; 171.31(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half 171.32cent per gallon. 172.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 172.2 new text begin 30, 2017. new text end 172.3    Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read: 172.4    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers, new text begin new text end 172.5 new text begin dealers of aviation gasoline, new text end and all users of special fuel shall keep a true and accurate record 172.6of all purchases, transfers, sales, and use of petroleum products and special fuel, including 172.7copies of all sales tickets issued, in a form and manner approved by the commissioner, and 172.8shall retain all such records for 3-1/2 years. 172.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 172.10 new text begin 30, 2017. new text end 172.11    Sec. 13. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read: 172.12    Subd. 19. Petroleum products. The following petroleum products are exempt: 172.13(1) products upon which a tax has been imposed and paid under chapter 296A, and for 172.14which no refund has been or will be allowed because the buyer used the fuel for nonhighway 172.15use; 172.16(2) products that are used in the improvement of agricultural land by constructing, 172.17maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water 172.18impoundment, and other erosion control structures; 172.19(3) products purchased by a transit system receiving financial assistance under section 172.20174.24 , 256B.0625, subdivision 17, or 473.384; 172.21(4) products purchased by an ambulance service licensed under chapter 144E; 172.22(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision 172.2339 , for off-highway business use as part of the operations of a resort as provided under 172.24section 296A.16, subdivision 2, clause (2); 172.25(6) products purchased by a state or a political subdivision of a state for use in motor 172.26vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b); 172.27(7) products purchased by providers of transportation to recipients of medical assistance 172.28home and community-based services waivers enrolled in day programs, including adult day 172.29care, family adult day care, day treatment and habilitation, prevocational services, and 172.30structured day services; or 173.1(8) products used in a motor vehicle used exclusively as a mobile medical unit for the 173.2provision of medical or dental services by a federally qualified health center, as defined 173.3under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus 173.4Budget Reconciliation Act of 1990 new text begin ; or new text end 173.5 new text begin (9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision new text end 173.6 new text begin 2, clause (4) new text end . 173.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June new text end 173.8 new text begin 30, 2017. new text end 173.9    Sec. 14. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision 173.10to read: 173.11     new text begin Subd. 6. new text end new text begin Small winery credit. new text end new text begin (a) A qualified winery producing wine or cider is entitled new text end 173.12 new text begin to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to (g), on the new text end 173.13 new text begin wine or cider sold in any fiscal year beginning July 1. A qualified winery may take the credit new text end 173.14 new text begin on the 18th day of each month, but the total credit allowed may not exceed, in any fiscal new text end 173.15 new text begin year, the lesser of: new text end 173.16 new text begin (1) the liability for tax; or new text end new text begin new text end 173.17 new text begin (2) $136,275. new text end 173.18 new text begin (b) For purposes of this subdivision, "qualified winery" means a winery, whether or not new text end 173.19 new text begin located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually. new text end 173.20 new text begin (c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall new text end 173.21 new text begin provide a report to the chairs and ranking minority members of the legislative committees new text end 173.22 new text begin having jurisdiction over taxes that includes the following information for the previous fiscal new text end 173.23 new text begin year, regarding the credit authorized under this subdivision: new text end 173.24 new text begin (1) the total amount of the tax expenditure for the credit, including the amount of credits new text end 173.25 new text begin claimed by Minnesota small wineries and out-of-state small wineries; and new text end 173.26 new text begin (2) the number of claimants for the credit, including the number of Minnesota small new text end 173.27 new text begin wineries and the number of out-of-state small wineries. new text end 173.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 173.29    Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read: 173.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 174.1    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 174.2production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 174.3Iron Range Resources and Rehabilitation Board in a separate taconite economic development 174.4fund for each taconite and direct reduced ore producer. Money from the fund for each 174.5producer shall be released by the commissioner after review by a joint committee consisting 174.6of an equal number of representatives of the salaried employees and the nonsalaried 174.7production and maintenance employees of that producer. The District 11 director of the 174.8United States Steelworkers of America, on advice of each local employee president, shall 174.9select the employee members. In nonorganized operations, the employee committee shall 174.10be elected by the nonsalaried production and maintenance employees. The review must be 174.11completed no later than six months after the producer presents a proposal for expenditure 174.12of the funds to the committee. The funds held pursuant to this section may be released only 174.13for workforce development and associated public facility improvement, new text begin concurrent new text end 174.14 new text begin reclamation, new text end or for acquisition of plant and stationary mining equipment and facilities for 174.15the producer or for research and development in Minnesota on new mining, or taconite, 174.16iron, or steel production technology, but only if the producer provides a matching expenditure 174.17equal to the amount of the distribution to be used for the same purpose beginning with 174.18distributions in 2014. Effective for proposals for expenditures of money from the fund 174.19beginning May 26, 2007, the commissioner may not release the funds before the next 174.20scheduled meeting of the board. If a proposed expenditure is not approved by the board, 174.21the funds must be deposited in the Taconite Environmental Protection Fund under sections 174.22298.222 to 298.225. If a producer uses money which has been released from the fund prior 174.23to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the 174.24producer removes the piece of equipment from the taconite tax relief area defined in section 174.25273.134 within ten years from the date of receipt of the money from the fund, a portion of 174.26the money granted from the fund must be repaid to the taconite economic development 174.27fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is 174.28removed from the taconite tax relief area within 12 months after receipt of the money from 174.29the fund, declining by ten percent for each of the subsequent nine years during which the 174.30equipment remains within the taconite tax relief area. If a taconite production facility is sold 174.31after operations at the facility had ceased, any money remaining in the fund for the former 174.32producer may be released to the purchaser of the facility on the terms otherwise applicable 174.33to the former producer under this section. If a producer fails to provide matching funds for 174.34a proposed expenditure within six months after the commissioner approves release of the 174.35funds, the funds are available for release to another producer in proportion to the distribution 174.36provided and under the conditions of this section. Any portion of the fund which is not 175.1released by the commissioner within one year of its deposit in the fund shall be divided 175.2between the taconite environmental protection fund created in section 298.223 and the 175.3Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 175.4in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 175.5to the taconite environmental protection fund and one-third to the Douglas J. Johnson 175.6economic protection trust fund. 175.7    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 175.8distributions and the review process, an amount equal to ten cents per taxable ton of 175.9production in 2007, for distribution in 2008 only, that would otherwise be distributed under 175.10paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 175.11wood product facility located in the taconite tax relief area and in a county that contains a 175.12city of the first class. This amount must be deducted from the distribution under paragraph 175.13(a) for which a matching expenditure by the producer is not required. The granting of the 175.14loan or grant is subject to approval by the board. If the money is provided as a loan, interest 175.15must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 175.16Repayments of the loan and interest, if any, must be deposited in the taconite environment 175.17protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 175.18paragraph by July 1, 2012, the amount that had been made available for the loan under this 175.19paragraph must be transferred to the taconite environment protection fund under sections 175.20298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 175.21that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 175.22pro rata basis. 175.23(c) Repayment or transfer of money to the taconite environmental protection fund under 175.24paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation 175.25Board for public works projects in house legislative districts in the same proportion as 175.26taxable tonnage of production in 2007 in each house legislative district, for distribution in 175.272008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 175.28Notwithstanding any other law to the contrary, expenditures under this paragraph do not 175.29require approval by the governor. For purposes of this paragraph, "house legislative districts" 175.30means the legislative districts in existence on May 15, 2009. 175.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 175.32    Sec. 16. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, 175.33article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read: 175.34    Sec. 58. 2010 DISTRIBUTIONS ONLY. 176.1    For distributions in 2010 only, a special fund is established to receive the sum of the 176.2following amounts that otherwise would be allocated under Minnesota Statutes, section 176.3298.28, subdivision 6 . The following amounts are allocated to St. Louis County acting as 176.4the fiscal agent for the recipients for the specific purposes: 176.5    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives 176.6for at least two dentists to establish dental practices in high-need areas of the taconite tax 176.7relief area; 176.8(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 176.9heat at the Olcott Park Greenhouse/Virginia Commons project; 176.10(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs 176.11at the Miners Memorial; 176.12(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of 176.13Highway 142/Grant and Park Avenues; 176.14(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades 176.15and capital improvements to the public arena in Coleraine; 176.16(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 176.17pumphouse modifications; 176.18(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 176.19claims for water damage due to water and flood-related damage caused by the Canisteo Pit; 176.20(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child 176.21care center; 176.22(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades; 176.23(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library 176.24project; 176.25(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water 176.26and sewer services for Lakewood Housing; 176.27(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the 176.28Children's Museum; 176.29(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 176.30corrections. This amount must be matched by local sources; 176.31(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops; 177.1(15) 0.048 cent per ton must be paid to the city of Aitkin for signage; 177.2(16) 0.159 cent per ton must be paid to Aitkin County for a trail; 177.3(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad 177.4crossing; 177.5(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping 177.6of the community center parking lot; 177.7(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement; 177.8(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, 177.9milling, and overlay for Summit Street between Alaska Avenue and Highway 135; 177.10(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 177.11replacements and improvements in the Northeast Lower Alley area; 177.12(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz 177.13Road culvert; 177.14(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 177.15Street and associated infrastructure; 177.16(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements 177.17at the Park Ridge development; 177.18(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and 177.19site preparation for its renewable and sustainable energy park; 177.20(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 177.21improvements; 177.22(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding 177.23for the Summit Addition; 177.24(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 177.25improvements; 177.26(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer 177.27infrastructure improvements; 177.28(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 177.29improvements; 177.30(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 177.31improvements and land purchase, provided that if the city sells or otherwise disposes of any 178.1of the land purchased with the money provided under this clause within a period of ten new text begin five new text end 178.2years after it was purchased, the city must transfer a portion of the proceeds of the sale equal 178.3to the amount of the purchase price paid from the money provided under this clause to the 178.4commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite 178.5environmental protection fund to be used for the purposes of the fund under Minnesota 178.6Statutes, section 298.223; 178.7(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 178.8improvements; 178.9(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 178.10improvements; 178.11(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 178.12improvements; 178.13(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 178.14improvements; 178.15(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 178.16improvements; 178.17(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 178.18improvements; 178.19(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements; 178.20(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 178.21infrastructure improvements; 178.22(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 178.23improvements at the athletic facility; 178.24(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 178.25improvements; 178.26(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure 178.27related to a housing development; 178.28(43) 0.159 cent per ton must be paid to Balkan Township for building improvements; 178.29(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit 178.30for a signage kiosk; 179.1(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines 179.2and adjacent development near County State-Aid Highway 24; and 179.3(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall 179.4infrastructure around the athletic complex. 179.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 179.6    Sec. 17. new text begin CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED new text end 179.7 new text begin TACONITE TAX PROCEEDS. new text end 179.8 new text begin The commissioner of Iron Range Resources and Rehabilitation may use any unspent new text end 179.9 new text begin amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause new text end 179.10 new text begin (19), remaining as of May 22, 2016, for the specific purposes identified in that section. new text end 179.11 new text begin Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any new text end 179.12 new text begin other law to the contrary, interest accrued on this amount shall also be distributed to the new text end 179.13 new text begin recipient. Amounts under this section are available until expended and do not lapse or cancel new text end 179.14 new text begin under Minnesota Statutes, section 16A.28. new text end 179.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from May 22, 2016. new text end 179.16    Sec. 18. new text begin 2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION. new text end 179.17 new text begin (a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph (a), new text end 179.18 new text begin 25.1 cents per taxable ton of the tax collected under Minnesota Statutes, section 298.24, for new text end 179.19 new text begin production year 2016, may be transferred by the commissioner of Iron Range Resources new text end 179.20 new text begin and Rehabilitation, as provided in paragraph (b), to the taconite economic development new text end 179.21 new text begin fund under Minnesota Statutes, section 298.227. new text end 179.22 new text begin (b) If the amount is transferred by the commissioner of Iron Range Resources and new text end 179.23 new text begin Rehabilitation under paragraph (a), two-thirds shall be transferred from the taconite new text end 179.24 new text begin environmental protection fund, and one-third shall be transferred from the Douglas J. Johnson new text end 179.25 new text begin economic protection fund, and deposited into the taconite economic development fund by new text end 179.26 new text begin June 30, 2017. new text end 179.27 new text begin (c) Money from the taconite economic development fund shall be released as provided new text end 179.28 new text begin in Minnesota Statutes, section 298.227, except that no distribution shall be made to a taconite new text end 179.29 new text begin producer's fund unless the producer has timely paid its tax under Minnesota Statutes, section new text end 179.30 new text begin 298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided for new text end 179.31 new text begin by administrative agreement. new text end 179.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 180.1    Sec. 19. new text begin APPROPRIATION CANCELLATION. new text end 180.2 new text begin All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt new text end 180.3 new text begin Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled new text end 180.4 new text begin to the Minnesota 21st century fund on June 1, 2017. new text end 180.5    Sec. 20. new text begin REPEALER. new text end 180.6 new text begin Minnesota Rules, part 8125.1300, subpart 3, new text end new text begin is repealed. new text end 180.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 180.8ARTICLE 9 180.9IRON RANGE RESOURCES AND REHABILITATION BOARD 180.10    Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read: 180.11    Subd. 7. Iron Range resources and rehabilitation Board. new text begin After seeking a new text end 180.12 new text begin recommendation from the Iron Range Resources and Rehabilitation Board, new text end the new text begin commissioner new text end 180.13 new text begin of new text end Iron Range resources and rehabilitation Board may purchase insurance it considers new text begin the new text end 180.14 new text begin commissioner deems new text end necessary and appropriate to insure facilities operated by the board. 180.15    Sec. 2. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read: 180.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or new text begin , new text end 180.17 new text begin including forgivable loans, new text end equity investments new text begin or grants for infrastructure new text end in mineral, steel, 180.18or any other industry processing, production, manufacturing, or technology project that 180.19would enhance the economic diversification and that is located within the taconite relief 180.20tax area as defined under section 273.134. The commissioner must, prior to making any 180.21loans or equity investments and after consultation with industry and public officials, develop 180.22a strategy for making loans and new text begin , new text end equity investments new text begin or grants for infrastructure new text end that assists 180.23the taconite relief area in retaining and enhancing its economic competitiveness. Money in 180.24the fund may also be used to pay for the costs of carrying out the commissioner's due 180.25diligence duties under this section. 180.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 180.27    Sec. 3. Minnesota Statutes 2016, section 116J.424, is amended to read: 180.28116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 180.29CONTRIBUTION. 181.1The commissioner of the Iron Range resources and rehabilitation Board with approval 181.2by the board, may provide an equal match for any loan or equity investment made for a 181.3project located in the tax relief area defined in section 273.134, paragraph (b), by the 181.4Minnesota 21st century fund created by section 116J.423. The match may be in the form 181.5of a loan or equity investment, notwithstanding whether the fund makes a loan or equity 181.6investment. The state shall not acquire an equity interest because of an equity investment 181.7or loan by the board new text begin under this section new text end and the board at its sole discretion new text begin commissioner, new text end 181.8 new text begin after consultation with the Iron Range Resources and Rehabilitation Board, new text end shall new text begin have the new text end 181.9 new text begin sole discretion to new text end decide what interest it new text begin the board new text end acquires in a project. The commissioner 181.10of employment and economic development may require a commitment from the board new text begin new text end 181.11 new text begin commissioner new text end to make the match prior to disbursing money from the fund. 181.12    Sec. 4. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read: 181.13    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 181.14the meanings given them in this subdivision. 181.15(b) "Area development rate" means a rate schedule established by a utility that provides 181.16customers within an area development zone service under a base utility rate schedule, except 181.17that charges may be reduced from the base rate as agreed upon by the utility and the customer 181.18consistent with this section. 181.19(c) "Area development zone" means a contiguous or noncontiguous area designated by 181.20an authority or municipality for development or redevelopment and within which one of 181.21the following conditions exists: 181.22(1) obsolete buildings not suitable for improvement or conversion or other identified 181.23hazards to the health, safety, and general well-being of the community; 181.24(2) buildings in need of substantial rehabilitation or in substandard condition; or 181.25(3) low values and damaged investments. 181.26(d) "Authority" means a rural development financing authority established under sections 181.27469.142 to 469.151; a housing and redevelopment authority established under sections 181.28469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 181.29economic development authority established under sections 469.090 to 469.108; a 181.30redevelopment agency as defined in sections 469.152 to 469.165; the new text begin commissioner of new text end Iron 181.31Range resources and rehabilitation new text begin , acting after consultation with the new text end board established 181.32under section 298.22; a municipality that is administering a development district created 181.33under sections 469.124 to 469.133 or any special law; a municipality that undertakes a 182.1project under sections 469.152 to 469.165, except a town located outside the metropolitan 182.2area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or 182.3less; or a municipality that exercises the powers of a port authority under any general or 182.4special law. 182.5(e) "Municipality" means a city, however organized, and, with respect to a project 182.6undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 182.7sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142 182.8to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 182.9also includes any county. 182.10    Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read: 182.11    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole 182.12or part within the area. If a municipality is located partly within and partly without the area, 182.13the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 182.14taxation or taxing jurisdiction within the municipality are to the property or portion thereof 182.15that is located in that portion of the municipality within the area, except that the fiscal 182.16capacity of the municipality must be computed upon the basis of the valuation and population 182.17of the entire municipality. A municipality shall be excluded from the area if its municipal 182.18comprehensive zoning and planning policies conscientiously exclude most 182.19commercial-industrial development, for reasons other than preserving an agricultural use. 182.20The new text begin commissioner of new text end Iron Range resources and rehabilitation Board and the commissioner 182.21of revenue shall jointly make this determination annually and shall notify those municipalities 182.22that are ineligible to participate in the tax base sharing program provided in this chapter for 182.23the following year. new text begin Before making the joint determination, the commissioner of Iron Range new text end 182.24 new text begin resources and rehabilitation shall seek a recommendation from the Iron Range Resources new text end 182.25 new text begin and Rehabilitation Board. new text end 182.26    Sec. 6. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read: 182.27    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to 182.2825 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources and new text end 182.29 new text begin rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and 182.30Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation 182.31and cooperatively operated school account under section 298.28, subdivision 7a. 182.32(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of new text end 182.33 new text begin Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron 183.1Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range 183.2school consolidation and cooperatively operated account has insufficient funds to make 183.3payments as authorized under section 298.28, subdivision 7a. 183.4    Sec. 7. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read: 183.5    Subdivision 1. Development. In any county where the county board by proper resolution 183.6sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 183.7section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 183.8with the approval of the new text begin , after seeking a recommendation from the Iron Range Resources new text end 183.9 new text begin and Rehabilitation new text end Board new text begin , new text end may upon request of the county board assist said county in carrying 183.10out any project for the long range development of its forest resources through matching of 183.11funds or otherwise. 183.12    Sec. 8. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read: 183.13    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the 183.14state of Minnesota new text begin , except that when used in sections 298.22 to 298.227, and 298.291 to new text end 183.15 new text begin 298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation new text end . 183.16    Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read: 183.17    Subdivision 1. The Office of new text begin the new text end Commissioner of Iron Range Resources and 183.18Rehabilitation. (a) The Office of the Commissioner of Iron Range Resources and 183.19Rehabilitation is created as an agency in the executive branch of state government. The 183.20governor shall appoint the commissioner of Iron Range resources and rehabilitation under 183.21section 15.06. new text begin The commissioner may expend amounts appropriated to the commissioner new text end 183.22 new text begin or the board for projects after submitting the expenditure to the board for a recommendation new text end 183.23 new text begin under subdivision 1a. new text end 183.24(b) The commissioner may hold other positions or appointments that are not incompatible 183.25with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 183.26may appoint a deputy commissioner. All expenses of the commissioner, including the 183.27payment of staff and other assistance as may be necessary, must be paid out of the amounts 183.28appropriated by section 298.28 or otherwise made available by law to the commissioner. 183.29Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 183.30options available under section 471.345 when the commissioner determines it is in the best 183.31interest of the agency. The agency is not subject to sections 16E.016 and 16C.05 new text begin . The agency new text end 183.32 new text begin has the authority to reimburse any nongovernmental manager operating state-owned facilities new text end 184.1 new text begin within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment, or new text end 184.2 new text begin other items used in the operations at such facilities new text end . 184.3(c) When the commissioner determines that distress and unemployment exists or may 184.4exist in the future in any county by reason of the removal of natural resources or a possibly 184.5limited use of natural resources in the future and any resulting decrease in employment, the 184.6commissioner may use whatever amounts of the appropriation made to the commissioner 184.7of revenue in section 298.28 that are determined to be necessary and proper in the 184.8development of the remaining resources of the county and in the vocational training and 184.9rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 184.10to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 184.11effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 184.12section, "development of remaining resources" includes, but is not limited to, the promotion 184.13of tourism. 184.14    Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read: 184.15    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range Resources 184.16and Rehabilitation Board consists of the state senators and representatives elected from state 184.17senatorial or legislative districts in which one-third or more of the residents reside in a 184.18taconite assistance area as defined in section 273.1341. One additional state senator shall 184.19also be appointed by the senate Subcommittee on Committees of the Committee on Rules 184.20and Administration. All expenditures and projects made by the commissioner shall first be 184.21submitted to the board for approval. new text begin The board shall recommend approval or disapproval new text end 184.22 new text begin or modification of the expenditures and projects. new text end The expenses of the board shall be paid 184.23by the state from the funds raised pursuant to this section. Members of the board may be 184.24reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101, 184.25and may receive per diem payments during the interims between legislative sessions in the 184.26manner provided in section 3.099, subdivision 1. 184.27The members shall be appointed in January of every odd-numbered year, and shall serve 184.28until January of the next odd-numbered year. Vacancies on the board shall be filled in the 184.29same manner as original members were chosen. 184.30    Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read: 184.31    Subd. 5a. Forest trust. The commissioner, upon approval by new text begin after requesting a new text end 184.32 new text begin recommendation from new text end the board, may purchase forest lands in the taconite assistance area 184.33defined in under section 273.1341 with funds specifically authorized for the purchase. The 185.1acquired forest lands must be held in trust for the benefit of the citizens of the taconite 185.2assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be 185.3managed and developed for recreation and economic development purposes. The 185.4commissioner, upon approval by new text begin after requesting a recommendation from new text end the board, may 185.5sell forest lands purchased under this subdivision if the board finds new text begin commissioner determines new text end 185.6that the sale advances the purposes of the trust. Proceeds derived from the management or 185.7sale of the lands and from the sale of timber or removal of gravel or other minerals from 185.8these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account 185.9that is established within the state financial accounts. Funds may be expended from the 185.10account upon approval by new text begin after the commissioner has sought a recommendation from new text end the 185.11board, to purchase, manage, administer, convey interests in, and improve the forest lands. 185.12With approval by new text begin After the commissioner has sought a recommendation from new text end the board, 185.13money in the Iron Range Miners' Memorial Forest account may be transferred into the 185.14corpus of the Douglas J. Johnson economic protection trust fund established under sections 185.15298.291 to 298.294. The property acquired under the authority granted by this subdivision 185.16and income derived from the property or the operation or management of the property are 185.17exempt from taxation by the state or its political subdivisions while held by the forest trust. 185.18    Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read: 185.19    Subd. 6. Private entity participation. new text begin After seeking a recommendation from new text end the board new text begin , new text end 185.20 new text begin the commissioner new text end may acquire an equity interest in any project for which it new text begin the commissioner new text end 185.21provides funding. The commissioner may establish, participate in the management of, and 185.22dispose of the assets of charitable foundations, nonprofit limited liability companies, and 185.23nonprofit corporations associated with any project for which it provides funding, including 185.24specifically, but without limitation, a corporation within the meaning of section 317A.011, 185.25subdivision 6 . 185.26    Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read: 185.27    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources 185.28and rehabilitation may not sell or privatize the Ironworld new text begin Minnesota new text end Discovery Center or 185.29Giants Ridge Golf and Ski Resort without prior approval by the board. 185.30    Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read: 185.31    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation 185.32shall annually prepare a budget for operational expenditures, programs, and projects, and 185.33submit it to the Iron Range Resources and Rehabilitation Board new text begin for approval new text end . After the 186.1budget is approved by the board and the governor, the commissioner may spend money in 186.2accordance with the approved budget. 186.3    Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read: 186.4298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION. 186.5(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 186.6to the terms of any contract entered into by the state under authority of section 298.22 and 186.7any fees which may, in the discretion of the commissioner of Iron Range resources and 186.8rehabilitation, be charged in connection with any project pursuant to that section as amended, 186.9shall be deposited in the state treasury to the credit of the Iron Range Resources and 186.10Rehabilitation Board account in the special revenue fund and are hereby appropriated for 186.11the purposes of section 298.22. 186.12(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 186.13of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts 186.14if the commissioner determines that the merchandise can be used for special event prizes 186.15or mementos at facilities operated by the board. Nothing in this paragraph authorizes the 186.16commissioner or a member of the board to receive merchandise for personal use. 186.17(c) All fees charged by the commissioner in connection with public use of the state-owned 186.18ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 186.19by the commissioner from the operation or lease of those facilities and from the lease, sale, 186.20or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 186.21deposited into an Iron Range Resources and Rehabilitation Board account that is created 186.22within the state enterprise fund. All funds deposited in the enterprise fund account are 186.23appropriated to the commissioner to be expended, subject to approval by new text begin after seeking a new text end 186.24 new text begin recommendation from new text end the board, as follows: 186.25(1) to pay costs associated with the construction, equipping, operation, repair, or 186.26improvement of the Giants Ridge Recreation Area facilities or lands; 186.27(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 186.28associated with the financing of the facilities; and 186.29(3) to pay the costs of any other project authorized under section 298.22. 186.30    Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read: 186.31    Subd. 3. Project approval. All projects authorized by this section shall be submitted 186.32by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 187.1by new text begin a recommendation from new text end the board. Prior to the commencement of a project involving 187.2the exercise by the commissioner of any authority of sections 469.174 to 469.179, the 187.3governing body of each municipality in which any part of the project is located and the 187.4county board of any county containing portions of the project not located in an incorporated 187.5area shall by majority vote approve or disapprove the project. Any project approved by the 187.6board new text begin commissioner new text end and the applicable governing bodies, if any, together with detailed 187.7information concerning the project, its costs, the sources of its funding, and the amount of 187.8any bonded indebtedness to be incurred in connection with the project, shall be transmitted 187.9to the governor, who shall approve, disapprove, or return the proposal for additional 187.10consideration within 30 days of receipt. No project authorized under this section shall be 187.11undertaken, and no obligations shall be issued and no tax increments shall be expended for 187.12a project authorized under this section until the project has been approved by the governor. 187.13    Sec. 17. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read: 187.14    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection 187.15fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 187.16Minnesota located within the taconite assistance area defined in section 273.1341, that are 187.17adversely affected by the environmentally damaging operations involved in mining taconite 187.18and iron ore and producing iron ore concentrate and for the purpose of promoting the 187.19economic development of northeast Minnesota. The taconite environmental protection fund 187.20shall be used for the following purposes: 187.21(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 187.22Board determines are in need of study and which will determine the environmental problems 187.23requiring remedial action; 187.24(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 187.25by state law; 187.26(3) local economic development projects but only if those projects are approved by the 187.27 new text begin commissioner after seeking a recommendation of the projects from the new text end board, and public 187.28works, including construction of sewer and water systems located within the taconite 187.29assistance area defined in section 273.1341; 187.30(4) monitoring of mineral industry related health problems among mining employees; 187.31and 187.32(5) local public works projects under section 298.227, paragraph (c). 188.1    Sec. 18. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read: 188.2    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be 188.3administered by the commissioner of the Iron Range Resources and Rehabilitation Board. 188.4The commissioner shall by September 1 of each year submit to the board a list of projects 188.5to be funded from the taconite area environmental protection fund, with such supporting 188.6information including description of the projects, plans, and cost estimates as may be 188.7necessary. 188.8    (b) Each year no less than one-half of the amounts deposited into the taconite 188.9environmental protection fund must be used for public works projects, including construction 188.10of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range 188.11Resources and Rehabilitation Board may waive the requirements of this paragraph. 188.12    (c) Upon approval by the board, the list of projects approved under this subdivision shall 188.13be submitted to the governor by November 1 of each year. By December 1 of each year, 188.14the governor shall approve or disapprove, or return for further consideration, each project. new text begin new text end 188.15 new text begin The commissioner must seek review of the projects by the board. new text end Funds for a project may 188.16be expended only upon approval of the project by the board and the governor. The 188.17commissioner may submit supplemental projects to the board and governor for approval at 188.18any time new text begin after seeking review of the projects by the board new text end . 188.19    Sec. 19. Minnesota Statutes 2016, section 298.227, is amended to read: 188.20298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 188.21    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 188.22production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 188.23Iron Range Resources and Rehabilitation Board in a separate taconite economic development 188.24fund for each taconite and direct reduced ore producer. Money from the fund for each 188.25producer shall be released by the commissioner after review by a joint committee consisting 188.26of an equal number of representatives of the salaried employees and the nonsalaried 188.27production and maintenance employees of that producer. The District 11 director of the 188.28United States Steelworkers of America, on advice of each local employee president, shall 188.29select the employee members. In nonorganized operations, the employee committee shall 188.30be elected by the nonsalaried production and maintenance employees. The review must be 188.31completed no later than six months after the producer presents a proposal for expenditure 188.32of the funds to the committee. The funds held pursuant to this section may be released only 188.33for workforce development and associated public facility improvement, or for acquisition 188.34of plant and stationary mining equipment and facilities for the producer or for research and 189.1development in Minnesota on new mining, or taconite, iron, or steel production technology, 189.2but only if the producer provides a matching expenditure equal to the amount of the 189.3distribution to be used for the same purpose beginning with distributions in 2014. Effective 189.4for proposals for expenditures of money from the fund beginning May 26, 2007, the 189.5commissioner may not release the funds before the next scheduled meeting of the board. If 189.6a proposed expenditure is not approved by the new text begin commissioner, after seeking a recommendation new text end 189.7 new text begin from the new text end board, the funds must be deposited in the Taconite Environmental Protection Fund 189.8under sections 298.222 to 298.225. If a producer uses money which has been released from 189.9the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining 189.10shovels, and the producer removes the piece of equipment from the taconite tax relief area 189.11defined in section within ten years from the date of receipt of the money from the 189.12fund, a portion of the money granted from the fund must be repaid to the taconite economic 189.13development fund. The portion of the money to be repaid is 100 percent of the grant if the 189.14equipment is removed from the taconite tax relief area within 12 months after receipt of the 189.15money from the fund, declining by ten percent for each of the subsequent nine years during 189.16which the equipment remains within the taconite tax relief area. If a taconite production 189.17facility is sold after operations at the facility had ceased, any money remaining in the fund 189.18for the former producer may be released to the purchaser of the facility on the terms otherwise 189.19applicable to the former producer under this section. If a producer fails to provide matching 189.20funds for a proposed expenditure within six months after the commissioner approves release 189.21of the funds, the funds are available for release to another producer in proportion to the 189.22distribution provided and under the conditions of this section. Any portion of the fund which 189.23is not released by the commissioner within one year of its deposit in the fund shall be divided 189.24between the taconite environmental protection fund created in section 298.223 and the 189.25Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 189.26in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 189.27to the taconite environmental protection fund and one-third to the Douglas J. Johnson 189.28economic protection trust fund. 189.29    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 189.30distributions and the review process, an amount equal to ten cents per taxable ton of 189.31production in 2007, for distribution in 2008 only, that would otherwise be distributed under 189.32paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 189.33wood product facility located in the taconite tax relief area and in a county that contains a 189.34city of the first class. This amount must be deducted from the distribution under paragraph 189.35(a) for which a matching expenditure by the producer is not required. The granting of the 189.36loan or grant is subject to approval by the board. If the money is provided as a loan, interest 190.1must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 190.2Repayments of the loan and interest, if any, must be deposited in the taconite environment 190.3protection fund under sections to . If a loan or grant is not made under this 190.4paragraph by July 1, 2012, the amount that had been made available for the loan under this 190.5paragraph must be transferred to the taconite environment protection fund under sections 190.6298.222 to . (iii) Money distributed in 2008 to the fund established under this section 190.7that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 190.8pro rata basis. 190.9(c) Repayment or transfer of money to the taconite environmental protection fund under 190.10paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation 190.11Board for public works projects in house legislative districts in the same proportion as 190.12taxable tonnage of production in 2007 in each house legislative district, for distribution in 190.132008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 190.14Notwithstanding any other law to the contrary, expenditures under this paragraph do not 190.15require approval by the governor. For purposes of this paragraph, "house legislative districts" 190.16means the legislative districts in existence on May 15, 2009. 190.17    Sec. 20. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read: 190.18    Subd. 7a. Iron Range school consolidation and cooperatively operated school account. 190.19(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation 190.20Board to be deposited in the Iron Range school consolidation and cooperatively operated 190.21school account that is hereby created: 190.22(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 190.23under section 298.24; and 190.24(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 190.25under section 298.24; 190.26(2) the amount as determined under section 298.17, paragraph (b), clause (3); 190.27(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 190.28proceeds attributable to the increase in the implicit price deflator as provided in section 190.29298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J. 190.30Johnson economic protection trust fund; 190.31(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 190.32tax proceeds attributable to the increase in the implicit price deflator as provided in section 191.1298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining one-third 191.2to be distributed to the Douglas J. Johnson economic protection trust fund; and 191.3(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 191.4tax proceeds attributable to the increase in the implicit price deflator as provided in section 191.5298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the remaining 191.6one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and 191.7(4) any other amount as provided by law. 191.8(b) Expenditures from this account new text begin may be approved as ongoing annual expenditures new text end 191.9 new text begin and new text end shall be made only to provide disbursements to assist school districts with the payment 191.10of bonds that were issued for qualified school projects, or for any other school disbursement 191.11as approved by the new text begin commissioner of Iron Range resources and rehabilitation after the new text end 191.12 new text begin commissioner of Iron Range resources and rehabilitation has sought review of the new text end 191.13 new text begin expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this 191.14section, "qualified school projects" means school projects within the taconite assistance 191.15area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 191.162006; and (2) approved by the commissioner of education pursuant to section 123B.71. 191.17(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 191.18bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 191.19any reduction in debt service equalization aid that the school district qualifies for in that 191.20year, under section 123B.53, subdivision 6, compared with the amount the school district 191.21qualified for in fiscal year 2018. 191.22(d) No expenditure under this section shall be made unless approved by seven members 191.23of new text begin the commissioner of Iron Range resources and rehabilitation after seeking review of the new text end 191.24 new text begin expenditure from new text end the Iron Range Resources and Rehabilitation Board. 191.25    Sec. 21. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read: 191.26    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be 191.27allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 191.28Range higher education account that is hereby created, to be used for higher education 191.29programs conducted at educational institutions in the taconite assistance area defined in 191.30section 273.1341. The Iron Range Higher Education committee under section 298.2214, 191.31and the Iron Range Resources and Rehabilitation Board new text begin commissioner of Iron Range new text end 191.32 new text begin resources and rehabilitation new text end must approve all expenditures from the account new text begin , after seeking new text end 192.1 new text begin review and recommendation of the expenditures from the Iron Range Resources and new text end 192.2 new text begin Rehabilitation Board new text end . 192.3    Sec. 22. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read: 192.4    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 192.5fund may be used for the following purposes: 192.6    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 192.7with private sources of financing, but a loan to a private enterprise shall be for a principal 192.8amount not to exceed one-half of the cost of the project for which financing is sought, and 192.9the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 192.10percent or an interest rate three percentage points less than a full faith and credit obligation 192.11of the United States government of comparable maturity, at the time that the loan is approved; 192.12    (2) to fund reserve accounts established to secure the payment when due of the principal 192.13of and interest on bonds issued pursuant to section 298.2211; 192.14    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 192.15bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 192.16retrofitting heating facilities in connection with district heating systems or systems utilizing 192.17alternative energy sources; 192.18    (4) to invest in a venture capital fund or enterprise that will provide capital to other 192.19entities that are engaging in, or that will engage in, projects or programs that have the 192.20purposes set forth in subdivision 1. No investments may be made in a venture capital fund 192.21or enterprise unless at least two other unrelated investors make investments of at least 192.22$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 192.23Johnson economic protection trust fund may not exceed the amount of the largest investment 192.24by an unrelated investor in the venture capital fund or enterprise. For purposes of this 192.25subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 192.26which the investment is made or to any individual who owns more than 40 percent of the 192.27value of the entity, in any of the following relationships: spouse, parent, child, sibling, 192.28employee, or owner of an interest in the entity that exceeds ten percent of the value of all 192.29interests in it. For purposes of determining the limitations under this clause, the amount of 192.30investments made by an investor other than the Douglas J. Johnson economic protection 192.31trust fund is the sum of all investments made in the venture capital fund or enterprise during 192.32the period beginning one year before the date of the investment by the Douglas J. Johnson 192.33economic protection trust fund; and 193.1    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 193.2be held and managed as a public trust for the benefit of the area for the purposes authorized 193.3in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 193.4commissioner upon approval by new text begin after seeking a recommendation from new text end the board. The net 193.5proceeds must be deposited in the trust fund for the purposes and uses of this section. 193.6    Money from the trust fund shall be expended only in or for the benefit of the taconite 193.7assistance area defined in section 273.1341. 193.8    Sec. 23. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read: 193.9    Subdivision 1. Project approval. new text begin (a) new text end The new text begin commissioner of Iron Range resources and new text end 193.10 new text begin rehabilitation, after seeking a recommendation from the new text end board and commissioner shall by 193.11August 1 of each year prepare a list of projects to be funded new text begin , may expend funds for projects new text end 193.12 new text begin to be funded new text end from the Douglas J. Johnson economic protection trust with necessary 193.13supporting information including description of the projects, plans, and cost estimates. These 193.14projects shall be consistent with the priorities established in section 298.292 and shall not 193.15be approved by the board new text begin commissioner new text end unless it new text begin the commissioner, after seeking a new text end 193.16 new text begin recommendation from the board, new text end finds that: 193.17(a) new text begin (1) new text end the project will materially assist, directly or indirectly, the creation of additional 193.18long-term employment opportunities; 193.19(b) new text begin (2) new text end the prospective benefits of the expenditure exceed the anticipated costs; and 193.20(c) new text begin (3) new text end in the case of assistance to private enterprise, the project will serve a sound 193.21business purpose. 193.22 new text begin (b) new text end Each project must be approved by over one-half of all of the members of the board 193.23and the commissioner of Iron Range resources and rehabilitation new text begin after seeking a new text end 193.24 new text begin recommendation from the board for the project new text end . The list of projects shall be submitted to 193.25the governor, who shall, by November 15 of each year, approve or disapprove, or return 193.26for further consideration, each project. The money for a project may be expended only upon 193.27approval of the project by the governor. The board may submit supplemental projects for 193.28approval at any time. 193.29    Sec. 24. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read: 193.30    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 193.31projects and for administration of the trust fund only from the net interest, earnings, and 193.32dividends arising from the investment of the trust at any time, including net interest, earnings, 194.1and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 194.2use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 194.3provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 194.4to make school bond payments and payments to recipients of taconite production tax proceeds 194.5pursuant to section 298.225, may be taken from the corpus of the trust. 194.6    (b) Additionally, upon recommendation by the new text begin commissioner after seeking a new text end 194.7 new text begin recommendation from the new text end board, up to $13,000,000 from the corpus of the trust may be 194.8made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus 194.9of the trust may be made available for use as provided in section 298.2961. 194.10    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 194.11on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 194.12made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 194.13section 17, may be expended on projects. Funds may be expended for projects under this 194.14paragraph only if the project: 194.15    (1) is for the purposes established under section 298.292, subdivision 1, clause (1) or 194.16(2); and 194.17    (2) is approved by two-thirds of all of the members of new text begin the commissioner after seeking new text end 194.18 new text begin a recommendation from new text end the board. 194.19No money made available under this paragraph or paragraph (d) can be used for 194.20administrative or operating expenses of the Iron Range Resources and Rehabilitation Board 194.21or expenses relating to any facilities owned or operated by the board on May 18, 2002. 194.22    (d) Upon recommendation by a unanimous vote of all members new text begin the commissioner after new text end 194.23 new text begin seeking a recommendation new text end of the board, amounts in addition to those authorized under 194.24paragraphs (a), (b), and (c) may be expended on projects described in section 298.292, 194.25subdivision 1 . 194.26    (e) Annual administrative costs, not including detailed engineering expenses for the 194.27projects, shall not exceed five percent of the net interest, dividends, and earnings arising 194.28from the trust in the preceding fiscal year. 194.29    (f) Principal and interest received in repayment of loans made pursuant to this section, 194.30and earnings on other investments made under section 298.292, subdivision 2, clause (4), 194.31shall be deposited in the state treasury and credited to the trust. These receipts are 194.32appropriated to the board for the purposes of sections 298.291 to 298.298. 195.1    (g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the commissioner new text end 195.2 new text begin of Iron Range resources and rehabilitation, after seeking a recommendation from new text end the board, 195.3money from the corpus of the trust may be expanded to purchase forest lands within the 195.4taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292, 195.5subdivision 2 , clause (5). 195.6    Sec. 25. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read: 195.7    Subd. 4. Temporary loan authority. (a) new text begin After seeking a recommendation from new text end the 195.8board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may recommend that new text begin new text end 195.9 new text begin use new text end up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 195.10grants, or equity investments as provided in this subdivision. The money would be available 195.11for loans for construction and equipping of facilities constituting (1) a value added iron 195.12products plant, which may be either a new plant or a facility incorporated into an existing 195.13plant that produces iron upgraded to a minimum of 75 percent iron content or any iron alloy 195.14with a total minimum metallic content of 90 percent; or (2) a new mine or minerals processing 195.15plant for any mineral subject to the net proceeds tax imposed under section 298.015. A loan 195.16or loan guarantee under this paragraph may not exceed $5,000,000 for any facility. 195.17(b) Additionally, the board new text begin commissioner of Iron Range resources and rehabilitation new text end 195.18must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from 195.19the investment of the trust after June 30, 1996, to be used for grants, loans, loan guarantees, 195.20or equity investments for the purposes set forth in paragraph (a). This amount must be 195.21reserved until it is used as described in this subdivision. 195.22(c) Additionally, the board new text begin commissioner new text end may recommend that up to $5,500,000 from 195.23the corpus of the trust may be used for additional grants, loans, loan guarantees, or equity 195.24investments for the purposes set forth in paragraph (a). 195.25(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a new text end 195.26 new text begin recommendation from the new text end board new text begin , new text end may require that it new text begin the board new text end receive an equity percentage 195.27in any project to which it contributes under this section. 195.28    Sec. 26. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read: 195.29    Subd. 2. Projects; approval. (a) Projects funded must be for: 195.30    (1) environmentally unique reclamation projects; or 195.31    (2) pit or plant repairs, expansions, or modernizations other than for a value added iron 195.32products plant. 196.1    (b) To be proposed by the board, a project must be approved by new text begin Before the commissioner new text end 196.2 new text begin may propose a project, the commissioner must seek a recommendation from new text end the board. The 196.3money for a project may be spent only upon approval of the project by the governor. The 196.4board new text begin commissioner new text end may submit new text begin a new text end supplemental projects new text begin project new text end for approval at any time new text begin new text end 196.5 new text begin after seeking a recommendation for the project from the board new text end . 196.6    (c) The board new text begin commissioner new text end may require that it new text begin the board new text end receive an equity percentage 196.7in any project to which it contributes under this section. 196.8    Sec. 27. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read: 196.9    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under 196.10section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 196.11Any grant or loan made under this subdivision must new text begin first new text end be approved by the new text begin commissioner new text end 196.12 new text begin after seeking a recommendation from the new text end board, established under section 298.22. 196.13    (b) All distributions received in 2009 and subsequent years are allocated for projects 196.14under section 298.223, subdivision 1. 196.15    Sec. 28. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read: 196.16    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly 196.17constituted authorities of a taxing district there are in existence reserves of unmined iron 196.18ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range 196.19resources and rehabilitation Board for authority to petition the county assessor to verify the 196.20existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 196.21with established engineering and geological exploration methods, in order that such taxing 196.22district may be able to forecast in a proper manner its future economic and fiscal potentials. new text begin new text end 196.23 new text begin The commissioner of Iron Range resources and rehabilitation may grant the authority to new text end 196.24 new text begin petition after seeking a recommendation from the Iron Range Resources and Rehabilitation new text end 196.25 new text begin Board. new text end 196.26    Sec. 29. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY new text end 196.27 new text begin SEPARATION INCENTIVE PROGRAM AUTHORIZATION. new text end 196.28 new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron Range new text end 196.29 new text begin Resources and Rehabilitation Board unless otherwise specified. new text end 196.30 new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation with the new text end 196.31 new text begin commissioner of management and budget, shall offer a targeted early separation incentive new text end 196.32 new text begin program for employees of the commissioner who have attained the age of 60 years or who new text end 197.1 new text begin have received credit for at least 30 years of allowable service under the provisions of new text end 197.2 new text begin Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation new text end 197.3 new text begin incentive program for employees of the commissioner whose positions are in support of new text end 197.4 new text begin operations at Giants Ridge and will be eliminated if the agency no longer directly manages new text end 197.5 new text begin Giants Ridge operations. new text end 197.6 new text begin (c) The early separation incentive program may include one or more of the following: new text end 197.7 new text begin (1) employer-paid postseparation health, medical, and dental insurance until age 65; and new text end 197.8 new text begin (2) cash incentives that may, but are not required to be, used to purchase additional years new text end 197.9 new text begin of service credit through the Minnesota State Retirement System, to the extent that the new text end 197.10 new text begin purchases are otherwise authorized by law. new text end 197.11 new text begin (d) The commissioner shall establish eligibility requirements for employees to receive new text end 197.12 new text begin an incentive. new text end 197.13 new text begin (e) The commissioner, consistent with the established program provisions under paragraph new text end 197.14 new text begin (b), and with the eligibility requirements under paragraph (f), may designate specific new text end 197.15 new text begin programs or employees as eligible to be offered the incentive program. new text end 197.16 new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the employee new text end 197.17 new text begin and must be in writing. The incentive may only be offered at the sole discretion of the new text end 197.18 new text begin commissioner. new text end 197.19 new text begin (g) The cost of the incentive is payable solely by funds made available to the new text end 197.20 new text begin commissioner by law, but only on prior approval of the expenditures by the commissioner, new text end 197.21 new text begin after seeking a recommendation from the Iron Range Resources and Rehabilitation Board. new text end 197.22 new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair labor new text end 197.23 new text begin practice under Minnesota Statutes, chapter 179A. new text end 197.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. This new text end 197.25 new text begin section is repealed July 30, 2019. new text end 197.26    Sec. 30. new text begin REVISOR'S INSTRUCTION. new text end 197.27 new text begin The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes new text end 197.28 new text begin and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary new text end 197.29 new text begin approval authority for all expenditures and projects from the Iron Range Resources and new text end 197.30 new text begin Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and new text end 197.31 new text begin (ii) provide that the commissioner must, in good faith, seek the review and recommendation new text end 197.32 new text begin of the board, as required, before exercising approval authority. The revisor shall submit the new text end 198.1 new text begin proposal, in a form ready for introduction, during the 2018 regular legislative session to the new text end 198.2 new text begin chairs and ranking minority members of the senate and house of representatives committees new text end 198.3 new text begin with jurisdiction over taxes. new text end 198.4    Sec. 31. new text begin REPEALER. new text end 198.5 new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4, 5, new text end 198.6 new text begin and 6; and 298.298, new text end new text begin are repealed. new text end 198.7ARTICLE 10 198.8DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION DEVICES 198.9PROVISIONS 198.10    Section 1. new text begin [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; new text end 198.11 new text begin DEFINITIONS. new text end 198.12 new text begin (a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and new text end 198.13 new text begin 609.5316, subdivision 3, the following terms have the meanings given. new text end 198.14 new text begin (b) "Automated sales suppression device" or "zapper" means a software program, carried new text end 198.15 new text begin on any tangible medium, or accessed through any other means, that falsifies the electronic new text end 198.16 new text begin records of electronic cash registers and other point-of-sale systems including, but not limited new text end 198.17 new text begin to, transaction data and transaction reports. new text end 198.18 new text begin (c) "Electronic cash register" means a device that keeps a register or supporting documents new text end 198.19 new text begin through the means of an electronic device or computer system designed to record transaction new text end 198.20 new text begin data for the purpose of computing, compiling, or processing retail sales transaction data in new text end 198.21 new text begin whatever manner. new text end 198.22 new text begin (d) "Phantom-ware" means hidden preinstalled or later-installed programming option new text end 198.23 new text begin embedded in the operating system of an electronic cash register or hardwired into the new text end 198.24 new text begin electronic cash register that can be used to create a virtual second electronic cash register new text end 198.25 new text begin or may eliminate or manipulate transaction records that may or may not be preserved in new text end 198.26 new text begin digital formats to represent the true or manipulated record of transactions in the electronic new text end 198.27 new text begin cash register. new text end 198.28 new text begin (e) "Transaction data" includes items purchased by a customer, the price of each item, new text end 198.29 new text begin the taxability determination for each item, a segregated tax amount for each of the taxed new text end 198.30 new text begin items, the date and time of the purchase, the name, address, and identification number of new text end 198.31 new text begin the vendor, and the receipt or invoice number of the transaction. new text end 199.1 new text begin (f) "Transaction report" means a report documenting, but not limited to, the sales, taxes new text end 199.2 new text begin collected, media totals, and discount voids at an electronic cash register that is printed on new text end 199.3 new text begin cash register tape at the end of a day or shift, or a report documenting every action at an new text end 199.4 new text begin electronic cash register that is stored electronically. new text end 199.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated in Minnesota new text end 199.6 new text begin Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after new text end 199.7 new text begin August 1, 2017. new text end 199.8    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 199.9read: 199.10     new text begin Subd. 32. new text end new text begin Sales suppression. new text end new text begin (a) A person who: new text end 199.11 new text begin (1) sells; new text end 199.12 new text begin (2) transfers; new text end 199.13 new text begin (3) develops; new text end 199.14 new text begin (4) manufactures; or new text end 199.15 new text begin (5) possesses with the intent to sell or transfer new text end 199.16 new text begin an automated sales suppression device, zapper, phantom-ware, or similar device capable of new text end 199.17 new text begin being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under new text end 199.18 new text begin paragraph (b). new text end 199.19 new text begin (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total new text end 199.20 new text begin amount of all taxes and penalties due that are attributable to the use of any automated sales new text end 199.21 new text begin suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, new text end 199.22 new text begin development, or manufacture of the automated sales suppression device, zapper, new text end 199.23 new text begin phantom-ware, or similar device by the person. new text end 199.24 new text begin (c) The definitions in section 289A.14 apply to this subdivision. new text end 199.25 new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction new text end 199.26 new text begin of the commissioner, an agent of the commissioner, law enforcement agencies, or new text end 199.27 new text begin postsecondary education institutions that possess an automated sales suppression device, new text end 199.28 new text begin zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated new text end 199.29 new text begin sales suppression devices, zappers, or phantom-ware. new text end 199.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated that occur on new text end 199.31 new text begin or after August 1, 2017. new text end 200.1    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 200.2read: 200.3     new text begin Subd. 12. new text end new text begin Felony. new text end new text begin (a) A person who sells, purchases, installs, transfers, develops, new text end 200.4 new text begin manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or new text end 200.5 new text begin similar device knowing that the device or phantom-ware is capable of being used to commit new text end 200.6 new text begin tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for new text end 200.7 new text begin not more than five years or to a payment of a fine of not more than $10,000, or both. new text end new text begin new text end 200.8 new text begin (b) An automated sales suppression device, zapper, phantom-ware, and any other device new text end 200.9 new text begin containing an automated sales suppression, zapper, or phantom-ware device or software is new text end 200.10 new text begin contraband and subject to forfeiture under section 609.5316. new text end 200.11 new text begin (c) The definitions in section 289A.14 apply to this subdivision. new text end 200.12 new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction new text end 200.13 new text begin of the commissioner, an agent of the commissioner, law enforcement agencies, or new text end 200.14 new text begin postsecondary education institutions that possess an automated sales suppression device, new text end 200.15 new text begin zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated new text end 200.16 new text begin sales suppression devices, zappers, or phantom-ware. new text end 200.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated that occur on new text end 200.18 new text begin or after August 1, 2017. new text end 200.19    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read: 200.20    Subd. 3. Weapons, telephone cloning paraphernalia, new text begin automated sales suppression new text end 200.21 new text begin devices, new text end and bullet-resistant vests. Weapons used are contraband and must be summarily 200.22forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 200.23a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 200.24of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 200.25defined in section 609.486, worn or possessed during the commission or attempted 200.26commission of a crime are contraband and must be summarily forfeited to the appropriate 200.27agency upon conviction of the owner or possessor for a controlled substance crime or for 200.28any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 200.29609.894 new text begin , and automated sales suppression devices, phantom-ware, and other devices new text end 200.30 new text begin containing an automated sales suppression or phantom-ware device or software used in new text end 200.31 new text begin violation of section 289A.63, subdivision 12, new text end are contraband and must be summarily forfeited 200.32to the appropriate agency upon a conviction. 201.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for activities enumerated in Minnesota new text end 201.2 new text begin Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017. new text end 201.3ARTICLE 11 201.4DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 201.5PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES 201.6    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read: 201.7    Subd. 11. Information included in income tax return. (a) The return must state: 201.8    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 201.9of the taxpayer in the same name or names and same address as the taxpayer has used in 201.10making the taxpayer's income tax return to the United States; 201.11    (2) the date or dates of birth of the taxpayer or taxpayers; 201.12    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 201.13has been issued by the United States with respect to the taxpayers; and 201.14    (4) the amount of the taxable income of the taxpayer as it appears on the federal return 201.15for the taxable year to which the Minnesota state return applies. 201.16    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 201.17of the federal income tax return that the taxpayer has filed or is about to file for the period, 201.18unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 201.19by telefiling. 201.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 201.21    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read: 201.22    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed. 201.23(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph 201.24(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue 201.25Code, and who reasonably expects to prepare more than ten Minnesota individual income new text begin , new text end 201.26 new text begin corporate franchise, S corporation, partnership, or fiduciary income new text end tax returns for the prior 201.27calendar year must file all Minnesota individual income new text begin , corporate franchise, S corporation, new text end 201.28 new text begin partnership, or fiduciary income new text end tax returns prepared for that calendar year by electronic 201.29means. 201.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 201.31that the taxpayer did not want the return filed by electronic means. 202.1(c) For each return that is not filed electronically by a tax refund or return preparer under 202.2this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is 202.3imposed upon the preparer. The fee is collected from the preparer in the same manner as 202.4income tax. The fee does not apply to returns that the commissioner requires to be filed in 202.5paper form. 202.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 202.7 new text begin 31, 2016. new text end 202.8    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read: 202.9    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from 202.10an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 202.11who would have been required to deduct and withhold a tax under section 290.92, subdivision 202.122a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 202.13without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 202.14more than one withholding exemption, or who paid wages or made payments not subject 202.15to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 202.16employee or person receiving royalty payments in excess of $600, or who has entered into 202.17a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 202.18give every employee or person receiving royalty payments in respect to the remuneration 202.19paid by the person to the employee or person receiving royalty payments during the calendar 202.20year, on or before January 31 of the succeeding year, or, if employment is terminated before 202.21the close of the calendar year, within 30 days after the date of receipt of a written request 202.22from the employee if the 30-day period ends before January 31, a written statement showing 202.23the following: 202.24    (1) name of the person; 202.25    (2) the name of the employee or payee and the employee's or payee's Social Security 202.26account number; 202.27    (3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 202.28paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 202.29subdivision 20 ; the amount of sick pay as required under section 6051(f) of the Internal 202.30Revenue Code; and the amount of royalties subject to withholding under section 290.923, 202.31subdivision 2 ; and 202.32    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a 202.33or 3, or 290.923, subdivision 2. 203.1    (b) The statement required to be furnished by paragraph (a) with respect to any 203.2remuneration must be furnished at those times, must contain the information required, and 203.3must be in the form the commissioner prescribes. 203.4    (c) The commissioner may prescribe rules providing for reasonable extensions of time, 203.5not in excess of 30 days, to employers or payers required to give the statements to their 203.6employees or payees under this subdivision. 203.7    (d) A duplicate of any statement made under this subdivision and in accordance with 203.8rules prescribed by the commissioner, along with a reconciliation in the form the 203.9commissioner prescribes of the statements for the calendar year, including a reconciliation 203.10of the quarterly returns required to be filed under subdivision 1, must be filed with the 203.11commissioner on or before February 28 new text begin January 31 new text end of the year after the payments were 203.12made. 203.13    (e) If an employer cancels the employer's Minnesota withholding account number required 203.14by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 203.15with the commissioner within 30 days of the end of the quarter in which the employer 203.16cancels its account number. 203.17    (f) The employer must submit the statements required to be sent to the commissioner in 203.18the same manner required to satisfy the federal reporting requirements of section 6011(e) 203.19of the Internal Revenue Code and the regulations issued under it. An employer must submit 203.20statements to the commissioner required by this section by electronic means if the employer 203.21is required to send more than 25 statements to the commissioner, even though the employer 203.22is not required to submit the returns federally by electronic means. For statements issued 203.23for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 203.24required under section are aggregated for purposes of determining whether the 203.25electronic submission threshold is met new text begin . The commissioner shall prescribe the content, format, new text end 203.26 new text begin and manner of the statement pursuant to section 270C.30 new text end . 203.27    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 203.28(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 203.29paragraph (a), with the commissioner by electronic means. 203.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for statements required to be sent to the new text end 203.31 new text begin commissioner after December 31, 2017, except that the date change in paragraph (d) is new text end 203.32 new text begin effective for wages paid after December 31, 2016. new text end 204.1    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read: 204.2    Subd. 14. Regulated investment companies; Reporting new text begin exempt interest and new text end 204.3exempt-interest dividends. (a) A regulated investment company paying $10 or more in 204.4exempt-interest dividends to an individual who is a resident of Minnesota new text begin , or any person new text end 204.5 new text begin receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee new text end 204.6 new text begin to an individual who is a resident of Minnesota, new text end must make a return indicating the amount 204.7of the new text begin exempt interest or new text end exempt-interest dividends, the name, address, and Social Security 204.8number of the recipient, and any other information that the commissioner specifies. The 204.9return must be provided to the shareholder new text begin recipient new text end by February 15 of the year following 204.10the year of the payment. The return provided to the shareholder new text begin recipient new text end must include a 204.11clear statement, in the form prescribed by the commissioner, that the new text begin exempt interest or new text end 204.12exempt-interest dividends must be included in the computation of Minnesota taxable income. 204.13By June 1 of each year, the regulated investment company new text begin payor new text end must file a copy of the 204.14return with the commissioner. 204.15    (b) For purposes of this subdivision, the following definitions apply. 204.16    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 204.17852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 204.18dividends that are not required to be added to federal taxable income under section 290.0131, 204.19subdivision 2 , paragraph (b). 204.20    (2) "Regulated investment company" means regulated investment company as defined 204.21in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 204.22as defined in section 851(g) of the Internal Revenue Code. 204.23     new text begin (3) "Exempt interest" means income on obligations of any state other than Minnesota, new text end 204.24 new text begin or a political or governmental subdivision, municipality, or governmental agency or new text end 204.25 new text begin instrumentality of any state other than Minnesota, and exempt from federal income taxes new text end 204.26 new text begin under the Internal Revenue Code or any other federal statute. new text end 204.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports required to be filed after new text end 204.28 new text begin December 31, 2017. new text end 204.29    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 204.30read: 204.31     new text begin Subd. 2a. new text end new text begin Annual withholding returns; eligible employers. new text end new text begin (a) An employer who new text end 204.32 new text begin deducts and withholds an amount required to be withheld by section 290.92 may file an new text end 204.33 new text begin annual return and make an annual payment of the amount required to be deducted and new text end 205.1 new text begin withheld for that calendar year if the employer has received a notification under paragraph new text end 205.2 new text begin (b). The ability to elect to file an annual return continues through the year following the new text end 205.3 new text begin year where an employer is required to deduct and withhold more than $500. new text end 205.4 new text begin (b) The commissioner is authorized to determine which employers are eligible to file new text end 205.5 new text begin an annual return and to notify employers who newly qualify to file an annual return because new text end 205.6 new text begin the amount an employer is required to deduct and withhold for that calendar year is $500 new text end 205.7 new text begin or less based on the most recent period of four consecutive quarters for which the new text end 205.8 new text begin commissioner has compiled data on that employer's withholding tax for that period. At the new text end 205.9 new text begin time of notification, eligible employers may still decide to file returns and make deposits new text end 205.10 new text begin quarterly. An employer who decides to file returns and make deposits quarterly is required new text end 205.11 new text begin to make all returns and deposits required by this chapter and, notwithstanding paragraph new text end 205.12 new text begin (a), is subject to all applicable penalties for failing to do so. new text end 205.13 new text begin (c) If, at the end of any calendar month other than the last month of the calendar year, new text end 205.14 new text begin the aggregate amount of undeposited tax withheld by an employer who has elected to file new text end 205.15 new text begin an annual return exceeds $500, the employer must deposit the aggregate amount with the new text end 205.16 new text begin commissioner within 30 days of the end of the calendar month. new text end 205.17 new text begin (d) If an employer who has elected to file an annual return ceases to pay wages for which new text end 205.18 new text begin withholding is required, the employer must file a final return and deposit any undeposited new text end 205.19 new text begin tax within 30 days of the end of the calendar month following the month in which the new text end 205.20 new text begin employer ceased paying wages. new text end 205.21 new text begin (e) An employer not subject to paragraph (c) or (d) who elects to file an annual return new text end 205.22 new text begin must file the return and pay the tax not previously deposited before February 1 of the year new text end 205.23 new text begin following the year in which the tax was withheld. new text end 205.24 new text begin (f) A notification to an employer regarding eligibility to file an annual return under new text end 205.25 new text begin Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a). new text end 205.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 205.27 new text begin 31, 2016. new text end 205.28    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read: 205.29    Subd. 2. Withholding from wages, entertainer withholding, withholding from 205.30payments to out-of-state contractors, and withholding by partnerships, small business 205.31corporations, trusts. (a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end a tax 205.32required to be deducted and withheld during the quarterly period must be paid on or before 205.33the last day of the month following the close of the quarterly period, unless an earlier time 206.1for payment is provided. A tax required to be deducted and withheld from compensation 206.2of an entertainer and from a payment to an out-of-state contractor must be paid on or before 206.3the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 206.4required to be deducted and withheld by partnerships, S corporations, and trusts must be 206.5paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 206.6trusts and under section 289A.26 for S corporations. 206.7(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 206.8under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 206.9withheld under those sections with the commissioner within the time allowed to deposit the 206.10employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 206.11section 31.6302-1, as amended through December 31, 2001, without regard to the safe 206.12harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 206.13must submit a copy of their federal notice of deposit status to the commissioner upon request 206.14by the commissioner. 206.15(c) The commissioner may prescribe by rule other return periods or deposit requirements. 206.16In prescribing the reporting period, the commissioner may classify payors according to the 206.17amount of their tax liability and may adopt an appropriate reporting period for the class that 206.18the commissioner judges to be consistent with efficient tax collection. In no event will the 206.19duration of the reporting period be more than one year. 206.20(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 206.21with respect to both the tax and the amount to be deducted must be made, without interest, 206.22in the manner and at the times the commissioner prescribes. If the underpayment cannot be 206.23adjusted, the amount of the underpayment will be assessed and collected in the manner and 206.24at the times the commissioner prescribes. 206.25(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 206.26June 30, the employer must remit each required deposit for wages paid in all subsequent 206.27calendar years by electronic means. 206.28(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 206.29clause (2), who remits withholding deposits must remit all deposits by electronic means as 206.30provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 206.31year for all of the employers. 206.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 206.33 new text begin 31, 2016. new text end 207.1    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read: 207.2    Subdivision 1. Individual income, fiduciary income, mining company, corporate 207.3franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 207.4company, and corporate franchise taxes, and interest and penalties, must be paid by the 207.5taxpayer upon whom the tax is imposed, except in the following cases: 207.6(1) The tax due from a decedent for that part of the taxable year in which the decedent 207.7died during which the decedent was alive and the taxes, interest, and penalty due for the 207.8prior years must be paid by the decedent's personal representative, if any. If there is no 207.9personal representative, the taxes, interest, and penalty must be paid by the transferees, as 207.10defined in section 270C.58, subdivision 3, to the extent they receive property from the 207.11decedent; 207.12(2) The tax due from an infant or other incompetent person must be paid by the person's 207.13guardian or other person authorized or permitted by law to act for the person; 207.14(3) The tax due from the estate of a decedent must be paid by the estate's personal 207.15representative; 207.16(4) The tax due from a trust, including those within the definition of a corporation, as 207.17defined in section 290.01, subdivision 4, must be paid by a trustee; and 207.18(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 207.19trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 207.20of the business or property so far as the tax is due to the income from the business or property. 207.21(b) Entertainment taxes are the joint and several liability of the entertainer and the 207.22entertainment entity. The payor is liable to the state for the payment of the tax required to 207.23be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 207.24entertainer for the amount of the payment. 207.25(c) The tax new text begin taxes new text end imposed under section new text begin sections 289A.35 and new text end 290.0922 on partnerships 207.26is new text begin are new text end the joint and several liability of the partnership and the general partners. 207.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 207.28    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read: 207.29289A.35 ASSESSMENTS ON RETURNS. 207.30(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 207.31income, items of federal tax preferences, or federal credit amounts to make them conform 207.32with the provisions of chapter 290 or section 298.01. If a return has been filed, the 208.1commissioner shall enter the liability reported on the return and may make any audit or 208.2investigation that is considered necessary. 208.3 new text begin (b) Upon petition by a taxpayer, and when the commissioner determines that it is in the new text end 208.4 new text begin best interest of the state, the commissioner may allow S corporations and partnerships to new text end 208.5 new text begin receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their new text end 208.6 new text begin owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must new text end 208.7 new text begin be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b). new text end 208.8 new text begin (c) A taxpayer may petition the commissioner for the use of the method described in new text end 208.9 new text begin paragraph (b) after the taxpayer is notified that an audit has been initiated and before an new text end 208.10 new text begin order of assessment has been issued. new text end 208.11 new text begin (d) A determination of the commissioner under paragraph (b) to grant or deny the petition new text end 208.12 new text begin of a taxpayer cannot be appealed to the Tax Court or any other court. new text end 208.13(b) new text begin (e) new text end The commissioner may audit and adjust the taxpayer's computation of tax under 208.14chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 208.15shall notify the estate no later than nine months after the filing date, as provided by section 208.16289A.38, subdivision 2 , whether the return is under examination or the return has been 208.17processed as filed. 208.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 208.19    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read: 208.20    Subd. 28. Preparer identification number. Any Minnesota individual income tax return 208.21or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 208.2213, paragraph (f), shall bear the identification number the preparer is required to use federally 208.23under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who 208.24prepares a Minnesota individual income tax return new text begin required by section 289A.08, subdivisions new text end 208.25 new text begin 1, 2, 3, and 7; or 289A.12, subdivision 3, new text end or claim for refund and fails to include the required 208.26number on the return or claim is subject to a penalty of $50 for each failure. 208.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December new text end 208.28 new text begin 31, 2016. new text end 208.29    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read: 208.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 208.31the meanings given. 209.1(b) "Long-term care insurance" means a policy that: 209.2(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 209.3the 7.5 percent new text begin adjusted gross new text end income test; or meets the requirements given in section 62A.46; 209.4or provides similar coverage issued under the laws of another jurisdiction; and 209.5(2) has a lifetime long-term care benefit limit of not less than $100,000; and 209.6(3) has been offered in compliance with the inflation protection requirements of section 209.762S.23 . 209.8(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse. 209.9(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 209.10long-term care insurance premiums that qualify as deductions under section 213 of the 209.11Internal Revenue Code; and (2) the total amount deductible for medical care under section 209.12213 of the Internal Revenue Code. 209.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable years beginning new text end 209.14 new text begin after December 31, 2012. new text end 209.15    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read: 209.16    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 209.17given. 209.18    (a) "Qualified research expenses" means (i) qualified research expenses and basic research 209.19payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 209.20not include expenses incurred for qualified research or basic research conducted outside 209.21the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 209.22(ii) contributions to a nonprofit corporation established and operated pursuant to the 209.23provisions of chapter 317A for the purpose of promoting the establishment and expansion 209.24of business in this state, provided the contributions are invested by the nonprofit corporation 209.25for the purpose of providing funds for small, technologically innovative enterprises in 209.26Minnesota during the early stages of their development. 209.27    (b) "Qualified research" means qualified research as defined in section 41(d) of the 209.28Internal Revenue Code, except that the term does not include qualified research conducted 209.29outside the state of Minnesota. 209.30    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 209.31Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end must be 210.1calculated using Minnesota sales or receipts under section 290.191 and the definitions 210.2contained in clauses new text begin paragraphs new text end (a) and (b) shall apply. 210.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 210.4    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read: 210.5    Subd. 2. Income not derived from conduct of a trade or business. The income of a 210.6taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 210.7business must be assigned in accordance with paragraphs (a) to (f): 210.8    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 210.93401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 210.10that, the work of the employee is performed within it; all other income from such sources 210.11is treated as income from sources without this state. 210.12    Severance pay shall be considered income from labor or personal or professional services. 210.13    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 210.14or entertainer, income from compensation for labor or personal services performed within 210.15this state shall be determined in the following manner: 210.16    (i) The amount of income to be assigned to Minnesota for an individual who is a 210.17nonresident salaried athletic team employee shall be determined by using a fraction in which 210.18the denominator contains the total number of days in which the individual is under a duty 210.19to perform for the employer, and the numerator is the total number of those days spent in 210.20Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 210.21at the team's facilities as part of a team imposed program, are not included in the total number 210.22of duty days. Bonuses earned as a result of play during the regular season or for participation 210.23in championship, play-off, or all-star games must be allocated under the formula. Signing 210.24bonuses are not subject to allocation under the formula if they are not conditional on playing 210.25any games for the team, are payable separately from any other compensation, and are 210.26nonrefundable; and 210.27    (ii) The amount of income to be assigned to Minnesota for an individual who is a 210.28nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 210.29athletic or entertainment performance in Minnesota shall be determined by assigning to this 210.30state all income from performances or athletic contests in this state. 210.31    (3) For purposes of this section, amounts received by a nonresident as "retirement income" 210.32as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 210.33Law 104-95, are not considered income derived from carrying on a trade or business or 211.1from wages or other compensation for work an employee performed in Minnesota, and are 211.2not taxable under this chapter. 211.3    (b) Income or gains from tangible property located in this state that is not employed in 211.4the business of the recipient of the income or gains must be assigned to this state. 211.5    (c) Income or gains from intangible personal property not employed in the business of 211.6the recipient of the income or gains must be assigned to this state if the recipient of the 211.7income or gains is a resident of this state or is a resident trust or estate. 211.8    Gain on the sale of a partnership interest is allocable to this state in the ratio of the 211.9original cost of partnership tangible property in this state to the original cost of partnership 211.10tangible property everywhere, determined at the time of the sale. If more than 50 percent 211.11of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 211.12the partnership interest is allocated to this state in accordance with the sales factor of the 211.13partnership for its first full tax period immediately preceding the tax period of the partnership 211.14during which the partnership interest was sold. 211.15Gain on the sale of an interest in a single member limited liability company that is 211.16disregarded for federal income tax purposes is allocable to this state as if the single member 211.17limited liability company did not exist and the assets of the limited liability company are 211.18personally owned by the sole member. 211.19    Gain on the sale of goodwill or income from a covenant not to compete that is connected 211.20with a business operating all or partially in Minnesota is allocated to this state to the extent 211.21that the income from the business in the year preceding the year of sale was assignable new text begin new text end 211.22 new text begin allocable new text end to Minnesota under subdivision 3. 211.23    When an employer pays an employee for a covenant not to compete, the income allocated 211.24to this state is in the ratio of the employee's service in Minnesota in the calendar year 211.25preceding leaving the employment of the employer over the total services performed by the 211.26employee for the employer in that year. 211.27    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned 211.28to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 211.292 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3). 211.30    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 211.31taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile. 211.32    (f) For the purposes of this section, working as an employee shall not be considered to 211.33be conducting a trade or business. 212.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 212.2    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read: 212.3    Subdivision 1. Partners, not partnership, subject to tax. new text begin Except as provided under new text end 212.4 new text begin section 289A.35, paragraph (b), new text end a partnership as such shall not be subject to the income tax 212.5imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 212.6carrying on business as partners shall be liable for income tax only in their separate or 212.7individual capacities. 212.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 212.9    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read: 212.10290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE. 212.11 new text begin (a) new text end The owner or managing agent of any property for which rent is paid for occupancy 212.12as a homestead must furnish a certificate of rent paid to a person who is a renter on December 212.1331, in the form prescribed by the commissioner. If the renter moves before December 31, 212.14the owner or managing agent may give the certificate to the renter at the time of moving, 212.15or mail the certificate to the forwarding address if an address has been provided by the 212.16renter. The certificate must be made available to the renter before February 1 of the year 212.17following the year in which the rent was paid. The owner or managing agent must retain a 212.18duplicate of each certificate or an equivalent record showing the same information for a 212.19period of three years. The duplicate or other record must be made available to the 212.20commissioner upon request. 212.21 new text begin (b) The commissioner may require the owner or managing agent, through a simple new text end 212.22 new text begin process, to furnish to the commissioner on or before March 1 a copy of each certificate of new text end 212.23 new text begin rent paid furnished to a renter for rent paid in the prior year, in the content, format, and new text end 212.24 new text begin manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, new text end 212.25 new text begin the commissioner, after consulting with representatives of owners or managing agents, shall new text end 212.26 new text begin develop an implementation and administration plan for the requirements of this paragraph new text end 212.27 new text begin that attempts to minimize financial burdens, administration and compliance costs, and takes new text end 212.28 new text begin into consideration existing systems of owners and managing agents. new text end 212.29 new text begin (c) new text end For the purposes of this section, "owner" includes a park owner as defined under 212.30section 327C.01, subdivision 6, and "property" includes a lot as defined under section 212.31327C.01, subdivision 3 . 213.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certificates of rent paid furnished to new text end 213.2 new text begin a renter for rent paid after December 31, 2016. new text end 213.3    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read: 213.4    Subd. 2. Additions. The following amounts, to the extent deducted in computing new text begin or new text end 213.5 new text begin otherwise excluded from new text end the federal taxable estate, must be added in computing the 213.6Minnesota taxable estate: 213.7(1) the amount of the deduction for state death taxes allowed under section 2058 of the 213.8Internal Revenue Code; 213.9(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 213.10of the Internal Revenue Code; and 213.11(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 213.12Revenue Code, made by the decedent within three years of the date of death. For purposes 213.13of this clause, the amount of the addition equals the value of the gift under section 2512 of 213.14the Internal Revenue Code and excludes any value of the gift included in the federal estate. 213.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 213.16 new text begin dying after June 30, 2013. new text end 213.17    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read: 213.18    Subd. 3. Subtraction. new text begin The following amounts, to the extent included in computing the new text end 213.19 new text begin federal taxable estate, may be subtracted in computing the Minnesota taxable estate but new text end 213.20 new text begin must not reduce the Minnesota taxable estate to less than zero: new text end 213.21 new text begin (1) the value of property subject to an election under section 291.03, subdivision 1d; new text end 213.22 new text begin and new text end 213.23 new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 9, 213.24and the value of qualified farm property under section 291.03, subdivision 10, or the result 213.25of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) new text begin items (i) new text end 213.26 new text begin to (v) new text end , whichever is less, may be subtracted in computing the Minnesota taxable estate but 213.27must not reduce the Minnesota taxable estate to less than zero: 213.28(1) new text begin (i) new text end $1,200,000 for estates of decedents dying in 2014; 213.29(2) new text begin (ii) new text end $1,400,000 for estates of decedents dying in 2015; 213.30(3) new text begin (iii) new text end $1,600,000 for estates of decedents dying in 2016; 214.1(4) new text begin (iv) new text end $1,800,000 for estates of decedents dying in 2017; and 214.2(5) new text begin (v) new text end $2,000,000 for estates of decedents dying in 2018 and thereafter. 214.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 214.4 new text begin dying after June 30, 2011. new text end 214.5    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read: 214.6    Subd. 9. Qualified small business property. Property satisfying all of the following 214.7requirements is qualified small business property: 214.8(1) The value of the property was included in the federal adjusted taxable estate. 214.9(2) The property consists of the assets of a trade or business or shares of stock or other 214.10ownership interests in a corporation or other entity engaged in a trade or business. Shares 214.11of stock in a corporation or an ownership interest in another type of entity do not qualify 214.12under this subdivision if the shares or ownership interests are traded on a public stock 214.13exchange at any time during the three-year period ending on the decedent's date of death. 214.14For purposes of this subdivision, an ownership interest includes the interest the decedent is 214.15deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code. 214.16(3) During the taxable year that ended before the decedent's death, the trade or business 214.17must not have been a passive activity within the meaning of section 469(c) of the Internal 214.18Revenue Code, and the decedent or the decedent's spouse must have materially participated 214.19in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 214.20excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 214.21by United States Treasury Department regulation that substitutes material participation in 214.22prior taxable years for material participation in the taxable year that ended before the 214.23decedent's death. 214.24(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 214.25taxable year that ended before the date of the death of the decedent. 214.26(5) The property does not consist of new text begin include: new text end 214.27 new text begin (i) new text end cash, new text begin ; new text end 214.28 new text begin (ii) new text end cash equivalents, new text begin ; new text end 214.29 new text begin (iii) new text end publicly traded securities, new text begin ; new text end or 214.30 new text begin (iv) any new text end assets not used in the operation of the trade or business. 215.1 new text begin (6) new text end For property consisting of shares of stock or other ownership interests in an entity, 215.2the value of cash, cash equivalents, publicly traded securities, or assets not used in the 215.3operation of the trade or business held by the corporation or other entity new text begin items described in new text end 215.4 new text begin clause (5) new text end must be deducted from the value of the property qualifying under this subdivision 215.5in proportion to the decedent's share of ownership of the entity on the date of death new text begin excluded new text end 215.6 new text begin in the valuation of the decedent's interest in the entity new text end . 215.7(6) new text begin (7) new text end The decedent continuously owned the property, including property the decedent 215.8is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 215.9the three-year period ending on the date of death of the decedent. In the case of a sole 215.10proprietor, if the property replaced similar property within the three-year period, the 215.11replacement property will be treated as having been owned for the three-year period ending 215.12on the date of death of the decedent. 215.13(7) new text begin (8) new text end For three years following the date of death of the decedent, the trade or business 215.14is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 215.15and a family member materially participates in the operation of the trade or business within 215.16the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 215.17of the Internal Revenue Code and any other provision provided by United States Treasury 215.18Department regulation that substitutes material participation in prior taxable years for 215.19material participation in the three years following the date of death of the decedent. 215.20(8) new text begin (9) new text end The estate and the qualified heir elect to treat the property as qualified small 215.21business property and agree, in the form prescribed by the commissioner, to pay the recapture 215.22tax under subdivision 11, if applicable. 215.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 215.24 new text begin dying after June 30, 2011. new text end 215.25    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read: 215.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before 215.27the death of the qualified heir, the qualified heir disposes of any interest in the qualified 215.28property, other than by a disposition to a family member, or a family member ceases to 215.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 215.30tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 215.31qualified small business property excluded under subdivision 9 with similar property, then 215.32the qualified heir will not be treated as having disposed of an interest in the qualified property. 216.1(b) The amount of the additional tax equals the amount of the exclusion claimed by the 216.2estate under subdivision 8, paragraph (d), multiplied by 16 percent. 216.3(c) The additional tax under this subdivision is due on the day which is six months after 216.4the date of the disposition or cessation in paragraph (a). 216.5 new text begin (d) This subdivision shall not apply as a result of any of the following: new text end 216.6 new text begin (1) a portion of qualified farm property consisting of less than one-fifth of the acreage new text end 216.7 new text begin of the property is reclassified as class 2b property under section 273.13, subdivision 23, and new text end 216.8 new text begin the qualified heir has not substantially altered the reclassified property during the three-year new text end 216.9 new text begin holding period; or new text end 216.10 new text begin (2) a portion of qualified farm property classified as 2a property at the death of the new text end 216.11 new text begin decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, new text end 216.12 new text begin garage, and immediately surrounding one acre of land is reclassified as 4bb property during new text end 216.13 new text begin the three-year holding period, and the qualified heir has not substantially altered the property. new text end 216.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 216.15 new text begin dying after June 30, 2011. new text end 216.16    Sec. 19. new text begin REPEALER. new text end 216.17 new text begin (a) new text end new text begin Minnesota Rules, part 8092.1400, new text end new text begin is repealed. new text end 216.18 new text begin (b) new text end new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed. new text end 216.19 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end 216.20 new text begin December 31, 2016, except that notifications from the Department of Revenue to employers new text end 216.21 new text begin regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain new text end 216.22 new text begin in force. Paragraph (b) is effective the day following final enactment. new text end 216.23ARTICLE 12 216.24DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 216.25PROVISIONS; PROPERTY TAX 216.26    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read: 216.27    Subd. 2. Income property assessment data. The following data collected by political 216.28subdivisions new text begin and the state new text end from individuals or business entities concerning income properties 216.29are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12: 216.30(a) detailed income and expense figures; 216.31(b) average vacancy factors; 217.1(c) verified net rentable areas or net usable areas, whichever is appropriate; 217.2(d) anticipated income and expenses; 217.3(e) projected vacancy factors; and 217.4(f) lease information. 217.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 217.6    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read: 217.7    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft of 217.8persons or property for hire in interstate, intrastate, or international transportation on regularly 217.9scheduled flights or on intermittent or irregularly timed flights by airline companies new text begin and new text end 217.10 new text begin includes transportation by any airline company making three or more flights in or out of new text end 217.11 new text begin Minnesota, or within Minnesota, during a calendar year new text end . 217.12(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 217.13flight, a flight arranged at the convenience of an airline and the person contracting for the 217.14transportation, or a charter flight. It includes any airline company making three or more 217.15flights in or out of Minnesota during a calendar year. 217.16(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 217.17owned and used for private air flight purposes if the person furnishing the transportation 217.18does not hold out to be engaged regularly in transportation for hire. 217.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 217.20    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read: 217.21    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used 217.22in connection therewith, including spare flight equipment. Flight property also includes 217.23computers and computer software used in operating, controlling, or regulating aircraft and 217.24flight equipment new text begin . Flight property does not include aircraft with a maximum takeoff weight new text end 217.25 new text begin of less than 30,000 pounds new text end . 217.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 217.27    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read: 217.28    Subd. 8. Person. "Person" means any new text begin an new text end individual, corporation, firm, copartnership, 217.29company, or association, and includes any guardian, trustee, executor, administrator, receiver, 217.30conservator, or any person acting in any fiduciary capacity therefor new text begin trust, estate, fiduciary, new text end 218.1 new text begin partnership, company, corporation, limited liability company, association, governmental new text end 218.2 new text begin unit or agency, public or private organization of any kind, or other legal entity new text end . 218.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 218.4    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 218.5read: 218.6     new text begin Subd. 10. new text end new text begin Intermittent or irregularly timed flights. new text end new text begin "Intermittently or irregularly timed new text end 218.7 new text begin flights" means any flight in which the departure time, departure location, and arrival location new text end 218.8 new text begin are specifically negotiated with the customer or the customer's representative, including but new text end 218.9 new text begin not limited to charter flights. new text end 218.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 218.11    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read: 218.12    Subd. 2. Assessment of flight property. Flight property that is owned by, or is leased, 218.13loaned, or otherwise made available to an airline company operating in Minnesota shall be 218.14assessed and appraised annually by the commissioner with reference to its value on January 218.152 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 218.16with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 218.17flights shall be excluded from the provisions of sections to . 218.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 218.19    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read: 218.20    Subd. 3. Report by airline company. new text begin (a) new text end Each year, on or before July 1, every airline 218.21company engaged in air commerce in this state shall file with the commissioner a report 218.22under oath setting forth specifically the information prescribed by the commissioner to 218.23enable the commissioner to make the assessment required in sections 270.071 to 270.079, 218.24unless the commissioner determines that the airline company or person should be excluded 218.25from new text begin is exempt from new text end filing because its activities do not constitute air commerce as defined 218.26herein. 218.27     new text begin (b) The commissioner shall prescribe the content, format, and manner of the report new text end 218.28 new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" includes new text end 218.29 new text begin the property tax laws. If a report is made by electronic means, the taxpayer's signature is new text end 218.30 new text begin defined pursuant to section 270C.304, except that a "law administered by the commissioner" new text end 218.31 new text begin includes the property tax laws. new text end 219.1 new text begin EFFECTIVE DATE. new text end new text begin The amendment to paragraph (a) is effective for reports filed in new text end 219.2 new text begin 2018 and thereafter. The amendment adding paragraph (b) is effective the day following new text end 219.3 new text begin final enactment. new text end 219.4    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 219.5read: 219.6     new text begin Subd. 3a. new text end new text begin Commissioner filed reports. new text end new text begin If an airline company fails to file a report required new text end 219.7 new text begin by subdivision 3, the commissioner may, from information in the commissioner's possession new text end 219.8 new text begin or obtainable by the commissioner, make and file a report for the airline company, or may new text end 219.9 new text begin issue a notice of net tax capacity and tax under section 270.075, subdivision 2. new text end 219.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 219.11    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 219.12read: 219.13     new text begin Subd. 6. new text end new text begin Reassessment orders. new text end new text begin If the State Board of Equalization determines that a new text end 219.14 new text begin considerable amount of property has been undervalued or overvalued compared to like new text end 219.15 new text begin property such that the assessment is grossly unfair or inequitable, the State Board of new text end 219.16 new text begin Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders new text end 219.17 new text begin to the county assessor to reassess all parcels or an identified set of parcels in a county. new text end 219.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 219.19    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read: 219.20    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 219.21commissioner a copy of the abstract that will be acted upon by the local and county boards 219.22of review. The abstract must list the real and personal property in the county itemized by 219.23assessment districts. The assessor of each county in the state shall file with the commissioner, 219.24within ten working days following final action of the local board of review or equalization 219.25and within five days following final action of the county board of equalization, any changes 219.26made by the local or county board. The information must be filed in the manner prescribed 219.27by the commissioner. It must be accompanied by a printed or typewritten copy of the 219.28proceedings of the appropriate board. 219.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for local and county boards of appeal new text end 219.30 new text begin and equalization meetings held in 2017 and thereafter. new text end 220.1    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read: 220.2    Subd. 9. Personal property; exceptions. Except for the taxable personal property 220.3enumerated below, all personal property and the property described in section 272.03, 220.4subdivision 1 , paragraphs (c) and (d), shall be exempt. 220.5The following personal property shall be taxable: 220.6(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or 220.7distribution system or new text begin ; (2) new text end a pipeline system transporting or distributing water, gas, crude 220.8oil, or petroleum products new text begin ; new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot 220.9or chilled water for heating or cooling buildings and structures; 220.10(b) railroad docks and wharves which are part of the operating property of a railroad 220.11company as defined in section 270.80; 220.12(c) personal property defined in section 272.03, subdivision 2, clause (3); 220.13(d) leasehold or other personal property interests which are taxed pursuant to section 220.14272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 220.15providing the property is taxable as if the lessee or user were the fee owner; 220.16(e) manufactured homes and sectional structures, including storage sheds, decks, and 220.17similar removable improvements constructed on the site of a manufactured home, sectional 220.18structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 220.19(f); and 220.20(f) flight property as defined in section 270.071. 220.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 220.22    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 220.23    Subd. 2. Definitions. (a) For the purposes of this section, the term: 220.24(1) "wind energy conversion system" has the meaning given in section 216C.06, 220.25subdivision 19, and also includes a substation that is used and owned by one or more wind 220.26energy conversion facilities; 220.27(2) "large scale wind energy conversion system" means a wind energy conversion system 220.28of more than 12 megawatts, as measured by the nameplate capacity of the system or as 220.29combined with other systems as provided in paragraph (b); 221.1(3) "medium scale wind energy conversion system" means a wind energy conversion 221.2system of over two and not more than 12 megawatts, as measured by the nameplate capacity 221.3of the system or as combined with other systems as provided in paragraph (b); and 221.4(4) "small scale wind energy conversion system" means a wind energy conversion system 221.5of two megawatts and under, as measured by the nameplate capacity of the system or as 221.6combined with other systems as provided in paragraph (b). 221.7(b) For systems installed and contracted for after January 1, 2002, the total size of a 221.8wind energy conversion system under this subdivision shall be determined according to this 221.9paragraph. Unless the systems are interconnected with different distribution systems, the 221.10nameplate capacity of one wind energy conversion system shall be combined with the 221.11nameplate capacity of any other wind energy conversion system that is: 221.12(1) located within five miles of the wind energy conversion system; 221.13(2) constructed within the same calendar year new text begin 12-month period new text end as the wind energy 221.14conversion system; and 221.15(3) under common ownership. 221.16In the case of a dispute, the commissioner of commerce shall determine the total size of 221.17the system, and shall draw all reasonable inferences in favor of combining the systems. 221.18(c) In making a determination under paragraph (b), the commissioner of commerce may 221.19determine that two wind energy conversion systems are under common ownership when 221.20the underlying ownership structure contains similar persons or entities, even if the ownership 221.21shares differ between the two systems. Wind energy conversion systems are not under 221.22common ownership solely because the same person or entity provided equity financing for 221.23the systems. 221.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2018 and thereafter. new text end 221.25    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 221.26to read: 221.27     new text begin Subd. 8. new text end new text begin Extension. new text end new text begin The commissioner may, for good cause, extend the time for filing new text end 221.28 new text begin the report required by subdivision 4. The extension must not exceed 15 days. new text end 221.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2018 and thereafter. new text end 222.1    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read: 222.2    Subd. 7. Division of duties between local and county assessor. The duty of the duly 222.3appointed local assessor shall be to view and appraise the value of all property as provided 222.4by law, but all the book work shall be done by the county assessor, or the assessor's assistants, 222.5and the value of all property subject to assessment and taxation shall be determined by the 222.6county assessor, except as otherwise hereinafter provided. If directed by the county assessor, 222.7the local assessor shall new text begin must new text end perform the duties enumerated in subdivision 8, clause (16) new text begin , new text end 222.8 new text begin and must enter construction and valuation data into the records in the manner prescribed new text end 222.9 new text begin by the county assessor new text end . 222.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 222.11    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read: 222.12273.08 ASSESSOR'S DUTIES. 222.13The assessor shall actually view, and determine the market value of each tract or lot of 222.14real property listed for taxation, including the value of all improvements and structures 222.15thereon, at maximum intervals of five years and shall enter the value opposite each 222.16description new text begin . When directed by the county assessor, local assessors must enter construction new text end 222.17 new text begin and valuation data into the records in the manner prescribed by the county assessor new text end . 222.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 222.19    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 222.20to read: 222.21     new text begin Subd. 3. new text end new text begin Compliance. new text end new text begin A county assessor, or a city assessor having the powers of a new text end 222.22 new text begin county assessor, who does not comply with the timely notice requirement under subdivision new text end 222.23 new text begin 1 must: new text end 222.24 new text begin (1) mail an additional valuation notice to each person who was not provided timely new text end 222.25 new text begin notice; and new text end 222.26 new text begin (2) convene a supplemental local board of appeal and equalization or local review session new text end 222.27 new text begin no sooner than ten days after sending the additional notices required by clause (1). new text end 222.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for valuation notices sent in 2018 and new text end 222.29 new text begin thereafter. new text end 223.1    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read: 223.2    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 223.3(c), real estate which is residential and used for homestead purposes is class 1a. In the case 223.4of a duplex or triplex in which one of the units is used for homestead purposes, the entire 223.5property is deemed to be used for homestead purposes. The market value of class 1a property 223.6must be determined based upon the value of the house, garage, and land. 223.7    The first $500,000 of market value of class 1a property has a net classification rate of 223.8one percent of its market value; and the market value of class 1a property that exceeds 223.9$500,000 has a classification rate of 1.25 percent of its market value. 223.10    (b) Class 1b property includes homestead real estate or homestead manufactured homes 223.11used for the purposes of a homestead by: 223.12    (1) any person who is blind as defined in section 256D.35, or the blind person and the 223.13blind person's spouse; 223.14    (2) any person who is permanently and totally disabled or by the disabled person and 223.15the disabled person's spouse; or 223.16    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a 223.17property classified under this paragraph for taxes payable in 2008. 223.18    Property is classified and assessed under clause (2) only if the government agency or 223.19income-providing source certifies, upon the request of the homestead occupant, that the 223.20homestead occupant satisfies the disability requirements of this paragraph, and that the 223.21property is not eligible for the valuation exclusion under subdivision 34. 223.22    Property is classified and assessed under paragraph (b) only if the commissioner of 223.23revenue or the county assessor certifies that the homestead occupant satisfies the requirements 223.24of this paragraph. 223.25    Permanently and totally disabled for the purpose of this subdivision means a condition 223.26which is permanent in nature and totally incapacitates the person from working at an 223.27occupation which brings the person an income. The first $50,000 market value of class 1b 223.28property has a net classification rate of .45 percent of its market value. The remaining market 223.29value of class 1b property has a classification rate using the rates for new text begin is classified as new text end class 223.301a or class 2a property, whichever is appropriate, of similar market value. 223.31    (c) Class 1c property is commercial use real and personal property that abuts public 223.32water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 223.33seasonal residential occupancy for recreational purposes but not devoted to commercial 224.1purposes for more than 250 days in the year preceding the year of assessment, and that 224.2includes a portion used as a homestead by the owner, which includes a dwelling occupied 224.3as a homestead by a shareholder of a corporation that owns the resort, a partner in a 224.4partnership that owns the resort, or a member of a limited liability company that owns the 224.5resort even if the title to the homestead is held by the corporation, partnership, or limited 224.6liability company. For purposes of this paragraph, property is devoted to a commercial 224.7purpose on a specific day if any portion of the property, excluding the portion used 224.8exclusively as a homestead, is used for residential occupancy and a fee is charged for 224.9residential occupancy. Class 1c property must contain three or more rental units. A "rental 224.10unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 224.11site equipped with water and electrical hookups for recreational vehicles. Class 1c property 224.12must provide recreational activities such as the rental of ice fishing houses, boats and motors, 224.13snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 224.14services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 224.15the property is transferred to an individual or entity by deeded interest, or the sale of shares 224.16or stock, no longer qualifies for class 1c even though it may remain available for rent. A 224.17camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 224.181c, regardless of the term of the rental agreement, as long as the use of the camping pad 224.19does not exceed 250 days. If the same owner owns two separate parcels that are located in 224.20the same township, and one of those properties is classified as a class 1c property and the 224.21other would be eligible to be classified as a class 1c property if it was used as the homestead 224.22of the owner, both properties will be assessed as a single class 1c property; for purposes of 224.23this sentence, properties are deemed to be owned by the same owner if each of them is 224.24owned by a limited liability company, and both limited liability companies have the same 224.25membership. The portion of the property used as a homestead is class 1a property under 224.26paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 224.27market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 224.28market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 224.291.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 224.30temporary and seasonal residential occupancy for recreation purposes in which all or a 224.31portion of the property was devoted to commercial purposes for not more than 250 days in 224.32the year preceding the year of assessment desiring classification as class 1c, must submit a 224.33declaration to the assessor designating the cabins or units occupied for 250 days or less in 224.34the year preceding the year of assessment by January 15 of the assessment year. Those 224.35cabins or units and a proportionate share of the land on which they are located must be 224.36designated as class 1c as otherwise provided. The remainder of the cabins or units and a 225.1proportionate share of the land on which they are located must be designated as class 3a 225.2commercial. The owner of property desiring designation as class 1c property must provide 225.3guest registers or other records demonstrating that the units for which class 1c designation 225.4is sought were not occupied for more than 250 days in the year preceding the assessment 225.5if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 225.6(4) conference center or meeting room, and (5) other nonresidential facility operated on a 225.7commercial basis not directly related to temporary and seasonal residential occupancy for 225.8recreation purposes does not qualify for class 1c. 225.9    (d) Class 1d property includes structures that meet all of the following criteria: 225.10    (1) the structure is located on property that is classified as agricultural property under 225.11section 273.13, subdivision 23; 225.12    (2) the structure is occupied exclusively by seasonal farm workers during the time when 225.13they work on that farm, and the occupants are not charged rent for the privilege of occupying 225.14the property, provided that use of the structure for storage of farm equipment and produce 225.15does not disqualify the property from classification under this paragraph; 225.16    (3) the structure meets all applicable health and safety requirements for the appropriate 225.17season; and 225.18    (4) the structure is not salable as residential property because it does not comply with 225.19local ordinances relating to location in relation to streets or roads. 225.20    The market value of class 1d property has the same classification rates as class 1a property 225.21under paragraph (a). 225.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 225.23    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read: 225.24    Subdivision 1. Listing and assessment in county. The personal property of express, 225.25stage and transportation companies, and of pipeline companies engaged in the business of 225.26transporting natural gas, gasoline, crude oil, or other petroleum products new text begin , new text end except as otherwise 225.27provided by law, shall be listed and assessed in the county, town or district where the same 225.28is usually kept. 225.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 226.1    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read: 226.2    Subd. 2. Listing and assessment by commissioner. The personal property, consisting 226.3of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 226.4and others engaged in the operations or business of transporting natural gas, gasoline, crude 226.5oil, or other petroleum products by pipelines, shall be listed with and assessed by the 226.6commissioner of revenue and the values provided to the city or county assessor by order. 226.7This subdivision shall not apply to the assessment of the products transported through the 226.8pipelines nor to the lines of local commercial gas companies engaged primarily in the 226.9business of distributing gas new text begin products new text end to consumers at retail nor to pipelines used by the 226.10owner thereof to supply natural gas or other petroleum products exclusively for such owner's 226.11own consumption and not for resale to others. If more than 85 percent of the natural gas or 226.12other petroleum products actually transported over the pipeline is used for the owner's own 226.13consumption and not for resale to others, then this subdivision shall not apply; provided, 226.14however, that in that event, the pipeline shall be assessed in proportion to the percentage 226.15of gas new text begin products new text end actually transported over such pipeline that is not used for the owner's own 226.16consumption. On or before August 1, the commissioner shall certify to the auditor of each 226.17county, the amount of such personal property assessment against each company in each 226.18district in which such property is located. If the commissioner determines that the amount 226.19of personal property assessment certified on or before August 1 is in error, the commissioner 226.20may issue a corrected certification on or before October 1. The commissioner may correct 226.21errors that are merely clerical in nature until December 31. 226.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 226.23    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read: 226.24    Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or railroad 226.25company concerning property for which the commissioner of revenue has provided the city 226.26or county assessor with valuations by order, or for which the commissioner has recommended 226.27values to the city or county assessor, must be brought against the commissioner, and not 226.28against the county or taxing district where the property is located. new text begin Service must be made new text end 226.29 new text begin on the commissioner only, and not on the county or taxing district. new text end 226.30(b) This section governs administrative appeals and appeals to court of a claim that utility 226.31or railroad operating property has been partially, unfairly, or unequally assessed, or assessed 226.32at a valuation greater than its real or actual value, misclassified, or that the property is 226.33exempt. This section applies only to property described in sections 270.81, subdivision 1, 226.34273.33 , 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that 227.1have been provided to the city or county by the commissioner and which have not been 227.2changed by city or county. If the taxable net tax capacity being appealed is not the taxable 227.3net tax capacity established by the commissioner, or if the appeal claims that the tax rate 227.4applied against the parcel is incorrect, or that the tax has been paid, this section does not 227.5apply. 227.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for appeals of valuations made in new text end 227.7 new text begin assessment year 2018 and thereafter. new text end 227.8    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read: 227.9    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to 227.10be brought against the commissioner under this section, the petition initiating the appeal 227.11must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 227.12as provided in paragraph (b) or (c). 227.13(b) If the appeal to court is from an order of the commissioner, it must be brought under 227.14chapter 271 new text begin and filed within the time period prescribed in section 271.06, subdivision 2 new text end , 227.15except that when the provisions of this section conflict with chapter 271 new text begin or 278 new text end , this section 227.16prevails. In addition, the petition must include all the parcels encompassed by that order 227.17which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 227.18at a valuation greater than their real or actual value, misclassified, or are exempt. For this 227.19purpose, an order of the commissioner is either (1) a certification or notice of value by the 227.20commissioner for property described in subdivision 1, or (2) the final determination by the 227.21commissioner of either an administrative appeal conference or informal administrative 227.22appeal described in subdivision 4. 227.23(c) If the appeal is from the tax that results from implementation of the commissioner's 227.24order, certification, or recommendation, it must be brought under chapter 278, and the 227.25provisions in that chapter apply, except that service shall be on the commissioner only and 227.26not on the local officials specified in section 278.01, subdivision 1, and if any other provision 227.27of this section conflicts with chapter 278, this section prevails. In addition, the petition must 227.28include either all the utility parcels or all the railroad parcels in the state in which the 227.29petitioner claims an interest and which the petitioner claims have been partially, unfairly, 227.30or unequally assessed, assessed at a valuation greater than their real or actual value, 227.31misclassified, or are exempt. 227.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 228.1    Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read: 228.2    Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 228.3270.82 or 273.371 by the date specified in that section, or by the date specified by the 228.4commissioner in an extension, may appeal administratively to the commissioner prior to 228.5bringing an action in court. 228.6    (b) Companies that must submit reports under section must submit new text begin file new text end a written 228.7request to new text begin for an appeal with new text end the commissioner for a conference within ten new text begin 30 new text end days after 228.8the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice to the company, 228.9or by June 15, whichever is earlier new text begin . For purposes of this section, "notice date" means the new text end 228.10 new text begin notice date of the valuation certification, commissioner's order, recommendation, or other new text end 228.11 new text begin notice new text end . 228.12    (c) Companies that submit reports under section must submit a written request 228.13to the commissioner for a conference within ten days after the date of the commissioner's 228.14valuation certification or notice to the company, or by July 1, whichever is earlier new text begin The appeal new text end 228.15 new text begin need not be in any particular form but must contain the following information: new text end 228.16     new text begin (1) name and address of the company; new text end 228.17     new text begin (2) the date; new text end 228.18     new text begin (3) its Minnesota identification number; new text end 228.19     new text begin (4) the assessment year or period involved; new text end 228.20     new text begin (5) the findings in the valuation that the company disputes; new text end 228.21     new text begin (6) a summary statement specifying its reasons for disputing each item; and new text end 228.22     new text begin (7) the signature of the company's duly authorized agent or representative new text end . 228.23     new text begin (d) When requested in writing and within the time allowed for filing an administrative new text end 228.24 new text begin appeal, the commissioner may extend the time for filing an appeal for a period of not more new text end 228.25 new text begin than 15 days from the expiration of the time for filing the appeal. new text end 228.26    (d) new text begin (e) new text end The commissioner shall conduct the conference new text begin either in person or by telephone new text end 228.27upon the commissioner's entire files and records and such further information as may be 228.28offered. The conference must be held no later than 20 days after the date of the 228.29commissioner's valuation certification or notice to the company, or by the date specified by 228.30the commissioner in an extension new text begin request for an appeal new text end . Within 60 new text begin 30 new text end days after the 228.31conference the commissioner shall make a final determination of the matter and shall notify 229.1the company promptly of the determination. The conference is not a contested case hearing new text begin new text end 229.2 new text begin subject to chapter 14 new text end . 229.3    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner 229.4shall also provide the railroad and utility companies the opportunity to discuss any questions 229.5or concerns relating to the values established by the commissioner through certification or 229.6notice in a less formal manner. This does not change or modify the deadline for requesting 229.7a conference under paragraph (a), the deadline in section for appealing an order of 229.8the commissioner, or the deadline in section for appealing property taxes in court. 229.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 229.10    Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 229.11to read: 229.12     new text begin Subd. 5. new text end new text begin Agreement determining valuation. new text end new text begin When it appears to be in the best interest new text end 229.13 new text begin of the state, the commissioner may settle any matter under consideration regarding an appeal new text end 229.14 new text begin filed under this section. The agreement must be in writing and signed by the commissioner new text end 229.15 new text begin and the company or the company's authorized representative. The agreement is final and new text end 229.16 new text begin conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a new text end 229.17 new text begin material fact, the case may not be reopened as to the matters agreed upon. new text end 229.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 229.19    Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 229.20to read: 229.21     new text begin Subd. 6. new text end new text begin Dismissal of administrative appeal. new text end new text begin If a taxpayer files an administrative appeal new text end 229.22 new text begin from an order of the commissioner and also files an appeal to the Tax Court for that same new text end 229.23 new text begin order of the commissioner, the administrative appeal is dismissed and the commissioner is new text end 229.24 new text begin no longer required to make the determination of appeal under subdivision 4. new text end 229.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2017. new text end 229.26    Sec. 25. new text begin [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES. new text end 229.27 new text begin After making the apportionment provided in Minnesota Rules, part 8100.0600, the new text end 229.28 new text begin commissioner must equalize the values of the operating structures to the level accepted by new text end 229.29 new text begin the State Board of Equalization if the appropriate sales ratio for each county, as conducted new text end 229.30 new text begin by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is new text end 229.31 new text begin outside the range accepted by the State Board of Equalization. The commissioner must not new text end 230.1 new text begin equalize the value of the operating structures if the sales ratio determined pursuant to this new text end 230.2 new text begin subdivision is within the range accepted by the State Board of Equalization. new text end 230.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2017. new text end 230.4    Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read: 230.5    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board 230.6of a town, or the council or other governing body of a city, is the new text begin local new text end board of appeal and 230.7equalization except (1) in cities whose charters provide for a board of equalization or (2) 230.8in any city or town that has transferred its local board of review power and duties to the 230.9county board as provided in subdivision 3. The county assessor shall fix a day and time 230.10when the board or the new text begin local new text end board of equalization shall meet in the assessment districts of 230.11the county. Notwithstanding any law or city charter to the contrary, a city board of 230.12equalization shall be referred to as a new text begin local new text end board of appeal and equalization. On or before 230.13February 15 of each year the assessor shall give written notice of the time to the city or 230.14town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 230.15be held between April 1 and May 31 each year. The clerk shall give published and posted 230.16notice of the meeting at least ten days before the date of the meeting. 230.17    The board shall meet either at a central location within the county or at the office of the 230.18clerk to review the assessment and classification of property in the town or city. No changes 230.19in valuation or classification which are intended to correct errors in judgment by the county 230.20assessor may be made by the county assessor after the board has adjourned in those cities 230.21or towns that hold a local board of review; however, corrections of errors that are merely 230.22clerical in nature or changes that extend homestead treatment to property are permitted after 230.23adjournment until the tax extension date for that assessment year. The changes must be fully 230.24documented and maintained in the assessor's office and must be available for review by any 230.25person. A copy of the changes made during this period in those cities or towns that hold a 230.26local board of review must be sent to the county board no later than December 31 of the 230.27assessment year. 230.28    (b) The board shall determine whether the taxable property in the town or city has been 230.29properly placed on the list and properly valued by the assessor. If real or personal property 230.30has been omitted, the board shall place it on the list with its market value, and correct the 230.31assessment so that each tract or lot of real property, and each article, parcel, or class of 230.32personal property, is entered on the assessment list at its market value. No assessment of 230.33the property of any person may be raised unless the person has been duly notified of the 230.34intent of the board to do so. On application of any person feeling aggrieved, the board shall 231.1review the assessment or classification, or both, and correct it as appears just. The board 231.2may not make an individual market value adjustment or classification change that would 231.3benefit the property if the owner or other person having control over the property has refused 231.4the assessor access to inspect the property and the interior of any buildings or structures as 231.5provided in section 273.20. A board member shall not participate in any actions of the board 231.6which result in market value adjustments or classification changes to property owned by 231.7the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 231.8brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 231.9board member has a financial interest. The relationship may be by blood or marriage. 231.10    (c) A local board may reduce assessments upon petition of the taxpayer but the total 231.11reductions must not reduce the aggregate assessment made by the county assessor by more 231.12than one percent. If the total reductions would lower the aggregate assessments made by 231.13the county assessor by more than one percent, none of the adjustments may be made. The 231.14assessor shall correct any clerical errors or double assessments discovered by the board 231.15without regard to the one percent limitation. 231.16    (d) A local board does not have authority to grant an exemption or to order property 231.17removed from the tax rolls. 231.18    (e) A majority of the members may act at the meeting, and adjourn from day to day until 231.19they finish hearing the cases presented. The assessor shall attend and take part in the 231.20proceedings, but must not vote. The county assessor, or an assistant delegated by the county 231.21assessor shall attend the meetings. The board shall list separately all omitted property added 231.22to the list by the board and all items of property increased or decreased, with the market 231.23value of each item of property, added or changed by the board. The county assessor shall 231.24enter all changes made by the board. 231.25    (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 231.26or by written communication before the board after being duly notified of the board's intent 231.27to raise the assessment of the property, or if a person feeling aggrieved by an assessment 231.28or classification fails to apply for a review of the assessment or classification, the person 231.29may not appear before the county board of appeal and equalization for a review. This 231.30paragraph does not apply if an assessment was made after the local board meeting, as 231.31provided in section 273.01, or if the person can establish not having received notice of 231.32market value at least five days before the local board meeting. 231.33    (g) The local board must complete its work and adjourn within 20 days from the time 231.34of convening stated in the notice of the clerk, unless a longer period is approved by the 232.1commissioner of revenue. No action taken after that date is valid. All complaints about an 232.2assessment or classification made after the meeting of the board must be heard and 232.3determined by the county board of equalization. A nonresident may, at any time, before the 232.4meeting of the board file written objections to an assessment or classification with the county 232.5assessor. The objections must be presented to the board at its meeting by the county assessor 232.6for its consideration. 232.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 232.8    Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read: 232.9    Subdivision 1. Members; meetings; rules for equalizing assessments. The county 232.10commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 232.11present, the deputy county auditor, or, if there is no deputy, the court administrator of the 232.12district court, shall form a board for the equalization of the assessment of the property of 232.13the county, including the property of all cities whose charters provide for a board of 232.14equalization. This board shall be referred to as the county board of appeal and equalization. 232.15The board shall meet annually, on the date specified in section 274.14, at the office of the 232.16auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 232.17Members shall not participate in any actions of the board which result in market value 232.18adjustments or classification changes to property owned by the board member, the spouse, 232.19parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 232.20nephew, or niece of a board member, or property in which a board member has a financial 232.21interest. The relationship may be by blood or marriage. The board shall examine and compare 232.22the returns of the assessment of property of the towns or districts, and equalize them so that 232.23each tract or lot of real property and each article or class of personal property is entered on 232.24the assessment list at its market value, subject to the following rules: 232.25    (1) The board shall raise the valuation of each tract or lot of real property which in its 232.26opinion is returned below its market value to the sum believed to be its market value. The 232.27board must first give notice of intention to raise the valuation to the person in whose name 232.28it is assessed, if the person is a resident of the county. The notice must fix a time and place 232.29for a hearing. 232.30    (2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 232.31above its market value to the sum believed to be its market value. 232.32    (3) The board shall raise the valuation of each class of personal property which in its 232.33opinion is returned below its market value to the sum believed to be its market value. It 232.34shall raise the aggregate value of the personal property of individuals, firms, or corporations, 233.1when it believes that the aggregate valuation, as returned, is less than the market value of 233.2the taxable personal property possessed by the individuals, firms, or corporations, to the 233.3sum it believes to be the market value. The board must first give notice to the persons of 233.4intention to do so. The notice must set a time and place for a hearing. 233.5    (4) The board shall reduce the valuation of each class of personal property that is returned 233.6above its market value to the sum it believes to be its market value. Upon complaint of a 233.7party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 233.8property, or of any class of personal property for which the individual is assessed, which 233.9in its opinion has been assessed at too large a sum, to the sum it believes was the market 233.10value of the individual's personal property of that class. 233.11    (5) The board must not reduce the aggregate value of all the property of its county, as 233.12submitted to the county board of equalization, with the additions made by the auditor under 233.13this chapter, by more than one percent of its whole valuation. The board may raise the 233.14aggregate valuation of real property, and of each class of personal property, of the county, 233.15or of any town or district of the county, when it believes it is below the market value of the 233.16property, or class of property, to the aggregate amount it believes to be its market value. 233.17    (6) The board shall change the classification of any property which in its opinion is not 233.18properly classified. 233.19    (7) The board does not have the authority to grant an exemption or to order property 233.20removed from the tax rolls. 233.21     new text begin (8) The board may not make an individual market value adjustment or classification new text end 233.22 new text begin change that would benefit property if the owner or other person having control over the new text end 233.23 new text begin property has refused the assessor access to inspect the property and the interior of any new text end 233.24 new text begin buildings or structures as provided in section 273.20. new text end 233.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county board of appeal and new text end 233.26 new text begin equalization meetings in 2018 and thereafter. new text end 233.27    Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read: 233.28    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 233.29boards of appeal and equalization meetings must provide proof to the commissioner by 233.30December 1, 2009, and each year thereafter, new text begin February 1 new text end that it is in compliance with the 233.31requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 233.32was a quorum of voting members at each meeting of the board of appeal and equalization 233.33in the current new text begin previous new text end year. A county that does not comply with these requirements is 234.1deemed to have transferred its board of appeal and equalization powers to the special board 234.2of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the 234.3following year's assessment and continuing unless the powers are reinstated under paragraph 234.4(c). A county that does not comply with the requirements of subdivision 2 and has not 234.5appointed a special board of equalization shall appoint a special board of equalization before 234.6the following year's assessment. 234.7    (b) The county shall notify the taxpayers when the board of appeal and equalization for 234.8a county has been transferred to the special board of equalization under this subdivision 234.9and, prior to the meeting time of the special board of equalization, the county shall make 234.10available to those taxpayers a procedure for a review of the assessments, including, but not 234.11limited to, open book meetings. This alternate review process must take place in April and 234.12May. 234.13    (c) A county board whose powers are transferred to the special board of equalization 234.14under this subdivision may be reinstated by resolution of the county board and upon proof 234.15of compliance with the requirements of subdivision 2. The resolution and proofs must be 234.16provided to the commissioner by December new text begin February new text end 1 in order to be effective for the 234.17following new text begin current new text end year's assessment. 234.18(d) If a person who was entitled to appeal to the county board of appeal and equalization 234.19or to the county special board of equalization is not able to do so in a particular year because 234.20the county board or special board did not meet the quorum and training requirements in this 234.21section and section 274.13, or because the special board was not appointed, that person may 234.22instead appeal to the commissioner of revenue, provided that the appeal is received by the 234.23commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 234.24270C.92 . The commissioner must issue an appropriate order to the county assessor in 234.25response to each timely appeal, either upholding or changing the valuation or classification 234.26of the property. Prior to October 1 of each year, the commissioner must charge and bill the 234.27county where the property is located $500 for each tax parcel covered by an order issued 234.28under this paragraph in that year. Amounts received by the commissioner under this paragraph 234.29must be deposited in the state's general fund. If payment of a billed amount is not received 234.30by the commissioner before December 1 of the year when billed, the commissioner must 234.31deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 234.32county under chapter 477A in the next year. Late payments may either be returned to the 234.33county uncashed and undeposited or may be accepted. If a late payment is accepted, the 234.34state aid paid to the county under chapter 477A must be adjusted within 12 months to 234.35eliminate any reduction that occurred because the payment was late. Amounts needed to 235.1make these adjustments are included in the appropriation under section 477A.03, subdivision 235.22 . 235.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for county board of appeal and new text end 235.4 new text begin equalization meetings held in 2018 and thereafter. new text end 235.5    Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read: 235.6    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 235.7on or before September 30, each county and each home rule charter or statutory city shall 235.8certify to the county auditor the proposed property tax levy for taxes payable in the following 235.9year. 235.10    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each 235.11town and each special taxing district shall adopt and certify to the county auditor a proposed 235.12property tax levy for taxes payable in the following year. For towns, the final certified levy 235.13shall also be considered the proposed levy. 235.14    (c) On or before September 30, each school district that has not mutually agreed with 235.15its home county to extend this date shall certify to the county auditor the proposed property 235.16tax levy for taxes payable in the following year. Each school district that has agreed with 235.17its home county to delay the certification of its proposed property tax levy must certify its 235.18proposed property tax levy for the following year no later than October 7. The school district 235.19shall certify the proposed levy as: 235.20    (1) a specific dollar amount by school district fund, broken down between voter-approved 235.21and non-voter-approved levies and between referendum market value and tax capacity 235.22levies; or 235.23    (2) the maximum levy limitation certified by the commissioner of education according 235.24to section 126C.48, subdivision 1. 235.25    (d) If the board of estimate and taxation or any similar board that establishes maximum 235.26tax levies for taxing jurisdictions within a first class city certifies the maximum property 235.27tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 235.28in paragraph (a), the city shall be deemed to have certified its levies for those taxing 235.29jurisdictions. 235.30    (e) For purposes of this section, "special taxing district" means a special taxing district 235.31as defined in section 275.066. Intermediate school districts that levy a tax under chapter 235.32124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 236.1Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 236.2taxing districts for purposes of this section. 236.3(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 236.4tax levy under this subdivision, the taxing authority shall announce the time and place of 236.5its new text begin any new text end subsequent regularly scheduled meetings at which the budget and levy will be 236.6discussed and at which the public will be allowed to speak. The time and place of those 236.7meetings must be included in the proceedings or summary of proceedings published in the 236.8official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191. 236.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 236.10    Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read: 236.11    Subd. 2. Local governments required to report. For purposes of this section, "local 236.12governmental unit" means a county, home rule charter or statutory city with a population 236.13greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 236.14statutory city or town that receives a distribution from the taconite municipal aid account 236.15in the levy year. 236.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 236.17    Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read: 236.18    Subdivision 1. Determination of validity. (a) Any person having personal property, or 236.19any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 236.20property has been partially, unfairly, or unequally assessed in comparison with other property 236.21in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 236.22the portion of the county excluding the first class city, or that the parcel has been assessed 236.23at a valuation greater than its real or actual value, or that the tax levied against the same is 236.24illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 236.25levied, may have the validity of the claim, defense, or objection determined by the district 236.26court of the county in which the tax is levied or by the Tax Court by serving one copy of a 236.27petition for such determination upon the county auditor, one copy on the county attorney, 236.28one copy on the county treasurer, and three copies on the county assessor. The county 236.29assessor shall immediately forward one copy of the petition to the appropriate governmental 236.30authority in a home rule charter or statutory city or town in which the property is located if 236.31that city or town employs its own certified assessor. A copy of the petition shall also be 236.32forwarded by the assessor to the school board of the school district in which the property 236.33is located. 237.1(b) In counties where the office of county treasurer has been combined with the office 237.2of county auditor, the county may elect to require the petitioner to serve the number of 237.3copies as determined by the county. The county assessor shall immediately forward one 237.4copy of the petition to the appropriate governmental authority in a home rule charter or 237.5statutory city or town in which the property is located if that city or town employs its own 237.6certified assessor. A list of petitioned properties, including the name of the petitioner, the 237.7identification number of the property, and the estimated market value, shall be sent on or 237.8before the first day of July by the county auditor/treasurer to the school board of the school 237.9district in which the property is located. 237.10(c) For all counties, the petitioner must file the copies with proof of service, in the office 237.11of the court administrator of the district court on or before April 30 of the year in which the 237.12tax becomes payable. A petition for determination under this section may be transferred by 237.13the district court to the Tax Court. An appeal may also be taken to the Tax Court under 237.14chapter 271 at any time following receipt of the valuation notice new text begin that county assessors or new text end 237.15 new text begin city assessors having the powers of a county assessor are new text end required by section 273.121 new text begin to new text end 237.16 new text begin send to persons whose property is to be included on the assessment roll that year, new text end but prior 237.17to May 1 of the year in which the taxes are payable. 237.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 237.19    Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read: 237.20    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency 237.21or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 237.22withheld from sale or lease to others for a maximum of six months. The request must be 237.23submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 237.24from sale or lease to any other party for six months, and must confirm the starting date of 237.25the six-month withholding period to the requesting agency or subdivision. If the request is 237.26from a governmental subdivision of the state, the governmental subdivision must pay the 237.27maintenance costs incurred by the county during the period the parcel is withheld. The 237.28county board may approve a sale or conveyance to the requesting party during the 237.29withholding period. A conveyance of the property to the requesting party terminates the 237.30withholding period. 237.31A governmental subdivision of the state must not make, and a county auditor must not 237.32act upon, a second request to withhold a parcel from sale or lease within 18 months of a 237.33previous request for that parcel. A county may reject a request made under this paragraph 237.34if the request is made more than 30 days after the county has given notice to the requesting 238.1state agency or governmental subdivision of the state that the county intends to sell or 238.2otherwise dispose of the property. 238.3(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 238.4value as determined by the county board, to an organized or incorporated governmental 238.5subdivision of the state for any public purpose for which the subdivision is authorized to 238.6acquire property. When the term "market value" is used in this section, it means an estimate 238.7of the full and actual market value of the parcel as determined by the county board, but in 238.8making this determination, the board and the persons employed by or under contract with 238.9the board in order to perform, conduct, or assist in the determination, are exempt from the 238.10licensure requirements of chapter 82B. 238.11(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 238.12taxing districts on application to new text begin sold by new text end the county board by new text begin , for their market value as new text end 238.13 new text begin determined by the county board, to new text end a state agency for an authorized use at not less than their 238.14market value as determined by the county board new text begin any public purpose for which the agency new text end 238.15 new text begin is authorized to acquire property new text end . 238.16(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 238.17or incorporated governmental subdivision of the state or state agency for less than their 238.18market value if: 238.19(1) the county board determines that a sale at a reduced price is in the public interest 238.20because a reduced price is necessary to provide an incentive to correct the blighted conditions 238.21that make the lands undesirable in the open market, or the reduced price will lead to the 238.22development of affordable housing; and 238.23(2) the governmental subdivision or state agency has documented its specific plans for 238.24correcting the blighted conditions or developing affordable housing, and the specific law 238.25or laws that empower it to acquire real property in furtherance of the plans. 238.26If the sale under this paragraph is to a governmental subdivision of the state, the 238.27commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 238.28If the sale under this paragraph is to a state agency, new text begin the property is released from the trust new text end 238.29 new text begin in favor of the taxing districts and new text end the commissioner new text begin of revenue new text end must issue a conveyance 238.30document that releases the property from the trust in favor of the taxing districts new text begin convey the new text end 238.31 new text begin property on behalf of the state by quitclaim deed to the agency new text end . 238.32(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 238.33be conveyed by the commissioner of revenue in the name of the state to a governmental 238.34subdivision for an authorized public use, if an application is submitted to the commissioner 239.1which includes a statement of facts as to the use to be made of the tract and the favorable 239.2recommendation of the county board. For the purposes of this paragraph, "authorized public 239.3use" means a use that allows an indefinite segment of the public to physically use and enjoy 239.4the property in numbers appropriate to its size and use, or is for a public service facility. 239.5Authorized public uses as defined in this paragraph are limited to: 239.6(1) a road, or right-of-way for a road; 239.7(2) a park that is both available to, and accessible by, the public that contains 239.8improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters; 239.9(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 239.10with a reasonable amount of surrounding land maintained in its natural state; 239.11(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 239.12transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 239.13facilities related to a public transit system; 239.14(5) public beaches or boat launches; 239.15(6) public parking; 239.16(7) civic recreation or conference facilities; and 239.17(8) public service facilities such as fire halls, police stations, lift stations, water towers, 239.18sanitation facilities, water treatment facilities, and administrative offices. 239.19No monetary compensation or consideration is required for the conveyance, except as 239.20provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 239.21including, but not limited to, the reversion provisions of subdivisions 1c and 1d. 239.22(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 239.23land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 239.24upon the favorable recommendation of the county board if the governmental subdivision 239.25has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 239.26under a written development agreement or instrument, but the conveyance failed to occur 239.27prior to forfeiture. No compensation or consideration is required for, and no conditions 239.28attach to, the conveyance. 239.29(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 239.30land to the association of a common interest community by quitclaim deed upon the favorable 239.31recommendation of the county board if the association certifies to the board that prior to 239.32forfeiture the association was entitled to the parcel under a written agreement, but the 240.1conveyance failed to occur prior to forfeiture. No compensation or consideration is required 240.2for, and no conditions attach to, the conveyance. 240.3(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 240.4state for less than its market value for either: (1) creation or preservation of wetlands; (2) 240.5drainage or storage of storm water under a storm water management plan; or (3) preservation, 240.6or restoration and preservation, of the land in its natural state. The deed must contain a 240.7restrictive covenant limiting the use of the land to one of these purposes for 30 years or 240.8until the property is reconveyed back to the state in trust. At any time, the governmental 240.9subdivision may reconvey the property to the state in trust for the taxing districts. The deed 240.10of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 240.11price determined under this paragraph shall be refunded upon a reconveyance, but the 240.12amount paid for a conveyance under this paragraph may be taken into account by the county 240.13board when setting the terms of a future sale of the same property to the same governmental 240.14subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 240.15incorporated municipality and the commissioner of natural resources determines there is a 240.16mineral use potential, the sale is subject to the approval of the commissioner of natural 240.17resources. 240.18(i) A park and recreation board in a city of the first class is a governmental subdivision 240.19for the purposes of this section. 240.20(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 240.21the commissioner of revenue in the name of the state to a governmental subdivision for a 240.22school forest under section 89.41. An application that includes a statement of facts as to the 240.23use to be made of the tract and the favorable recommendation of the county board and the 240.24commissioner of natural resources must be submitted to the commissioner of revenue. No 240.25monetary compensation or consideration is required for the conveyance, but the conveyance 240.26is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 240.27(e). At any time, the governmental subdivision may reconvey the property back to the state 240.28in trust for the taxing districts. The deed of reconveyance is subject to approval by the 240.29commissioner of revenue. 240.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 240.31    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read: 240.32    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from 240.33the date of any conveyance of tax-forfeited land to a governmental subdivision for an 240.34authorized public use as provided in this section, regardless of when the deed for the 241.1authorized public use was executed, if the governmental subdivision has failed to put the 241.2land to that use, or abandons that use, the governing body of the subdivision must: (1) with 241.3the approval of the county board, purchase the property for an authorized public purpose 241.4at the present market value as determined by the county board, or (2) authorize the proper 241.5officers to convey the land, or the part of the land not required for an authorized public use, 241.6to the state of Minnesota in trust for the taxing districts. If the governing body purchases 241.7the property under clause (1), the commissioner of revenue shall, upon proper application 241.8submitted by the county auditor new text begin and upon the reconveyance of the land subject to the new text end 241.9 new text begin conditional use deed to the state new text end , convey the property on behalf of the state by quitclaim 241.10deed to the subdivision free of a use restriction and the possibility of reversion or 241.11defeasement. If the governing body decides to reconvey the property to the state under this 241.12clause, the officers shall execute a deed of conveyance immediately. The conveyance is 241.13subject to the approval of the commissioner and its form must be approved by the attorney 241.14general. For 15 years from the date of the conveyance, there is no failure to put the land to 241.15the authorized public use and no abandonment of that use if a formal plan of the governmental 241.16subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 241.17intended future use of the land for the authorized public use. 241.18(b) Property held by a governmental subdivision of the state under a conditional use 241.19deed executed under this section by the commissioner of revenue on or after January 1, 241.202007, may be acquired by that governmental subdivision after 15 years from the date of the 241.21conveyance if the commissioner determines upon written application from the subdivision 241.22that the subdivision has in fact put the property to the authorized public use for which it 241.23was conveyed, and the subdivision has made a finding that it has no current plans to change 241.24the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 241.25the county board where the land is located objects to a conveyance of the property to the 241.26subdivision without conditions and without further act by or obligation of the subdivision. 241.27If the county does not object within 60 days, and the commissioner makes a favorable 241.28determination, the commissioner shall issue a quitclaim deed on behalf of the state 241.29unconditionally conveying the property to the governmental subdivision. For purposes of 241.30this paragraph, demonstration of an intended future use for the authorized public use in a 241.31formal plan of the governmental subdivision does not constitute use for that authorized 241.32public use. 241.33(c) Property held by a governmental subdivision of the state under a conditional use 241.34deed executed under this section by the commissioner of revenue before January 1, 2007, 241.35is released from the use restriction and possibility of reversion on January 1, 2022, if the 242.1county board records a resolution describing the land and citing this paragraph. The county 242.2board may authorize the county treasurer to deduct the amount of the recording fees from 242.3future settlements of property taxes to the subdivision. 242.4(d) Except for tax-forfeited land conveyed to establish a school forest under section 242.589.41 , property conveyed under a conditional use deed executed under this section by the 242.6commissioner of revenue, regardless of when the deed for the authorized public use was 242.7executed, is released from the use restriction and reverter, and any use restriction or reverter 242.8for which no declaration of reversion has been recorded with the county recorder or registrar 242.9of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 242.10the date the deed was acknowledged; or (3) final resolution of an appeal to district court 242.11under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 242.12county recorder or registrar of titles, as appropriate, prior to January 1, 2015. 242.13(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 242.14school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 242.15The property reverts to the state in trust for the taxing districts by operation of law if the 242.16commissioner of natural resources determines and reports to the commissioner of revenue 242.17under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 242.18land for school forest purposes for three consecutive years. The commissioner of revenue 242.19shall record a declaration of reversion for land that has reverted under this paragraph. 242.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 242.21    Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 242.22to read: 242.23     new text begin Subd. 14. new text end new text begin Communication by electronic mail. new text end new text begin Prior to receiving aid pursuant to this new text end 242.24 new text begin section, a city must register an official electronic mail address with the commissioner, which new text end 242.25 new text begin the commissioner may use as an exclusive means to communicate with the city. new text end new text begin new text end 242.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 242.27    Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 242.28to read: 242.29     new text begin Subd. 3a. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of natural new text end 242.30 new text begin resources shall certify to the commissioner of revenue the number of watercraft launches new text end 242.31 new text begin and the number of watercraft trailer parking spaces in each county. new text end 242.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 243.1    Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 243.2to read: 243.3     new text begin Subd. 3b. new text end new text begin Certification. new text end new text begin On or before June 1 of each year, the commissioner of natural new text end 243.4 new text begin resources shall certify to the commissioner of revenue the counties that complied with the new text end 243.5 new text begin requirements of subdivision 3 the prior year and are eligible to receive aid under this section. new text end 243.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018 and thereafter. new text end 243.7    Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read: 243.8    Subd. 2. Exception. This section does not apply new text begin to sales made under chapter 282 or new text end if 243.9the purchaser is represented throughout the transaction by either: 243.10(1) a person licensed to practice law in this state; or 243.11(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 243.12that the representation does not create a dual agency, as that term is defined in section 82.55, 243.13subdivision 6 . 243.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales of tax-forfeited land occurring new text end 243.15 new text begin the day following final enactment and thereafter. new text end 243.16    Sec. 38. Laws 2014, chapter 308, article 9, section 94, is amended to read: 243.17    Sec. 94. REPEALER. 243.18(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 243.1919e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 243.20part 8007.0200, are repealed. 243.21(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 243.222; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 243.2382; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 243.24273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 243.258; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 243.26subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 243.27subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 243.28subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 243.29469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 243.302013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 244.1Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 244.2repealed. 244.3(c) Minnesota Statutes 2012, section 469.1764, is repealed. 244.4(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 244.5469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 244.6469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 244.7section 469.340, subdivision 4, are repealed. 244.8(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed. 244.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from May 20, 2014, and new text end 244.10 new text begin pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, new text end 244.11 new text begin subdivision 2, is revived and reenacted as of that date. new text end 244.12    Sec. 39. new text begin REPEALER. new text end new text begin new text end 244.13 new text begin (a) new text end new text begin Minnesota Statutes 2016, section 281.22, new text end new text begin is repealed. new text end 244.14 new text begin (b) new text end new text begin Minnesota Rules, part 8100.0700, new text end new text begin is repealed. new text end 244.15 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective the day following final enactment. new text end 244.16 new text begin Paragraph (b) is effective for assessment year 2017 and thereafter. new text end 244.17ARTICLE 13 244.18DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 244.19PROVISIONS; MISCELLANEOUS 244.20    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read: 244.21    Subdivision 1. Annual report required. Every railroad company doing business in 244.22Minnesota shall annually file with the commissioner on or before March 31 a report under 244.23oath setting forth the information prescribed by the commissioner to enable the commissioner 244.24to make the valuation and equalization required by sections 270.80 to 270.87. new text begin The new text end 244.25 new text begin commissioner shall prescribe the content, format, and manner of the report pursuant to new text end 244.26 new text begin section 270C.30, except that a "law administered by the commissioner" includes the property new text end 244.27 new text begin tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant new text end 244.28 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 244.29 new text begin property tax laws. new text end 244.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 245.1    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read: 245.2    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 245.3certain amount of money, which equals or exceeds $25 and which is due and payable to a 245.4claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 245.5fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 245.6restitution. A debt may arise under a contractual or statutory obligation, a court order, or 245.7other legal obligation, but need not have been reduced to judgment. 245.8    A debt includes any legal obligation of a current recipient of assistance which is based 245.9on overpayment of an assistance grant where that payment is based on a client waiver or 245.10an administrative or judicial finding of an intentional program violation; or where the debt 245.11is owed to a program wherein the debtor is not a client at the time notification is provided 245.12to initiate recovery under this chapter and the debtor is not a current recipient of food support, 245.13transitional child care, or transitional medical assistance. 245.14    (b) A debt does not include any legal obligation to pay a claimant agency for medical 245.15care, including hospitalization if the income of the debtor at the time when the medical care 245.16was rendered does not exceed the following amount: 245.17    (1) for an unmarried debtor, an income of $8,800 new text begin $12,560 new text end or less; 245.18    (2) for a debtor with one dependent, an income of $11,270 new text begin $16,080 new text end or less; 245.19    (3) for a debtor with two dependents, an income of $13,330 new text begin $19,020 new text end or less; 245.20    (4) for a debtor with three dependents, an income of $15,120 new text begin $21,580 new text end or less; 245.21    (5) for a debtor with four dependents, an income of $15,950 new text begin $22,760 new text end or less; and 245.22    (6) for a debtor with five or more dependents, an income of $16,630 new text begin $23,730 new text end or less. 245.23 new text begin For purposes of this paragraph, "debtor" means the individual whose income, together new text end 245.24 new text begin with the income of the individual's spouse, other than a separated spouse, brings the new text end 245.25 new text begin individual within the income provisions of this paragraph. For purposes of this paragraph, new text end 245.26 new text begin a spouse, other than a separated spouse, shall be considered a dependent. new text end 245.27    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 245.28determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 245.29that in section 1(f)(3)(B) the word "1999 new text begin 2014 new text end " shall be substituted for the word "1992." 245.30For 2001 new text begin 2016 new text end , the commissioner shall then determine the percent change from the 12 245.31months ending on August 31, 1999 new text begin 2014 new text end , to the 12 months ending on August 31, 2000 new text begin 2015 new text end , 245.32and in each subsequent year, from the 12 months ending on August 31, 1999 new text begin 2014 new text end , to the 246.112 months ending on August 31 of the year preceding the taxable year. The determination 246.2of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 246.3not be subject to the Administrative Procedure Act contained in chapter 14. The income 246.4amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 246.5the amount is rounded up to the nearest $10 amount. 246.6    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 246.7dollar amount of the premium authorized under section 256L.15, subdivision 1a. 246.8 new text begin EFFECTIVE DATE. new text end new text begin The section is effective retroactively for debts incurred after new text end 246.9 new text begin December 31, 2014. new text end 246.10    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read: 246.11    Subdivision 1. Disclosure to commissioner of human services. (a) On the request of 246.12the commissioner of human services, the commissioner shall disclose return information 246.13regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 246.14extent provided in paragraph (b) and for the purposes set forth in paragraph (c). 246.15    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 246.16employment, income, and property of a person owing or alleged to be owing an obligation 246.17of child support. 246.18    (c) The commissioner of human services may request data only for the purposes of 246.19carrying out the child support enforcement program and to assist in the location of parents 246.20who have, or appear to have, deserted their children. Data received may be used only as set 246.21forth in section 256.978. 246.22    (d) The commissioner shall provide the records and information necessary to administer 246.23the supplemental housing allowance to the commissioner of human services. 246.24    (e) At the request of the commissioner of human services, the commissioner of revenue 246.25shall electronically match the Social Security numbers and names of participants in the 246.26telephone assistance plan operated under sections 237.69 to 237.71, with those of property 246.27tax refund filers, and determine whether each participant's household income is within the 246.28eligibility standards for the telephone assistance plan. 246.29    (f) The commissioner may provide records and information collected under sections 246.30295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 246.31Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 246.32102-234. Upon the written agreement by the United States Department of Health and Human 246.33Services to maintain the confidentiality of the data, the commissioner may provide records 247.1and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 247.2Medicaid Services section of the United States Department of Health and Human Services 247.3for purposes of meeting federal reporting requirements. 247.4    (g) The commissioner may provide records and information to the commissioner of 247.5human services as necessary to administer the early refund of refundable tax credits. 247.6    (h) The commissioner may disclose information to the commissioner of human services 247.7 new text begin as new text end necessary to verify income new text begin for income verification new text end for eligibility and premium payment 247.8under the MinnesotaCare program, under section 256L.05, subdivision 2 new text begin , as well as the new text end 247.9 new text begin medical assistance program under chapter 256B new text end . 247.10    (i) The commissioner may disclose information to the commissioner of human services 247.11necessary to verify whether applicants or recipients for the Minnesota family investment 247.12program, general assistance, food support, Minnesota supplemental aid program, and child 247.13care assistance have claimed refundable tax credits under chapter 290 and the property tax 247.14refund under chapter 290A, and the amounts of the credits. 247.15    (j) The commissioner may disclose information to the commissioner of human services 247.16necessary to verify income for purposes of calculating parental contribution amounts under 247.17section 252.27, subdivision 2a. 247.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 247.19    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read: 247.20270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING. 247.21 new text begin Except as otherwise provided by law, new text end the commissioner shall prescribe the content and new text begin , new text end 247.22format new text begin , and manner new text end of all returns and other forms required to be filed under a law 247.23administered by the commissioner, and may furnish them subject to charge on application. 247.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 247.25    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read: 247.26    Subd. 5. Prohibition against collection during appeal period of an order. No collection 247.27action can be taken on an order of assessment, or any other order imposing a liability, 247.28including the filing of liens under section 270C.63, and no late payment penalties may be 247.29imposed when a return has been filed for the tax type and period upon which the order is 247.30based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 247.31after the order has been mailed to the taxpayer new text begin notice date designated new text end by the commissioner new text begin new text end 248.1 new text begin on the order new text end ; (2) if an administrative appeal is filed under section 270C.35, 60 days after new text begin new text end 248.2 new text begin the notice date designated by the commissioner on the written new text end determination of the 248.3administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 248.4decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 248.5is based upon a constitutional challenge to the tax, 60 days after final determination of the 248.6appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 248.7or a jeopardy collection under section 270C.36. 248.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 248.9 new text begin 2017. new text end 248.10    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read: 248.11    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent 248.12postage prepaid by United States mail to the taxpayer at the taxpayer's last known address, 248.13or sent by electronic mail to the taxpayer's last known electronic mailing address as provided 248.14for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal 248.15disability, or, in the case of a corporation, has terminated its existence, unless the 248.16commissioner has been provided with a new address by a party authorized to receive notices 248.17of assessment new text begin . Notice of an assessment is sufficient if it is sent on or before the notice date new text end 248.18 new text begin designated by the commissioner on the assessment new text end . 248.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments dated after December new text end 248.20 new text begin 31, 2017. new text end 248.21    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read: 248.22    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 248.23section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 248.24charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the notice 248.25was mailed to the taxpayer's last known address, stating that a penalty has been imposed new text begin or new text end 248.26 new text begin additional tax charge. For purposes of this section, "notice date" means the notice date new text end 248.27 new text begin designated by the commissioner on the order or other notice that a penalty or additional tax new text end 248.28 new text begin charge has been imposed new text end . 248.29(b) If the commissioner issues an order denying a request for abatement of penalty, 248.30interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 248.31in section 270C.35 or appeal to Tax Court as provided in section 271.06. 249.1(c) If the commissioner does not issue an order on the abatement request within 60 days 249.2from the date the request is received, the taxpayer may appeal to Tax Court as provided in 249.3section 271.06. 249.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 249.5 new text begin December 31, 2017. new text end 249.6    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read: 249.7    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the new text begin new text end 249.8 new text begin notice new text end date of new text begin designated by the commissioner on new text end the order adjusting the tax or order denying 249.9a request for abatement, or, in the case of a denied refund, the new text begin notice new text end date of new text begin designated by new text end 249.10 new text begin the commissioner on new text end the notice of denial. 249.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 249.12 new text begin December 31, 2017. new text end 249.13    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 249.14read: 249.15     new text begin Subd. 11. new text end new text begin Dismissal of administrative appeal. new text end new text begin If a taxpayer files an administrative new text end 249.16 new text begin appeal for an order of the commissioner and also files an appeal to the Tax Court for that new text end 249.17 new text begin same order of the commissioner, the administrative appeal is dismissed and the commissioner new text end 249.18 new text begin is no longer required to make a determination of appeal under subdivision 6. new text end 249.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all administrative appeals filed after new text end 249.20 new text begin June 30, 2017. new text end 249.21    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read: 249.22    Subdivision 1. Sufficient notice. (a) If no method of notification of a written 249.23determination or action of the commissioner is otherwise specifically provided for by law, 249.24notice of the determination or action sent postage prepaid by United States mail to the 249.25taxpayer or other person affected by the determination or action at the taxpayer's or person's 249.26last known address, is sufficient. If the taxpayer or person being notified is deceased or is 249.27under a legal disability, or, in the case of a corporation being notified that has terminated 249.28its existence, notice to the last known address of the taxpayer, person, or corporation is 249.29sufficient, unless the department has been provided with a new address by a party authorized 249.30to receive notices from the commissioner. 250.1(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 250.2of a determination or action of the commissioner sent by electronic mail to the taxpayer's 250.3or person's last known electronic mailing address as provided for in section 325L.08 is 250.4sufficient. 250.5 new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent on new text end 250.6 new text begin or before the notice date designated by the commissioner on the notice. new text end 250.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices dated after December 31, new text end 250.8 new text begin 2017. new text end 250.9    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 250.10to read: 250.11     new text begin Subd. 9. new text end new text begin Enforcement; limitations. new text end new text begin (a) Notwithstanding any other law, the imposition new text end 250.12 new text begin of a penalty or any other action against a tax preparer authorized by subdivision 6 with new text end 250.13 new text begin respect to a return may be taken by the commissioner within the period provided by section new text end 250.14 new text begin 289A.38 to assess tax on that return. new text end 250.15 new text begin (b) Imposition of a penalty or other action against a tax preparer authorized by subdivision new text end 250.16 new text begin 6 other than with respect to a return must be taken by the commissioner within five years new text end 250.17 new text begin of the violation of statute. new text end 250.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax preparation services provided new text end 250.19 new text begin after the day following final enactment. new text end 250.20    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read: 250.21    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 250.22from the list of tax preparers published under this section: 250.23(1) when the commissioner determines that the name was included on the list in error; 250.24(2) within 90 days new text begin three years new text end after the preparer has demonstrated to the commissioner 250.25that the preparer fully paid all fines new text begin or penalties new text end imposed, served any suspension, satisfied 250.26any sentence imposed, new text begin successfully completed any probationary period imposed, new text end and 250.27successfully completed any remedial actions required by the commissioner, the State Board 250.28of Accountancy, or the Lawyers Board of Professional Responsibility; or 250.29(3) when the commissioner has been notified that the tax preparer is deceased. 250.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 251.1    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read: 251.2    Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant 251.3to provide the applicant's Social Security number new text begin or individual taxpayer identification new text end 251.4 new text begin number new text end and Minnesota business identification number new text begin , as applicable, new text end on all license 251.5applications. Upon request of the commissioner, the licensing authority must provide the 251.6commissioner with a list of all applicants, including the name, address, business name and 251.7address, new text begin and new text end Social Security number, new text begin or individual taxpayer identification number new text end and 251.8business identification number new text begin , as applicable, new text end of each applicant. The commissioner may 251.9request from a licensing authority a list of the applicants no more than once each calendar 251.10year. 251.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 251.12    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read: 251.13    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60 251.14days after new text begin the new text end notice of the making and filing new text begin date new text end of an order of the commissioner of revenue, 251.15the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 251.16and file the original, with proof of such service, with the Tax Court administrator or with 251.17the court administrator of district court acting as court administrator of the Tax Court; 251.18provided, that the Tax Court, for cause shown, may by written order extend the time for 251.19appealing for an additional period not exceeding 30 days. new text begin For purposes of this section, new text end 251.20 new text begin "notice date" means the notice date designated by the commissioner on the order. new text end The notice 251.21of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt, 251.22the commissioner shall transmit a copy of the notice of appeal to the attorney general. The 251.23attorney general shall represent the commissioner, if requested, upon all such appeals except 251.24in cases where the attorney general has appealed in behalf of the state, or in other cases 251.25where the attorney general deems it against the interests of the state to represent the 251.26commissioner, in which event the attorney general may intervene or be substituted as an 251.27appellant in behalf of the state at any stage of the proceedings. 251.28Upon a final determination of any other matter over which the court is granted jurisdiction 251.29under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 251.30petition or notice of appeal as provided by law with the court administrator of district court, 251.31acting in the capacity of court administrator of the Tax Court, with proof of service of the 251.32petition or notice of appeal as required by law and within the time required by law. As used 251.33in this subdivision, "final determination" includes a notice of assessment and equalization 252.1for the year in question received from the local assessor, an order of the local board of 252.2equalization, or an order of a county board of equalization. 252.3The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 252.4with the district court administrator acting as court administrator of the Tax Court is 252.5forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 252.6property valuation for which the assessor, a local board of equalization, a county board of 252.7equalization or the commissioner of revenue has issued an order, the officer issuing the 252.8order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 252.9in the form prescribed by the Tax Court. 252.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 252.11 new text begin 2017. new text end 252.12    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read: 252.13    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of 252.14Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 252.15in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the new text end 252.16 new text begin 60-day period of time to file a notice of appeal provided in subdivision 2. new text end The Tax Court 252.17may adopt rules under chapter 14. 252.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 252.19 new text begin 2017. new text end 252.20    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read: 252.21    Subd. 10. Personal property used for pollution control. Personal property used 252.22primarily for the abatement and control of air, water, or land pollution is exempt to the 252.23extent that it is so used, and real property is exempt if it is used primarily for abatement and 252.24control of air, water, or land pollution as part of an agricultural operation, as a part of a 252.25centralized treatment and recovery facility operating under a permit issued by the Minnesota 252.26Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 252.277001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 252.28and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 252.29or inorganic materials from hazardous industrial wastes, or as part of an electric generation 252.30system. For purposes of this subdivision, personal property includes ponderous machinery 252.31and equipment used in a business or production activity that at common law is considered 252.32real property. 253.1Any taxpayer requesting exemption of all or a portion of any real property or any 253.2equipment or device, or part thereof, operated primarily for the control or abatement of air, 253.3water, or land pollution shall file an application with the commissioner of revenue. The 253.4commissioner shall develop an electronic means to notify interested parties when electric 253.5power generation facilities have filed an application. new text begin The commissioner shall prescribe the new text end 253.6 new text begin content, format, and manner of the application pursuant to section 270C.30, except that a new text end 253.7 new text begin "law administered by the commissioner" includes the property tax laws, and if an application new text end 253.8 new text begin is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, new text end 253.9 new text begin except that a "law administered by the commissioner" includes the property tax laws. new text end The 253.10Minnesota Pollution Control Agency shall upon request of the commissioner furnish 253.11information and advice to the commissioner. 253.12The information and advice furnished by the Minnesota Pollution Control Agency must 253.13include statements as to whether the equipment, device, or real property meets a standard, 253.14rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 253.15whether the equipment, device, or real property is installed or operated in accordance with 253.16it. On determining that property qualifies for exemption, the commissioner shall issue an 253.17order exempting the property from taxation. The commissioner shall develop an electronic 253.18means to notify interested parties when the commissioner has issued an order exempting 253.19property from taxation under this subdivision. The equipment, device, or real property shall 253.20continue to be exempt from taxation as long as the order issued by the commissioner remains 253.21in effect. 253.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 253.23    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read: 253.24    Subdivision 1. Efficiency determination and certification. An owner or operator of a 253.25new or existing electric power generation facility, excluding wind energy conversion systems, 253.26may apply to the commissioner of revenue for a market value exclusion on the property as 253.27provided for in this section. This exclusion shall apply only to the market value of the 253.28equipment of the facility, and shall not apply to the structures and the land upon which the 253.29facility is located. The commissioner of revenue shall prescribe the forms new text begin content, format, new text end 253.30 new text begin manner, new text end and procedures for this application new text begin pursuant to section 270C.30, except that a "law new text end 253.31 new text begin administered by the commissioner" includes the property tax laws. If an application is made new text end 253.32 new text begin by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except new text end 253.33 new text begin that a "law administered by the commissioner" includes the property tax laws new text end . Upon receiving 253.34the application, the commissioner of revenue shall: (1) request the commissioner of commerce 254.1to make a determination of the efficiency of the applicant's electric power generation facility; 254.2and (2) shall develop an electronic means to notify interested parties when electric power 254.3generation facilities have filed an application. The commissioner of commerce shall calculate 254.4efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 254.5based on the performance of the facility's equipment during normal full load operation. The 254.6commissioner must include in this formula the energy used in any on-site preparation of 254.7materials necessary to convert the materials into the fuel used to generate electricity, such 254.8as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 254.9(HHV) for all substances in the commissioner's efficiency calculations, except for wood 254.10for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 254.11commissioner shall adjust the heating value to allow for energy consumed for evaporation 254.12of the moisture in the wood. The applicant shall provide the commissioner of commerce 254.13with whatever information the commissioner deems necessary to make the determination. 254.14Within 30 days of the receipt of the necessary information, the commissioner of commerce 254.15shall certify the findings of the efficiency determination to the commissioner of revenue 254.16and to the applicant. The commissioner of commerce shall determine the efficiency of the 254.17facility and certify the findings of that determination to the commissioner of revenue every 254.18two years thereafter from the date of the original certification. 254.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 254.20    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read: 254.21    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 254.22the state of Minnesota or any political subdivision thereof, and property exempt from taxation 254.23under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 254.24provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 254.25described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 254.26the assessor of the assessment district in which the property is located. 254.27(b) A taxpayer claiming an exemption from taxation on property described in section 254.28272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue, 254.29on or before February 15 of each year for which the taxpayer claims an exemption. 254.30(c) In case of sickness, absence or other disability or for good cause, the assessor or the 254.31commissioner may extend the time for filing the statement of exemption for a period not to 254.32exceed 60 days. 255.1(d) The commissioner of revenue shall prescribe the form and contents new text begin content, format, new text end 255.2 new text begin and manner new text end of the statement of exemption new text begin pursuant to section 270C.30, except that a "law new text end 255.3 new text begin administered by the commissioner" includes the property tax laws new text end . 255.4 new text begin (e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant new text end 255.5 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 255.6 new text begin property tax laws. new text end 255.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 255.8    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read: 255.9    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under 255.10subdivision 3 shall file a report with the commissioner of revenue annually on or before 255.11February 1 new text begin January 15 new text end detailing the amount of electricity in kilowatt-hours that was produced 255.12by the wind energy conversion system for the previous calendar year. The commissioner 255.13shall prescribe the form new text begin content, format, and manner new text end of the report new text begin pursuant to section new text end 255.14 new text begin 270C.30, except that a "law administered by the commissioner" includes the property tax new text end 255.15 new text begin laws new text end . The report must contain the information required by the commissioner to determine 255.16the tax due to each county under this section for the current year. If an owner of a wind 255.17energy conversion system subject to taxation under this section fails to file the report by 255.18the due date, the commissioner of revenue shall determine the tax based upon the nameplate 255.19capacity of the system multiplied by a capacity factor of 60 percent. 255.20 new text begin (b) If a report is made by electronic means, the taxpayer's signature is defined pursuant new text end 255.21 new text begin to section 270C.304, except that a "law administered by the commissioner" includes the new text end 255.22 new text begin property tax laws. new text end 255.23(b) new text begin (c) new text end On or before February 28, the commissioner of revenue shall notify the owner 255.24of the wind energy conversion systems of the tax due to each county for the current year 255.25and shall certify to the county auditor of each county in which the systems are located the 255.26tax due from each owner for the current year. 255.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, except new text end 255.28 new text begin that the amendment in paragraph (a) moving the date to file the report is effective for reports new text end 255.29 new text begin filed in 2018 and thereafter. new text end 255.30    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read: 255.31    Subd. 4. Reports. An owner of a solar energy generating system subject to tax under 255.32this section shall file a report with the commissioner of revenue annually on or before 256.1January 15 detailing the amount of electricity in megawatt-hours that was produced by the 256.2system in the previous calendar year. The commissioner shall prescribe the form new text begin content, new text end 256.3 new text begin format, and manner new text end of the report new text begin pursuant to section 270C.30 new text end . The report must contain the 256.4information required by the commissioner to determine the tax due to each county under 256.5this section for the current year. If an owner of a solar energy generating system subject to 256.6taxation under this section fails to file the report by the due date, the commissioner of 256.7revenue shall determine the tax based upon the nameplate capacity of the system multiplied 256.8by a capacity factor of 30 percent. 256.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 256.10    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read: 256.11    Subd. 2. Form; information required. The certificate of value shall require such facts 256.12and information as may be determined by the commissioner to be reasonably necessary in 256.13the administration of the state education aid formulas. The form new text begin commissioner shall prescribe new text end 256.14 new text begin the content, format, and manner new text end of the certificate of value shall be prescribed by the 256.15Department of Revenue which shall provide an adequate supply of forms to each county 256.16auditor new text begin pursuant to section 270C.30, except that a "law administered by the commissioner" new text end 256.17 new text begin includes the property tax laws new text end . 256.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 256.19    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read: 256.20    Subd. 13. Homestead application. (a) A person who meets the homestead requirements 256.21under subdivision 1 must file a homestead application with the county assessor to initially 256.22obtain homestead classification. 256.23    (b) The format and contents of a uniform homestead application shall be prescribed by 256.24the commissioner of revenue. new text begin The commissioner shall prescribe the content, format, and new text end 256.25 new text begin manner of the homestead application required to be filed under this chapter pursuant to new text end 256.26 new text begin section 270C.30. new text end The application must clearly inform the taxpayer that this application must 256.27be signed by all owners who occupy the property or by the qualifying relative and returned 256.28to the county assessor in order for the property to receive homestead treatment. 256.29    (c) Every property owner applying for homestead classification must furnish to the 256.30county assessor the Social Security number of each occupant who is listed as an owner of 256.31the property on the deed of record, the name and address of each owner who does not occupy 256.32the property, and the name and Social Security number of each owner's spouse who occupies 257.1the property. The application must be signed by each owner who occupies the property and 257.2by each owner's spouse who occupies the property, or, in the case of property that qualifies 257.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 257.4    If a property owner occupies a homestead, the property owner's spouse may not claim 257.5another property as a homestead unless the property owner and the property owner's spouse 257.6file with the assessor an affidavit or other proof required by the assessor stating that the 257.7property qualifies as a homestead under subdivision 1, paragraph (e). 257.8    Owners or spouses occupying residences owned by their spouses and previously occupied 257.9with the other spouse, either of whom fail to include the other spouse's name and Social 257.10Security number on the homestead application or provide the affidavits or other proof 257.11requested, will be deemed to have elected to receive only partial homestead treatment of 257.12their residence. The remainder of the residence will be classified as nonhomestead residential. 257.13When an owner or spouse's name and Social Security number appear on homestead 257.14applications for two separate residences and only one application is signed, the owner or 257.15spouse will be deemed to have elected to homestead the residence for which the application 257.16was signed. 257.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative 257.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 257.19the property to receive homestead status, a homestead application must be filed with the 257.20assessor. The Social Security number of each relative and spouse of a relative occupying 257.21the property shall be required on the homestead application filed under this subdivision. If 257.22a different relative of the owner subsequently occupies the property, the owner of the property 257.23must notify the assessor within 30 days of the change in occupancy. The Social Security 257.24number of a relative or relative's spouse occupying the property is private data on individuals 257.25as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 257.26revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 257.27personal property taxes owing, to the county treasurer. 257.28    (e) The homestead application shall also notify the property owners that if the property 257.29is granted homestead status for any assessment year, that same property shall remain 257.30classified as homestead until the property is sold or transferred to another person, or the 257.31owners, the spouse of the owner, or the relatives no longer use the property as their 257.32homestead. Upon the sale or transfer of the homestead property, a certificate of value must 257.33be timely filed with the county auditor as provided under section 272.115. Failure to notify 257.34the assessor within 30 days that the property has been sold, transferred, or that the owner, 257.35the spouse of the owner, or the relative is no longer occupying the property as a homestead, 258.1shall result in the penalty provided under this subdivision and the property will lose its 258.2current homestead status. 258.3    (f) If a homestead application has not been filed with the county by December 15, the 258.4assessor shall classify the property as nonhomestead for the current assessment year for 258.5taxes payable in the following year, provided that the owner may be entitled to receive the 258.6homestead classification by proper application under section 375.192. 258.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 258.8    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read: 258.9273.371 REPORTS OF UTILITY COMPANIES. 258.10    Subdivision 1. Report required. Every electric light, power, gas, water, express, stage, 258.11and transportation company new text begin , new text end and pipeline new text begin company new text end doing business in Minnesota shall 258.12annually file with the commissioner on or before March 31 a report under oath setting forth 258.13the information prescribed by the commissioner to enable the commissioner to make 258.14valuations, recommended valuations, and equalization required under sections 273.33, 258.15273.35 , 273.36, 273.37, and 273.3711. new text begin The commissioner shall prescribe the content, format, new text end 258.16 new text begin and manner of the report pursuant to section 270C.30, except that a "law administered by new text end 258.17 new text begin the commissioner" includes the property tax laws. new text end If all the required information is not 258.18available on March 31, the company or pipeline shall file the information that is available 258.19on or before March 31, and the balance of the information as soon as it becomes available. new text begin new text end 258.20 new text begin If a report is made by electronic means, the taxpayer's signature is defined pursuant to section new text end 258.21 new text begin 270C.304, except that a "law administered by the commissioner" includes the property tax new text end 258.22 new text begin laws. new text end 258.23    Subd. 2. Extension. The commissioner for good cause may extend the time for filing 258.24the report required by subdivision 1. The extension may new text begin must new text end not exceed 15 days. 258.25     new text begin Subd. 3. new text end new text begin Reports filed by the commissioner. new text end new text begin If a company fails to file a report required new text end 258.26 new text begin by subdivision 1, the commissioner may, from information in the commissioner's possession new text end 258.27 new text begin or obtainable by the commissioner, make and file a report for the company or make the new text end 258.28 new text begin valuations, recommended valuations, and equalizations required under sections 273.33, new text end 258.29 new text begin 273.35 to 273.37, and 273.3711. new text end 258.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 258.31    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read: 258.32287.2205 TAX-FORFEITED LAND. 259.1    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 259.2the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 259.3private sale or a repurchase of tax-forfeited land. State agencies and local units of government 259.4that acquire tax-forfeited land by purchase or any other means are subject to this section. 259.5The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 259.6for an authorized public use under section 282.01, subdivision 1a, new text begin for a school forest under new text end 259.7 new text begin section 282.01, subdivision 1a, new text end or for redevelopment purposes under section 282.01, 259.8subdivision 1b . 259.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 259.10    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 259.11to read: 259.12     new text begin Subd. 17. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and manner new text end 259.13 new text begin of the returns and other documents pursuant to section 270C.30. This does not authorize new text end 259.14 new text begin the commissioner to require individual income taxpayers to file individual income tax returns new text end 259.15 new text begin electronically. new text end 259.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 259.17    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read: 259.18    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 259.19under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 259.20under section 290.923, subdivision 2, must file a return with the commissioner for each 259.21quarterly period unless otherwise prescribed by the commissioner. 259.22(b) A person or corporation required to make deposits under section 290.9201, subdivision 259.238 , must file an entertainer withholding tax return with the commissioner. 259.24(c) A person required to withhold an amount under section 290.9705, subdivision 1, 259.25must file a return. 259.26(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 259.274b , must file a return. 259.28(e) An S corporation required to deduct and withhold tax under section 290.92, 259.29subdivision 4c , must also file a return. 259.30(f) Returns must be filed in the form and manner, and contain the information prescribed 259.31by the commissioner. new text begin The commissioner shall prescribe the content, format, and manner new text end 260.1 new text begin of the returns pursuant to section 270C.30. new text end Every return for taxes withheld must be signed 260.2by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 260.3designee. 260.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 260.5    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read: 260.6    Subdivision 1. Return required. (a) Except as provided in section 289A.18, subdivision 260.74 , for the month in which taxes imposed by chapter 297A are payable, or for which a return 260.8is due, a return for the preceding reporting period must be filed with the commissioner in 260.9the form and manner the commissioner prescribes. new text begin The commissioner shall prescribe the new text end 260.10 new text begin content, format, and manner of the returns pursuant to section 270C.30. new text end A person making 260.11sales at retail at two or more places of business may file a consolidated return subject to 260.12rules prescribed by the commissioner. In computing the dollar amount of items on the return, 260.13the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 260.14cents and increasing amounts of 50 cents to 99 cents to the next highest dollar. 260.15(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 260.16permit under chapter 297A and who makes annual purchases, for use in a trade or business, 260.17of less than $18,500, or a person who is not required to hold a sales tax permit and who 260.18makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 260.19may file an annual use tax return on a form prescribed by the commissioner new text begin . The new text end 260.20 new text begin commissioner shall prescribe the content, format, and manner of the return pursuant to new text end 260.21 new text begin section 270C.30 new text end . If a person who qualifies for an annual use tax reporting period is required 260.22to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 260.23excess of $18,500 during the calendar year, the reporting period must be considered ended 260.24at the end of the month in which the permit is applied for or the purchase in excess of 260.25$18,500 is made and a return must be filed for the preceding reporting period. 260.26(c) Notwithstanding paragraph new text begin paragraphs new text end (a) new text begin and (b) new text end , a person prohibited by the person's 260.27religious beliefs from using electronics shall be allowed to file by mail, without any additional 260.28fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 260.29form prescribed by the commissioner. A return filed under this paragraph must be postmarked 260.30no later than the day the return is due in order to be considered filed on a timely basis. 260.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 261.1    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read: 261.2    Subdivision 1. Individual income, fiduciary income, corporate franchise, and 261.3entertainment taxes; partnership and S corporation returns; information returns; 261.4mining company returns. The returns required to be made under sections 289A.08 and 261.5289A.12 must be filed at the following times: 261.6    (1) returns made on the basis of the calendar year must be filed on April 15 following 261.7the close of the calendar year, except that returns of corporations new text begin and partnerships new text end must be 261.8filed on the due date for filing the federal income tax return; 261.9    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 261.10month following the close of the fiscal year, except that returns of corporations new text begin and new text end 261.11 new text begin partnerships new text end must be filed on the due date for filing the federal income tax return; 261.12    (3) returns for a fractional part of a year must be filed on the due date for filing the 261.13federal income tax return; 261.14    (4) in the case of a final return of a decedent for a fractional part of a year, the return 261.15must be filed on the 15th day of the fourth month following the close of the 12-month period 261.16that began with the first day of that fractional part of a year; 261.17    (5) in the case of the return of a cooperative association, returns must be filed on or 261.18before the 15th day of the ninth month following the close of the taxable year; 261.19    (6) if a corporation has been divested from a unitary group and files a return for a 261.20fractional part of a year in which it was a member of a unitary business that files a combined 261.21report under section 290.17, subdivision 4, the divested corporation's return must be filed 261.22on the 15th day of the third month following the close of the common accounting period 261.23that includes the fractional year; 261.24    (7) returns of entertainment entities must be filed on April 15 following the close of the 261.25calendar year; 261.26    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 261.27the 15th day of the fifth month following the close of the taxable year; 261.28    (9) returns of mining companies must be filed on May 1 following the close of the 261.29calendar year; and 261.30    (10) returns required to be filed with the commissioner under section 289A.12, 261.31subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the 261.32commissioner. 262.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 262.2    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read: 262.3    Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment of 262.4tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 262.5be made at any time within two years from the making of the refund. If part of the refund 262.6was induced by fraud or misrepresentation of a material fact, the assessment may be made 262.7at any time new text begin (a) Except as provided in paragraph (b), an erroneous refund occurs when the new text end 262.8 new text begin commissioner issues a payment to a person that exceeds the amount the person is entitled new text end 262.9 new text begin to receive under law. An erroneous refund is considered an underpayment of tax on the date new text end 262.10 new text begin issued new text end . 262.11 new text begin (b) To the extent that the amount paid does not exceed the amount claimed by the new text end 262.12 new text begin taxpayer, an erroneous refund does not include the following: new text end 262.13 new text begin (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a new text end 262.14 new text begin taxpayer, including but not limited to refunds of claims made under section 290.06, new text end 262.15 new text begin subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; new text end 262.16 new text begin 290.0681; or 290.0692; or chapter 290A; or new text end 262.17 new text begin (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a new text end 262.18 new text begin taxpayer. new text end 262.19 new text begin (c) The commissioner may make an assessment to recover an erroneous refund at any new text end 262.20 new text begin time within two years from the issuance of the erroneous refund. If all or part of the erroneous new text end 262.21 new text begin refund was induced by fraud or misrepresentation of a material fact, the assessment may new text end 262.22 new text begin be made at any time. new text end 262.23 new text begin (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be new text end 262.24 new text begin conducted under section 289A.38. new text end 262.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 262.26    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read: 262.27    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund 262.28claim is denied in whole or in part, the taxpayer may: 262.29(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 262.30Tax Court, within 60 days after issuance new text begin the notice date new text end of the commissioner's notice of 262.31denial; or 263.1(2) file an action in the district court to recover the refund. 263.2(b) An action in the district court on a denied claim for refund must be brought within 263.318 months of the new text begin notice new text end date of the denial of the claim by the commissioner. new text begin For the purposes new text end 263.4 new text begin of this section, "notice date" has the meaning given in section 270C.35, subdivision 3. new text end 263.5(c) No action in the district court or the Tax Court shall be brought within six months 263.6of the filing of the refund claim unless the commissioner denies the claim within that period. 263.7(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 263.8of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 263.9time after the expiration of six months from the time the claim was filed. 263.10(e) The commissioner and the taxpayer may agree to extend the period for bringing an 263.11action in the district court. 263.12(f) An action for refund of tax by the taxpayer must be brought in the district court of 263.13the district in which lies the county of the taxpayer's residence or principal place of business. 263.14In the case of an estate or trust, the action must be brought at the principal place of its 263.15administration. Any action may be brought in the district court for Ramsey County. 263.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 263.17 new text begin December 31, 2017. new text end 263.18    Sec. 31. new text begin [290B.11] FORMS. new text end new text begin new text end 263.19 new text begin The commissioner shall prescribe the content, format, and manner of all forms and other new text end 263.20 new text begin documents required to be filed under this chapter pursuant to section 270C.30. new text end 263.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 263.22    Sec. 32. new text begin [293.15] FORMS. new text end new text begin new text end 263.23 new text begin The commissioner shall prescribe the content, format, and manner of all forms and other new text end 263.24 new text begin documents required to be filed under this chapter pursuant to section 270C.30. new text end 263.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 263.26    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read: 263.27    Subd. 6. Form of returns. The estimated payments and annual return must contain the 263.28information and be in the form prescribed by the commissioner new text begin The commissioner shall new text end 263.29 new text begin prescribe the content, format, and manner of the estimated payment forms and annual return new text end 263.30 new text begin pursuant to section 270C.30 new text end . 264.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 264.2    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 264.3to read: 264.4     new text begin Subd. 5. new text end new text begin Forms. new text end new text begin The commissioner shall prescribe the content, format, and manner of new text end 264.5 new text begin all forms and other documents required to be filed under this chapter pursuant to section new text end 264.6 new text begin 270C.30. new text end 264.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 264.8    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read: 264.9    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any 264.10penalty imposed under this section, if in the commissioner's opinion there is reasonable 264.11cause to do so. 264.12(b) A request for abatement of penalty must be filed with the commissioner within 60 264.13days of the new text begin notice new text end date new text begin of new text end the notice stating that a penalty has been imposed was mailed to 264.14the taxpayer's last known address new text begin . For purposes of this section, "notice date" means the new text end 264.15 new text begin notice date designated by the commissioner on the order or other notice that a penalty has new text end 264.16 new text begin been imposed new text end . 264.17(c) If the commissioner issues an order denying a request for abatement of penalty, the 264.18taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 264.19Court as provided in section 271.06. If the commissioner does not issue an order on the 264.20abatement request within 60 days from the date the request is received, the taxpayer may 264.21appeal to Tax Court as provided in section 271.06. 264.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders and notices dated after new text end 264.23 new text begin December 31, 2017. new text end 264.24    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read: 264.25296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT. 264.26In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 264.27order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 264.2860 days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 264.29provided under section 271.06 new text begin . For purposes of this section, "notice date" means the notice new text end 264.30 new text begin date designated by the commissioner on the order fixing a tax, penalty, or interest new text end . 265.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 265.2 new text begin 2017. new text end 265.3    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read: 265.4297D.02 ADMINISTRATION. 265.5The commissioner of revenue shall administer this chapter. new text begin The commissioner shall new text end 265.6 new text begin prescribe the content, format, and manner of all forms and other documents required to be new text end 265.7 new text begin filed under this chapter pursuant to section 270C.30. new text end Payments required by this chapter 265.8must be made to the commissioner on the form provided by the commissioner. Tax obligors 265.9are not required to give their name, address, Social Security number, or other identifying 265.10information on the form. The commissioner shall collect all taxes under this chapter. 265.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 265.12    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read: 265.13    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable 265.14to the commissioner when the gambling tax return is required to be filed. Distributors must 265.15file their monthly sales figures with the commissioner on a form prescribed by the 265.16commissioner. Returns covering the taxes imposed under this section must be filed with 265.17the commissioner on or before the 20th day of the month following the close of the previous 265.18calendar month. The commissioner may require that the returns be filed via magnetic media 265.19or electronic data transfer. new text begin The commissioner shall prescribe the content, format, and manner new text end 265.20 new text begin of returns or other documents pursuant to section 270C.30. new text end The proceeds, along with the 265.21revenue received from all license fees and other fees under sections 349.11 to 349.191, 265.22349.211 , and 349.213, must be paid to the commissioner of management and budget for 265.23deposit in the general fund. 265.24(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 265.25distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 265.26the organization is exempt from taxes imposed by chapter 297A and is exempt from all 265.27local taxes and license fees except a fee authorized under section 349.16, subdivision 8. 265.28(c) One-half of one percent of the revenue deposited in the general fund under paragraph 265.29(a), is appropriated to the commissioner of human services for the compulsive gambling 265.30treatment program established under section 245.98. One-half of one percent of the revenue 265.31deposited in the general fund under paragraph (a), is appropriated to the commissioner of 265.32human services for a grant to the state affiliate recognized by the National Council on 266.1Problem Gambling to increase public awareness of problem gambling, education and training 266.2for individuals and organizations providing effective treatment services to problem gamblers 266.3and their families, and research relating to problem gambling. Money appropriated by this 266.4paragraph must supplement and must not replace existing state funding for these programs. 266.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 266.6    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read: 266.7    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or 266.8resale in this state, or for receipt by a person or entity in this state, shall file with the 266.9commissioner, on a form prescribed by the commissioner, a report of gambling product 266.10sold to any person in the state, including the established governing body of an Indian tribe 266.11recognized by the United States Department of the Interior. The report must be filed monthly 266.12on or before the 20th day of the month succeeding the month in which the sale was made. 266.13The commissioner may require that the report be submitted via magnetic media or electronic 266.14data transfer. new text begin The commissioner shall prescribe the content, format, and manner of returns new text end 266.15 new text begin or other documents pursuant to section 270C.30. new text end The commissioner may inspect the premises, 266.16books, records, and inventory of a manufacturer without notice during the normal business 266.17hours of the manufacturer. A person violating this section is guilty of a misdemeanor. 266.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 266.19    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read: 266.20    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the 266.21commissioner prescribes, its sales of each type of gambling product. This report must be 266.22filed monthly on or before the 20th day of the month succeeding the month in which the 266.23sale was made. The commissioner may require that a distributor submit the monthly report 266.24and invoices required in this subdivision via magnetic media or electronic data transfer. new text begin new text end 266.25 new text begin The commissioner shall prescribe the content, format, and manner of returns or other new text end 266.26 new text begin documents pursuant to section 270C.30. new text end 266.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 266.28    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read: 266.29    Subdivision 1. Reports. An organization must file with the commissioner, on a form 266.30prescribed by the commissioner, a report showing all gambling activity conducted by that 266.31organization for each month. Gambling activity includes all gross receipts, prizes, all 266.32gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 267.1purpose and board-approved expenditures. The report must be filed with the commissioner 267.2on or before the 20th day of the month following the month in which the gambling activity 267.3takes place. The commissioner may require that the reports be filed via magnetic media or 267.4electronic data transfer new text begin . The commissioner shall prescribe the content, format, and manner new text end 267.5 new text begin of returns or other documents pursuant to section 270C.30 new text end . 267.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 267.7    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read: 267.8    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of 267.9each calendar month, a distributor with a place of business in this state shall file a return 267.10with the commissioner showing the quantity of cigarettes manufactured or brought in from 267.11outside the state or purchased during the preceding calendar month and the quantity of 267.12cigarettes sold or otherwise disposed of in this state and outside this state during that month. 267.13A licensed distributor outside this state shall in like manner file a return showing the quantity 267.14of cigarettes shipped or transported into this state during the preceding calendar month. 267.15Returns must be made in the form and manner prescribed by The commissioner new text begin shall new text end 267.16 new text begin prescribe the content, format, and manner of returns pursuant to section 270C.30, new text end and new text begin the new text end 267.17 new text begin returns new text end must contain any other information required by the commissioner. The return must 267.18be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 267.19subject to the accelerated tax payment requirements in subdivision 10, the return for the 267.20May liability is due two business days before June 30th of the year and the return for the 267.21June liability is due on or before August 18th of the year. 267.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 267.23    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read: 267.24297F.23 JUDICIAL REVIEW. 267.25In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 267.26order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 267.2760 days from the new text begin notice new text end date of the notice of the order, appeal to the Tax Court in the manner 267.28provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice new text end 267.29 new text begin date designated by the commissioner on the order fixing a tax, penalty, or interest. new text end 267.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 267.31 new text begin 2017. new text end 268.1    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read: 268.2    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers. 268.3On or before the 18th day of each calendar month following the month in which a licensed 268.4manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 268.5or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 268.6acquires title to or possession of untaxed fermented malt beverages, the licensed 268.7manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 268.8with the commissioner, and in addition must keep records and render reports as required 268.9by the commissioner. Returns must be made in a form and manner prescribed by the 268.10commissioner, and new text begin The commissioner shall prescribe the content, format, and manner of new text end 268.11 new text begin returns pursuant to section 270C.30. The returns new text end must contain any other information required 268.12by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 268.13liability. Returns must be filed regardless of whether a tax is due. 268.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 268.15    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read: 268.16297G.22 JUDICIAL REVIEW. 268.17In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 268.18the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 268.19from the date of the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided 268.20under section 271.06 new text begin . For purposes of this section, "notice date" means the notice date new text end 268.21 new text begin designated by the commissioner on the order fixing a tax, penalty, or interest new text end . 268.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders dated after December 31, new text end 268.23 new text begin 2017. new text end 268.24    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 268.25to read: 268.26     new text begin Subd. 11. new text end new text begin Format. new text end new text begin The commissioner shall prescribe the content, format, and manner new text end 268.27 new text begin of returns or other documents pursuant to section 270C.30. new text end 268.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 268.29    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read: 268.30    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 268.31or in part, the taxpayer may contest the denial by: 269.1(1) filing an administrative appeal with the commissioner under section 270C.35; 269.2(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the notice of denial; 269.3or 269.4(3) filing an action in the district court to recover the refund. 269.5(b) An action in the district court must be brought within 18 months following new text begin of new text end the 269.6 new text begin notice new text end date of the notice of denial. new text begin For purposes of this section, "notice date" has the meaning new text end 269.7 new text begin given in section 270C.35, subdivision 3. new text end An action for refund of tax or surcharge must be 269.8brought in the district court of the district in which lies the taxpayer's principal place of 269.9business or in the District Court for Ramsey County. If a taxpayer files a claim for refund 269.10and the commissioner has not issued a denial of the claim, the taxpayer may bring an action 269.11in the district court or the Tax Court at any time after the expiration of six months from the 269.12time the claim was filed. 269.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims for refund denied after new text end 269.14 new text begin December 31, 2017. new text end 269.15    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read: 269.16    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment 269.17required under subdivision 1, if the commissioner, in consultation with the commissioner 269.18of employment and economic development and appropriate officials from the local 269.19government units in which the qualified business is located, determines that requiring 269.20repayment of the tax is not in the best interest of the state or the local government units and 269.21the business ceased operating as a result of circumstances beyond its control including, but 269.22not limited to: 269.23    (1) a natural disaster; 269.24    (2) unforeseen industry trends; or 269.25    (3) loss of a major supplier or customer. 269.26    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the 269.27commissioner has waived repayment by the operating business under subdivision 1, unless 269.28the person that received benefits without having to operate a business in the zone was a 269.29contributing factor in the qualified business becoming subject to repayment under subdivision 269.301; 269.31    (2) the commissioner shall waive the repayment required under subdivision 1a, even if 269.32the repayment has not been waived for the operating business if: 270.1    (i) the person that received benefits without having to operate a business in the zone and 270.2the business that operated in the zone are not related parties as defined in section 267(b) of 270.3the Internal Revenue Code of 1986, as amended through December 31, 2007; and 270.4    (ii) actions of the person were not a contributing factor in the qualified business becoming 270.5subject to repayment under subdivision 1. 270.6(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 270.7date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 270.8issued under subdivision 4, paragraph (c) new text begin . For purposes of this section, "notice date" means new text end 270.9 new text begin the notice date designated by the commissioner on the order new text end . 270.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for orders of the commissioner of revenue new text end 270.11 new text begin dated after December 31, 2017. new text end 270.12    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read: 270.13EFFECTIVE DATE.This section is effective for orders and notices dated after 270.14September 30, 2015 new text begin December 31, 2017 new text end . 270.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from September 30, 2015. new text end 270.16ARTICLE 14 270.17DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE 270.18ACT PROVISIONS 270.19    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read: 270.20290C.03 ELIGIBILITY REQUIREMENTS. 270.21(a) Land may be enrolled in the sustainable forest incentive program under this chapter 270.22if all of the following conditions are met: 270.23(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 270.24must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment; 270.25(2) a forest management plan for the land must be new text begin (i) new text end prepared by an approved plan 270.26writer and implemented during the period in which the land is enrolled new text begin , and (ii) registered new text end 270.27 new text begin with the Department of Natural Resources new text end ; 270.28(3) timber harvesting and forest management guidelines must be used in conjunction 270.29with any timber harvesting or forest management activities conducted on the land during 270.30the period in which the land is enrolled; 270.31(4) the land must be enrolled for a minimum of eight years; 271.1(5) there are no delinquent property taxes on the land; and 271.2(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program 271.3must allow year-round, nonmotorized access to fish and wildlife resources and motorized 271.4access on established and maintained roads and trails, unless the road or trail is temporarily 271.5closed for safety, natural resource, or road damage reasons on enrolled land except within 271.6one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 271.7by the commissioner of natural resources new text begin ; and new text end 271.8 new text begin (7) the land is not classified as 2c managed forest land new text end . 271.9(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 271.10action: 271.11(1) extend any assurance that the land is safe for any purpose; 271.12(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 271.13care is owed; or 271.14(3) assume responsibility for or incur liability for any injury to the person or property 271.15caused by an act or omission of the person. 271.16 new text begin (c) A minimum of three acres must be excluded from enrolled land when the land is new text end 271.17 new text begin improved with a structure that is not a minor, ancillary, or nonresidential structure. If land new text end 271.18 new text begin does not meet the definition of forest land in section 290C.02, subdivision 6, because the new text end 271.19 new text begin land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal new text end 271.20 new text begin conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject new text end 271.21 new text begin to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural new text end 271.22 new text begin land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan new text end 271.23 new text begin Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is new text end 271.24 new text begin not eligible to be enrolled in the program. new text end 271.25 new text begin EFFECTIVE DATE. new text end new text begin The amendment to paragraph (a), clause (2), is effective for new text end 271.26 new text begin certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is new text end 271.27 new text begin effective for certifications and applications due in 2017 and thereafter. The amendment new text end 271.28 new text begin adding paragraph (c) is effective the day following final enactment. new text end 271.29    Sec. 2. new text begin [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN. new text end 271.30 new text begin On request of the commissioner, the commissioner of natural resources must annually new text end 271.31 new text begin provide verification that the claimant has a current forest management plan on file with the new text end 271.32 new text begin Department of Natural Resources. new text end 272.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications filed after July 1, 2018. new text end 272.2    Sec. 3. new text begin REPEALER. new text end 272.3 new text begin Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, new text end new text begin are new text end 272.4 new text begin repealed. new text end 272.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 272.6ARTICLE 15 272.7DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 272.8PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES 272.9    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read: 272.10    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 272.11apportionment, before the addition of the minimum fire state aid allocation amount under 272.12subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 272.13the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 272.14commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 272.15be reduced by the amount required to pay the state auditor's costs and expenses of the audits 272.16or exams of the firefighters relief associations. 272.17The total amount for apportionment in respect to fire state aid must not be less than two 272.18percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 272.19Premium Report after subtracting the following amounts: 272.20(1) the amount required to pay the state auditor's costs and expenses of the audits or 272.21exams of the firefighters relief associations; and 272.22(2) one percent of the premiums reported by town and farmers' new text begin township new text end mutual insurance 272.23companies and mutual property and casualty companies with total assets of $5,000,000 or 272.24less. 272.25(b) The total amount for apportionment as police state aid is equal to 104 percent of the 272.26amount of premium taxes paid to the state on the premiums reported to the commissioner 272.27by insurers on the Minnesota Aid to Police Premium Report. The total amount for 272.28apportionment in respect to the police state aid program must not be less than two percent 272.29of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 272.30to Police Premium Report. 273.1(c) The commissioner shall calculate the percentage of increase or decrease reflected in 273.2the apportionment over or under the previous year's available state aid using the same 273.3premiums as a basis for comparison. 273.4(d) In addition to the amount for apportionment of police state aid under paragraph (b), 273.5each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 273.6this increase is annually appropriated from the general fund. 273.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 273.8    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read: 273.9    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 273.106-1/2 years after the due date of the return or the date the return was filed, whichever is 273.11later, if: 273.12(1) the taxpayer omits from gross income an amount properly includable in it that is in 273.13excess of 25 percent of the amount of gross income stated in the return; 273.14(2) the taxpayer omits from a sales, use, or withholding tax return new text begin , or a return for a tax new text end 273.15 new text begin imposed under section 295.52, new text end an amount of taxes in excess of 25 percent of the taxes 273.16reported in the return; or 273.17(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 273.18estate reported in the return. 273.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 273.20    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read: 273.21    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this 273.22section: 273.23(1) corporations exempt from tax under section 290.05; 273.24(2) real estate investment trusts; 273.25(3) regulated investment companies or a fund thereof; and 273.26(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 273.27Code; 273.28(5) town and farmers' new text begin township new text end mutual insurance companies; 274.1(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 274.2to persons age 55 and over and are classified as homesteads under section 273.124, 274.3subdivision 3 ; and 274.4(7) a qualified business as defined under section 469.310, subdivision 11, if for the 274.5taxable year all of its property is located in a job opportunity building zone designated under 274.6section 469.314 and all of its payroll is a job opportunity building zone payroll under section 274.7469.310 . 274.8Entities not specifically exempted by this subdivision are subject to tax under this section, 274.9notwithstanding section 290.05. 274.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 274.11    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read: 274.12    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total 274.13amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 274.14subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 274.15distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 274.16the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 274.17295.52 , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 274.18under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 274.19refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 274.20the annual return as provided under section 295.55, subdivision 5 new text begin prescribed by the new text end 274.21 new text begin commissioner, on or before March 15 of the year following the calendar year the legend new text end 274.22 new text begin drugs were delivered outside Minnesota new text end . The refund must be claimed within 18 months 274.23from the date the drugs were delivered outside of Minnesota new text begin shall not be allowed if the new text end 274.24 new text begin initial claim for refund is filed more than one year after the original due date of the return new text end . 274.25Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 274.26claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 274.27date of the return if a return is due or the date of the actual claim for refund, whichever is 274.28later. 274.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for qualifying legend drugs delivered new text end 274.30 new text begin outside Minnesota after December 31, 2017. new text end 275.1    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 275.2read: 275.3     new text begin Subd. 9a. new text end new text begin Bulk storage or bulk storage facility. new text end new text begin "Bulk storage" or "bulk storage facility" new text end 275.4 new text begin means a single property, or contiguous or adjacent properties used for a common purpose new text end 275.5 new text begin and owned or operated by the same person, on or in which are located one or more stationary new text end 275.6 new text begin tanks that are used singularly or in combination for the storage or containment of more than new text end 275.7 new text begin 1,100 gallons of petroleum. new text end 275.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.9    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read: 275.10    Subd. 33. Motor fuel. "Motor fuel" means a liquid new text begin or gaseous form of fuel new text end , regardless 275.11of its composition or properties, used to propel a motor vehicle. 275.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.13    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read: 275.14    Subd. 42. Petroleum products. "Petroleum products" means all of the products defined 275.15in subdivisions 2, 7, 8, 8a, new text begin 8b, new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35. 275.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.17    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read: 275.18    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 275.19blended with ethanol, and agricultural alcohol gasoline used in producing and generating 275.20power for propelling motor vehicles used on the public highways of this state. The tax is 275.21imposed on the first licensed distributor who received the product in Minnesota. For purposes 275.22of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 20, 23, 24, 275.2325, 32, and 34 . The tax is payable at the time and in the form and manner prescribed by the 275.24commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 275.25exceptions and reductions specified in section 296A.17. 275.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.27    Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read: 275.28    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed 275.29in this chapter to the extent provided. 276.1(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 276.2or partnership is exempt if the transfer constitutes a transfer within the meaning of section 276.3351 or 721 of the Internal Revenue Code. 276.4(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 276.5an aircraft for which a commercial use permit has been issued pursuant to section 360.654 276.6is exempt, if the aircraft is resold while the permit is in effect. 276.7(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 276.8companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 276.9subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 276.10maintenance of such air flight equipment, and flight simulators, but does not include airplanes new text begin new text end 276.11 new text begin aircraft new text end with a gross new text begin maximum takeoff new text end weight of less than 30,000 pounds that are used on 276.12intermittent or irregularly timed flights. 276.13(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 276.14section 360.511 and approved by the Federal Aviation Administration, and which the seller 276.15delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 276.16transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 276.17a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 276.18within Minnesota, except in the course of interstate commerce or isolated and occasional 276.19use, and will be registered in another state or country upon its removal from Minnesota. 276.20This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 276.21and uses the aircraft in the state exclusively for training purposes for a period not to exceed 276.22ten days prior to removing the aircraft from this state. 276.23(f) The sale or purchase of the following items that relate to aircraft operated under 276.24Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 276.25equipment and parts necessary for repair and maintenance of aircraft; and equipment and 276.26parts to upgrade and improve aircraft. 276.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 276.28 new text begin December 31, 2017. new text end 276.29    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read: 276.30    Subd. 4a. Deposit in state airports fund. Tax revenue new text begin , including interest and penalties, new text end 276.31collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 276.32in the state airports fund established in section 360.017 new text begin . For purposes of this subdivision, new text end 276.33 new text begin "revenue" does not include the revenue, including interest and penalties, generated by the new text end 277.1 new text begin sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as new text end 277.2 new text begin provided under article XI, section 15, of the Minnesota Constitution new text end . 277.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 277.4    Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read: 277.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions 277.6imposed by this chapter, a person, organization, or business entity possessing or selling a 277.7pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 277.8this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 277.9pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 277.10be assessed as if it were a full deal. 277.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person new text begin (1) new text end 277.12not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 277.13or paddlewheel games new text begin , or (2) who conducts gambling prohibited under sections 609.75 to new text end 277.14 new text begin 609.763, other than activities subject to tax under section 297E.03, new text end is liable for a tax of six 277.15percent of the gross receipts from that activity. 277.16(c) The tax must new text begin may new text end be assessed by the commissioner. An assessment must be considered 277.17a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 277.18commissioner shall assess the tax based on personal knowledge or information available to 277.19the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 277.20address, or serve in person, a written notice of the amount of tax, demand its immediate 277.21payment, and, if payment is not immediately made, collect the tax by any method described 277.22in chapter 270C, except that the commissioner need not await the expiration of the times 277.23specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 277.24and correctly determined and assessed. The burden is upon the taxpayer to show its 277.25incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 277.26that is exempt from taxation under subdivision 2. 277.27 new text begin (d) A person, organization, or business entity conducting gambling activity under this new text end 277.28 new text begin subdivision must file monthly tax returns with the commissioner, in the form required by new text end 277.29 new text begin the commissioner. The returns must be filed on or before the 20th day of the month following new text end 277.30 new text begin the month in which the gambling activity occurred. The tax imposed by this section is due new text end 277.31 new text begin and payable at the time when the returns are required to be filed. new text end 277.32 new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public new text end 277.33 new text begin employee may reveal facts contained in a tax return filed with the commissioner of revenue new text end 278.1 new text begin as required by this subdivision, nor can any information contained in the report or return new text end 278.2 new text begin be used against the tax obligor in any criminal proceeding, unless independently obtained, new text end 278.3 new text begin except in connection with a proceeding involving taxes due under this section, or as provided new text end 278.4 new text begin in section 270C.055, subdivision 1. However, this paragraph does not prohibit the new text end 278.5 new text begin commissioner from publishing statistics that do not disclose the identity of tax obligors or new text end 278.6 new text begin the contents of particular returns or reports. Any person violating this paragraph is guilty new text end 278.7 new text begin of a gross misdemeanor. new text end 278.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games played or purchased after June new text end 278.9 new text begin 30, 2017. new text end 278.10    Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read: 278.11    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal 278.12solid waste or upon the volume of nonmixed municipal solid waste for waste management 278.13services to manage the following materials: 278.14(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 278.15of Minnesota; 278.16(2) recyclable materials that are separated for recycling by the generator, collected 278.17separately from other waste, and recycled, to the extent the price of the service for handling 278.18recyclable material is separately itemized new text begin on a bill to the generator new text end ; 278.19(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 278.20generator, collected separately from other waste, delivered to a waste facility for the purpose 278.21of recycling, and recycled; 278.22(4) industrial waste, when it is transported to a facility owned and operated by the same 278.23person that generated it; 278.24(5) mixed municipal solid waste from a recycling facility that separates or processes 278.25recyclable materials and reduces the volume of the waste by at least 85 percent, provided 278.26that the exempted waste is managed separately from other waste; 278.27(6) recyclable materials that are separated from mixed municipal solid waste by the 278.28generator, collected and delivered to a waste facility that recycles at least 85 percent of its 278.29waste, and are collected with mixed municipal solid waste that is segregated in leakproof 278.30bags, provided that the mixed municipal solid waste does not exceed five percent of the 278.31total weight of the materials delivered to the facility and is ultimately delivered to a waste 278.32facility identified as a preferred waste management facility in county solid waste plans 278.33under section 115A.46; 279.1(7) source-separated compostable waste new text begin materials new text end , if the waste is new text begin materials are new text end delivered 279.2to a facility exempted as described in this clause. To initially qualify for an exemption, a 279.3facility must apply for an exemption in its application for a new or amended solid waste 279.4permit to the Pollution Control Agency. The first time a facility applies to the agency it 279.5must certify in its application that it will comply with the criteria in items (i) to (v) and the 279.6commissioner of the agency shall so certify to the commissioner of revenue who must grant 279.7the exemption. The facility must annually apply to the agency for certification to renew its 279.8exemption for the following year. The application must be filed according to the procedures 279.9of, and contain the information required by, the agency. The commissioner of revenue shall 279.10grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 279.11to the commissioner of revenue that based on an evaluation of the composition of incoming 279.12waste and residuals and the quality and use of the product: 279.13(i) generators separate materials at the source; 279.14(ii) the separation is performed in a manner appropriate to the technology specific to the 279.15facility that: 279.16(A) maximizes the quality of the product; 279.17(B) minimizes the toxicity and quantity of residuals new text begin rejects new text end ; and 279.18(C) provides an opportunity for significant improvement in the environmental efficiency 279.19of the operation; 279.20(iii) the operator of the facility educates generators, in coordination with each county 279.21using the facility, about separating the waste to maximize the quality of the waste stream 279.22for technology specific to the facility; 279.23(iv) process residuals new text begin rejects new text end do not exceed 15 percent of the weight of the total material 279.24delivered to the facility; and 279.25(v) the final product is accepted for use; 279.26(8) waste and waste by-products for which the tax has been paid; and 279.27(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 279.28Control Agency. 279.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 280.1    Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read: 280.2    Subd. 2. Town and farmers' new text begin Township new text end mutual insurance. A tax is imposed on town 280.3and farmers' new text begin township new text end mutual insurance companies. The rate of tax is equal to one percent 280.4of gross premiums less return premiums on all direct business received by the insurer or 280.5agents of the insurer in Minnesota, in cash or otherwise, during the year. 280.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 280.7    Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read: 280.8    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a 280.9surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 280.10premiums, less return premiums, on all direct business received by any licensed foreign or 280.11domestic fire insurance company on property in a city of the first class, or by its agents for 280.12it, in cash or otherwise. 280.13(b) By July 31 and December 31 of each year, the commissioner of management and 280.14budget shall pay to each city of the first class a warrant for an amount equal to the total 280.15amount of the surcharge on the premiums collected within that city since the previous 280.16payment. 280.17(c) The treasurer of the city shall place the money received under this subdivision in a 280.18special account or fund to defray all or a portion of the employer contribution requirement 280.19of public employees police and fire plan coverage for city firefighters. 280.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 280.21    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read: 280.22    Subd. 3. Appropriation. The amount necessary to make the payments required under 280.23this section is appropriated to the commissioner of management and budget from the general 280.24fund. 280.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 280.26    Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read: 280.27    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining 280.28taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7 280.29and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income. 281.1(b) The amount of net operating loss incurred in a taxable year beginning before January 281.21, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 281.3the amount of net operating loss carryover determined in the calculation of the hypothetical 281.4corporate franchise tax under Minnesota Statutes 1988, sections and . 281.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 281.6ARTICLE 16 281.7DEPARTMENT 2017 TECHNICAL PROVISIONS: INCOME, CORPORATE 281.8FRANCHISE, AND ESTATE TAXES 281.9    Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read: 281.10    Subd. 21. Military service pension; retirement pay. To the extent included in federal 281.11taxable income, compensation received from a pension or other retirement pay from the 281.12federal government for service in the military, as computed under United States Code, title 281.1310, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must 281.14not include any amount used to claim the credit allowed under section new text begin is limited new text end 281.15 new text begin to individuals who do not claim the credit under section 290.0677 new text end . 281.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable years beginning new text end 281.17 new text begin after December 31, 2015. new text end 281.18    Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read: 281.19    Subd. 3. Income. (a) "Income" means the sum of the following: 281.20    (1) federal adjusted gross income as defined in the Internal Revenue Code; and 281.21    (2) the sum of the following amounts to the extent not included in clause (1): 281.22    (i) all nontaxable income; 281.23    (ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 281.24paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 281.25carryover allowed under section 469(b) of the Internal Revenue Code; 281.26    (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 281.27solvent individual excluded from gross income under section 108(g) of the Internal Revenue 281.28Code; 281.29    (iv) cash public assistance and relief; 281.30    (v) any pension or annuity (including railroad retirement benefits, all payments received 281.31under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 282.1which was not exclusively funded by the claimant or spouse, or which was funded exclusively 282.2by the claimant or spouse and which funding payments were excluded from federal adjusted 282.3gross income in the years when the payments were made; 282.4    (vi) interest received from the federal or a state government or any instrumentality or 282.5political subdivision thereof; 282.6    (vii) workers' compensation; 282.7    (viii) nontaxable strike benefits; 282.8    (ix) the gross amounts of payments received in the nature of disability income or sick 282.9pay as a result of accident, sickness, or other disability, whether funded through insurance 282.10or otherwise; 282.11    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 282.121986, as amended through December 31, 1995; 282.13    (xi) contributions made by the claimant to an individual retirement account, including 282.14a qualified voluntary employee contribution; simplified employee pension plan; 282.15self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 282.16the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 282.17Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 282.18the claimant and spouse; 282.19    (xii) to the extent not included in federal adjusted gross income, distributions received 282.20by the claimant or spouse from a traditional or Roth style retirement account or plan; 282.21    (xiii) nontaxable scholarship or fellowship grants; 282.22    (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code; 282.23    (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 282.24Code; 282.25    (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 282.26Code; and 282.27    (xvii) the amount deducted for certain expenses of elementary and secondary school 282.28teachers under section 62(a)(2)(D) of the Internal Revenue Code. 282.29    In the case of an individual who files an income tax return on a fiscal year basis, the 282.30term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 282.31the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 283.1by the amount of a net operating loss carryback or carryforward or a capital loss carryback 283.2or carryforward allowed for the year. 283.3    (b) "Income" does not include: 283.4    (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102; 283.5    (2) amounts of any pension or annuity which was exclusively funded by the claimant 283.6or spouse and which funding payments were not excluded from federal adjusted gross 283.7income in the years when the payments were made; 283.8    (3) to the extent included in federal adjusted gross income, amounts contributed by the 283.9claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 283.10the retirement base amount reduced by the amount of contributions excluded from federal 283.11adjusted gross income, but not less than zero; 283.12    (4) surplus food or other relief in kind supplied by a governmental agency; 283.13    (5) relief granted under this chapter; 283.14    (6) child support payments received under a temporary or final decree of dissolution or 283.15legal separation; or 283.16    (7) restitution payments received by eligible individuals and excludable interest as 283.17defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 283.18Public Law 107-16. 283.19    (c) The sum of the following amounts may be subtracted from income: 283.20    (1) for the claimant's first dependent, the exemption amount multiplied by 1.4; 283.21    (2) for the claimant's second dependent, the exemption amount multiplied by 1.3; 283.22    (3) for the claimant's third dependent, the exemption amount multiplied by 1.2; 283.23    (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1; 283.24    (5) for the claimant's fifth dependent, the exemption amount; and 283.25    (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 283.26before December 31 of the year for which the taxes were levied or rent paid, the exemption 283.27amount. 283.28    (d) For purposes of this subdivision, the "exemption amount" means the exemption 283.29amount under section 151(d) of the Internal Revenue Code for the taxable year for which 283.30the income is reported; "retirement base amount" means the deductible amount for the 283.31taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 284.1Code, adjusted for inflation as provided in section 219(b)(5)(D) new text begin (C) new text end of the Internal Revenue 284.2Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 284.3or Roth style retirement account or plan" means retirement plans under sections 401, 403, 284.4408, 408A, and 457 of the Internal Revenue Code. 284.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 284.6    Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read: 284.7290A.10 PROOF OF TAXES PAID. 284.8Every new text begin If requested by the commissioner of revenue, a new text end claimant who files a claim for 284.9relief for property taxes payable shall include with the claim new text begin provide new text end a property tax statement 284.10or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue 284.11indicating that there are no delinquent property taxes on the homestead. Indication on the 284.12property tax statement from the county treasurer that there are no delinquent taxes on the 284.13homestead shall be sufficient proof. Taxes included in a confession of judgment under 284.14section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is 284.15current on the payments required to be made under section 277.23 or 279.37. 284.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on rent paid after new text end 284.17 new text begin December 31, 2015, and property taxes payable after December 31, 2016. new text end 284.18    Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read: 284.19291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY. 284.20If, after the final determination of the tax imposed by this chapter, the property valued 284.21pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify 284.22and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit 284.23for state death taxes new text begin federal gross or taxable estate new text end shall be reported to the commissioner 284.24within 90 days after final determination of the increased credit new text begin of the federal adjustment new text end . 284.25Upon notification the commissioner may assess an additional tax in accordance with section 284.26291.03, subdivision 1 . 284.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 284.28    Sec. 5. new text begin REPEALER. new text end 284.29 new text begin Minnesota Statutes 2016, sections 290.9743; and 290.9744, new text end new text begin are repealed. new text end 284.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 285.1ARTICLE 17 285.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: SALES AND 285.3USE, AND SPECIAL TAXES 285.4    Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read: 285.5    Subd. 10. Proof of sales tax payment new text begin ; collection and refund new text end . new text begin (a) new text end A person applying 285.6for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, 285.7showing a complete description of the snowmobile, the seller's name and address, the full 285.8purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must 285.9include information showing either new text begin receipt, invoice, or other document to prove that: new text end 285.10(1) that the sales and use tax under chapter 297A was paid or new text begin ; new text end 285.11(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 285.12safety, in consultation with the commissioner and the commissioner of revenue, shall 285.13prescribe the form of the certificate.The certificate is not required if the applicant provides 285.14a receipt, invoice, or other document that shows new text begin ; or new text end 285.15 new text begin (3) new text end the snowmobile was purchased from a retailer new text begin that is new text end maintaining a place of business 285.16in this state as defined in section 297A.66, subdivision 1 new text begin , and is a dealer new text end . 285.17 new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the new text end 285.18 new text begin commissioner of revenue under an agreement between the commissioner and the new text end 285.19 new text begin commissioner of revenue, as provided in section 297A.825: new text end 285.20 new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof new text end 285.21 new text begin required under paragraph (a); and new text end 285.22 new text begin (2) are authorized to issue refunds of use tax paid to them in error. new text end 285.23 new text begin (c) Subdivision 11 does not apply to refunds under this subdivision. new text end 285.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for snowmobiles registered after June new text end 285.25 new text begin 30, 2017. new text end 285.26    Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read: 285.27    Subd. 11. Proof of sales tax payment new text begin ; collection and refund new text end . new text begin (a) new text end A person applying 285.28for initial registration in Minnesota of an all-terrain vehicle shall new text begin must new text end provide a purchaser's 285.29certificate showing a complete description of the all-terrain vehicle, the seller's name and 285.30address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any. 286.1The certificate also must include information showing either new text begin receipt, invoice, or other new text end 286.2 new text begin document to prove new text end that new text begin : new text end 286.3(1) the sales and use tax under chapter 297A was paid, or new text begin ; new text end 286.4(2) the purchase was exempt from tax under chapter 297A. The certificate is not required 286.5if the applicant provides a receipt, invoice, or other document that shows new text begin ; or new text end 286.6 new text begin (3) new text end the all-terrain vehicle was purchased from a retailer new text begin that is new text end maintaining a place of 286.7business in this state as defined in section 297A.66, subdivision 1 new text begin , and is a dealer new text end . 286.8 new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the new text end 286.9 new text begin commissioner of revenue under an agreement between the commissioner and the new text end 286.10 new text begin commissioner of revenue, as provided in section 297A.825: new text end 286.11 new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof new text end 286.12 new text begin required under paragraph (a); and new text end 286.13 new text begin (2) are authorized to issue refunds of use tax paid to them in error. new text end 286.14 new text begin (c) Subdivision 12 does not apply to refunds under this subdivision. new text end 286.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all-terrain vehicles registered after new text end 286.16 new text begin June 30, 2017. new text end 286.17    Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read: 286.18    Subd. 12. Proof of sales tax payment new text begin ; collection and refund new text end . new text begin (a) new text end A person applying 286.19for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing 286.20a complete description of the watercraft, the seller's name and address, the full purchase 286.21price of the watercraft, and the trade-in allowance, if any. The certificate must include 286.22information showing either new text begin receipt, invoice, or other document to prove that: new text end 286.23(1) that the sales and use tax under chapter 297A was paid or new text begin ; new text end 286.24(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 286.25safety, in consultation with the commissioner and the commissioner of revenue, shall 286.26prescribe the form of the certificate.The certificate is not required if the applicant provides 286.27a receipt, invoice, or other document that shows new text begin ; or new text end 286.28 new text begin (3) new text end the watercraft was purchased from a retailer new text begin that is new text end maintaining a place of business 286.29in this state as defined in section 297A.66, subdivision 1 new text begin , and is a dealer new text end . 287.1 new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the new text end 287.2 new text begin commissioner of revenue under an agreement between the commissioner and the new text end 287.3 new text begin commissioner of revenue, as provided in section 297A.825: new text end 287.4 new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof new text end 287.5 new text begin required under paragraph (a); and new text end 287.6 new text begin (2) are authorized to issue refunds of use tax paid to them in error. new text end 287.7 new text begin (c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision. new text end 287.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for watercraft licensed after June 30, new text end 287.9 new text begin 2017. new text end 287.10    Sec. 4. Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read: 287.11    Subdivision 1. Registration fee. (a) Each manufacturer who registers under section 287.12115A.1312 must, by August 15 each year, pay to the commissioner of revenue an annual 287.13registration fee, on a form and in a manner prescribed by the commissioner of revenue. The 287.14commissioner of revenue must deposit the fee in the state treasury and credit the fee to the 287.15environmental fund. 287.16    (b) The registration fee for manufacturers that sell 100 or more video display devices 287.17to households in the state during the previous calendar year is $2,500, plus a variable 287.18recycling fee. new text begin The registration fee for manufacturers that sell fewer than 100 video display new text end 287.19 new text begin devices to households in the state during the previous calendar year is a variable recycling new text end 287.20 new text begin fee. new text end The variable recycling fee is calculated according to the formula: 287.21    [A - (B + C)] x D, where: 287.22    A = the manufacturer's recycling obligation as determined under section 115A.1320; 287.23    B = the number of pounds of covered electronic devices recycled by a manufacturer 287.24from households during the immediately preceding program year, as reported under section 287.25115A.1316, subdivision 1 ; 287.26    C = the number of phase I or phase II recycling credits a manufacturer elects to use to 287.27calculate the variable recycling fee; and 287.28    D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for 287.29manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation; 287.30$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90 percent 287.31of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who recycle 287.32at least 90 percent but less than 100 percent of the manufacturer's recycling obligation; and 288.1$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's 288.2recycling obligation. 288.3    (c) A manufacturer may petition the agency to waive the per-pound cost of recycling 288.4fee, element D in the formula in paragraph (b), required under this section. The agency shall 288.5direct the commissioner of revenue to waive the per-pound cost of recycling fee if the 288.6manufacturer demonstrates to the agency's satisfaction a good faith effort to meet its recycling 288.7obligation as determined under section 115A.1320. The petition must include: 288.8    (1) documentation that the manufacturer has met at least 75 percent of its recycling 288.9obligation as determined under section 115A.1320; 288.10    (2) a list of political subdivisions and public and private collectors with whom the 288.11manufacturer had a formal contract or agreement in effect during the previous program year 288.12to recycle or collect covered electronic devices; 288.13    (3) the total amounts of covered electronic devices collected from both within and outside 288.14of the 11-county metropolitan area, as defined in subdivision 2; 288.15    (4) a description of the manufacturer's best efforts to meet its recycling obligation as 288.16determined under section 115A.1320; and 288.17    (5) any other information requested by the agency. 288.18    (d) A manufacturer may retain phase I and phase II recycling credits to be added, in 288.19whole or in part, to the actual value of C, as reported under section 115A.1316, subdivision 288.202 , during any succeeding program year, provided that no more than 25 percent of a 288.21manufacturer's recycling obligation (A x B) for any program year may be met with phase 288.22I and phase II recycling credits, separately or in combination, generated in a prior program 288.23year. A manufacturer may sell any portion or all of its phase I and phase II recycling credits 288.24to another manufacturer, at a price negotiated by the parties, who may use the credits in the 288.25same manner. 288.26    (e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph 288.27(b), starting with the program year beginning July 1, 2019, and continuing each year 288.28thereafter, the weight of covered electronic devices collected from households located 288.29outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b), is 288.30calculated at 1.5 times their actual weight. 288.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for registration fees due after June 30, new text end 288.32 new text begin 2017. new text end 289.1    Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 289.2read: 289.3     new text begin Subd. 20. new text end new text begin Department of Natural Resources; authorized deputy registrars of motor new text end 289.4 new text begin vehicles. new text end new text begin The commissioner may disclose return information related to the taxes imposed new text end 289.5 new text begin by chapter 297A to the Department of Natural Resources or an authorized deputy registrar new text end 289.6 new text begin of motor vehicles only: new text end 289.7 new text begin (1) if the commissioner has an agreement with the commissioner of natural resources new text end 289.8 new text begin under section 297A.825, subdivision 1; and new text end 289.9 new text begin (2) to the extent necessary for the Department of Natural Resources or an authorized new text end 289.10 new text begin deputy registrar of motor vehicles, as agents for the commissioner, to verify that the new text end 289.11 new text begin applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase new text end 289.12 new text begin of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82, new text end 289.13 new text begin subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding new text end 289.14 new text begin either their collection of use tax or their issuance of refunds to applicants of use tax paid to new text end 289.15 new text begin them in error. new text end 289.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 289.17    Sec. 6. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read: 289.18    Subdivision 1. Definitions. (a) If a special law grants a local government unit or group 289.19of units the authority to impose a local tax other than sales tax, including but not limited to 289.20taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the 289.21Department of Revenue either has agreed to or is required to administer the tax, such that 289.22the tax is reported and paid with the chapter 297A taxes, then the local government unit or 289.23group of units must adopt each definition new text begin term new text end used in the special law new text begin is defined new text end as follows: 289.24(1) the definition must be identical to the definition found new text begin as defined new text end in chapter 297A 289.25or in Minnesota Rules, chapter 8130; or 289.26(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules, 289.27chapter 8130, then the definition must be new text begin defined new text end consistent with the position of the 289.28Department of Revenue as to the extent of the tax base. 289.29(b) This subdivision does not apply to terms that are defined by the authorizing special 289.30law. 289.31 new text begin (c) This subdivision applies notwithstanding whether a local government unit or group new text end 289.32 new text begin of units adopts consistent definitions into local law. new text end 290.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 290.2    Sec. 7. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read: 290.3    Subd. 2a. Refund of sales tax to purchasers. (a) If a vendor has collected from a 290.4purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the 290.5purchaser may apply directly to the commissioner for a refund under this section if: 290.6(1) the purchaser is currently registered or was registered during the period of the claim, 290.7to collect and remit the sales tax or to remit the use tax; and 290.8(2) either 290.9(i) the amount of the refund to be applied for exceeds $500, or 290.10(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser 290.11also applies for a capital equipment claim at the same time, and the total of the two refunds 290.12exceeds $500. 290.13(b) The purchaser may not file more than two applications for refund under this 290.14subdivision in a calendar year. 290.15 new text begin (c) Refunds shall not be issued for sales for resale where the vendor has a published no new text end 290.16 new text begin resale policy. new text end 290.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 290.18    Sec. 8. new text begin [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; new text end 290.19 new text begin PAYMENT OF TAXES; REFUNDS. new text end 290.20     new text begin Subdivision 1. new text end new text begin Agreement with commissioners of natural resources and public new text end 290.21 new text begin safety; collection and refunds. new text end new text begin The commissioner may enter into an agreement with the new text end 290.22 new text begin commissioner of natural resources, in consultation with the commissioner of public safety, new text end 290.23 new text begin that provides that: new text end 290.24 new text begin (1) the commissioner of natural resources and authorized deputy registrars of motor new text end 290.25 new text begin vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from new text end 290.26 new text begin persons applying for initial registration or license of the item unless the applicant provides new text end 290.27 new text begin a receipt, invoice, or other document to prove that: new text end 290.28 new text begin (i) sales tax was paid on the purchase; new text end 290.29 new text begin (ii) the purchase was exempt under this chapter; new text end 290.30 new text begin (iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or new text end 291.1 new text begin (iv) the item was purchased from a retailer that is maintaining a place of business in this new text end 291.2 new text begin state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section new text end 291.3 new text begin 84.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and new text end 291.4 new text begin (2) the commissioner of natural resources and authorized deputy registrars of motor new text end 291.5 new text begin vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either new text end 291.6 new text begin the sales or use tax had already been paid or that the purchase was exempt from tax under new text end 291.7 new text begin this chapter. new text end 291.8     new text begin Subd. 2. new text end new text begin Agents. new text end new text begin For the purposes of collecting or refunding the tax under this section, new text end 291.9 new text begin the commissioner of natural resources and authorized deputy registrars of motor vehicles new text end 291.10 new text begin are the agents of the commissioner and are subject to, and must strictly comply with, all new text end 291.11 new text begin rules consistent with this chapter prescribed by the commissioner. new text end 291.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 291.13    Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read: 291.14    Subd. 7. Surcharge. (a) By April 30 of each year, every company required to pay the 291.15surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period 291.16ending March 31 in the form prescribed by the commissioner. 291.17(b) new text begin (a) new text end By June 30 of each year, every company required to pay the surcharge under 291.18section 297I.10, subdivision 1, shall file a return for the two-month new text begin seven-month new text end period 291.19ending May 31 in the form prescribed by the commissioner. 291.20(c) new text begin (b) new text end By November 30 of each year, every company required to pay the surcharge 291.21under section 297I.10, subdivision 1, shall file a return for the five-month period ending 291.22October 31 in the form prescribed by the commissioner. 291.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for returns due after October 31, 2017. new text end 291.24    Sec. 10. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read: 291.25    Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining, 291.26refining, or producing ores, metals, or minerals in this state, except iron ore or taconite 291.27concentrates, shall pay an occupation tax to the state of Minnesota as provided in this 291.28subdivision. For purposes of this subdivision, mining includes the application of 291.29hydrometallurgical processes. Hydrometallurgical processes are processes that extract the 291.30ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover 291.31the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by 291.32section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 292.14 , and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by 292.2applying to taxable income the rate of 2.45 percent. A person subject to occupation tax 292.3under this section shall apportion its net income on the basis of the percentage obtained by 292.4taking the sum of: 292.5    (1) 75 percent of the percentage which the sales made within this state in connection 292.6with the trade or business during the tax period are of the total sales wherever made in 292.7connection with the trade or business during the tax period; 292.8    (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 292.9in this state in connection with the trade or business during the tax period is of the total 292.10tangible property, wherever located, used by the taxpayer in connection with the trade or 292.11business during the tax period; and 292.12    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 292.13in this state or paid in respect to labor performed in this state in connection with the trade 292.14or business during the tax period are of the taxpayer's total payrolls paid or incurred in 292.15connection with the trade or business during the tax period. 292.16    The tax is in addition to all other taxes. 292.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 292.18    Sec. 11. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read: 292.19    Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the 292.20business of mining or producing of iron ore, taconite concentrates or direct reduced ore in 292.21this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the 292.22same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 292.231 , clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the 292.24occupation tax shall be computed by applying to taxable income the rate of 2.45 percent. 292.25A person subject to occupation tax under this section shall apportion its net income on the 292.26basis of the percentage obtained by taking the sum of: 292.27(1) 75 percent of the percentage which the sales made within this state in connection 292.28with the trade or business during the tax period are of the total sales wherever made in 292.29connection with the trade or business during the tax period; 292.30(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 292.31in this state in connection with the trade or business during the tax period is of the total 292.32tangible property, wherever located, used by the taxpayer in connection with the trade or 292.33business during the tax period; and 293.1(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 293.2in this state or paid in respect to labor performed in this state in connection with the trade 293.3or business during the tax period are of the taxpayer's total payrolls paid or incurred in 293.4connection with the trade or business during the tax period. 293.5The tax is in addition to all other taxes. 293.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 293.7    Sec. 12. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read: 293.8    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is 293.9imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and 293.10upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, 293.11a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The 293.12tax is also imposed upon other iron-bearing material. 293.13    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal 293.14to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied 293.15by the percentage increase in the implicit price deflator from the fourth quarter of the second 293.16preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means 293.17the implicit price deflator for the gross domestic product prepared by the Bureau of Economic 293.18Analysis of the United States Department of Commerce. 293.19    (c) An additional tax is imposed equal to three cents per gross ton of merchantable iron 293.20ore concentrate for each one percent that the iron content of the product exceeds 72 percent, 293.21when dried at 212 degrees Fahrenheit. 293.22    (d) The tax on taconite and iron sulphides shall be imposed on the average of the 293.23production for the current year and the previous two years. The rate of the tax imposed will 293.24be the current year's tax rate. This clause shall not apply in the case of the closing of a 293.25taconite facility if the property taxes on the facility would be higher if this clause and section 293.26298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the 293.27current year production. 293.28     new text begin (e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The new text end 293.29 new text begin tax on other iron-bearing material shall be imposed on the current year production. The rate new text end 293.30 new text begin of the tax imposed is the current year's tax rate. new text end 293.31    (e) new text begin (f) new text end If the tax or any part of the tax imposed by this subdivision is held to be 293.32unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 293.33shall be imposed. 294.1    (f) new text begin (g) new text end Consistent with the intent of this subdivision to impose a tax based upon the 294.2weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 294.3determine the weight of merchantable iron ore concentrate included in fluxed pellets by 294.4subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux 294.5additives included in the pellets from the weight of the pellets. For purposes of this paragraph, 294.6"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or 294.7other basic flux additives are combined with merchantable iron ore concentrate. No 294.8subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical 294.9additives other than basic flux additives, or moisture. 294.10    (g) new text begin (h) new text end (1) Notwithstanding any other provision of this subdivision, for the first two years 294.11of a plant's commercial production of direct reduced ore from ore mined in this state, no 294.12tax is imposed under this section. As used in this paragraph, "commercial production" is 294.13production of more than 50,000 tons of direct reduced ore in the current year or in any prior 294.14year, "noncommercial production" is production of 50,000 tons or less of direct reduced 294.15ore in any year, and "direct reduced ore" is ore that results in a product that has an iron 294.16content of at least 75 percent. For the third year of a plant's commercial production of direct 294.17reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise 294.18determined under this subdivision. For the fourth commercial production year, the rate is 294.1950 percent of the rate otherwise determined under this subdivision; for the fifth commercial 294.20production year, the rate is 75 percent of the rate otherwise determined under this subdivision; 294.21and for all subsequent commercial production years, the full rate is imposed. 294.22    (2) Subject to clause (1), production of direct reduced ore in this state is subject to the 294.23tax imposed by this section, but if that production is not produced by a producer of taconite, 294.24iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or 294.25other iron-bearing material, that is consumed in the production of direct reduced iron new text begin ore new text end 294.26in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or 294.27other iron-bearing material. 294.28    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct 294.29reduced ore under this section during the facility's noncommercial production of direct 294.30reduced ore. The taconite or iron sulphides consumed in the noncommercial production of 294.31direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. 294.32Three-year average production of direct reduced ore does not include production of direct 294.33reduced ore in any noncommercial year. Three-year average production for a direct reduced 294.34ore facility that has noncommercial production is the average of the commercial production 294.35of direct reduced ore for the current year and the previous two commercial years. 295.1    (4) This paragraph applies only to plants for which all environmental permits have been 295.2obtained and construction has begun before July 1, 2008. 295.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 295.4    Sec. 13. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read: 295.5    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of 295.6merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 295.7provided in paragraph (c), must be allocated to the city or town in the county in which the 295.8lands from which taconite was mined or quarried were located or within which the 295.9concentrate was produced. If the mining, quarrying, and concentration, or different steps 295.10in either thereof are carried on in more than one taxing district, the commissioner shall 295.11apportion equitably the proceeds of the part of the tax going to cities and towns among such 295.12subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation 295.13of mining or quarrying the taconite, and the remainder to the concentrating plant and to the 295.14processes of concentration, and with respect to each thereof giving due consideration to the 295.15relative extent of such operations performed in each such taxing district. The commissioner's 295.16order making such apportionment shall be subject to review by the Tax Court at the instance 295.17of any of the interested taxing districts, in the same manner as other orders of the 295.18commissioner. 295.19(b) new text begin (1) new text end Four cents per taxable ton shall be allocated to cities and organized townships 295.20affected by mining because their boundaries are within three miles of a taconite mine pit 295.21that new text begin : new text end 295.22 new text begin (i) was actively mined by LTV Steel Mining Company in 1999; or new text end 295.23 new text begin (ii) new text end has been actively mined in at least one of the prior three years. 295.24 new text begin (2) new text end If a city or town is located near more than one mine meeting these new text begin the new text end criteria new text begin under new text end 295.25 new text begin this paragraph new text end , the city or town is eligible to receive aid calculated from only the mine 295.26producing the largest taxable tonnage. When more than one municipality qualifies for aid 295.27based on one company's production, the aid must be apportioned among the municipalities 295.28in proportion to their populations. The amounts distributed under this paragraph to each 295.29municipality must be used for infrastructure improvement projects. 295.30(c) The amount that would have been computed for the current year under Minnesota 295.31Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to 295.32the cities and townships within the school district in the proportion that their taxable net tax 296.1capacity within the school district bears to the taxable net tax capacity of the school district 296.2for property taxes payable in the year prior to distribution. 296.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 296.4    Sec. 14. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read: 296.5    Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 296.6and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 296.7to be distributed, based upon certification by the commissioner of revenue, under paragraphs 296.8(b) to (d). 296.9    (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 296.10is mined or quarried or in which the concentrate is produced, less any amount which is to 296.11be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 296.122 is the basis for the distribution. 296.13    (c) If new text begin 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) new text end 296.14 new text begin shall be paid to a county that received a distribution under this section in 2000 because there new text end 296.15 new text begin was located in the county new text end an electric power plant owned by and providing the primary source 296.16of power for a taxpayer mining and concentrating taconite is located in a new text begin different new text end county 296.17other than the county in which the mining and the concentrating processes are conducted, 296.18one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and 296.19imposed on and collected from such taxpayer shall be paid to the county in which the power 296.20plant is located. 296.21    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 296.22per taxable ton for distributions beginning in 2024, shall be paid to the county from which 296.23the taconite was mined, quarried or concentrated to be deposited in the county road and 296.24bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 296.25processes are carried on in more than one county, the commissioner shall follow the 296.26apportionment formula prescribed in subdivision 2. 296.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 296.28    Sec. 15. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read: 296.29    Subdivision 1. Authorization new text begin ; tax base new text end . new text begin (a) new text end Notwithstanding section 477A.016 or any 296.30other law, a statutory or home rule charter city may by ordinance, and a town may by the 296.31affirmative vote of the electors at the annual town meeting, or at a special town meeting, 296.32impose a tax of up to three percent on the gross receipts from the furnishing for consideration 297.1of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting 297.2or leasing of it for a continuous period of 30 days or more. A statutory or home rule charter 297.3city may by ordinance impose the tax authorized under this subdivision on the camping site 297.4receipts of a municipal campground. 297.5 new text begin (b) Regardless of whether the tax is collected locally or by the state, the tax imposed new text end 297.6 new text begin under this subdivision or under a special law applies to the entire consideration paid to new text end 297.7 new text begin obtain access to lodging, including ancillary or related services, such as services provided new text end 297.8 new text begin by an accommodations intermediary as defined in section 297A.61, and similar services. new text end 297.9 new text begin EFFECTIVE DATE; APPLICATION. new text end new text begin This section is effective the day following new text end 297.10 new text begin final enactment. In enacting this section, the legislature confirms that Minnesota Statutes, new text end 297.11 new text begin section 469.190, its predecessor provisions, and any special laws authorizing political new text end 297.12 new text begin subdivisions to impose local lodging taxes, were and are intended to apply to the entire new text end 297.13 new text begin consideration paid to obtain access to transient lodging, including ancillary or related services, new text end 297.14 new text begin such as services provided by an accommodations intermediary as defined in Minnesota new text end 297.15 new text begin Statutes, section 297A.61, and similar services. The provisions of this section must not be new text end 297.16 new text begin interpreted to imply a narrower construction of the tax base under the lodging tax provisions new text end 297.17 new text begin of Minnesota law prior to the enactment of this section. new text end 297.18    Sec. 16. Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read: 297.19    Subd. 7. Collection. new text begin (a) new text end The statutory or home rule charter city may agree with the 297.20commissioner of revenue that a tax imposed pursuant to this section shall be collected by 297.21the commissioner together with the tax imposed by chapter 297A, and subject to the same 297.22interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be 297.23remitted to the city. 297.24 new text begin (b) If a tax under this section or a special law is not collected by the commissioner of new text end 297.25 new text begin revenue, the local government imposing the tax may by ordinance limit the required filing new text end 297.26 new text begin and remittance of the tax by an accommodations intermediary as defined in section 297A.61, new text end 297.27 new text begin subdivision 47, to once every calendar year. The local government must inform the new text end 297.28 new text begin accommodations intermediary of the date when the return or remittance is due and the date new text end 297.29 new text begin must coincide with one of the monthly dates for filing and remitting state sales tax under new text end 297.30 new text begin chapter 297A. The local government must also electronically provide an accommodations new text end 297.31 new text begin intermediary with geographic and zip code information necessary to collect the tax. new text end 297.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 298.1ARTICLE 18 298.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: PROPERTY 298.3TAX AND LOCAL GOVERNMENT AID 298.4    Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read: 298.5    Subdivision 1. Valuation. The commissioner shall determine the market valuation of 298.6all flight property operated or used by every airline company in air commerce in this state. 298.7The valuation apportioned to this state of such flight property shall be the proportion of the 298.8total valuation thereof determined on the basis of the total of the following percentages: 298.9(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and 298.10freight first received by the airline company in this state during the preceding calendar year 298.11plus the total tonnage of passengers, express and freight finally discharged by it within this 298.12state during the preceding calendar year is of the total of such tonnage first received by the 298.13airline company or finally discharged by it, within and without this state during the preceding 298.14calendar year. 298.15(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all 298.16aircraft of the airline company in flight in this state during the preceding calendar year, is 298.17of the total of such time in flight within and without this state during the preceding calendar 298.18year. 298.19(3) 33-1/3 new text begin (1) 50 new text end percent of the percentage which the number of revenue ton miles of 298.20passengers, mail, express and freight flown by the airline company within this state during 298.21the preceding calendar year is of the total number of such miles flown by it within and 298.22without this state during the preceding calendar year. 298.23 new text begin (2) 50 percent of the percentage that the total departures performed by the airline company new text end 298.24 new text begin within this state during the preceding calendar year is of the total departures performed new text end 298.25 new text begin within and without this state during the preceding calendar year. new text end 298.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 298.27    Sec. 2. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read: 298.28    Subdivision 1. Conformance to federal law. If any provision of sections 270.071 to 298.29270.079 is contrary to any provision of any law of the United States of America, hereinafter 298.30enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying 298.31equipment of an airline company, such provision shall be of no effect and the commissioner 298.32is authorized and directed to prescribe by rule such provisions as may be necessary to make 299.1sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of 299.2sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher 299.3than that provided in section 270.075 or a net tax capacity based on a percentage higher 299.4than that provided in section 270.074, subdivision 2 new text begin 3 new text end . 299.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 299.6    Sec. 3. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read: 299.7    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 299.8the state of Minnesota or any political subdivision thereof, and property exempt from taxation 299.9under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 299.10provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 299.11described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 299.12the assessor of the assessment district in which the property is located. new text begin By February 1, 2018, new text end 299.13 new text begin and by February 1 of each third year thereafter, the commissioner of revenue shall publish new text end 299.14 new text begin on its Web site a list of the exemptions for which a taxpayer claiming an exemption must new text end 299.15 new text begin file a statement of exemption. The commissioner's requirement that a taxpayer file a statement new text end 299.16 new text begin of exemption pursuant to this subdivision shall not be considered a rule and is not subject new text end 299.17 new text begin to the Administrative Procedure Act, chapter 14. new text end 299.18(b) A taxpayer claiming an exemption from taxation on property described in section 299.19272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue, 299.20on or before February 15 of each year for which the taxpayer claims an exemption. 299.21(c) In case of sickness, absence or other disability or for good cause, the assessor or the 299.22commissioner may extend the time for filing the statement of exemption for a period not to 299.23exceed 60 days. 299.24(d) The commissioner of revenue shall prescribe the form and contents of the statement 299.25of exemption. 299.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications for exemption submitted new text end 299.27 new text begin in 2018 and thereafter. new text end 299.28    Sec. 4. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision 299.29to read: 299.30     new text begin Subd. 8. new text end new text begin Extension. new text end new text begin The commissioner may, for good cause, extend the time for filing new text end 299.31 new text begin the report required by subdivision 4. The extension must not exceed 15 days. new text end 299.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for reports filed in 2018 and thereafter. new text end 300.1    Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read: 300.2    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5 or 6, 300.3whenever any real estate is sold for a consideration in excess of $1,000 new text begin $1,500 new text end , whether by 300.4warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, 300.5grantee or the legal agent of either shall file a certificate of value with the county auditor 300.6in the county in which the property is located when the deed or other document is presented 300.7for recording. Contract for deeds are subject to recording under section 507.235, subdivision 300.81 . Value shall, in the case of any deed not a gift, be the amount of the full actual consideration 300.9thereof, paid or to be paid, including the amount of any lien or liens assumed. The items 300.10and value of personal property transferred with the real property must be listed and deducted 300.11from the sale price. The certificate of value shall include the classification to which the 300.12property belongs for the purpose of determining the fair market value of the property, and 300.13shall include any proposed change in use of the property known to the person filing the 300.14certificate that could change the classification of the property. The certificate shall include 300.15financing terms and conditions of the sale which are necessary to determine the actual, 300.16present value of the sale price for purposes of the sales ratio study. If the property is being 300.17acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code 300.18of 1986, as amended through December 31, 2006, that must be indicated on the certificate. 300.19The commissioner of revenue shall promulgate administrative rules specifying the financing 300.20terms and conditions which must be included on the certificate. The certificate of value 300.21must include the Social Security number or the federal employer identification number of 300.22the grantors and grantees. However, a married person who is not an owner of record and 300.23who is signing a conveyance instrument along with the person's spouse solely to release 300.24and convey their marital interest, if any, in the real property being conveyed is not a grantor 300.25for the purpose of the preceding sentence. A statement in the deed that is substantially in 300.26the following form is sufficient to allow the county auditor to accept a certificate for filing 300.27without the Social Security number of the named spouse: "(Name) claims no ownership 300.28interest in the real property being conveyed and is executing this instrument solely to release 300.29and convey a marital interest, if any, in that real property." The identification numbers of 300.30the grantors and grantees are private data on individuals or nonpublic data as defined in 300.31section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or 300.32nonpublic data may be disclosed to the commissioner of revenue for purposes of tax 300.33administration. The information required to be shown on the certificate of value is limited 300.34to the information required as of the date of the acknowledgment on the deed or other 300.35document to be recorded new text begin . The commissioner's determination of the amount for which a new text end 301.1 new text begin certificate of value is required pursuant to this subdivision shall not be considered a rule new text end 301.2 new text begin and is not subject to the Administrative Procedure Act, chapter 14 new text end . 301.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certificates of value filed after new text end 301.4 new text begin December 31, 2017. new text end 301.5    Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read: 301.6    Subd. 2. Form; information required. The certificate of value shall require such facts 301.7and information as may be determined by the commissioner to be reasonably necessary in 301.8the administration of the state education aid formulas. The form of the certificate of value 301.9shall be prescribed by the Department of Revenue which shall provide an adequate supply 301.10of forms to each county auditor. 301.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 301.12    Sec. 7. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read: 301.13    Subd. 3. Copies transmitted; homestead status. The county auditor shall transmit two 301.14true copies of the certificate of value to the assessor who shall insert new text begin into the certificate of new text end 301.15 new text begin value new text end the most recent market value and when available, the year of original construction of 301.16each parcel of property on both copies new text begin , new text end and shall transmit one copy new text begin the certificate of value new text end 301.17to the Department of Revenue. Upon the request of a city council located within the county, 301.18a copy of each certificate of value for property located in that city shall be made available 301.19to the governing body of the city. The assessor shall remove the homestead classification 301.20for the following assessment year from a property which is sold or transferred, unless the 301.21grantee or the person to whom the property is transferred completes a homestead application 301.22under section 273.124, subdivision 13, and qualifies for homestead status. 301.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certificates of value filed after new text end 301.24 new text begin December 31, 2017. new text end 301.25    Sec. 8. Minnesota Statutes 2016, section 273.0755, is amended to read: 301.26273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL. 301.27(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 301.28by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 301.29successfully complete a weeklong Minnesota laws course sponsored by the Department of 301.30Revenue at least once in every four-year period. An assessor need not attend the course if 301.31they successfully pass the test for the course. 302.1(b) The commissioner of revenue may require that each county, and each city for which 302.2the city assessor performs the duties of county assessor, have (i) a person on the assessor's 302.3staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer 302.4or employee who is certified by the Department of Revenue in tax calculations, and (iii) an 302.5officer or employee who is certified by the Department of Revenue in the proper preparation 302.6of abstracts of assessment. The commissioner of revenue may require that each county have 302.7an officer or employee who is certified by the Department of Revenue in the proper 302.8preparation of abstracts of tax lists new text begin . Certifications under this paragraph expire after four new text end 302.9 new text begin years new text end . 302.10(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 302.11every Minnesota assessor licensed by the State Board of Assessors must attend and participate 302.12in a seminar that focuses on ethics, professional conduct and the need for standardized 302.13assessment practices developed and presented by the commissioner of revenue. This 302.14requirement must be met at least once in every subsequent four-year period. This requirement 302.15applies to all assessors licensed for one year or more in the four-year period. 302.16 new text begin (d) The commissioner of revenue may require that at least one employee of any county new text end 302.17 new text begin or city that performs functions related to property tax administration complete additional new text end 302.18 new text begin training that the commissioner deems necessary to promote uniform and equitable new text end 302.19 new text begin implementation of the property tax laws, as defined in section 270C.01, subdivision 7. new text end 302.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 302.21    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read: 302.22    Subd. 13. Homestead application. (a) A person who meets the homestead requirements 302.23under subdivision 1 must file a homestead application with the county assessor to initially 302.24obtain homestead classification. 302.25    (b) The format and contents of a uniform homestead application shall be prescribed by 302.26the commissioner of revenue. The application must clearly inform the taxpayer that this 302.27application must be signed by all owners who occupy the property or by the qualifying 302.28relative and returned to the county assessor in order for the property to receive homestead 302.29treatment. 302.30    (c) Every property owner applying for homestead classification must furnish to the 302.31county assessor the Social Security number of each occupant who is listed as an owner of 302.32the property on the deed of record, the name and address of each owner who does not occupy 302.33the property, and the name and Social Security number of each owner's spouse who occupies 303.1the property. The application must be signed by each owner who occupies the property and 303.2by each owner's spouse who occupies the property, or, in the case of property that qualifies 303.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 303.4    If a property owner occupies a homestead, the property owner's spouse may not claim 303.5another property as a homestead unless the property owner and the property owner's spouse 303.6file with the assessor an affidavit or other proof required by the assessor stating that the 303.7property qualifies as a homestead under subdivision 1, paragraph (e). 303.8    Owners or spouses occupying residences owned by their spouses and previously occupied 303.9with the other spouse, either of whom fail to include the other spouse's name and Social 303.10Security number on the homestead application or provide the affidavits or other proof 303.11requested, will be deemed to have elected to receive only partial homestead treatment of 303.12their residence. The remainder of the residence will be classified as nonhomestead residential. 303.13When an owner or spouse's name and Social Security number appear on homestead 303.14applications for two separate residences and only one application is signed, the owner or 303.15spouse will be deemed to have elected to homestead the residence for which the application 303.16was signed. 303.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative 303.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 303.19the property to receive homestead status, a homestead application must be filed with the 303.20assessor. The Social Security number of each relative new text begin occupying the property new text end and new text begin the name new text end 303.21 new text begin and Social Security number of the new text end spouse of a relative occupying the property shall be 303.22required on the homestead application filed under this subdivision. If a different relative of 303.23the owner subsequently occupies the property, the owner of the property must notify the 303.24assessor within 30 days of the change in occupancy. The Social Security number of a relative 303.25 new text begin occupying the property new text end or relative's new text begin the new text end spouse new text begin of a relative new text end occupying the property is private 303.26data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 303.27commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 303.28Act to recover personal property taxes owing, to the county treasurer. 303.29    (e) The homestead application shall also notify the property owners that if the property 303.30is granted homestead status for any assessment year, that same property shall remain 303.31classified as homestead until the property is sold or transferred to another person, or the 303.32owners, the spouse of the owner, or the relatives no longer use the property as their 303.33homestead. Upon the sale or transfer of the homestead property, a certificate of value must 303.34be timely filed with the county auditor as provided under section 272.115. Failure to notify 303.35the assessor within 30 days that the property has been sold, transferred, or that the owner, 304.1the spouse of the owner, or the relative is no longer occupying the property as a homestead, 304.2shall result in the penalty provided under this subdivision and the property will lose its 304.3current homestead status. 304.4    (f) If a homestead application has not been filed with the county by December 15, the 304.5assessor shall classify the property as nonhomestead for the current assessment year for 304.6taxes payable in the following year, provided that the owner may be entitled to receive the 304.7homestead classification by proper application under section 375.192. 304.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications for homestead filed in new text end 304.9 new text begin 2018 and thereafter. new text end 304.10    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read: 304.11    Subd. 13d. Homestead data. On or before April 30 each year beginning in 2007, each 304.12county must provide the commissioner with the following data for each parcel of homestead 304.13property by electronic means as defined in section 289A.02, subdivision 8: 304.14    (1) the property identification number assigned to the parcel for purposes of taxes payable 304.15in the current year; 304.16    (2) the name and Social Security number of each occupant of homestead property who 304.17is the property owner, property owner's spouse, new text begin or new text end qualifying relative of a property owner, new text begin new text end 304.18 new text begin and the spouse of the property owner who occupies homestead property new text end or spouse of a 304.19qualifying relative new text begin of a property owner who occupies homestead property new text end ; 304.20    (3) the classification of the property under section 273.13 for taxes payable in the current 304.21year and in the prior year; 304.22    (4) an indication of whether the property was classified as a homestead for taxes payable 304.23in the current year because of occupancy by a relative of the owner or by a spouse of a 304.24relative; 304.25    (5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 304.26current year and the prior year; 304.27    (6) the market value of improvements to the property first assessed for tax purposes for 304.28taxes payable in the current year; 304.29    (7) the assessor's estimated market value assigned to the property for taxes payable in 304.30the current year and the prior year; 304.31    (8) the taxable market value assigned to the property for taxes payable in the current 304.32year and the prior year; 305.1    (9) whether there are delinquent property taxes owing on the homestead; 305.2    (10) the unique taxing district in which the property is located; and 305.3    (11) such other information as the commissioner decides is necessary. 305.4    The commissioner shall use the information provided on the lists as appropriate under 305.5the law, including for the detection of improper claims by owners, or relatives of owners, 305.6under chapter 290A. 305.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications for homestead filed in new text end 305.8 new text begin 2018 and thereafter. new text end 305.9    Sec. 11. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read: 305.10    Subdivision 1. Reduction in tax; tax relief area. The property tax to be paid in respect 305.11to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on 305.12homestead property, as otherwise determined by law and regardless of the market value of 305.13the property, new text begin and on nonhomestead portions of property classified as both homestead and new text end 305.14 new text begin nonhomestead property as provided in section 273.124, subdivision 11, new text end for all purposes 305.15shall be reduced in the amount prescribed by subdivision 2, subject to the limitations 305.16contained therein. 305.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 305.18    Sec. 12. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read: 305.19    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts 305.20local boards of appeal and equalization meetings must provide proof to the county assessor 305.21by February 1 that it is in compliance new text begin comply new text end with the new text begin training new text end requirements of subdivision 305.222 new text begin by February 1, by having at least one member who has attended an appeals and equalization new text end 305.23 new text begin course described in subdivision 2 within the last four years new text end . This notice must also verify 305.24that there was a quorum of voting members at each meeting of the board of appeal and 305.25equalization in the previous year. A city or town that does not comply with these requirements 305.26is deemed to have transferred its board of appeal and equalization powers to the county new text begin for new text end 305.27 new text begin a minimum of two assessment years, new text end beginning with the current year's assessment and 305.28continuing new text begin thereafter new text end unless the powers are reinstated under paragraph (c). 305.29    (b) The county shall notify the taxpayers when the board of appeal and equalization for 305.30a city or town has been transferred to the county under this subdivision and, prior to the 305.31meeting time of the county board of equalization, the county shall make available to those 306.1taxpayers a procedure for a review of the assessments, including, but not limited to, open 306.2book meetings. This alternate review process shall take place in April and May. 306.3    (c) A local board whose powers are transferred to the county under this subdivision may 306.4be reinstated by resolution of the governing body of the city or town and upon proof of 306.5compliance with the requirements of subdivision 2. The resolution and proofs must be 306.6provided to the county assessor by February 1 in order to be effective for the following 306.7year's assessment. 306.8    (d) A local board whose powers are transferred to the county under this subdivision may 306.9continue to employ a local assessor and is not deemed to have transferred its powers to 306.10make assessments. 306.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for board of appeal and equalization new text end 306.12 new text begin meetings held in 2018 and thereafter. new text end 306.13    Sec. 13. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read: 306.14    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 306.15boards of appeal and equalization meetings must provide proof to the commissioner by 306.16December 1, 2009, and each year thereafter, that it is in compliance new text begin comply new text end with the new text begin training new text end 306.17requirements of subdivision 2 new text begin by February 1, by having at least one member who has attended new text end 306.18 new text begin an appeals and equalization course described in subdivision 2 within the last four years new text end . 306.19Beginning in 2009, this notice must also verify that there was a quorum of voting members 306.20at each meeting of the board of appeal and equalization in the current year. A county that 306.21does not comply with these requirements is deemed to have transferred its board of appeal 306.22and equalization powers to the special board of equalization appointed pursuant to section 306.23274.13, subdivision 2 , new text begin for a minimum of two assessment years, new text end beginning with the following 306.24year's assessment and continuing new text begin thereafter new text end unless the powers are reinstated under paragraph 306.25(c). A county that does not comply with the requirements of subdivision 2 and has not 306.26appointed a special board of equalization shall appoint a special board of equalization before 306.27the following year's assessment. 306.28    (b) The county shall notify the taxpayers when the board of appeal and equalization for 306.29a county has been transferred to the special board of equalization under this subdivision 306.30and, prior to the meeting time of the special board of equalization, the county shall make 306.31available to those taxpayers a procedure for a review of the assessments, including, but not 306.32limited to, open book meetings. This alternate review process must take place in April and 306.33May. 307.1    (c) A county board whose powers are transferred to the special board of equalization 307.2under this subdivision may be reinstated by resolution of the county board and upon proof 307.3of compliance with the requirements of subdivision 2. The resolution and proofs must be 307.4provided to the commissioner by December 1 in order to be effective for the following 307.5year's assessment. 307.6(d) If a person who was entitled to appeal to the county board of appeal and equalization 307.7or to the county special board of equalization is not able to do so in a particular year because 307.8the county board or special board did not meet the quorum and training requirements in this 307.9section and section 274.13, or because the special board was not appointed, that person may 307.10instead appeal to the commissioner of revenue, provided that the appeal is received by the 307.11commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 307.12270C.92 . The commissioner must issue an appropriate order to the county assessor in 307.13response to each timely appeal, either upholding or changing the valuation or classification 307.14of the property. Prior to October 1 of each year, the commissioner must charge and bill the 307.15county where the property is located $500 for each tax parcel covered by an order issued 307.16under this paragraph in that year. Amounts received by the commissioner under this paragraph 307.17must be deposited in the state's general fund. If payment of a billed amount is not received 307.18by the commissioner before December 1 of the year when billed, the commissioner must 307.19deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 307.20county under chapter 477A in the next year. Late payments may either be returned to the 307.21county uncashed and undeposited or may be accepted. If a late payment is accepted, the 307.22state aid paid to the county under chapter 477A must be adjusted within 12 months to 307.23eliminate any reduction that occurred because the payment was late. Amounts needed to 307.24make these adjustments are included in the appropriation under section 477A.03, subdivision 307.252 . 307.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for board of appeal and equalization new text end 307.27 new text begin meetings held in 2018 and thereafter. new text end 307.28    Sec. 14. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read: 307.29    Subd. 2. Transmittal of order. The chief administrative law judge shall see that copies 307.30of the order are mailed to all parties entitled to mailed notice of hearing under subdivision 307.311, the secretary of state, the Department of Revenue, the state demographer, individual 307.32property owners if initiated in that manner, affected county auditor, and any other party of 307.33record. The affected county auditor shall record the order against the affected property. 307.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 308.1    Sec. 15. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read: 308.2    Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the 308.3meanings given them. 308.4    (b) "County program aid" means the sum of "county need aid," "county tax base 308.5equalization aid," and "county transition aid." 308.6    (c) "Age-adjusted population" means a county's population multiplied by the county age 308.7index. 308.8    (d) "County age index" means the percentage of the population over age 65 new text begin and over new text end 308.9within the county divided by the percentage of the population over age 65 new text begin and over new text end within 308.10the state, except that the age index for any county may not be greater than 1.8 nor less than 308.110.8. 308.12    (e) "Population over age 65 new text begin and over new text end " means the population over age 65 new text begin and over new text end 308.13established as of July 15 in an aid calculation year by the most recent federal census, by a 308.14special census conducted under contract with the United States Bureau of the Census, by a 308.15population estimate made by the Metropolitan Council, or by a population estimate of the 308.16state demographer made pursuant to section 4A.02, whichever is the most recent as to the 308.17stated date of the count or estimate for the preceding calendar year and which has been 308.18certified to the commissioner of revenue on or before July 15 of the aid calculation year. A 308.19revision to an estimate or count is effective for these purposes only if certified to the 308.20commissioner on or before July 15 of the aid calculation year. Clerical errors in the 308.21certification or use of estimates and counts established as of July 15 in the aid calculation 308.22year are subject to correction within the time periods allowed under section 477A.014. 308.23    (f) "Part I crimes" means the three-year average annual number of Part I crimes reported 308.24for each county by the Department of Public Safety for the most recent years available. By 308.25July 1 of each year, the commissioner of public safety shall certify to the commissioner of 308.26revenue the number of Part I crimes reported for each county for the three most recent 308.27calendar years available. 308.28    (g) "Households receiving food stamps" means the average monthly number of 308.29households receiving food stamps for the three most recent years for which data is available. 308.30By July 1 of each year, the commissioner of human services must certify to the commissioner 308.31of revenue the average monthly number of households in the state and in each county that 308.32receive food stamps, for the three most recent calendar years available. 309.1    (h) "County net tax capacity" means the county's adjusted net tax capacity under section 309.2273.1325 . 309.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 309.4    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read: 309.5    Subdivision 1. Towns. new text begin (a) new text end In 2014 and thereafter, each town is eligible for a distribution 309.6under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town 309.7area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the 309.8following terms have the meanings given them: 309.9(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 309.10agricultural property located in a town, divided by new text begin to new text end the adjusted net tax capacity of all 309.11other property located in the town. The agricultural property factor cannot exceed eight; 309.12(2) "agricultural property" means property classified under section 273.13, as homestead 309.13and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal 309.14recreational property; 309.15(3) "town area factor" means the most recent estimate of total acreage, not to exceed 309.1650,000 acres, located in the township available as of July 1 in the aid calculation year, 309.17estimated or established by: 309.18(i) the United States Bureau of the Census; 309.19(ii) the State Land Management Information Center; or 309.20(iii) the secretary of state; and 309.21(4) "population factor" means the square root of the towns' population. 309.22 new text begin (b) new text end If the sum of the aids payable to all towns under this subdivision exceeds the limit 309.23under section 477A.03, subdivision 2c, the distribution to each town must be reduced 309.24proportionately so that the total amount of aids distributed under this section does not exceed 309.25the limit in section 477A.03, subdivision 2c. 309.26 new text begin (c) Data used in calculating aids to towns under this subdivision, other than acreage, new text end 309.27 new text begin shall be the most recently available data as of January 1 in the year in which the aid is new text end 309.28 new text begin calculated. new text end 309.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 310.1    Sec. 17. new text begin REPEALER. new text end 310.2 new text begin Minnesota Statutes 2016, section 270.074, subdivision 2, new text end new text begin is repealed. new text end 310.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2018 and thereafter. new text end 310.4ARTICLE 19 310.5DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS 310.6    Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read: 310.7    Subd. 2. Definitions. (a) For purposes of this section new text begin and sections 270C.4451 to new text end 310.8 new text begin 270C.447 new text end , the following terms have the meanings given. 310.9(b) "Advertise" means to solicit business through any means or medium. 310.10(c) "Client" means an individual new text begin a person new text end for whom a tax preparer performs or agrees 310.11to perform tax preparation services. 310.12(d) "Facilitate" means to individually or in conjunction or cooperation with another 310.13person: 310.14(1) accept an application for a refund anticipation loan; 310.15(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any 310.16other means, of a refund anticipation loan; or 310.17(3) offer, arrange, process, provide, or in any other manner act to allow the making of, 310.18a refund anticipation loan. 310.19(e) "Person" means an individual, corporation, partnership, limited liability company, 310.20association, trustee, or other legal entity. 310.21(f) new text begin (e) new text end "Refund anticipation check" means a negotiable instrument provided to a client 310.22by the tax preparer or another person, which is issued from the proceeds of a taxpayer's 310.23federal or state income tax refund or both and represents the net of the refund minus the tax 310.24preparation fee and any other fees. A refund anticipation check includes a refund transfer. 310.25(g) new text begin (f) new text end "Refund anticipation loan" means a loan or any other extension of credit, whether 310.26provided by the tax preparer or another entity such as a financial institution, in anticipation 310.27of, and whose payment is secured by, a client's federal or state income tax refund or both. 310.28(h) new text begin (g) new text end "Tax preparation services" means services provided for a fee or other consideration new text begin new text end 310.29 new text begin compensation new text end to a client to: 310.30(1) assist with preparing or filing state or federal individual income tax returns new text begin a return new text end ; 311.1(2) assume final responsibility for completed work on an individual income tax new text begin a new text end return 311.2on which preliminary work has been done by another; or 311.3 new text begin (3) sign or include on a return the preparer tax identification number required under new text end 311.4 new text begin section 6109(a)(4) of the Internal Revenue Code; or new text end 311.5(3) new text begin (4) new text end facilitate the provision of new text begin a new text end refund anticipation loans and new text begin loan or a new text end refund 311.6anticipation checks new text begin check new text end . 311.7(i) new text begin (h) new text end "Tax preparer" or "preparer" means a person providing tax preparation services 311.8subject to this section. new text begin except: new text end 311.9 new text begin (1) an employee who prepares their employer's return; new text end 311.10 new text begin (2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the new text end 311.11 new text begin fiduciary estate, testator, trustor, grantor, or beneficiaries of them; new text end 311.12 new text begin (3) nonprofit organizations providing tax preparation services under the Internal Revenue new text end 311.13 new text begin Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly new text end 311.14 new text begin Program; new text end 311.15 new text begin (4) a person who merely furnishes typing, reproducing, or other mechanical assistance; new text end 311.16 new text begin (5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently new text end 311.17 new text begin registered with the commissioner; and new text end 311.18 new text begin (6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph new text end 311.19 new text begin (c), that provides all of the sales tax functions for a retailer not maintaining a place of new text end 311.20 new text begin business in this state as described in section 297A.66. new text end 311.21 new text begin (i) Except as otherwise provided, "return" means: new text end 311.22 new text begin (1) a return as defined in section 270C.01, subdivision 8; new text end 311.23 new text begin (2) a claim for refund of an overpayment; new text end 311.24 new text begin (3) a claim filed pursuant to chapter 290A; and new text end new text begin new text end 311.25 new text begin (4) a claim for a credit filed under section 290.0677, subdivision 1. new text end 311.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 311.27 new text begin 31, 2017. new text end 311.28    Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read: 311.29    Subd. 3. Standards of conduct. No tax preparer shall: 312.1(1) without good cause fail to promptly, diligently, and without unreasonable delay 312.2complete a client's tax return; 312.3(2) obtain the signature of a client to a tax return or authorizing document that contains 312.4blank spaces to be filled in after it has been signed; 312.5(3) fail to sign a client's tax return when payment new text begin compensation new text end for services rendered 312.6has been made; 312.7 new text begin (4) fail to provide on a client's return the preparer tax identification number when required new text end 312.8 new text begin under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28; new text end 312.9(4) new text begin (5) new text end fail or refuse to give a client a copy of any document requiring the client's signature 312.10within a reasonable time after the client signs the document; 312.11(5) new text begin (6) new text end fail to retain for at least four years a copy of individual income tax new text begin a client's new text end 312.12returns; 312.13(6) new text begin (7) new text end fail to maintain a confidential relationship with clients or former clients; 312.14(7) new text begin (8) new text end fail to take commercially reasonable measures to safeguard a client's nonpublic 312.15personal information; 312.16(8) new text begin (9) new text end make, authorize, publish, disseminate, circulate, or cause to make, either directly 312.17or indirectly, any false, deceptive, or misleading statement or representation relating to or 312.18in connection with the offering or provision of tax preparation services; 312.19(9) new text begin (10) new text end require a client to enter into a loan arrangement in order to complete a tax new text begin client's new text end 312.20return; 312.21(10) new text begin (11) new text end claim credits or deductions on a client's tax return for which the tax preparer 312.22knows or reasonably should know the client does not qualify; 312.23 new text begin (12) report a household income on a client's claim filed under chapter 290A that the tax new text end 312.24 new text begin preparer knows or reasonably should know is not accurate; new text end 312.25 new text begin (13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision new text end 312.26 new text begin 13, 20, 20a, 26, or 28; new text end 312.27 new text begin (14) whether or not acting as a taxpayer representative, fail to conform to the standards new text end 312.28 new text begin of conduct required by Minnesota Rules, part 8052.0300, subpart 4; new text end 312.29 new text begin (15) whether or not acting as a taxpayer representative, engage in any conduct that is new text end 312.30 new text begin incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5; new text end 313.1 new text begin (16) whether or not acting as a taxpayer representative, engage in any conduct that is new text end 313.2 new text begin disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6; new text end 313.3(11) new text begin (17) new text end charge, offer to accept, or accept a fee based upon a percentage of an anticipated 313.4refund for tax preparation services; 313.5(12) new text begin (18) new text end under any circumstances, withhold or fail to return to a client a document 313.6provided by the client for use in preparing the client's tax return; 313.7(13) new text begin (19) new text end establish an account in the preparer's name to receive a client's refund through 313.8a direct deposit or any other instrument unless the client's name is also on the account, 313.9except that a taxpayer may assign the portion of a refund representing the Minnesota 313.10education credit available under section 290.0674 to a bank account without the client's 313.11name, as provided under section 290.0679; 313.12(14) new text begin (20) new text end fail to act in the best interests of the client; 313.13(15) new text begin (21) new text end fail to safeguard and account for any money handled for the client; 313.14(16) new text begin (22) new text end fail to disclose all material facts of which the preparer has knowledge which 313.15might reasonably affect the client's rights and interests; 313.16(17) new text begin (23) new text end violate any provision of section 332.37; 313.17(18) new text begin (24) new text end include any of the following in any document provided or signed in connection 313.18with the provision of tax preparation services: 313.19(i) a hold harmless clause; 313.20(ii) a confession of judgment or a power of attorney to confess judgment against the 313.21client or appear as the client in any judicial proceeding; 313.22(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 313.23a debtor; 313.24(iv) an assignment of or an order for payment of wages or other compensation for 313.25services; 313.26(v) a provision in which the client agrees not to assert any claim or defense otherwise 313.27available; 313.28(vi) a waiver of any provision of this section or a release of any obligation required to 313.29be performed on the part of the tax preparer; or 313.30(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 313.31a class basis; or 314.1(19) new text begin (25) new text end if making, providing, or facilitating a refund anticipation loan, fail to provide 314.2all disclosures required by the federal Truth in Lending Act, United States Code, title 15, 314.3in a form that may be retained by the client. 314.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 314.5 new text begin 31, 2017. new text end 314.6    Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read: 314.7    Subd. 5a. Nongame wildlife checkoff. A tax preparer must give written notice of the 314.8option to contribute to the nongame wildlife management account in section 290.431 to 314.9corporate clients that file an income tax return and to individual clients who file an income 314.10tax return or property tax refund claim form new text begin under chapter 290A new text end . This notification must be 314.11included with information sent to the client at the same time as the preliminary worksheets 314.12or other documents used in preparing the client's return and must include a line for displaying 314.13contributions. 314.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 314.15 new text begin 31, 2017. new text end 314.16    Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read: 314.17    Subd. 6. Enforcement; new text begin administrative order; new text end penalties new text begin ; cease and desist new text end . new text begin (a) new text end The 314.18commissioner may impose an administrative penalty of not more than $1,000 per violation 314.19of subdivision 3, 3a, 4, 5, or 5b new text begin or 5, or section 270C.4451 new text end , provided that a penalty may not 314.20be imposed for any conduct that is also subject to the new text begin for which a new text end tax return preparer penalties 314.21in new text begin penalty is imposed under new text end section 289A.60, subdivision 13. The commissioner may 314.22terminate a tax preparer's authority to transmit returns electronically to the state, if the 314.23commissioner determines the tax preparer engaged in a pattern and practice of violating 314.24this section. Imposition of a penalty under this subdivision new text begin paragraph new text end is subject to the 314.25contested case procedure under chapter 14. The commissioner shall collect the penalty in 314.26the same manner as the income tax. new text begin There is no right to make a claim for refund under new text end 314.27 new text begin section 289A.50 of the penalty imposed under this paragraph. new text end Penalties imposed under this 314.28subdivision new text begin paragraph new text end are public data. 314.29 new text begin (b) In addition to the penalty under paragraph (a), if the commissioner determines that new text end 314.30 new text begin a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may new text end 314.31 new text begin issue an administrative order to the tax preparer requiring the tax preparer to cease and new text end 314.32 new text begin desist from committing the violation. The administrative order may include an administrative new text end 314.33 new text begin penalty provided in paragraph (a). new text end 315.1 new text begin (c) If the commissioner issues an administrative order under paragraph (b), the new text end 315.2 new text begin commissioner must send the order to the tax preparer addressed to the last known address new text end 315.3 new text begin of the tax preparer. new text end 315.4 new text begin (d) A cease and desist order under paragraph (b) must: new text end 315.5 new text begin (1) describe the act, conduct, or practice committed and include a reference to the law new text end 315.6 new text begin that the act, conduct, or practice violates; and new text end 315.7 new text begin (2) provide notice that the tax preparer may request a hearing as provided in this new text end 315.8 new text begin subdivision. new text end 315.9 new text begin (e) Within 30 days after the commissioner issues an administrative order under paragraph new text end 315.10 new text begin (b), the tax preparer may request a hearing to review the commissioner's action. The request new text end 315.11 new text begin for hearing must be made in writing and must be served on the commissioner at the address new text end 315.12 new text begin specified in the order. The hearing request must specifically state the reasons for seeking new text end 315.13 new text begin review of the order. The date on which a request for hearing is served by mail is the postmark new text end 315.14 new text begin date on the envelope in which the request for hearing is mailed. new text end 315.15 new text begin (f) If a tax preparer does not timely request a hearing regarding an administrative order new text end 315.16 new text begin issued under paragraph (b), the order becomes a final order of the commissioner and is not new text end 315.17 new text begin subject to review by any court or agency. new text end 315.18 new text begin (g) If a tax preparer timely requests a hearing regarding an administrative order issued new text end 315.19 new text begin under paragraph (b), the hearing must be commenced within ten days after the commissioner new text end 315.20 new text begin receives the request for a hearing. new text end 315.21 new text begin (h) A hearing timely requested under paragraph (e) is subject to the contested case new text end 315.22 new text begin procedure under chapter 14, as modified by this subdivision. The administrative law judge new text end 315.23 new text begin must issue a report containing findings of fact, conclusions of law, and a recommended new text end 315.24 new text begin order within ten days after the completion of the hearing, the receipt of late-filed exhibits, new text end 315.25 new text begin or the submission of written arguments, whichever is later. new text end 315.26 new text begin (i) Within five days of the date of the administrative law judge's report issued under new text end 315.27 new text begin paragraph (h), any party aggrieved by the administrative law judge's report may submit new text end 315.28 new text begin written exceptions and arguments to the commissioner. Within 15 days after receiving the new text end 315.29 new text begin administrative law judge's report, the commissioner must issue an order vacating, modifying, new text end 315.30 new text begin or making final the administrative order. new text end 315.31 new text begin (j) The commissioner and the tax preparer requesting a hearing may by agreement new text end 315.32 new text begin lengthen any time periods prescribed in paragraphs (g) to (i). new text end 316.1 new text begin (k) An administrative order issued under paragraph (b) is in effect until it is modified new text end 316.2 new text begin or vacated by the commissioner or an appellate court. The administrative hearing provided new text end 316.3 new text begin by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute new text end 316.4 new text begin the exclusive remedy for a tax preparer aggrieved by the order. new text end 316.5 new text begin (l) The commissioner may impose an administrative penalty, in addition to the penalty new text end 316.6 new text begin under paragraph (a), up to $5,000 per violation of a cease and desist order issued under new text end 316.7 new text begin paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case new text end 316.8 new text begin procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under new text end 316.9 new text begin this paragraph, the tax preparer assessed the penalty may request a hearing to review the new text end 316.10 new text begin penalty order. The request for hearing must be made in writing and must be served on the new text end 316.11 new text begin commissioner at the address specified in the order. The hearing request must specifically new text end 316.12 new text begin state the reasons for seeking review of the order. The cease and desist order issued under new text end 316.13 new text begin paragraph (b) is not subject to review in a proceeding to challenge the penalty order under new text end 316.14 new text begin this paragraph. The date on which a request for hearing is served by mail is the postmark new text end 316.15 new text begin date on the envelope in which the request for hearing is mailed. If the tax preparer does not new text end 316.16 new text begin timely request a hearing, the penalty order becomes a final order of the commissioner and new text end 316.17 new text begin is not subject to review by any court or agency. A penalty imposed by the commissioner new text end 316.18 new text begin under this paragraph may be collected and enforced by the commissioner as an income tax new text end 316.19 new text begin liability. There is no right to make a claim for refund under section 289A.50 of the penalty new text end 316.20 new text begin imposed under this paragraph. A penalty imposed under this paragraph is public data. new text end 316.21 new text begin (m) If a tax preparer violates a cease and desist order issued under paragraph (b), the new text end 316.22 new text begin commissioner may terminate the tax preparer's authority to transmit returns electronically new text end 316.23 new text begin to the state. Termination under this paragraph is public data. new text end 316.24 new text begin (n) A cease and desist order issued under paragraph (b) is public data when it is a final new text end 316.25 new text begin order. new text end 316.26 new text begin (o) Notwithstanding any other law, the commissioner may impose a penalty or take other new text end 316.27 new text begin action under this subdivision against a tax preparer, with respect to a return, within the new text end 316.28 new text begin period to assess tax on that return as provided by section 289A.38. new text end 316.29 new text begin (p) Notwithstanding any other law, the imposition of a penalty or any other action against new text end 316.30 new text begin a tax preparer under this subdivision, other than with respect to a return, must be taken by new text end 316.31 new text begin the commissioner within five years of the violation of statute. new text end 316.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 316.33 new text begin 31, 2017. new text end 317.1    Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read: 317.2    Subd. 6a. Exchange of data; State Board of Accountancy. The State Board of 317.3Accountancy shall refer to the commissioner complaints it receives about tax preparers who 317.4are not subject to the jurisdiction of the State Board of Accountancy and who are alleged 317.5to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b new text begin this section, except new text end 317.6 new text begin subdivision 5a, or section 270C.4451 new text end . 317.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 317.8 new text begin 31, 2017. new text end 317.9    Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read: 317.10    Subd. 6b. Exchange of data; Lawyers Board of Professional Responsibility. The 317.11Lawyers Board of Professional Responsibility may refer to the commissioner complaints 317.12it receives about tax preparers who are not subject to its jurisdiction and who are alleged to 317.13have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b new text begin this section, except new text end 317.14 new text begin subdivision 5a, or section 270C.4451 new text end . 317.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 317.16 new text begin 31, 2017. new text end 317.17    Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read: 317.18    Subd. 6c. Exchange of data; commissioner. The commissioner shall refer new text begin information new text end 317.19 new text begin and new text end complaints about tax preparers who are alleged to have violated the provisions of 317.20subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b new text begin this section, except subdivision 5a, or section new text end 317.21 new text begin 270C.4451, new text end to: 317.22(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and 317.23(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its 317.24jurisdiction. 317.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 317.26 new text begin 31, 2017. new text end 317.27    Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read: 317.28    Subd. 7. Enforcement; civil actions. (a) Any violation of this section new text begin or section new text end 317.29 new text begin 270C.4451 new text end is an unfair, deceptive, and unlawful trade practice within the meaning of section 317.308.31 . An action taken under this section is in the public interest. 318.1(b) A client may bring a civil action seeking redress for a violation of this section in the 318.2conciliation or the district court of the county in which unlawful action is alleged to have 318.3been committed or where the respondent resides or has a principal place of business. 318.4(c) A court finding for the plaintiff must award: 318.5(1) actual damages; 318.6(2) incidental and consequential damages; 318.7(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the 318.8plaintiff violated subdivision 3a, 4, or 5b new text begin section 270C.4451, subdivision 1, 2, or 5 new text end , all 318.9interest and fees for a refund anticipation loan; 318.10(4) reasonable attorney fees; 318.11(5) court costs; and 318.12(6) any other equitable relief as the court considers appropriate. 318.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 318.14 new text begin 31, 2017. new text end 318.15    Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read: 318.16    Subd. 8. Limited exemptions. new text begin (a) Except as provided in paragraph (b), new text end the provisions 318.17of this section, except for subdivisions 3a, 4, and 5b, new text begin subdivisions 3; 5; 5a; 6, paragraphs new text end 318.18 new text begin (a) to (n); and 7, new text end do not apply to: 318.19(1) an attorney admitted to practice under section 481.01; 318.20(2) a new text begin registered accounting practitioner, a registered accounting practitioner firm, a new text end 318.21certified public accountant new text begin , new text end or other person who is subject to the jurisdiction of the State 318.22Board of Accountancy new text begin a certified public accountant firm, licensed in accordance with chapter new text end 318.23 new text begin 326A new text end ; 318.24(3) an enrolled agent who has passed the special enrollment examination administered 318.25by the Internal Revenue Service; or 318.26(4) anyone new text begin a person new text end who provides, or assists in providing, tax preparation services within 318.27the scope of duties as an employee or supervisor new text begin under the direction or supervision new text end of a 318.28person who is exempt under this subdivision new text begin ; or new text end 318.29 new text begin (5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision new text end . 319.1 new text begin (b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax new text end 319.2 new text begin preparer who would otherwise be exempt under paragraph (a) if the tax preparer has: new text end 319.3 new text begin (1) had a professional license suspended or revoked for cause, not including a failure to new text end 319.4 new text begin pay a professional licensing fee, by any authority of any state, territory, or possession of new text end 319.5 new text begin the United States, including a commonwealth, or the District of Columbia, any federal court new text end 319.6 new text begin of record, or any federal agency, body, or board; new text end 319.7 new text begin (2) irrespective of whether an appeal has been taken, been convicted of any crime new text end 319.8 new text begin involving dishonesty or breach of trust; new text end 319.9 new text begin (3) been censured, suspended, or disbarred under United States Treasury Department new text end 319.10 new text begin Circular 230; new text end 319.11 new text begin (4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal new text end 319.12 new text begin proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or new text end 319.13 new text begin the tax preparer's own tax liability, for: new text end 319.14 new text begin (i) instituting or maintaining proceedings primarily for delay; new text end 319.15 new text begin (ii) advancing frivolous or groundless arguments; or new text end 319.16 new text begin (iii) failing to pursue available administrative remedies; or new text end 319.17 new text begin (5) demonstrated a pattern of willful disreputable conduct by: new text end 319.18 new text begin (i) failing to file a return that the tax preparer was required to file annually for two of new text end 319.19 new text begin the three immediately preceding tax periods; or new text end 319.20 new text begin (ii) failing to file a return that the tax preparer was required to file more frequently than new text end 319.21 new text begin annually for three of the six immediately preceding tax periods. new text end 319.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 319.23 new text begin 31, 2017. new text end 319.24    Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 319.25to read: 319.26     new text begin Subd. 9. new text end new text begin Powers additional. new text end new text begin The powers and authority granted in this section are in new text end 319.27 new text begin addition to all other powers of the commissioner. The use of the powers granted in this new text end 319.28 new text begin section does not preclude the use of any other power or authority of the commissioner. new text end 319.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 319.30 new text begin 31, 2017. new text end 320.1    Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read: 320.2    Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of 320.3paragraph (b), the commissioner must publish lists of tax preparers as defined in section 320.4289A.60, subdivision 13 , paragraph (f) new text begin 270C.445, subdivision 2, paragraph (h) new text end , who have 320.5been new text begin : new text end 320.6     new text begin (1) new text end convicted under section 289A.63 for returns or claims prepared as a tax preparer or new text begin ; new text end 320.7     new text begin (2) new text end assessed penalties in excess of $1,000 under section 289A.60, subdivision 13, 320.8paragraph (a) new text begin ; new text end 320.9     new text begin (3) convicted for identity theft under section 609.527, or a similar statute, for a return new text end 320.10 new text begin filed with the commissioner, the Internal Revenue Service, or another state; new text end 320.11     new text begin (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess new text end 320.12 new text begin of $1,000; new text end 320.13     new text begin (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph new text end 320.14 new text begin (b), that has become a final order; or new text end 320.15     new text begin (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating new text end 320.16 new text begin a cease and desist order new text end . 320.17    (b) For the purposes of this section, tax preparers are not subject to publication if: 320.18    (1) an administrative or court action contesting the new text begin or appealing a new text end penalty new text begin described in new text end 320.19 new text begin paragraph (a), clause (2), (4), or (6), new text end has been filed or served and is unresolved at the time 320.20when notice would be given under subdivision 3; 320.21    (2) an appeal period to contest the new text begin a new text end penalty new text begin described in paragraph (a), clause (2), (4), new text end 320.22 new text begin or (6), new text end has not expired; or 320.23    (3) the commissioner has been notified that the tax preparer is deceased new text begin ; new text end 320.24     new text begin (4) an appeal period to contest a cease and desist order issued under section 270C.445, new text end 320.25 new text begin subdivision 6, paragraph (b), has not expired; new text end 320.26     new text begin (5) an administrative or court action contesting or appealing a cease and desist order new text end 320.27 new text begin issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and new text end 320.28 new text begin is unresolved at the time when notice would be given under subdivision 3; new text end 320.29 new text begin (6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been new text end 320.30 new text begin filed or served and is unresolved at the time when the notice would be given under new text end 320.31 new text begin subdivision 3; or new text end 321.1     new text begin (7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3), new text end 321.2 new text begin has not expired new text end . 321.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 321.4 new text begin 31, 2017. new text end 321.5    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read: 321.6    Subd. 3. Notice to tax preparer. (a) At least 30 days before publishing the name of a 321.7tax preparer subject to penalty new text begin publication under this section new text end , the commissioner shall mail 321.8a written notice to the tax preparer, detailing the amount and nature of each penalty new text begin basis new text end 321.9 new text begin for the publication new text end and the intended publication of the information listed in subdivision 4 321.10related to the penalty. The notice must be mailed by first class and certified mail new text begin sent to the new text end 321.11 new text begin tax preparer new text end addressed to the last known address of the tax preparer. The notice must include 321.12information regarding the exceptions listed in subdivision 2, paragraph (b), and must state 321.13that the tax preparer's information will not be published if the tax preparer provides 321.14information establishing that subdivision 2, paragraph (b), prohibits publication of the tax 321.15preparer's name. 321.16(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the 321.17commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner 321.18may publish in a list of tax preparers subject to penalty the information about the tax preparer 321.19that is listed in subdivision 4. 321.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 321.21 new text begin 31, 2017. new text end 321.22    Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read: 321.23    Subd. 4. Form of list. The list may be published by any medium or method. The list 321.24must contain the name, associated business name or names, address or addresses, and 321.25violation or violations for which a penalty was imposed of new text begin that make new text end each tax preparer 321.26subject to penalty new text begin publication new text end . 321.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 321.28 new text begin 31, 2017. new text end 321.29    Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read: 321.30    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 321.31from the list of tax preparers published under this section: 322.1(1) when the commissioner determines that the name was included on the list in error; 322.2(2) within 90 days new text begin three years new text end after the preparer has demonstrated to the commissioner 322.3that the preparer fully paid all fines new text begin and penalties new text end imposed, served any suspension, satisfied 322.4any sentence imposed, new text begin successfully completed any probationary period imposed, new text end and 322.5successfully completed any remedial actions required by the commissioner, the State Board 322.6of Accountancy, or the Lawyers Board of Professional Responsibility; or 322.7(3) when the commissioner has been notified that the tax preparer is deceased. 322.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 322.9 new text begin 31, 2017. new text end 322.10    Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read: 322.11    Subdivision 1. Commencement of action. new text begin (a) Whenever it appears to the commissioner new text end 322.12 new text begin that a tax preparer doing business in Minnesota has engaged in any conduct described in new text end 322.13 new text begin subdivision 2, new text end a civil action in the name of the state of Minnesota may be commenced to 322.14enjoin any person who is a tax return preparer doing business in this state from further 322.15engaging in any conduct described in subdivision 2 new text begin the conduct and enforce compliance new text end . 322.16 new text begin (b) new text end An action under this subdivision must be brought by the attorney general in new text begin : new text end 322.17 new text begin (1) new text end the district court for the judicial district of the tax return preparer's residence or 322.18principal place of business, or in which the new text begin ; new text end 322.19 new text begin (2) the district court for the judicial district of the residence of any new text end taxpayer with respect 322.20to whose tax return the action is brought resides new text begin ; or new text end 322.21 new text begin (3) Ramsey County District Court new text end . 322.22 new text begin (c) new text end The court may exercise its jurisdiction over the action separate and apart from any 322.23other action brought by the state of Minnesota against the tax return preparer or any taxpayer. new text begin new text end 322.24 new text begin The court must grant a permanent injunction or other appropriate relief if the commissioner new text end 322.25 new text begin shows that the person has engaged in conduct constituting a violation of a law administered new text end 322.26 new text begin by the commissioner or a cease and desist order issued by the commissioner. The new text end 322.27 new text begin commissioner shall not be required to show irreparable harm. new text end 322.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 322.29 new text begin 31, 2017. new text end 323.1    Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read: 323.2    Subd. 2. Injunction prohibiting specific conduct. In an action under subdivision 1, new text begin new text end 323.3 new text begin the court may enjoin the person from further engaging in that conduct new text end if the court finds that 323.4a tax return preparer has: 323.5(1) engaged in any conduct subject to a civil penalty under section 289A.60 or new text begin , new text end a criminal 323.6penalty under section 289A.63 new text begin , or a criminal penalty under section 609.527 or a similar new text end 323.7 new text begin statute for a return filed with the commissioner, the Internal Revenue Service, or another new text end 323.8 new text begin state new text end ; 323.9(2) misrepresented the preparer's eligibility to practice before the Department of Revenue, 323.10or otherwise misrepresented the preparer's experience or education as a tax return preparer; 323.11(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or 323.12 new text begin (4) violated a cease and desist order issued by the commissioner; or new text end 323.13(4) new text begin (5) new text end engaged in any other fraudulent or deceptive conduct that substantially interferes 323.14with the proper administration of a law administered by the commissioner, and injunctive 323.15relief is appropriate to prevent the recurrence of that conduct, new text begin . new text end 323.16the court may enjoin the person from further engaging in that conduct. 323.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 323.18 new text begin 31, 2017. new text end 323.19    Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read: 323.20    Subd. 3. Injunction prohibiting all business activities. If the court finds that a tax 323.21return preparer has continually or repeatedly engaged in conduct described in subdivision 323.222, and that an injunction prohibiting that conduct would not be sufficient to prevent the 323.23person's interference with the proper administration of a law administered by the 323.24commissioner, the court may enjoin the person from acting as a tax return preparer. The 323.25court may not enjoin the employer of a tax return preparer for conduct described in 323.26subdivision 2 engaged in by one or more of the employer's employees unless the employer 323.27was also actively involved in that conduct. 323.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 323.29 new text begin 31, 2017. new text end 324.1    Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision 324.2to read: 324.3     new text begin Subd. 3a. new text end new text begin Enforcement of cease and desist orders. new text end new text begin (a) Whenever the commissioner new text end 324.4 new text begin under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court new text end 324.5 new text begin must consider the allegations in the cease and desist order conclusively established if the new text end 324.6 new text begin order is a final order. new text end new text begin new text end 324.7 new text begin (b) If the court finds the tax preparer was not in compliance with a cease and desist order, new text end 324.8 new text begin the court may impose a further civil penalty against the tax preparer for contempt in an new text end 324.9 new text begin amount up to $10,000 for each violation and may grant any other relief the court determines new text end 324.10 new text begin is just and proper in the circumstances. A civil penalty imposed by a court under this section new text end 324.11 new text begin may be collected and enforced by the commissioner as an income tax liability. new text end 324.12 new text begin (c) The court may not require the commissioner to post a bond in an action or proceeding new text end 324.13 new text begin under this section. new text end 324.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 324.15 new text begin 31, 2017. new text end 324.16    Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read: 324.17    Subd. 13. Penalties for tax return preparers. (a) If an understatement of liability with 324.18respect to a return or claim for refund is due to a reckless disregard of laws and rules or 324.19willful attempt in any manner to understate the liability for a tax by a person who is a tax 324.20return preparer with respect to the return or claim, the person shall pay to the commissioner 324.21a penalty of $500. If a part of a property tax refund claim new text begin filed under section 290.0677, new text end 324.22 new text begin subdivision 1, or chapter 290A new text end is excessive due to a reckless disregard or willful attempt 324.23in any manner to overstate the claim for relief allowed under chapter 290A by a person who 324.24is a tax refund or return preparer, the person new text begin tax preparer new text end shall pay to the commissioner a 324.25penalty of $500 with respect to the claim. These penalties may not be assessed against the 324.26employer of a tax return preparer unless the employer was actively involved in the reckless 324.27disregard or willful attempt to understate the liability for a tax or to overstate the claim for 324.28refund. These penalties are income tax liabilities and may be assessed at any time as provided 324.29in section 289A.38, subdivision 5. 324.30(b) A civil action in the name of the state of Minnesota may be commenced to enjoin 324.31any person who is a tax return preparer doing business in this state as provided in section 324.32270C.447 . 325.1(c) The commissioner may terminate or suspend a tax preparer's authority to transmit 325.2returns electronically to the state, if the commissioner determines that the tax preparer has 325.3engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision 325.4or has been convicted under section 289A.63. 325.5(d) For purposes of this subdivision, the term "understatement of liability" means an 325.6understatement of the net amount payable with respect to a tax imposed by state tax law, 325.7or an overstatement of the net amount creditable or refundable with respect to a tax. The 325.8determination of whether or not there is an understatement of liability must be made without 325.9regard to any administrative or judicial action involving the taxpayer. For purposes of this 325.10subdivision, the amount determined for underpayment of estimated tax under either section 325.11289A.25 or 289A.26 is not considered an understatement of liability. 325.12(e) For purposes of this subdivision, the term "overstatement of claim" means an 325.13overstatement of the net amount refundable with respect to a claim for property tax relief 325.14provided by new text begin filed under section 290.0677, subdivision 1, or new text end chapter 290A. The determination 325.15of whether or not there is an overstatement of a claim must be made without regard to 325.16administrative or judicial action involving the claimant. 325.17(f) For purposes of this section, the term "tax refund or return preparer" means an 325.18individual who prepares for compensation, or who employs one or more individuals to 325.19prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of 325.20a substantial part of a return or claim for refund is treated as if it were the preparation of 325.21the entire return or claim for refund. An individual is not considered a tax return preparer 325.22merely because the individual: 325.23(1) gives typing, reproducing, or other mechanical assistance; 325.24(2) prepares a return or claim for refund of the employer, or an officer or employee of 325.25the employer, by whom the individual is regularly and continuously employed; 325.26(3) prepares a return or claim for refund of any person as a fiduciary for that person; or 325.27(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the 325.28taxpayer new text begin "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision new text end 325.29 new text begin 2, paragraph (h) new text end . 325.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 325.31 new text begin 31, 2017. new text end 326.1    Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read: 326.2    Subd. 28. Preparer identification number. Any Minnesota individual income tax return 326.3or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 326.413, paragraph (f), shall bear the identification number the preparer is required to use federally 326.5under section 6109(a)(4) of the Internal Revenue Code new text begin (a) Each of the following that is new text end 326.6 new text begin prepared by a tax preparer must include the tax preparer's tax identification number: new text end 326.7 new text begin (1) a tax return required to be filed under this chapter; new text end 326.8 new text begin (2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and new text end 326.9     new text begin (3) a claim for refund of an overpayment new text end . 326.10 new text begin (b) A tax preparer is not required to include their preparer tax identification number on new text end 326.11 new text begin a filing if the number is not required in the forms or filing requirements provided by the new text end 326.12 new text begin commissioner. new text end 326.13     new text begin (c) new text end A tax refund or return preparer who prepares a Minnesota individual income tax 326.14return or claim for refund and fails to include the required new text begin preparer tax identification new text end number 326.15on the return or claim new text begin as required by this section new text end is subject to a penalty of $50 for each 326.16failure. 326.17 new text begin (d) A tax preparer who fails to include the preparer tax identification number as required new text end 326.18 new text begin by this section, and who is required to have a valid preparer tax identification number issued new text end 326.19 new text begin under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to new text end 326.20 new text begin a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is new text end 326.21 new text begin not subject to the penalty in paragraph (c). new text end 326.22 new text begin (e) For the purposes of this subdivision, "tax preparer" has the meaning given in section new text end 326.23 new text begin 270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means new text end 326.24 new text begin the number the tax preparer is required to use federally under section 6109(a)(4) of the new text end 326.25 new text begin Internal Revenue Code. new text end 326.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 326.27 new text begin 31, 2017. new text end 326.28    Sec. 21. new text begin REVISOR'S INSTRUCTION. new text end 326.29 new text begin (a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in new text end 326.30 new text begin column A to the references listed in column B. new text end 326.31 new text begin Column A new text end new text begin Column B new text end 326.32 new text begin 270C.445, subdivision 3a new text end new text begin 270C.4451, subdivision 1 new text end 327.1 new text begin 270C.445, subdivision 4 new text end new text begin 270C.4451, subdivision 2 new text end 327.2 new text begin 270C.445, subdivision 4a new text end new text begin 270C.4451, subdivision 3 new text end 327.3 new text begin 270C.445, subdivision 4b new text end new text begin 270C.4451, subdivision 4 new text end 327.4 new text begin 270C.445, subdivision 5b new text end new text begin 270C.4451, subdivision 5 new text end 327.5 new text begin (b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and new text end 327.6 new text begin Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445, new text end 327.7 new text begin subdivisions 3a, 4, 4a, 4b, and 5b. new text end 327.8 new text begin (c) The revisor shall publish the statutory derivations of the laws renumbered in this act new text end 327.9 new text begin in Laws of Minnesota and report the derivations in Minnesota Statutes. new text end 327.10 new text begin (d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further new text end 327.11 new text begin amended in the 2017 legislative session, the revisor shall codify the amendments in a manner new text end 327.12 new text begin consistent with this act. The revisor may make necessary changes to sentence structure to new text end 327.13 new text begin preserve the meaning of the text. new text end 327.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 327.15    Sec. 22. new text begin REPEALER. new text end 327.16 new text begin Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision new text end 327.17 new text begin 4, new text end new text begin are repealed. new text end 327.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims and returns filed after December new text end 327.19 new text begin 31, 2017. new text end